The logistics impact of the Channel Tunnel

The tunnel linking England and France is remarkable in its impact. As the global logistics network grows, the tunnel improves travel for people and goods moving between the UK and the continent. Although many speculated about the financial implications of the tunnel, no one had done a serious study regarding the logistics implications of this new rail infrastructure. This study was motivated by the French train company dedicated to freight (Fret SNCF) in their need to explore commercial opportunities through the tunnel. We started by performing a survey (in cooperation with Coopers & Lybrand) with European exporting and transportation companies of expectations and strategic evaluation for the channel tunnel as a logistics alternative. We then develop some analytical models to offer guidelines for defining the range of values that would make one transportation alternative superior. In the study we worked with data provided by Fret SNCF as well as with consultation with many European companies to validate the models and present specific solutions from different areas in the continent to the UK. In particular, we examined nine feasible scenarios for going to London from seven different areas in the European continent.