The new European regulatory framework for railways « The Dutch future of European Rail »

1Directorate-General for Energy and Transport 28/10/2003

The new European regulatory framework for railways

« The Dutch future of European Rail »Amsterdam – 28/10/2003

Jean-Arnold Vinois, Head of the “Railway Transport and Interoperability” Unit

European Commission


1 - European railways in figures

2 - EU legislation in force

3 - EU legislation under examination

4 - Further proposals under preparation

5 - State of play of the reform

6 - The challenge of enlargement

7 - The challenge of financing the railways

SummarySummary


Rail Passenger TrafficRail Passenger Traffic

Source: Prognos + European Transport Report 2002

216,6

252,8270,4

304,5 311,7 316,7

361,5384,5

0

50

100

150

200

250

300

350

400

450

1970 1980 1990 2000 2001 2002 2010 2015

(billion p.km)

EU(15)

?


CEEC EU (15)

1.2%

9.9% 9.5% 9.3% 9.3% 9.3% 9.2% 8.8% 8.8%

81.9% 82.9% 83.0% 82.8% 82.7% 82.8% 83.1% 83.0%

1.2% 1.2%1.2%1.2%1.2%1.1%1.1%

7.0% 6.5% 6.6% 6.7% 6.8% 6.8% 6.9% 7.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1991 1998 1999 2000 2001 2002 2010 2015

Urban Rail Interurban Rail Buses & Coaches Cars

3.0% 2.8% 2.9% 2.8% 2.5% 2.3%

68.1% 68.4% 69.7% 70.4% 71.3%73.5% 73.9%

2.9%

10.9% 10.2% 10.0% 9.7% 9.4% 9.9%10.8%13.8%14.4%16.2%16.7%17.2%17.7%18.2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1998 1999 2000 2001 2002 2010 2015

Urban Rail Interurban Rail Buses & Coaches Cars

Source: Prognos, European Transport Report 2002

Market Shares of Passenger Transport (in %)

Rail Passenger TrafficRail Passenger Traffic


247%

8% 18%

65%

0%

50%

100%

150%

200%

250%

Traffic evolution between 1990 and 2000

Rail Passenger Traffic: trendsRail Passenger Traffic: trends

High speed train

Conv. rail Car

Plane


Rail Freight TrafficRail Freight Traffic

283,0 287,0

255,0 249,0 245,4 247,1

315,9

372,8

0

50

100

150

200

250

300

350

400

1970 1980 1990 2000 2001 2002 2010 2015

Source: Prognos + European Transport Report 2002

(billion tkm)

EU 15

?


Market Shares of Freight Transport (in %) CEEC EU (15)

7% 7% 7% 7% 6% 6% 6% 6%

16%14% 13% 13% 13% 13% 13% 14%

77%79% 80% 80% 81% 81% 81% 80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1991 1998 1999 2000 2001 2002 2010 2015

Inland Waterw ays Rail Road

1.6% 1.4% 1.3% 1.3% 1.3% 1.5%

55.0%57.5% 58.5% 59.6% 60.5%

1.5%

32.1%32.4%38.1%38.9%40.3%40.8%43.5%

66.2% 66.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1998 1999 2000 2001 2002 2010 2015

Inland Waterw ays Rail Road

Source: Prognos, European Transport Report 2002


0

50

100

150

200

250

300

350

1980 1990 1999

Nbr of Fatalities

Railway passengers

Sources: UIC; National Statistics

EU 15

Rail Safety Rail Safety


0

200

400

600

800

1000

1200

1400

1980 1990 1998

Fatalities Railway crossings (EU 15)

Sources: UIC; National Statistics

Rail Safety Rail Safety


1 700 000

1 300 000

700 000

1980 1990 2000

Staff employed in the railway sectorStaff employed in the railway sector

(EU 15)


0

5000

10000

15000

20000

25000

30000

35000

40000

1996 1997 1998 1999 2000 2001

Infrastructure Aids Total State Aids

State aids awarded to the Railway SectorMEUR

Financing Financing


0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

B DK D EL ES F IRL I L NL A P SF S UK

Infrastructure Aids Total State Aids

MEUR State aids awarded to the Railway Sector

Financing Financing


Aims of the European Transport Aims of the European Transport PolicyPolicy

Optimise the use of existing infrastructure

Rebalancing the use of modes in favour of environmental friendly modes : rail, inland waterways, shortsea shipping

Fair and efficient pricing for infrastructures use

Users first


A major objective of the European A major objective of the European Railway PolicyRailway Policy

« Creation of an integrated European railway area

to allow cross border services under a single

responsibility in order to guarantee the quality of

services to the customer »


Eurobarometer - Spring 2003 - EU 15Eurobarometer - Spring 2003 - EU 15

“If safety standards are met, competition is the best way to make the railways more efficient.”

