models of railway reform and considerations about...

MODELS OF RAILWAY REFORMMODELS OF RAILWAY REFORMAND CONSIDERATIONS ABOUT AND CONSIDERATIONS ABOUT

THE REFORM AT TCDDTHE REFORM AT TCDDTHE REFORM AT TCDDTHE REFORM AT TCDD

V. N. OLIEVSCHIV. N. OLIEVSCHISenior Railway SpecialistSenior Railway SpecialistThe World BankThe World Bank

Ankara, 8 October 2009Ankara, 8 October 2009

e o d ae o d a

Main IdeasMain IdeasMain IdeasMain Ideas The worldwide crisis of railwaysThe worldwide crisis of railways

Models of railway reformModels of railway reform

The EU approach of railway reformThe EU approach of railway reform

The need of reform at TCDDThe need of reform at TCDD

Lessons learned Lessons learned –– useful ideas for Turkish useful ideas for Turkish RailwayRailwayRailwayRailway

NEW MARKET CONDITIONSNEW MARKET CONDITIONSAND THE RAILWAY CRISISAND THE RAILWAY CRISISAND THE RAILWAY CRISISAND THE RAILWAY CRISIS

Extraordinary increase of the efficiency of road Extraordinary increase of the efficiency of road y yy ytransport starting from 1950transport starting from 1950

Most trucking, buses, automobiles were private Most trucking, buses, automobiles were private and more flexible to the marketand more flexible to the market

Taxes and tolls on road transportation do not Taxes and tolls on road transportation do not cover the total cost of usagecover the total cost of usage

All railways across the globe suffered ever All railways across the globe suffered ever stronger competition from trucks, cars, buses, stronger competition from trucks, cars, buses, airplanesairplanesStarting from 1970 many of the world’s railways Starting from 1970 many of the world’s railways

were in a serious state of declinewere in a serious state of decline

THE VICIOUS CERCLE OF THE VICIOUS CERCLE OF RAILWAYS DECLINERAILWAYS DECLINE

Market reductionMarket reduction Financial lossesFinancial losses Financial lossesFinancial losses Poor quality servicesPoor quality services

G t i ibilit t ti tG t i ibilit t ti t Governments impossibility to continue to Governments impossibility to continue to cover losescover loses

RISK OF FINANCIAL COLLAPSERISK OF FINANCIAL COLLAPSERISK OF FINANCIAL COLLAPSERISK OF FINANCIAL COLLAPSE

MONOLITHIC RAILWAYS MONOLITHIC RAILWAYS UNFITTED TO NEW MARKETUNFITTED TO NEW MARKETUNFITTED TO NEW MARKET UNFITTED TO NEW MARKET

Similar reaction of all monolithic railways, Similar reaction of all monolithic railways, with slow and insignificant changeswith slow and insignificant changesM li ti b ti t tM li ti b ti t t Monopolistic, bureaucratic structures, Monopolistic, bureaucratic structures, integral part of the stateintegral part of the state

Production oriented organizationsProduction oriented organizations Production oriented organizationsProduction oriented organizations

MARKETMARKET REQUIREMENTSREQUIREMENTS -- IGNOREDIGNOREDMARKET MARKET REQUIREMENTS REQUIREMENTS -- IGNOREDIGNORED

It is not the strongest that survives nor the most intelligentIt is not the strongest that survives, nor the most intelligent, but rather the one most responsive to change

– Attributed to Charles Darwin

What are the goals of reform?What are the goals of reform?What are the goals of reform?What are the goals of reform?What are the goals of reform?What are the goals of reform?What are the goals of reform?What are the goals of reform? Making the railway sector financiallyMaking the railway sector financially Making the railway sector financially Making the railway sector financially

sustainablesustainable

Increasing the transport market share of Increasing the transport market share of railways by shifting traffic from roadsrailways by shifting traffic from roads

Creating greener, lowCreating greener, low--carbon economiescarbon economies

For reaching these goals, the railways must be For reaching these goals, the railways must be competitive on the marketcompetitive on the market

