Transcript CER - Hungrail

The Voice of European Railways
Railway Policy in the EU
02 October 2013, Budapest
Dr. Libor Lochman
CER Executive Director
02 October 2013
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CER
CER – Representing European railways in Brussels
The Voice of European Railways
CER stands for…

The Community of European Railway and
Infrastructure Companies brings
together railway undertakings and
infrastructure companies from the European
Union, Norway and Switzerland, the EU
candidate countries as well as from the
Western Balkan countries

CER is based in Brussels and represents the
interests of its members to the European
Parliament, Commission and Council of
Ministers as well as other policymakers and
transport actors

CER’s main focus is to to support an
improved business and regulatory
environment for European railway and
railway infrastructure companies.
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CER
What CER represents…
The Voice of European Railways
CER represents 80 member companies (23% privately owned), incumbents and
new entrants, passenger and freight operators, integrated and separated
infrastructure managers.
CER does not only represent the incumbent and system operators’ perspective
but the largest membership of rail industry actors throughout Europe including
service providers and a large number of independent infrastructure managers.
Breakdown of
integrated
and nonintegrated
CER
companies
Break-down
of nonintegrated
CER
companies
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CER interlocutors
The Voice of European Railways
Council
European
Commission
European
Parliament
European
Railway Agency
TEN-T Agency
ERTMS
corridors
ERRAC
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Social Dialogue
e.g. AAR, CIT, EIM, OSJD,
OTIF, RNE, RŽD, UIC,
UNIFE, X-Rail, et al.
World Bank, EIB, UNECE
et al.
…
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The Voice of European Railways
The EU rail acquis
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The EU rail acquis (1)
International freight
market opening
Opening int’l and domestic
freight mkt
Accounts separation
Establishment of ERA
The Voice of European Railways
Establishment of RB
Compulsory NSs
MACs
Environmental noise
Diesel emissions
1st
Railway
Package
Interoperability
directives
2nd
Railway
Package
3rd
Railway
Package
Working
conditions
of crossborder
mobile
workers
The
TransEuropean
Network
Public
Service
Transport
State Aid
Guidelines
Public
procurement
Environmental
legislation
Safety
directive
(revision)
Opening int’l
passenger market
Rail passenger
rights
Certification of
train drivers
Environmental
liability
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The EU rail acquis (2)
The Voice of European Railways
Reinforced accounts
separation
Independence of IM’s
essential functions
Longer and stronger MACs
New principles for TACs
Rail freight
corridor
regulation
Eurovignette
New TEN-T
and CEF
State Aid
Guidelines
Passenger
rights on all
modes
NDTACs and ETCS TACs
Access to Rail Related
Services
Recast of
the 1st
railway
package
4th
Railway
Package
Governance of the rail companies
Domestic rail market opening
New ERA regulation
Interoperability
Safety
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The Voice of European Railways
Setting the conditions right:
the rail system as it should be
as a result of the Recast of the
First Railway Package
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The rail system: input, output and regulatory
monitoring
The Voice of European Railways
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PUBLIC AUTHORITY
€
2.2
Rail
RB
€
Priva te sphere
PSCs
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Infrastructure
Manager
Track Access
Charges
Access to
infrastructure
Road Access
Charges
Infrastructure
€
Road system
2.1
Infrastructure
Manager
Railway system
Public sphere
MACs
€
3
€
Operators
Operators
4
€
€
CUSTOMERS
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Establishing the right public bodies and ensuring
investments
The Voice of European Railways
1
 For the satisfaction of the customers -
passenger or freight forwarders - States
must guarantee an efficient functioning of
the system
 Establishing a Rail Regulatory Body
 Establishing a Safety Authority
 Ensuring good quality for both the rail network
and the rolling stock of SOEs
 Bearing in ming that the rail network (as the road
network) relies on the availability of public
money!
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Public Service Contracts: undercompensation in CEE
& SEE
The Voice of European Railways
Source: ITF/OECD
2.1
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Public Service Contracts must be stipulated on a commercial
basis and remunerated according to the agreed terms!
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Multi Annual Contracts
The Voice of European Railways
2.2
 States must stipulate Multi Annual Contracts
(at least 5-year long) with the
infrastructure managers
 To guarantee solid financial basis for
maintenance and operations
 To guarantee a medium-term horizon to plan
new investments
 To guarantee that profit and loss accounts
balance incomes with expenditure
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Fair intramodal competition
The Voice of European Railways
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 States must make sure to put in place an
institutional framework which preserve a
fair intramodal competition
 Adequately staffing the Rail Regulatory Body
 Guaranteeing the independence of the essential
function of the infrastructure managers: path
allocation and infrastructure charging
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Fair intermodal competition
The Voice of European Railways
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 States must make sure to put in place an
institutional and legal framework which
preserve a fair intermodal competition
 Putting enough resources at disposal, and in a
fair way
 Establishing a fair policy of charging for the
access to respective networks
 Making sure each modes‘ costs reflect all
negative externalities
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The Voice of European Railways
The Fourth Railway Package
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4RP – The three main components of the intramodal
competition
1
Additional competences for ERA
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2
on authorisation for putting rolling stock in place
on safety certification for railway undertakings
Opening the domestic rail passenger market
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3
The Voice of European Railways
will define minimum scope of open access and maximum scope for PSO
will propose compulsory tendering of PSO with only limited exceptions
Railways’ organisational structures
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Universal imposition of separation
Transitional period where Annex V type of criteria shall be respected
Separate board members for holding and daughter companies
Long cooling-off periods for board members entrusted with the management of essential
functions
 New conditions for appointment of management board of essential functions
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Consultative body of infrastructure users to be established
Network of infrastructure managers to be established
IMs to be reinforced, always covering the functions of infra development,
maintenance, operations, marketing and charging
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Interactions between open access services and Public
Service Obligations: a careful balance
The Voice of European Railways
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Open access should apply on the entire network in every EU Member
State, provided that PSO economic equilibrium is preserved
Where open access and a PSO overlap on the network, States may take
measures to safeguard the economic equilibrium of the PSO
Conversely, open access operators should also be protected – e.g. where
a new PSO is created or the scope of an existing PSO is extended
Bundling of viable and non-viable services into single PSO/franchise
contracts must remain possible for efficiency reasons
Ensuring that national Regulatory Bodies have all means to fulfil their
responsibilities, also by a better coordination at EU level
 Financial architecture of national rail sectors must improve
And:
 Social conditions must be addressed
 Deepening technical alignment between national rail sectors
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CER view: the structural models
The Voice of European Railways
Efficient, non-discriminatory access to infrastructure –
a major enabler of competition in the rail sector
 Can be achieved with a well-financed and
independent regulatory body
 Allow efficient structural models to support
competitiveness agains other modes
 Both integrated and separated models can perform
 confirmed by the recent EVES-Rail study results
Each Member State should be empowered to
 reconsider its existing rail sector model
 have sufficient flexibility to reform the given model
 switch between models, if national conditions so
require
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New legislation
only if seen
necessary for the
development of
the European
railway market
after a thorough
analysis
!
CER
Structural organisation and market entry
source: EVES-Rail study
The Voice of European Railways
Many factors affect the % of new entrants – vertical separation is NOT one of them
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The Voice of European Railways
Recent pieces of legislation:
TEN-T and CEF
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Final results on the “technical standards”
The Voice of European Railways
Technical standards on the Comprehensive Network:
— Compliant with INF TSI
— Full electrification
— ERTMS
Technical standards on the Core Network:
— Same standards as comprehensive network plus:
— 22.5t axle load, 100km/h line speed,
— 740m freight train length, nominal track gauge of 1435mm
— Isolated networks excluded from the above requirements
— Additional exemptions possible in duly justified cases
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Final results on the “deadlines”
The Voice of European Railways
Comprehensive Network:
Member States „shall make all possible efforts“ to complete
the comprehensive network by 2050
Core Network:
Member States „shall take the appropriate measures“ to
complete the core network by 31 December 2030 (legally
binding)
 Council was successful in introducing more flexibility
depending on the financial situation of each Member
State
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TEN-T map of Hungarian corridors
The Voice of European Railways
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Modal distribution of rail vs road infra investments in
Hungary
Source: ITF 2013
The Voice of European Railways
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The Voice of European Railways
Something to take of:
The intermodal level playing field
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Intermodal level playing field?
Cross-modal regulation needed!
The Voice of European Railways
Improve law-making to ensure a fair intermodal
legislative framework
 Set up cross-modal legislative principles
– Common principle for infrastructure
charging
– Common principle for internalization of
negative externalities
– Common principle for taxation
– Common principle for passenger rights
– Common social standards
– …