Tend to agree 71.5 %

Tend to disagree 12.1 %

No opinion 16.4 %


Main actions undertaken at Main actions undertaken at European levelEuropean level

A.A. DecidedDecided

1. To ensure fair and non discriminatory access to the infrastructure

Separation of essential functions i.e. allocation of capacity and charging

Open access to infra and services for international freight services

from 15 March 2003 on Transeuropean Rail Freight Network (TERFN)

from 15 March 2008 on the whole network

Charging principle of social marginal costs (with possible mark-ups)

National regulatory body to survey functioning of the market and arbitrate conflicts between infra-manager and railway undertaking


A.A. DecidedDecided

2. To ensure interoperability of the network High Speed (Dir. 96/48)

Trans-European Network for High Speed rail

Adoption of technical specifications for interoperability (TSI) for the whole system (plus European standards)In force since 30 Nov. 2002

ERTMS deployment and migration strategy to be prepared by each Member State



Conventional Rail (Dir. 2001/16)

Applicable to TEN as identified (i.e. also TERFN)

Mandate to AEIF in June 2001 for TSI in 2004 on key items for freight traffic

New mandates to AEIF in Sept. 2002



Adoption of Directive 96/48 1996

Adoption of mandates 1997Development of High Speed TSIs 1997 2002Implementation of High-Speed TSIs 2002Revision of HS TSIs 2002 2004

Adoption of Directive 2001/16 2001

First mandate (CCS, OPE, NOI, WAG, TEL-FRE) 2001Development of first CR TSI group 2001 2004Implementation of first CR TSI group 2004Second mandate (TUN, ACC, AIR) 2002Development of second CR TSI group 2002 2005Implementation of second CR TSI group 2005Third Mandate (other TSIs) 200? Development of third CR TSI group 200? 2006(?)Implementation of third CR TSI group

Adoption of Modification Directive 2003 (?)

Adoption of workprogramme preparing the extension of the scope 2005Mandate for the first new/amended TSI group 2005Development of the first TSI group 2005 2008Legal extension of the scope 2008Implementation of first TSI group 2008Following mandates (new areas, revision …)

Interoperability related activitiesProgramming mandates and TSI development


B.B. Broad agreement on the second packageBroad agreement on the second packageTo be finally decided before end 2003 by Council To be finally decided before end 2003 by Council and Parliamentand Parliament

1. Open access for international freight services on the whole network from 2006 and national services from 2008 (Council/EP conciliation on this)

2. Extension of interoperability requirement to the whole network (under conditions): accepted

3. Accession of the Community to OTIF: accepted



4. Directive on railway safety Creation of national safety authority Delivery of safety certificate Common indicators, methods and targets Creation of independent investigation bodies for accidents

5. Creation of an European Railway Agency (ERA) from 2004 To prepare Technical Specifications for Interoperability with representatives

of the sector To prepare Common Safety Methods and Targets To advise Commission and Member States 100 people (+ 15 Mio € a year)



C.C. To be proposed in 2003To be proposed in 2003Subject to decisions of the CommissionSubject to decisions of the Commission

1. Access to the infrastructure for international passenger services (requested by EP for 2006). Issues to consider:

High speed rail services

Occasional services

Cross border regional services

Scheduled international services

Problem of cabotage

Link with Public service obligations



2. Further discussion on the draft regulation on public services obligations after Altmark judgement(?)

Regional and national services

Obligation to tender if exclusive rights or compensation for P.S.