MAJOR FORMS OF REFORMMAJOR FORMS OF REFORMMAJOR FORMS OF REFORMMAJOR FORMS OF REFORM Structural reformsStructural reforms

–– Vertically integrated dominant operator with separate Vertically integrated dominant operator with separate external operatorsexternal operatorsVertically integrated operator with selective track accessVertically integrated operator with selective track access–– Vertically integrated operator with selective track accessVertically integrated operator with selective track access

–– Vertically separated structures in which the infrastructure Vertically separated structures in which the infrastructure is organized and operated independentlyis organized and operated independentlyg p p yg p p y

Ownership reformsOwnership reformspp–– State ownership and operationState ownership and operation–– PrivatizationPrivatization–– Concession or franchise of servicesConcession or franchise of services

Vertically Integrated Dominant Vertically Integrated Dominant Operator (Examples)Operator (Examples)

Infrastructure Freight PassengersInfrastructure Freight Passengers

US Class I Railroads

Owned: PrivateOperated: Private

Owned: PrivateOperated: PrivateRailroads,

CanadianNational, Canadian Pacific

Operated: Private Operated: Private

Canadian PacificAMTRAK, VIA Owned: State

Operated: State

J R il E t O d P i t O d P i tJapan Rail East Owned: PrivateOperated: Private


Japan Freight Railway Company

Owned: StateOperated: State

Vertically Integrated Operator with Vertically Integrated Operator with Selective Track Access (Examples)Selective Track Access (Examples)


Argentina, Brazil, Bolivia Peru

Owned: StateOperated: Private


Owned: PrivateOperated: PrivateBolivia, Peru,

Mexico (freight & passenger concessions)

Operated: Private Operated: Private Operated: Private

concessions)Chile (two freight concessions)




Af i (12 f i ht O d St t O d P i t O d P i tAfrica (12 freight concessions, in some cases with passenger




passenger services)

Vertically Separated Structures with Vertically Separated Structures with Open Track Access (Examples)Open Track Access (Examples)


European Union (more licensed



Owned: PrivateOperated: Private(more licensed

operators for freight andpassenger

Operated: State Operated: Private Operated: Private

passenger services, state still present on operations)United Kingdom (one freight operator and 25

Owned: PPPOperated: Private



pfranchises for passengers)

THE TURNING POINTTHE TURNING POINTCouncil Directive 91/440/EEC of 29 July 1991 on the Council Directive 91/440/EEC of 29 July 1991 on the development of the Community's railwaysdevelopment of the Community's railways

Accounting separation between rail infrastructure Accounting separation between rail infrastructure and train operatorsand train operatorspp

Public money for one sector cannot be used to Public money for one sector cannot be used to crosscross--subsidize the othersubsidize the other

The railways must be managed on commercial The railways must be managed on commercial basis, driven be market demands, independent from basis, driven be market demands, independent from the statethe state

NonNon--discriminatory access on railway infrastructure discriminatory access on railway infrastructure Directive 91/440 Directive 91/440 –– beginning of new legal framework beginning of new legal framework

3 Directive Packages from 2001 to 20073 Directive Packages from 2001 to 2007

THE FIRST RAILWAY PACKAGETHE FIRST RAILWAY PACKAGETHE FIRST RAILWAY PACKAGETHE FIRST RAILWAY PACKAGE(to be implemented by the member states by March 15, 2003)(to be implemented by the member states by March 15, 2003)

Directive 2001/12 amending Directive 91/440 by Directive 2001/12 amending Directive 91/440 by extending the open access for the entire network extending the open access for the entire network

Directive 2001/13 amending Directive 95/18 on Directive 2001/13 amending Directive 95/18 on the licensing of railwaysthe licensing of railways

Directive 2001/14 for infrastructure capacity Directive 2001/14 for infrastructure capacity allocation and charging, and safety certificationallocation and charging, and safety certification

