rail reform – czech experience zdeněk tomeš – martin kvizda – tomáš nigrin – daniel...
TRANSCRIPT
![Page 1: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/1.jpg)
Rail Reform – Czech Experience
Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer
![Page 2: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/2.jpg)
Summary
1. Introduction2. Passenger traffic3. Case study: Open access on Prague – Ostrava
route4. Freight traffic5. Conclusions
![Page 3: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/3.jpg)
Czech railway reform
Vertical separation of the industry in 2003Horizontal integration of passenger and freight operation of the state-owned incumbent České dráhyCompetition entry of many small private operators
![Page 4: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/4.jpg)
Vertical separation
1993 – 2002 → vertical integration of infrastructure management and provision of services1.1.2003 → vertical separation (partial); the emergence of the independent infrastructure manager (SŽDC) and the incumbent operator České dráhy (ČD)2003 – 2008 → infrastructure maintenance and timetabling still done by the incumbent ČD2003 – 2011 → traffic control performed by ČD2003 – 2015 → ČD possess railway stations
![Page 5: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/5.jpg)
PASSENGER TRAFFIC
![Page 6: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/6.jpg)
Railway passenger traffic - statistics
1995 2000 2006 2010 2013
Passenger-Kilometers(billions)
8.0 7.3 6.9 6.6 7.6
Modal Share of Railways
(%)10.8 8.3 7.5 7.5 8.5
Private Operator’sMarket Share
(%)n.a. n.a. 0.15 0.2 5.1
![Page 7: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/7.jpg)
Density of passenger rail traffic
Source: ČD, 2009
![Page 8: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/8.jpg)
Long distance x regional passenger traffic
Long distanceexpress, intercity and supercity connections of main cities. subsidized by the Ministry of Transportcompetition organization:
1) open access (Prague – Ostrava) 2) competitive tendering (3 routes at present) 3) direct awarding (rest of the network)
Regional regional and commuter trains for shorter distancessubsidized by regional authoritiescompetition organization: direct awarding of all subsidized services to the incumbent for the period 2009-2019
![Page 9: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/9.jpg)
Challenges
Pros and cons of open accessCompetitive tendering still little usedInfrastructure investments:o Speed limits due to bad condition of
infrastructureo Main corridors x regional lineso Does HSR Praha – Brno make sense?
![Page 10: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/10.jpg)
CASE STUDY: OPEN ACCESS PRAHA - OSTRAVA
![Page 11: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/11.jpg)
History
Before 09/2011 → high density of traffic, low intermodal competition, high fares, low quality of ČD coaches, subsidies, no competition09/2011 → withdrawal of public subsidies; the open access entrance of the first private competitor RegioJet01/2013 → the entrance of the second private competitor LeoExpress2012 - 2015 → intensive competition of three operators
![Page 12: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/12.jpg)
Service differentiation
![Page 13: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/13.jpg)
Prices (CZK)
until 09/2011 09/2011 10/2011 12/2011 11/2012 12/2012 08/2013 09/20140
100
200
300
400
500
600
700
highest fares without loyalty card
lowest fares with loyalty card
average price without loyalty card average price with loyalty card
spread of prices
![Page 14: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/14.jpg)
Profits (mil. CZK)
2012 2013
Revenue Profit Revenue Profit
České dráhy
19 500 -517 19 900 -1 795
RegioJet 246 -76 318 -93
LEO Express
7 -76 158 -159
![Page 15: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/15.jpg)
Frequency of services (daily)
2010 2011 2012 2013 2014
0
5
10
15
20
25
30
35
40
ČD IC ČD SC RJ LEO
![Page 16: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/16.jpg)
Capacity
2010 2011 2012 2013 2014
Average Number of Coaches Per Train 8.9 7.2 7.3 7.0 6.7
Average Number of Seats per Train465 408 353 336 333
Total Daily Capacity (Number of Seats)10 687 12 649 11 282 13 437 11 650
![Page 17: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/17.jpg)
Demand (mil. pass-km per day)
ČD SC ČD IC RegioJet LEO Express
TOTAL
2010 1.1 1.9 - - 3.0
2013 0.7 1.2 1.6 0.7 4.2
(mil. pass-km per day)
![Page 18: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/18.jpg)
Infrastructure capacity
Table 3: Train density on the Prague-Ostrava route in 2003, 2011, and 2013.
Number of passenger trains in weekdays
(one way only)
2003 2011 2013
ČD RJ Leo ∑ ČD RJ Leo ∑ ČD RJ Leo ∑
Prague
Long-distance 39 0 0 39 75 9 0 84 76 9 8 93 Regional 31 0 0 31 59 0 0 59 60 0 0 60 Total 70 0 0 70 134 9 0 143 136 9 8 153
Ostrava Regional 11 0 0 11 18 0 0 18 19 0 0 19 Long distance 29 0 0 29 42 9 0 51 40 9 8 57 Total 40 0 0 40 60 9 0 69 59 9 8 76
Notes: CR – České Drahy; RJ – RegioJet Leo – LeoExpress Source: Timetable ČD 2003; Timetable SZDC 2011, 2013.
![Page 19: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/19.jpg)
From tact to demand derived timetable
12 a.m.
1 a.m. 2 a.m. 3 a.m. 4 a.m. 5 a.m. 6 a.m. 7 a.m. 8 a.m. 9 a.m. 10 a.m.
11 a.m.
12 p.m.
1 p.m.
2 p.m.
3 p.m.
4 p.m.
5 p.m.
6 p.m.
7 p.m.
8 p.m.
9 p.m.
10 p.m.
11 p.m.
0
1
2
3
4
2010 2014
Number of Passenger Trains Departing from Ostrava to Prague on Weekdays (number of trains per hour)
![Page 20: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/20.jpg)
Assessment
+ better quality of services+ higher frequency of trains+ lower prices for customers
- all competitors unprofitable- weak regulation- no tariff integration- strains on infrastructure capacity
![Page 21: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/21.jpg)
FREIGHT TRAFFIC
![Page 22: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/22.jpg)
Railway freight traffic - statistics
1995 2000 2006 2010 2013
Tonne-Kilometers(billions)
22.6 17.5 15.8 13.8 14.0
Modal Share of Railways
(%)41.6 31.9 23.8 21.0 20.3
Private Operator’s
Market Share(%)
n.a. n.a 5.4 13.2 23.7
12006
![Page 23: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/23.jpg)
Freight challenges
The incumbent is losing the most lucrative customers to private competitors.The incumbent’s freight division is slow reacting, under-invested and over-employed.Possible solution → horizontal separation of passenger and freight operation of the incumbent and privatization of the freight division.
![Page 24: Rail Reform – Czech Experience Zdeněk Tomeš – Martin Kvizda – Tomáš Nigrin – Daniel Seidenglanz – Monika Jandová – Václav Rederer](https://reader035.vdocuments.net/reader035/viewer/2022062517/56649e765503460f94b77867/html5/thumbnails/24.jpg)
Conclusions
Slow reform; the incumbent still owns railway stations.Dynamic evolution of open access competition on the Prague - Ostrava route. The capable regulator is missing to solve many emerging competition disputes. With the exception of the Prague – Ostrava route, all other passenger traffic is subsidized and in most cases directly awarded.Possible solution to weak performance of freight traffic could be privatization of freight division of the incumbent.