3. Rights and obligations of international rail passengers

4. Freight quality (compensation schemes considered)

5. Drivers licence directive



0

10

20

30

40

50

60

70

80

weeks

total training

practical training

formal training

Length of train drivers training in Length of train drivers training in weeksweeks


State of PlayState of Play

1.1. At European levelAt European level Enlargement to take place on 1/05/2004 - Accession Treaties concluded in April

2003. Successful referenda

Second package: EP 1st reading on 14 January 2003; common position of Council 26 June; EP second reading on 22 October 03

New Commission proposals under preparation

Social Dialogue between CER and ETF successful

Competition rules (abuse of dominant position, restrictive agreements, state aids; e.g. GVG/FS recent decision)

Revision of TEN guidelines and priority projects and revision of TEN financial regulation (proposal 1st October 2003)

Preparation of EU financial perspectives 2007-2013



2.2. At national levelAt national level

Implementation of infrastructure package of 2001 by 15 March 2003

Open access already in D-I-UK-NL-Nordic countries but some more legal work needed in D-UK-S.

Open access still to be concretised in B - F – L -SP particularly Infringement procedures against 9 countries before the European

Court of Justice Real challenges : setting the various bodies such as regulatory body,

independence of allocation body and definition of TERFN.

Interoperability ERTMS deployment plan and migration strategy


3261010

33

0100421

302

0

50

100

150

200

250

300

350

B DK D EL ES F IRL I L NL A P SF S UK

EU Licensed railway undertakings(Notifications sent to the Commission)




3.3. The playersThe players Infrastructure managers : to prepare network statement and clear

conditions for access (cfr. Rail Net Europe)

Railway undertakings :

Historic operators seeking alliances between them or with new entrants to facilitate cross border freight operations (eg. Mannheim-Woippy, Brenner Rail Cargo)

New entrants (IKEA, DLC, Rail4Chem, RTC, etc) challenging historic operators on some corridors (North-South, Brenner, etc.)

Improvement of services to be expected soon and better competitiveness against road



Customers Organize themselves to express their needs

European Rail Freight Customers Platform

European Passengers Federation

Supplying industry Main driver of standardisation activity

Offers more interoperable equipments (eg. Multi current loc, ERTMS, etc) at reduced costs


New partnerships between players

Border crossings problems to identify

Charter on Passenger services (CER)

Freight quality charter (CER)

Initiatives on quality indicators (UIRR, UIP)

Other aspects:



The challenge of enlargementThe challenge of enlargement

To take place on 1 May 2004

Participation of candidates to all European bodies from April 2003

To implement the acquis communautaire by the time of accession

Open access for international freight services fromthe accession with 3 years transitional period for Poland and Hungary (up to end 2006)


A new railway geography after A new railway geography after EU enlargementEU enlargement

EU (1st May 2004)OTIF

Balkanic States, Irak, Maroc, Algeria, Syria, Lebanon, Tunisia

OSJDAzerbaijan, Byelorussia, China,Cuba, Georgia, Kazakhstan,Kirgizia, Korean PDR, Russia, TajikistanTurkmenistan, Ukraine, Uzbekistan, Vietnam

Albania, Iran

15 +

Lithuania, Latvia, Estonia, Czech Rep., Hungary, Slovakia, Poland, Slovenia

EEA

Norway

Liecht. EU candidatesTurkey

Bulgaria, Romania,

Switzerland

EU bilateral agreement


The financing challengeThe financing challenge

Trans-European network approach Revision of guidelines to tackle accession countries and new list

of 29 projects (Commission proposal 1st October 2003) Idea of dedicated railfreight network

Revision of TEN financial regulation Proposed support of 30 % to cross border projects

Revision of financial perspectives 2007-2013 Securing infrastructure financing is a key issue

Revision of “Eurovignette” directive 99/62 New rules of road charging Cross modal financing possible under conditions


ConclusionsConclusions

European Regulatory framework under way : there is a clear vision of all the aspects

A lot of work still to be done Urgent need of the agency on interoperability and safety Addressing all types of bottlenecks (short and long term actions needed) Promoting a dedicated rail freight network European ERTMS deployment plan for mid 2004

Investments on infrastructure and rolling stock, particularly in accession countries

Huge tasks but mobilisation of players now visible


For further information:

Site: http://europa.eu.int/comm/dgs/energy_transport/index_en.html

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The new European regulatory framework for railways « The Dutch future of European Rail »