THE SECOND RAILWAY PACKAGETHE SECOND RAILWAY PACKAGE(to be implemented by the member states by January 1, 2007)(to be implemented by the member states by January 1, 2007)

Directi e 2004/51 f rther amending Directi eDirecti e 2004/51 f rther amending Directi e Directive 2004/51 further amending Directive Directive 2004/51 further amending Directive 91/440,91/440,

Directive 2004/49 Directive 2004/49 –– The Safety Directive, The Safety Directive,

Directive 2004/50 amending interoperability Directive 2004/50 amending interoperability Directives 96/48 and 2001/16Directives 96/48 and 2001/16Directives 96/48 and 2001/16, Directives 96/48 and 2001/16,

R l ti 881/2004R l ti 881/2004 th E R ilth E R il Regulation 881/2004 Regulation 881/2004 –– the European Railway the European Railway Agency.Agency.

THE THIRD RAILWAY PACKAGETHE THIRD RAILWAY PACKAGE(to be implemented by the member states by January 1, 2010)(to be implemented by the member states by January 1, 2010)

Directi e 2007/58 amending the Directi e 91/440Directi e 2007/58 amending the Directi e 91/440 Directive 2007/58 amending the Directive 91/440 Directive 2007/58 amending the Directive 91/440 and Directive 2001/14 to open the market to the and Directive 2001/14 to open the market to the international transport of passengersinternational transport of passengersinternational transport of passengers,international transport of passengers,

Regulation (EC) 1371/2007 on rail passenger’sRegulation (EC) 1371/2007 on rail passenger’s Regulation (EC) 1371/2007 on rail passenger s Regulation (EC) 1371/2007 on rail passenger s rights and obligations, rights and obligations,

Directive 2007/59 on the certification of train drivers Directive 2007/59 on the certification of train drivers operating locomotives and trains on the railwayoperating locomotives and trains on the railwayoperating locomotives and trains on the railway operating locomotives and trains on the railway system in the Community.system in the Community.

SEPARATION OF STATESEPARATION OF STATESEPARATION OF STATE SEPARATION OF STATE AND RAILWAY FUNCTIONSAND RAILWAY FUNCTIONS STATE: Create the legal and institutional STATE: Create the legal and institutional

framework, develop unbiased transport framework, develop unbiased transport policies, regulate the market policies, regulate the market

RAILWAY: Service provider based on RAILWAY: Service provider based on commercial contractscommercial contracts

The governments and the railways mustThe governments and the railways mustbe adapted for fulfilling the requirements of EUbe adapted for fulfilling the requirements of EUbe adapted for fulfilling the requirements of EU be adapted for fulfilling the requirements of EU

Directives Directives

THE MULTIPLE ROLES OF THE MULTIPLE ROLES OF THE GOVERNMENTTHE GOVERNMENT

POLICY MAKER:POLICY MAKER: develop transport policies fordevelop transport policies for POLICY MAKER: POLICY MAKER: develop transport policies for develop transport policies for implementing a balances transport market between implementing a balances transport market between different modes of transportdifferent modes of transport

REGULATOR: REGULATOR: guarantee fair competition among guarantee fair competition among different modes of transport, issue clear safety regulationsdifferent modes of transport, issue clear safety regulations

OWNER: OWNER: ensure good corporate governance, set ensure good corporate governance, set challenging business targets for managers, and hold challenging business targets for managers, and hold managers accountable without meddling in managementmanagers accountable without meddling in managementmanagers accountable, without meddling in management managers accountable, without meddling in management decisions decisions

CLIENT: CLIENT: promote transparent contractual relationships promote transparent contractual relationships with railways, when asking for social serviceswith railways, when asking for social services

INSTITUTIONAL FRAMEWORK INSTITUTIONAL FRAMEWORK REQUIRED BY THE EU REQUIRED BY THE EU

LICENSING BODY: structure for issuing suspendingLICENSING BODY: structure for issuing suspending LICENSING BODY: structure for issuing, suspending, LICENSING BODY: structure for issuing, suspending, and/or revoking the licenses to railway operators and/or revoking the licenses to railway operators

