European Union Policy
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1 European Union Policy Alberto Gallo, CER Passenger Policy Adviser UIC High Speed Training session - Paris 23 June
2 CER - the Community of European Railway and Infrastructure Companies CER representing the European railway community High speed and transport policy issues CER and its work 2
3 CER: representing the European railway community 53 railways and infrastructure companies from entire European area (including also Switzerland, Norway, EU accession states, and aspirant EU members) associated with railways beyond Europe (Georgian railways) Private / State owned Integrated / Separated Freight and/or Passenger East / West National / Across borders EU / EU neighbours / EFTA 3
4 CER working structure Members (53) CER Other railway organisations e.g. UIC, UNIFE, CIT, OSJD, OTIF, AAR, RŽD, ETF, etc other international organisations e.g. World Bank, EIB, UNECE, UNIDROIT Council of Transport Ministers Commissioner for Transport TRAN committee Council of the EU European Commission European Parliament European Railway Agency (ERA) * European institutions * The ERA s main task is to draft proposals for the Commission on railway interoperability and safety 4
5 CER main role: A proactive influence on transport policy Formal: CER as Representative Body EU Committee membership e.g. European Railway Agency, Social Dialogue, Market Monitoring, ERRAC consulted by the European Commission e.g. Third Railway Package before publication 5
6 CER main activities: represent members interests on EU scene Proactive Communication, Influence promote policy positions on legislative proposals developed and agreed with members, e.g. Eurovignette monitor developments at all stages in EU legislative process propose detailed amendments to legislation communicate (formally, informally) European Commission, Parliament, Council proactive press for new actions, e.g. CEEC issues, TEN promote proactive voluntary committments, e.g. Passenger Charter, Freight Quality Charter produce supporting arguments/studies communication and PR campaigns relate specific members concerns to EU institutions, e.g. financing of rolling stock in Eastern Europe 6
7 CER - the Community of European Railway and Infrastructure Companies CER representing the European railway community High Speed and transport policy issues CER and its work 7
8 High Speed Rail: a political strength An asset to be proud of: - Political Shop- window for rail - Business and network growth - Strong competition with other transport modes - European network dimension political value One political issue (current topic) - Impact of seat reservations & yield management - Improved international cooperation needed (ticketing and reservations) - Linked to Third Railway Package and Interoperability legislation 8
9 The architecture of European transport and railway policy The European railway transport policy rests on 3 pillars QUALITY PRODUCTIVITY EFFICIENCY Market Opening Competition Fair Competition between modes Modern rail Infrastructure 9
10 The situation today One solid and two neglected pillars! Market Opening Competition 10 Fair Competition between modes Modern rail Infrastructure EFFICIENCY PRODUCTIVITY QUALITY
11 Market opening / competition in the European railway market Open access to the rail infrastructure 1993 International combined transport International grouping (no practical impact) 10 years gap! 2003 International freight services on Trans- European rail freight network (TERFN) all freight services international and domestic 2010? international and national passenger services withcabotage (under discussion)? Revision of Public service obligations (under discussion) 11
12 Passenger Liberalisation and High Speed Third Railway package: different political views EC and Council by Liberalisation of international services with cabotage (national journeys on international trains) European Parliament by 2008 international services by 2012 all passenger services Debate concluded by early
13 Passenger Liberalisation and High Speed CER supports the Council text: Cabotage limited in case it would compromise the economic equilibrium of a Public Service Contract Framework agreements duration extended from 10 to 15 years for services using specialized infrastructure which requires substantial and long term investments (as High Speed lines) But not Member States may impose a levy on all rail passenger services on their territory to finance PSO compensations 13
14 CER priority: stabilise the pillar on intermodal competition Fair Competition between modes harmonised principles for infrastructure charging based on user pays principle (i.e. including external costs, such as damage for the environment, congestion, noise emissions) e.g. Eurovignette road vs rail harmonised energy taxation airlines vs rail (i.e. airline kerosene taxation) harmonised working conditions road vs rail (i.e. work and rest times of truck drivers / locomotive drivers) 14
15 CER priority: stabilise the pillar on intermodal competition State of the art of European law: tolls are limited to cover infrastructure costs, external costs are not included apx. if user pays principle would be applied upper boundary under Eurovignette Dir. now* Economic approach is needed: both direct (construction, maintenance) and indirect (external) costs must be covered by tolls! * This is an approximate average for EU as a whole. However, clearly the upper boundary varies by country. In the case of Austria, charges may be higher than the EU average. 15
16 CER priority: stabilise the pillar modern rail infrastructure Modern rail Infrastructure balance investments in road and rail infrastructure by EU and EU Member States realise (=finance) priority projects of the EU Trans-European rail network establish European rail corridors, mainly for freight (also dedicated rail freight network ) overcome lack of interoperability: e.g. Euopean Rail Traffic Management System (ERTMS); Telematic Applications for Freight (TAF) 16
