Rail freight transport is one of the continuously growing sectors worldwide, particularly in Europe. The EU’s environmental and transport policy aims to significantly increase the share of rail in inland freight transport due to its ecological benefits, such as producing several times less CO2 emissions compared to road transport. However, the industry faces numerous challenges that hinder the pace of this transformation. These include a shortage of workers, inefficient management of working hours, and outdated logistics systems. Polish startup SP Tech Solutions, a leader in railway innovation in its home country, has developed a new product aimed at addressing these issues.
Their latest system, RAILY Marketplace, now available in both the Polish and German markets, streamlines the process of sourcing and ordering traction services, significantly enhancing the efficiency and cost-effectiveness of freight rail companies.
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Staff shortages, inefficient processes… A few words on rail issues
Rail transport is much more efficient in terms of load capacity and has a smaller negative impact on the environment than the currently dominant road transport. Recently, the European Union approved the largest rail subsidy package in history under the Connecting Europe Facility (CEF) fund, and regulations like the Green Deal are making rail freight transport, which currently accounts for 17% of land transport in Europe, increasingly important in the coming years. However, the rail sector must address several longstanding problems to be properly prepared for this change.
The main pain point for companies in this sector is the inefficient management of employees’ working time, compounded by a shortage of human resources. This leads to a range of negative consequences: organizational chaos, lack of control over rising costs, and the use of inefficient systems are just a few examples. For instance, train drivers have an operational work time of only 35-50%. On the other hand, dispatchers are burdened with numerous tasks related to ordering services, such as inspectors or shunting workers. In the digital age, they still use the phone or email to do so, which sometimes resembles the work of a call center operator rather than a dispatcher.
“This issue is definitely a European-wide problem, but it is particularly noticeable in Germany. It is estimated that about 50% of rail services in this country are outsourced. This means that every time a dispatcher wants to order traction services, they have to find specialists on their own. They make dozens of phone calls or send emails, negotiating and gathering offers to compare and choose the best one,” comments Piotr Sikorski, CEO of SP Tech Solutions. “In times of a specialist shortage, this waste of time and resources, as well as burdening dispatchers with tasks that could be partially automated, leads to delays, additional costs, misunderstandings, and employee frustration.”
Rail needs innovation
In response to the contemporary challenges faced by the railway sector, the Polish startup SP Tech Solutions has developed the RAILY ecosystem, comprising three innovative solutions: RAILY Taxi, RAILY Cargo, and RAILY Marketplace, all aimed at the rail freight industry. The latest addition, RAILY Marketplace, has just entered the market and aims to help railway transport companies efficiently manage their workforce, generate savings, and simplify contract planning.
RAILY Marketplace is a digital and automated exchange for railway services. The platform enables the search and booking of traction services, such as technical inspections or hiring a driver for a specific route. With its extensive database of service providers, users can quickly receive offers for the desired service, instantly knowing the final cost. With just a few clicks, they can choose the most advantageous option. Users can then track the status of their order and settle payments online. The entire process is digitized, making it significantly faster than current solutions.
“We collaborate with a range of trusted partners, so dispatchers don’t have to waste time searching for service providers. We eliminate unnecessary phone calls and emails. With just one query sent through the system, a dispatcher can receive a list of offers from various suppliers within seconds, complete with the total price. This allows them to easily compare and choose the one that best meets their current needs.” says Michał Pawłowski, Co-Founder of SP Tech Solutions.
“RAILY Marketplace is a platform that supports the entire process of providing traction services. In addition to quickly and easily finding inspectors or train drivers ready to fulfill our orders, it also enables monitoring the status of service execution, electronic exchange of necessary documents, and online settlement. This solution helps increase the operational efficiency of both carriers and service providers, saving resources, reducing employee workload, and lowering the costs of the services provided.” adds Piotr Sikorski, CEO of SP Tech Solutions.
Efficiency as the foundation of dynamic rail development
SP Tech Solutions is well aware of the challenges the rail freight industry is facing. That’s why RAILY Marketplace is just part of an entire ecosystem of solutions designed to meet the sector’s needs. It also includes RAILY Taxi,a tool for optimizing the transport of train crews, which helps eliminate empty runs and reduce unnecessary costs. RAILY Cargo, on the other hand, is a tool that supports the integrated management of a rail company’s resources and the planning of freight logistics. “Speed and punctuality of deliveries are among the most important criteria when choosing a mode of freight transport. The efficient operation of many processes and entities is essential for rail transport to be competitive. Our RAILY solutions are focused on optimizing areas where digitization can eliminate unnecessary waste of time and resources, thereby increasing the attractiveness of rail freight transport,” explains Michał Pawłowski, Co-Founder of SP Tech Solutions.
Earlier this year, SP Tech Solutions secured nearly EUR 3 million in funding from the HiTech fund, managed by Vinci S.A., which it plans to use to develop its tools and expand into the German market. In Poland, companies such as Lotos Kolej, PKP Cargo, and Freightliner PL are already using the startup’s solutions.
Time for innovation on tracks
The rail sector is highly regulated, and the complexity of processes and relationships between its members often makes it difficult to implement innovations. The potential in rail transport, along with the changes being introduced and planned, suggests that the railway will gradually adopt new methods of operation. Digitization is the answer to many of the current problems in the sector, and solutions like RAILY Marketplace can significantly contribute to optimizing inefficiently functioning areas of its operations.