SAFETY AUTHORITY: safety standards definition and SAFETY AUTHORITY: safety standards definition and control, certification of rolling stock and other components control, certification of rolling stock and other components sensitive for safetysensitive for safetysensitive for safetysensitive for safety

INVESTIGATING BODY: accidents investigations INVESTIGATING BODY: accidents investigations

REGULATORY BODY: structure authorized to process the REGULATORY BODY: structure authorized to process the appeals of potential applicants believing that they have beenappeals of potential applicants believing that they have beenappeals of potential applicants believing that they have been appeals of potential applicants believing that they have been unfairly treated or discriminated on the railway market unfairly treated or discriminated on the railway market

ORGANIZATIONAL STRUCTURES OF ORGANIZATIONAL STRUCTURES OF RAILWAYS IN EUROPERAILWAYS IN EUROPE

COUNTRYCOUNTRY INFRASTRUCTURE INFRASTRUCTURE MANAGERMANAGER

RAILWAY UNDERTAKINGSRAILWAY UNDERTAKINGS

FRANCEFRANCE RFFRFF SNCFSNCFFRANCEFRANCE RFFRFF SNCFSNCFSPAINSPAIN ADIFADIF RENFERENFEPORTUGALPORTUGAL REFERREFER CPCPFINLANDFINLAND RFKRFK VRVRCZECH REPUBLICCZECH REPUBLIC SZDCSZDC CDCDSLOVAKIASLOVAKIA ZSRZSR ZSSKZSSKSLOVAKIASLOVAKIA ZSRZSR ZSSKZSSKBULGARIABULGARIA NRICNRIC BDZBDZ--EADEAD

ORGANIZATIONAL STRUCTURES OF ORGANIZATIONAL STRUCTURES OF

COUNTRYCOUNTRY INFRASTRUCTUREINFRASTRUCTURE RAILWAY UNDERTAKINGSRAILWAY UNDERTAKINGS

RAILWAYS IN EUROPERAILWAYS IN EUROPECOUNTRYCOUNTRY INFRASTRUCTURE INFRASTRUCTURE

MANAGERMANAGERRAILWAY UNDERTAKINGSRAILWAY UNDERTAKINGS

GERMANYGERMANY DB NETZDB NETZ DB SCHENKER RAIL,DB SCHENKER RAIL,(DB HOLDING)(DB HOLDING) DB REISE & TOURISTIK, DB REISE & TOURISTIK,

DB REGIO,DB REGIO,DB STATIONDB STATIONDB STATIONDB STATION

NETHERLANDNETHERLAND ProRail (Gov. ProRail (Gov. Agency)Agency)

NS, NS, DB SCHENKER RAILDB SCHENKER RAIL

SSDENMARKDENMARK BANEDANMARKBANEDANMARK DSB, DSB, ARIVA,ARIVA,DB SCHENKER RAILDB SCHENKER RAIL


COUNTRYCOUNTRY INFRASTRUCTURE INFRASTRUCTURE RAILWAY UNDERTAKINGSRAILWAY UNDERTAKINGS

RAILWAYS IN EUROPERAILWAYS IN EUROPEMANAGERMANAGER

AUSTRIAAUSTRIA(OBB GROUP)(OBB GROUP)

OBB NETZOBB NETZ PERSONENVERKEHR AG,PERSONENVERKEHR AG,RAIL CARGO AUSTRIA AG,RAIL CARGO AUSTRIA AG,(OBB GROUP)(OBB GROUP) RAIL CARGO AUSTRIA AG,RAIL CARGO AUSTRIA AG,Other units for traction, Other units for traction, stations, real estate, etc.stations, real estate, etc.

