Spanish carmaker’s federation Anfac and the government have signed a landmark deal that will see half of the country’s cars moved by rail in 2020, up from 24% now, the two parties said in a statement.
As part of the agreement, Anfac and the public works ministry will draft a plan to “better connect the automotive industry’s transport needs with the rail network”.
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The move is part of the government’s intention to help Spain’s automotive sector at a time when a deep recession is denting sales, production and jobs. Moreover, high transport and logistic costs have long been blamed for the country’s lost of big manufacturing contracts in recent years.
Public works minister Jose Blanco said Madrid “wants to act in all the fronts” that impact the competitiveness of the industry, Europe’s third-largest car manufacturer and vital to the economy.
“This is an exporting and competitive sector where no factories have closed despite the tough crisis and its reliance on international demand.”
Anfac applauded the move, saying it will help to sharply reduce logistic expenses, which can add as much as 10% to a vehicle’s assembly costs. Anfac’s logistics director Jose Manuel Machado said the action will help fuel investments and help Spain win new vehicles from international car makers.
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By GlobalDataHe added the industry’s logistic expenses have risen in recent years as component suppliers and delivery markets have moved further away.
To achieve its objectives, Anfac and the public works will come up with new “rail merchandise corridors” to connect key component and car making sites around the country and will enable longer trains to link factories with the biggest Spanish ports.
Because of a fall in the network’s “efficiency and competitiveness”, some 500,000 cars are currently moved by train compared to 1.4m a decade ago, Anfac said.
