Modal shift to rail would mitigate cargo risk

Eikos Risk Applications director Hugh Reimers has put his weight behind moves for a modal shift from road to rail which he believes would have a significant impact on cargo security. Infrastructure issues haven’t changed over the last five years. If rail was taking more traffic off the roads we would see less damage to the infrastructure and a concomitant reduction in accidents, in his view. “There are far fewer claims on rail and thanks to containerisation and Transnet’s significant spend on risk management, rail claims have come off significantly in the past five or so years – although there is also less volume,” Reimers told FTW. Issues around efficiency and predictability have however done little to achieve any significant modal shift. High volumes of highvalue cargo are therefore continuing to move by road, and tracking is no longer a ‘nice to have’ but an imperative, says Reimers. “In our experience, with proper risk management, theft and hijacking risks can also be dramatically reduced.” And while proper risk management is expensive, in the long term, if claims are reduced there should be a commensurate reduction in premium over time. New and more sophisticated products are constantly being developed, says Reimers, and the insurance industry has an interest in fostering research and development. “We have been involved in R&D with some of our clients around mechanisms used to lock vehicles and containers,” he said, “and are approached on a regular basis by companies who believe they have a better locking or tracking device.” INSERT & CAPTION With proper risk management, theft and hijacking risks can be dramatically reduced. – Hugh Reimers