ITALYITALY RFIRFI TRENITALIA with fourTRENITALIA with fourITALYITALY(FS HOLDING (FS HOLDING GROUP)GROUP)

RFIRFI TRENITALIA with four TRENITALIA with four Departments (Long dist., Departments (Long dist., Global Logistic, Local & Regio, Global Logistic, Local & Regio, Rolling Stock)Rolling Stock)Rolling Stock)Rolling Stock)

POLANDPOLAND(PKP GROUP)(PKP GROUP)

PLKPLK PKP CARGO,PKP CARGO,PKP InterCity,PKP InterCity,PKP REGIONALNEPKP REGIONALNEPKP MAZOVIEKIEPKP MAZOVIEKIE

ORGANIZATIONAL STRUCTURES OF ORGANIZATIONAL STRUCTURES OF RAILWAYS IN EUROPERAILWAYS IN EUROPE

COUNTRYCOUNTRY INFRASTRUCTURE INFRASTRUCTURE MANAGERMANAGER

RAILWAY UNDERTAKINGSRAILWAY UNDERTAKINGS

ROMANIAROMANIA CFRCFR CFR MARFA,CFR MARFA,CFR CALATORICFR CALATORI

SWEDENSWEDEN BV (Gov. Agency)BV (Gov. Agency) SJ AB,SJ AB,GREEN CARGOGREEN CARGOGREEN CARGOGREEN CARGO

GREAT BRITAINGREAT BRITAIN NETWORK RAIL NETWORK RAIL (PPP)(PPP)

EWS, 25 Franchises for EWS, 25 Franchises for passengerspassengers





NORWAYNORWAY JBV (Gov. Agency)JBV (Gov. Agency) NSBNSBSWITZERLANDSWITZERLAND INFRASTRUCTUREINFRASTRUCTURE PASSENGER TRAFFICPASSENGER TRAFFICSWITZERLANDSWITZERLAND(SBB AG)(SBB AG)

INFRASTRUCTURE INFRASTRUCTURE DEVISION OF SBBDEVISION OF SBB

PASSENGER TRAFFIC,PASSENGER TRAFFIC,CARGO, (Joint Stock Co)CARGO, (Joint Stock Co)REAL ESTATE,REAL ESTATE,CISALPINO AG (traffic with Italy)CISALPINO AG (traffic with Italy)LYRIA (TGV with France)LYRIA (TGV with France)SBB CARGO ITALYSBB CARGO ITALYS C GOS C GOSBB CARGO DEUTSCHLANDSBB CARGO DEUTSCHLANDDB SCHENKER RAILDB SCHENKER RAIL





CROATIACROATIA(HZ(HZ Group)Group)

HZHZ--InfrastructureInfrastructure HZHZ--Freight,Freight,HZHZ PassengersPassengers(HZ(HZ--Group)Group) HZHZ--Passengers,Passengers,HZHZ--TractionTraction

MACEDONIAMACEDONIA MZMZ--InfrastructureInfrastructure MZMZ--TransportTransport

MAIN CONCLUSIONSMAIN CONCLUSIONSABOUT THE EU RAIL REFORMABOUT THE EU RAIL REFORM EU legal and institutional framework allows a very EU legal and institutional framework allows a very

large variety of organizational solutionslarge variety of organizational solutionsTh f i l t d i tTh f i l t d i t The reform was implemented in more stages over The reform was implemented in more stages over a period of 7a period of 7--10 years and the process is not 10 years and the process is not finishedfinishedfinishedfinished

There is no one “correct” answer and not all There is no one “correct” answer and not all reform processes been uniformly “successful”reform processes been uniformly “successful”reform processes been uniformly successfulreform processes been uniformly successful

However, no one railway is in a worse situation However, no one railway is in a worse situation than before starting the railwaythan before starting the railway –– the only optionthe only optionthan before starting the railway than before starting the railway the only option the only option that is not successful is inactionthat is not successful is inaction

21% increase since 1993 until 200721% increase since 1993 until 2007

The economic development of Turkey generates moreThe economic development of Turkey generates morel f t t b t th il t bl tl f t t b t th il t bl tvolumes of transport, but the railway was not able to volumes of transport, but the railway was not able to

take full benefit of it and road takes the highest sharetake full benefit of it and road takes the highest share