17 Unbalanced infrastructure investment Railway Lines and Motorways (in KM) in EU-15 (Index 1970 = 100) Highways km km km Rail High Speed Lines 900 km km km Overall situation is alarming: Expenditure for public infrastructure down from 2.4% of GDP (1990) to 0.8% (2004) risk for economic growth and employment! Source: UIC Motorway Railway 17
18 Trans-European Networks 1994: Essen priority projects were failure. 2004: new list of 30 priority projects, 21 rail related, 9 on high speed!! But: Funding gap (both EU and national budgets) EU : Planned - 20bn Euro Actual - 7bn Euro Overall cost -160bn Euro Recent step forward: World Bank ready to contribute to infrastructure development more intensively (announcement on 29 May by WB president Paul Wolfowitz) Modern Rail Infrastructure: Trans-European networks (TEN) 18
19 TEN-T priority projects of European Interest 1. Rail axis Berlin-Verona/Milan-Bologna-Napoli-Messina-Palermo 2. High Speed Rail Axis Paris-Bruxelles-Köln-Amsterdam-London 3. High Speed Rail Axis of South-West Europe 4. TGV East 5. Betuwe Line (2007) 6. Rail Axis Lyon Trieste/ Koper Ljubljana Budapest- Ukrainian border 7. Motorway axis Igoumenitsa/Patra-Athina-Sofia Budapest 8. Multimodal axis Portugal/Spain with the rest of Europe 9. Rail link Cork-Dublin-Belfast-Stranraer7 (2001) 10. Malpensa airport (completed-2001) 11. Fixed link Öresund (completed-2000) 12. Rail/road axis of the Nordic Triangle 13. Road link UK/Ireland/Benelux (2010) 14. UK West Coast Main Line (2007) 15. Galileo (2008) 19
20 TEN-T priority projects of European Interest 16. Freight rail axis Sines/Algeciras-Madrid-Paris 17. Rail axis Paris Strasbourg Stuttgart Wien Bratislava 18. Rhin/Meuse-Main-Danube inland waterway route 19. High Speed Rail Interoperability of the Iberian Peninsula 20. Rail axis of Fehmarn Belt 21. Motorways of the Sea 22. Rail Axis Athina Sofia Budapest Wien Praha Nürnberg /Dresden 23. Rail axis Gdansk Warszawa Brno/Bratislava-Wien 24. Rail axis Lyon/Genova Basel Duisburg Rotterdam/Antwerp 25. Motorway Gdansk Brno/Bratislava-Wien 26. Rail/road axis Ireland/United Kingdom/Continental Europe 27. Rail Baltica : Rail axis Warsaw - Kaunas - Riga Tallinn 28. Eurocaprail 29. Ionian/Adriatic intermodal corridor 30. Inland waterways Seine-Scheldt 20
21 Cohesion and Structural Funds (CEEC Countries) EU Budget to be allocated: Cohesion and Structural funds amount to 69.7 and billions respectively The European Commission: too low priority given by Member States to investments in rail projects more budget allocation needed for rail investments funding can be for rolling stock big thinking needed (like High Speed projects) 21
22 Interoperability (Directive 96/48) Harmonisation of cross border standards A political and technical challenge To be harmonised For example Control-command and signalling Electrification system Dimensions of rolling stock Education and training of technical staff and train drivers High speed lines Source: VDB High speed services on conventional lines 22
23 High Speed and Passenger Telematics 1. Interoperability Directive 2001/16: Passenger Telematics TSI definition [Telematics] applications for passenger services, including systems providing passengers with information before and during the journey, reservation and payment systems, luggage management and the management of connections between trains and with other forms of transport. 2. Proposed Passenger Rights regulation: Transport Council agreement December 2005 passenger telematics.one year after the adoption of this Regulation, the Commission shall, on a proposal to be submitted by the European Railway Agency (ERA), adopt the TSI of telematics applications for passengers. The TSI shall enable the provision of the information, set out in Annex II, and the issuing of tickets as governed by this Regulation..Railway undertakings shall adapt their [systems] according to the requirements set out in the TSI in accordance with a deployment plan set out in that TSI. 3. European Railway Agency work expected to start 4th Quarter 2006 Source: VDB 23
24 CER - the Community of European Railway and Infrastructure Companies CER representing the European railway community High speed and transport policy issues CER and its work 24
25 Most recent CER publications: Annual report / Position papers / Reports / Studies Annual report 2005/06 CER Report: Passenger Progress report 2005 Position paper: Public Service Transport by Rail and Road: A New legal Framework CER Report: Public Service Rail Transport in the European Union: An Overview Rail21 Sustainable Rail Systems For A Connected Europe (published by ERRAC) CER Report: Freight quality progress report 2005 Position paper: Eurovignette Position paper: Developing coherent rail services in Central and Eastern Europe: Making use of the European Union`s Structural and Cohesion Funds McKinsey study: The Future of Rail Freight in Europe Also available on CER website 25
26 Most recent CER publications: Essay series / Books CER essay series: Developing Rail Logistic Operations in Europe: Perspectives from Sweden By Jan Sundling, CEO Green Cargo The Railway in Britain: On The Right Lines By George Muir, Director General ATOC CER books: European Railway Legislation Handbook (in three languages) Reforming Europe s Railways An Assessment of Progress (in English and German) CER fact sheets: CER-UNIFE fact sheet: The 2001 White Paper: A strong strategy still to be fully implemented CER fact sheet: TEN-T Budget - Modern Infrastructure is key to European Competitiveness CER fact sheet: Eurovignette Why road tolls should reflect external costs Also available on CER website 26
27 Using High Speed to promote the railways in Brussels European Parliament Interoperability Exhibition November 2004 High Speed - the new and the old CER Rail Event for EU politicians Brussels, October
28 Thank you for your attention! 28
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