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Transport in Europe. The search for mobility. Importance of transport in Europe. 1 million transport-related enterprises Over 7million jobs Value-added of over €300 bn Almost 30% of energy consumption About 40% of public sector investment. Transport. Supports all other economic activity - PowerPoint PPT Presentation
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Transport in Europe
The search for mobility
Importance of transport in Europe
• 1 million transport-related enterprises
• Over 7million jobs
• Value-added of over €300 bn
• Almost 30% of energy consumption
• About 40% of public sector investment
Transport
• Supports all other economic activity• An important part of business costs• Facilitates trade – important to European
integration and SEM• Important for other policies
– e.g. energy, environment, social and economic cohesion, etc
• One of only two sectors explicitly in Rome Treaty
Transport trends
• 1970 – personal mobility 17 km per day
• Late 1990s – 38 km per day
• 1975-2000 European car ownership levels doubled
• Result = congestion
• Congestion costs = 0.5% GDP – will double if present trends continue
• Road = dominant transport mode– Door-to-door flexibility
• Rail transport long term decline in transport share – freight and passenger
• Rail more important in 2004 accession states
• 2004 enlargement – reinforces need for better transport
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500
1000
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3500
4000
bn passenger km
1970 1980 1991 2002
Cars Bus and coach Rail Trams & metro Air
Modal performance – passengers, EU-15
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600
800
1000
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1400
bn - tonne km
1970 1980 1991 2002
Road Rail Inland waterways Pipeline
Modal performance – freight, EU-15
0%
20%
40%
60%
80%
100%
Road Rail Inland waterway Pipeline
Freight modal split, 2002
Evolution of the Common Transport Policy
• Pre-SEM – one of most heavily regulated sectors
• Despite Treaty, transport policy dormant
→
• 1982EP took Council of Ministers to ECJ for failure to fulfil Treaty obligations and won
• SEM also highlighted need for CTP
Developing the CTP
The case of road haulage
Wide range of transformative measures
• Market access, e.g,– Mutual recognition of qualifications– Admission to the profession – Removal of quotas– Lifting of cabotage restrictions
• Tax measures
• Safety measures– E.g. driving hours
• Customs controls and regulations– Reduction of formalities
• Environmental regulations
• Technical harmonisation– Dimensions, weights, technical characteristics
• Infrastructure charging?
Freeing up of road haulage
• Facilitates emergence of holistic approach to logistics– Across borders– Across modes
• Emergence of pan-European distribution strategies and logistics companies
• Transformational effect on the spatial distribution of economic activity?
Developing the CTP
The case of airlines
Pre-SEM, airline sector
• Large state monopolies
• Fares subject to state approval
• Access to routes tightly controlled
• Cabotage restrictions
• No competition and airlines operating at a loss and highly subsidised
• By 1997, after 3 airline packages: – Freedom to set fares– Full cabotage rights– Any carrier with community licence could
serve any international route in Europe
• State aids less of a problem
Problems remain
• Airport capacity not keeping pace with demand – slot allocation issues
• Air Traffic control
• International airline agreements– Since 2002, Commission has right to
negotiate airline deals on behalf of EU– Many deals concluded, US proving more
difficult nut to crack
Changes in airline sector
• National flag carrier idea declining:– E.g Air France and KLM– End of Sabena
• Purchase of small airlines as feeders
• Strategic alliances – international rather than European
Low cost carriers – a new business model
• Not possible without EU liberalisation
• Originally developed Southwest Airlines following US deregulation
• Based on driving all cost components down
• Vulnerable to energy prices, security, etc
• Some low cost practices spreading to traditional airlines
Contrasting models
• Low cost– Direct sales – Internet– No frills– High plane turnaround:
simpler boarding, etc– Regional & secondary
airports – Standardised fleet– Higher seating density– Direct flights, short haul, no
transfers– Staff incentives
• Traditional– Multiple sales channels– Full service– Slower turnaround– International airports– Several aircraft types– Lower seating density– Long and short haul, transfers,
greater complexity– High basic costs, fewer staff
incentives
Developing the CTP
The case of rail
Rail
• Long term decline in traffic share
• Mostly heavily subsidised state monopolies
• Commission sees role for rail to relieve congestion → modal shift as policy objective
• Prospects for modal shift - low
Rail
• Last mode to experience EU liberalisation– First rail package in force 2003 – opened
international freight to competition– Second rail package in force 2004 – safety,
interoperability, domestic freight, cabotage, European Rail Agency
– Third rail package – proposed 2004 – to open passenger markets and measures re qualifications of drivers