The same tendency is on the passenger transport The same tendency is on the passenger transport marketmarket

The percentage of transport volume increase since The percentage of transport volume increase since 1995(100%) shows more convincing the trends1995(100%) shows more convincing the trends

The freight transport market share for each modeThe freight transport market share for each mode

The passengers transport market shareThe passengers transport market sharefor each modefor each mode

75% of average productivity of EU75% of average productivity of EU--2727

89% of average productivity of EU89% of average productivity of EU--2727

Better utilization of coaches than the EUBetter utilization of coaches than the EU--2727

48% of average traffic intensity of EU48% of average traffic intensity of EU--2727

TURKISH RAILWAYTURKISH RAILWAYAT CROSSROADSAT CROSSROADSAT CROSSROADS...AT CROSSROADS...

THE NEED OF REFORM THE NEED OF REFORM AT TCDD IS EVIDENTAT TCDD IS EVIDENT

TCDD faces similar problems as all EU railways TCDD faces similar problems as all EU railways p yp ybefore starting the reformbefore starting the reform

As a candidate country and a neighboring country As a candidate country and a neighboring country to EU, Turkey has to adopt a model based on the to EU, Turkey has to adopt a model based on the EU approachEU approach

The EU model will allow to the new Turkish The EU model will allow to the new Turkish Railway: Railway:

t b b i t f th Et b b i t f th E–– to become a business partner of other European to become a business partner of other European Railways Railways

–– to develop railway activities in other EU countriesto develop railway activities in other EU countriesto develop railway activities in other EU countriesto develop railway activities in other EU countries–– to participate in all railway related organizations of EUto participate in all railway related organizations of EU

THE ESSENTIAL COMPONENTS THE ESSENTIAL COMPONENTS OF THE REFORM (1)OF THE REFORM (1)

(ACCORDING TO THE EU DIRECTIVES) (ACCORDING TO THE EU DIRECTIVES)

Set up the institutional framework for the roles of Set up the institutional framework for the roles of the State:the State:–– Railway Department at MoT in charge with the Railway Department at MoT in charge with the

development of unbiased transport policiesdevelopment of unbiased transport policiesRegulatory Framework (licensing safety investigation)Regulatory Framework (licensing safety investigation)–– Regulatory Framework (licensing, safety, investigation)Regulatory Framework (licensing, safety, investigation)

–– Management of Public Service Contracts and Track Management of Public Service Contracts and Track Access ChargeAccess Chargegg

Create new railway company(ies), Create new railway company(ies), free of free of historical debtshistorical debts based on main lines of businessbased on main lines of businesshistorical debtshistorical debts, based on main lines of business, , based on main lines of business, financially independent from the governmentfinancially independent from the government



The transparent financial contribution of the state in The transparent financial contribution of the state in railway infrastructure:railway infrastructure:yy–– MultiMulti--annual Contracts of MoT with railway to set up: annual Contracts of MoT with railway to set up:

the infrastructure management performance targets, the infrastructure management performance targets, the public funds transferred to railway infrastructure the public funds transferred to railway infrastructure

and their destination, and their destination, methods to control the utilization of fundsmethods to control the utilization of funds methods to control the utilization of fundsmethods to control the utilization of funds

The users of railway infrastructure must pay an The users of railway infrastructure must pay an access charge that will cover access charge that will cover at least the direct at least the direct costscosts resulted for the operation of train servicesresulted for the operation of train services



The revenues from the access charges and from The revenues from the access charges and from the state contribution must cover the total costs of the state contribution must cover the total costs of operation, maintenance, and development of operation, maintenance, and development of infrastructureinfrastructure

Obligation of railway to Obligation of railway to adjust its activities to the adjust its activities to the marketmarket and to provide servicesand to provide services at the lowestat the lowestmarketmarket and to provide services and to provide services at the lowest at the lowest possible cost for the quality of service requiredpossible cost for the quality of service required

