Suburban railway services best practice examples
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1 Suburban railway services best practice examples Hubert Nove-Josserand New Delhi, March 2009
2 1 Outline Suburban railway services main issues UK experience French experience German experience Bazilian experience lessons
3 2 Suburban Railway : Main issues Non profitable segment of operation Large share of the rail passengers social service Lack of investment and maintenance Poor integration with other modes of transport Poor image
4 3 UK suburban / regional Suburban rail represents a large share of the UK passenger rail services: Year 2004 Pass-km (million) Pass-km Subsidy per pass-km Long Distance 13, Regional 8,178 20% 13.4 London/SE 19,285 47% 1.9 Total 40, %
5 4 Infrastructure / rolling stock Infrastructure : Railtrack then Network Rail Owns and manages infrastructures (tracks, signaling, structures) Owns stations and stabling facilities, rented to TOCs Approves timetables proposed by operators and manages them Certifies rolling stock and drivers training procedures ROSCOS Own rolling stock Lease rolling stock to TOCs Heavy maintenance Prescribe control procedures for maintenance and operation of rolling stock 3 companies, private Issue: oligopoly situation
6 5 Operating contracts Between TOCs and Franchising director Duration: 7-15 years (possible renegotiation to 20 years) Quasi-monopoly on the service area Obligations: Service levels Bonus/malus Fare structure regulated for certain categories of passengers Contractual investment program Public service commitment
7 6 UK : main results + 41% passenger-km between 1995 and 2004 Fare increase lower than cost escalation Higher volume of investment Failure of Railtrack
8 7 Recent developments Increased Government (DfT) control on the agencies in charge of franchise contracts and ownership/management of the infrastructure Greater coordination between DfT Rail and local Governments for planning/financing suburban systems with multi-modal approach (DfT White Paper 2007 for sustainable rail) Greater responsibility given to London (TfL) to manage/develop suburban rail system: Railway Act 2005: gives greater responsibility for rail in London to Transport for London (TfL), including for Overground network London Rail created by TfL to Oversee major new rail projects Manage London Rail concession, which operates London Overground services
9 8 France Segment Proximités for suburban and regional traffic: includes Ile-de-France Region and other. Ile-de-France Region: 2.5million pass/day = 2/3 of SNCF total pass. TER (other regional): 0.7million pass/day Positive operational result Ile-de-France Region: Service contract with STIF (Transport Authority in IDF); contract renewed in 2008 IDF authorizes new lines/services IDF sets tariffs Sets service levels Pays services (per pass-km)
10 9 France : regional rail outside IdF Before 1982: SNCF fully responsible Global subsidy from central State: lack of funds for investment/maintenance (priority to TGV) Trends towards closing of services : after LOTI Regions allowed to sign MoU (Convention) with SNCF for service improvement and financial support on top of State subsidy; Almost all regions do it ; creation of logo TER Short lived improvement: lack of accounting transparency, bad forecast After 1997: 7 regions become Transport Authorities (AO): experimentation After 2002 : regional contracts being mainstreamed
11 10 France: TER contractual organization Regional Local Body through the AO Holistic mobility policy for the region Sets TER service characteristics and tariffs Controls the SNCF operation Shares financial commercial risk with SNCF SNCF Operates the passenger services Carries out engineering, makes proposals Manages the infra on behalf of RFF Takes the industrial risk Shares commercial risk through bonus/malus system Region can decides to close the rail service and replace it with a bus service
12 11 Germany : Deutsche Bundesbahn and the suburban/regional market The Regional and Urban segments dominate DB passenger market DB Revenues Pass-Km Passengers Long distance Regional Urban Total Urban segment: recent addition to the Passenger Transport Group Division; includes Berlin and Hamburg S-Bahn, and DB operated bus services Market share in Regional Rail: DB : 93% ; other (private operators) : 7%
13 12 Germany regional rail organization Traditionally: strong multi-modal integration; DB operation More recently: Law of December 1993 Länder: regional rail authorities (planning, organizing, financing) Finances: transfer of fiscal resources from Federal to Länder Tenders for operation contracts: Per line or group of lines Duration from 4 to 18 years (depending of who invests in rolling stock) Quality bonus/malus Impacts: Increase in services Reduction of market share of DB Higher quality cost reduction But Complicated process Difficulties with infrastructure manager (DB)
14 13 Brazil Brazilian Urban Trains Company (CBTU) created by GOB in 1984 by split from national railways To operate suburban rail services 810 km network length in 9 states. Poor condition in million passengers, 8% of motorized trips, poor reliability Low tariffs (= 30% of bus); high federal subsidy (capital; 80% of working costs) Weak integration (physical, tariff) with other modes Decentralization & modernization program decided in 1991 Plant and equipment rehabilitated by local governments (large cities) with federal funds and some federal control on the program
15 14 Brazil : results Sao Paulo: Suburban rail system decentrailized in 1992, then merged with State-owned system (FEPASA) 100 trains replaced, 17 stations / 25 track km rehabilitated Ridership reached 1.2 million; level of service, safety improved Tariff no higher than bus Rio de Janeiro: Suburban rail system decentralized in 1994, then privatized 80 trains, 20 stations, 150 track km rehabilitated Ridership went from 125,000 to 380,000 Lack of rail-bus fare integration Tariff lower than bus, no subsidy Institutional framework prior to investment Local authority in place WB as honest broker between federal and local government
16 15 General lessons: Trend towards: organization and financing by local governments through Urban Transport Authorities Rail companies creating special business segment to better track it UMTAs contracting out operation through limited competition to private sector or Rail State Owned Company With result in Quality improvement Control costs Better multi-modal integration Traffic increase Better profitability of the rail operator WB can play a role of honest broker to facilitate reform
17 16
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