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Infrastructure charges: all modes should be put on a
level-playing field
The Voice of European Railways
 Rail transport is energy-efficient & a low generator
of CO2 emissions but infrastructure charges for rail
are much higher than road infrastructure charges
(which are sometimes inexistant)
 Measures to lower rail infrastructure charges or
introduce road tolls have had a positive effect on
rail freight traffic
 Positive examples: UK, Denmark, Netherlands,
Sweden, Germany, Austria, Czech Republic,
Switzerland
 Recommendation: ensure alignment between road &
rail infrastructure charges for freight
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External costs: importance of assessing the true cost
of transport
The Voice of European Railways
 Current transport prices do not reflect the true
cost of transport
 Competition between modes is distorted
 Consequences on modal preferences are dramatic,
since price is the most important parameter for
freight customer
 Recommendation: fully internalise the external costs of
transport by applying the ‘polluter pays’ principle,
covering costs generated by accidents, CO2 emissions
and congestion.
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All three key elements of the sustainable rail
development must always be promoted!
The Voice of European Railways
Intermodal level
playing field
Intramodal
competition
Infrastructure
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Thank you for your attention!
The Voice of European Railways

Dr. Libor Lochman
CER Executive Director
Tel: +32 2 213 08 71
Email: [email protected]

For further information,
visit our website: www.cer.be
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