C i l h f i b dC i l h f i b d Commercial approach of passenger services based Commercial approach of passenger services based on multion multi--annual Public Service Contractsannual Public Service Contracts



Tariff for freight activities set up based on Tariff for freight activities set up based on commercial principles by the freight line of businesscommercial principles by the freight line of businesscommercial principles by the freight line of businesscommercial principles by the freight line of business

Implementation of Performance Contracts forImplementation of Performance Contracts for Implementation of Performance Contracts for Implementation of Performance Contracts for managers of railway (operational and financial managers of railway (operational and financial targets and a limited number of annual indicatorstargets and a limited number of annual indicatorstargets and a limited number of annual indicators targets and a limited number of annual indicators as conditions for the payment of the salary to the as conditions for the payment of the salary to the general managers of each line of business)general managers of each line of business)

BUSINESS ORIENTED BUSINESS ORIENTED MANAGEMENTMANAGEMENT

SUPLIERSUPLIER CUSTOMERCUSTOMER

It must function both betweenIt must function both betweenThe Railway and the MarketThe Railway and the Market andandThe Railway and the MarketThe Railway and the Market and and between thebetween the Units of the RailwayUnits of the Railway

The commercial approach in railwayThe commercial approach in railway

MarketMarket

TariffsPublic Service

ContractsSSTT

PASSENGERPASSENGERRAILWAY RAILWAY

Line of BusinessLine of Business

FREIGHTFREIGHTRAILWAY RAILWAY

Line of BusinessLine of Business

Contracts

AATT Track AccessInfrastructureTTEE

Track Access Charge

Infrastructure Management

Contract

Infrastructure ManagerInfrastructure Manager(Line of Business in Holding, SOE, Gov’t Agency)(Line of Business in Holding, SOE, Gov’t Agency)

Lessons learned (1) Lessons learned (1) ( )( ) Need of political supportNeed of political support

Appoint business oriented management teamAppoint business oriented management team

Do not ignore the international transport marketDo not ignore the international transport market Do not ignore the international transport market Do not ignore the international transport market trends (be part of the int’l market)trends (be part of the int’l market)

There is no guarantied successful approach; defineThere is no guarantied successful approach; define There is no guarantied successful approach; define There is no guarantied successful approach; define mixed solution function of specific conditionsmixed solution function of specific conditions

Th f f i ti (h ldi i tit ti lTh f f i ti (h ldi i tit ti l The forms of organization (holding, institutional The forms of organization (holding, institutional separation, concession) are less important than separation, concession) are less important than the the implementation of market principlesimplementation of market principlesimplementation of market principlesimplementation of market principles

Lessons learned (2) Lessons learned (2) ( )( ) Act now! Do not wait too long. Define solutions to be Act now! Do not wait too long. Define solutions to be

implemented step by stepimplemented step by stepimplemented step by stepimplemented step by step Continuity in implementation; once the process Continuity in implementation; once the process

started do not stopstarted do not stopstarted, do not stop started, do not stop Flexibility in the implementation. Do not ignore the Flexibility in the implementation. Do not ignore the

feed back of the system, make the necessary feed back of the system, make the necessary eed bac o t e syste , a e t e ecessa yeed bac o t e syste , a e t e ecessa ycorrectionscorrections

Invest to create the new mentality of the staff Invest to create the new mentality of the staff yy Cooperation with trade unions Cooperation with trade unions

Th t ditiTh t diti Th ti hTh ti hThe new tradition The new tradition –– The continuous change, The continuous change, innovation and updating work practicesinnovation and updating work practices

Th k f th ki d tt ti !Th k f th ki d tt ti !Thank you for the kind attention !Thank you for the kind attention !

Vasile OlievschiVasile OlievschiVasile OlievschiVasile Olievschiee--mail: [email protected]: [email protected]

models of railway reform and considerations about...

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