Railsea Route Cuts Solar Panel Costs and Emissions

Facing the rapid development of the photovoltaic industry and supply chain challenges, Maersk's Sea-Rail Intermodal solution significantly reduces transportation costs and carbon emissions by optimizing transportation routes. It also provides a stable multi-point pickup process, helping companies achieve cost reduction, efficiency improvement, and sustainable development. The solution ensures safe and timely delivery through designated train services and flexible transportation rhythm adjustments, providing photovoltaic companies with a more competitive logistics option.
Railsea Route Cuts Solar Panel Costs and Emissions

Solar energy, once considered a niche technology, has experienced explosive growth since the turn of the century. Over the past two decades, its applications and market demand have expanded at an astonishing rate. In 2020, global demand for renewable energy far exceeded expectations, with solar panel installations surging by 23%, placing unprecedented pressure on the photovoltaic supply chain. Facing this surge, major solar panel manufacturers urgently needed logistics solutions that balanced cost efficiency, timeliness, and low carbon emissions to meet the challenges of expanding production capacity.

Unique Challenges in the Photovoltaic Supply Chain

Solar panel production facilities are predominantly located in inland regions, requiring long-distance transportation to export ports on the eastern coast. This inherently increases logistical complexity. Additionally, the demand for solar panels exhibits significant seasonal fluctuations, leading to concentrated export volumes during certain months and further straining logistics resources. Moreover, solar panel factories often occupy vast areas and are typically situated in remote inland locations, far from densely populated areas. This significantly extends the supply chain, increasing the distance between production sites and end markets.

Specifically, photovoltaic companies face several critical logistical challenges:

  • Cost Control Pressures: In a highly competitive market, controlling transportation costs is crucial for profitability.
  • Growing Environmental Requirements: Aligning with the green ethos of the solar industry, companies must adopt low-carbon logistics solutions to reduce their carbon footprint and enhance their corporate image.
  • Cargo Safety: Solar panels are bulky and fragile, requiring highly specialized handling. Any oversight can result in damage, leading to financial losses.
  • Capacity Assurance: With monthly shipping volumes reaching up to 9,000 standard containers, companies must ensure their logistics providers can meet these demands to avoid delays.

Maersk’s Rail-Ocean Solution: A Green and Efficient Pathway

To address these challenges, Maersk’s intermodal team proposed two solutions. The first involved full truck transport, but this option fell short in meeting both the massive capacity requirements and the low-carbon expectations of clients. The second solution introduced dedicated rail services combined with first-mile trucking. This approach, offering cost efficiency, environmental benefits, and flexibility, quickly gained client approval.

The solution included:

  • First-Mile Trucking: Efficient short-haul transport from factories to rail terminals.
  • Dedicated Rail Services: Direct trains from rail terminals to the port of Ningbo, ensuring fast and secure delivery.
  • Container Availability: Guaranteed empty containers at inland terminals to prevent delays.
  • Flexible Scheduling: Adjusting inland transport schedules to align with vessel departures, ensuring timely shipments.

By implementing this solution, clients achieved on-time, high-quality deliveries within budget while maintaining safety standards. They also avoided the congestion and unpredictability of traditional road transport.

Key Benefits of Rail-Ocean Intermodal Transport

The dedicated rail services delivered direct advantages:

  • Cost Savings: Compared to traditional trucking, the intermodal solution reduced transportation costs by up to 30%, boosting profitability.
  • Carbon Reduction: Rail transport cut emissions by 70% compared to trucking, supporting corporate sustainability goals.
  • Streamlined Operations: Reliable multi-point pickup processes simplified logistics and improved efficiency.

Conclusion

Transporting goods often begins or ends with inland logistics. Maersk’s inland services, supported by a global network of container terminals, seamlessly connect every link in the supply chain. Through innovative rail-ocean solutions, Maersk empowers solar companies to optimize their supply chains, reduce costs, minimize emissions, and enhance competitiveness—ultimately driving sustainable growth. By prioritizing client needs, Maersk ensures businesses stay ahead in a rapidly evolving industry.