102 october 2013cer the voice of european railways railway policy in the eu 02 october 2013,...

102 October 2013 CER

The Voice of European Railways

Railway Policy in the EU02 October 2013, Budapest

Dr. Libor Lochman

CER Executive Director



CER – Representing European railways in Brussels

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.



What CER represents…

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.

Break-down of integrated and non-integrated CER companies

Break-down of non-integrated CER companies



CouncilEuropean

ParliamentEuropean

Commission

European Railway Agency

TEN-T Agency

ERTMS corridors

CER interlocutors

ERRACSocial

Dialogue…

e.g. AAR, CIT, EIM, OSJD, OTIF, RNE,

RŽD, UIC, UNIFE, X-Rail, et al.

World Bank, EIB, UNECE et al.



The EU rail acquis



The EU rail acquis (1)

1st Railway Package

Inter-operability directives

2nd Railway Package

3rd Railway Package

The Trans-

European

Network

Public Service Transpo

rt

State Aid

Guidelines

Working condition

s of cross-border mobile

workers

Public procure-

ment

Environ-mental legislati

on

Safety directiv

e (revisio

n)

International freight market opening

Accounts separation

Establishment of RB

Compulsory NSs

MACs

International freight market opening

Accounts separation

Establishment of RB

Compulsory NSs

MACs

Opening int’l and domestic freight mkt

Establishment of ERA

Opening int’l and domestic freight mkt

Establishment of ERA

Opening int’l passenger market

Rail passenger rights

Certification of train drivers

Opening int’l passenger market

Rail passenger rights

Certification of train drivers

Environmental noise

Diesel emissions

Environmental liability

Environmental noise

Diesel emissions

Environmental liability



Rail freight corridor

regulation

Euro-vignette

Passenger rights on all modes

Recast of the 1st railway package

New TEN-T and CEF

State Aid Guideline

s

The EU rail acquis (2)

Reinforced accounts separation

Independence of IM’s essential functions

Longer and stronger MACs

New principles for TACs

NDTACs and ETCS TACs

Access to Rail Related Services

Reinforced accounts separation

Independence of IM’s essential functions

Longer and stronger MACs

New principles for TACs

NDTACs and ETCS TACs

Access to Rail Related Services

4th

RailwayPackage

Governance of the rail companies

Domestic rail market opening

New ERA regulation

Interoperability

Safety

Governance of the rail companies

Domestic rail market opening

New ERA regulation

Interoperability

Safety



Setting the conditions right:

the rail system as it should be

as a result of the Recast of the First Railway Package



Road Access Charges

Road

syste

mR

oad

syste

m

Access to infrastructure

Track Access Charges

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ere

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PUBLIC AUTHORITY

CUSTOMERS

RailRB

Infrastructure

Manager

Operators

The rail system: input, output and regulatory monitoring

MACs

Operators

Infrastructure

Manager

Infrastructure

PSCs

RailRBRailRB

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Establishing the right public bodies and ensuring investments

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!



Sourc

e:

ITF/

OE

CD

Public Service Contracts: undercompensation in CEE & SEE

2.1

Public Service Contracts must be stipulated on a commercial basis and remunerated according to the agreed terms!



Multi Annual Contracts

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



Fair intramodal competition

3

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



Fair intermodal competition

4

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



The Fourth Railway Package



3

2

1

4RP – The three main components of the intramodal competition

Railways’ organisational structuresUniversal 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

Consultative body of infrastructure users to be establishedNetwork of infrastructure managers to be establishedIMs to be reinforced, always covering the functions of infra development, maintenance, operations, marketing and charging

Opening the domestic rail passenger marketwill define minimum scope of open access and maximum scope for PSOwill propose compulsory tendering of PSO with only limited exceptions

Additional competences for ERA on authorisation for putting rolling stock in place on safety certification for railway undertakings



Interactions between open access services and Public Service Obligations: a careful balance

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 Social conditions must be addressed Deepening technical alignment between national rail sectors

And:



CER view: the structural models

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

Efficient, non-discriminatory access to infrastructure –

a major enabler of competition in the rail sector

New legislation only if seen necessary for the development of the European railway market after a thorough analysis

Each Member State should be empowered toreconsider its existing rail sector modelhave sufficient flexibility to reform the given model switch between models, if national conditions so require

!



Structural organisation and market entry

sourc

e:

EV

ES-R

ail

study

Many factors affect the % of new entrants – vertical separation is NOT one of them



Recent pieces of legislation:TEN-T and CEF



Final results on the “technical standards”

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



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

Final results on the “deadlines”



TEN-T map of Hungarian corridors



Modal distribution of rail vs road infra investments in Hungary

Sourc

e:

ITF

20

13



Something to take of:The intermodal level playing

field



Intermodal level playing field?Cross-modal regulation needed!

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 – …



Infrastructure charges: all modes should be put on a level-playing field

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



External costs: importance of assessing the true cost of transport

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.



All three key elements of the sustainable rail development must always be promoted!

Infrastructure

Intermodal level playing field

Intramodal competition



Thank you for your attention!

For further information, visit our website: www.cer.be

Dr. Libor Lochman

CER Executive Director

Tel: +32 2 213 08 71Email: [email protected]

102 october 2013cer the voice of european railways railway policy in the eu 02 october 2013,...

Documents

voice of european railways

brussels cer

community of european

european union

non integrated cer companies

eu rail acquis slide

railway package new

railway undertakings