The Fourth Railway Package Completing the Single European Railway Area to foster European Competitiveness and Growth

The Fourth Railway Package Completing the Single European Railway Area to foster European Competitiveness and Growth

Why do we need to act? Improve competitiveness of rail with other modes in order to increase the market share of the most environmentfriendly mode of transport Spend public money ( 46 bill in2009) more efficiently on public rail transport services How do we move forward? Encourage market entry by reducing admin. barriers Open domestic rail passenger transport to competition Ensure non-discrimination through a better governance of the infrastructure

The Three Pillars of the Fourth Package 1. To establish consistent approvals procedures for rail interoperability and safety 2. To open domestic passenger markets 3. To create better structures and governance for infrastructure managers

Detailed Content of the Fourth Package 6 legislative proposals 1. Directive 2012/34/EU of the European Parliament and of the Council of 21 November 2012 establishing a Single European Railway Area (Recast) 2. Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road 3. Regulation (EC) No 881/2004 of the European Parliament and of the Council of 29 April 2004 establishing a European Railway Agency 4. Directive 2004/49/EC of the European Parliament and of the Council of 29 April 2004 on safety on the Community's railways 5. Directive 2008/57/EC of the European Parliament and of the Council of 17 June 2008 on the interoperability of the rail system within the Community 6. Repeal of Regulation (EEC) 1192/69 on common rules for the normalisation of the accounts of railway undertakings.

Detailed Content of the Fourth Package 7 accompanying documents 1. Communication from the Commission on "The Fourth Railway Package Completing the Single European Railway Area to foster European Competitiveness and growth" 2. Commission Report on the progress made towards achieving interoperability of the rail system; 3. Commission Report on the profile and tasks of other train crew members; 4. Commission Report on the implementation of the provisions of Directive 2007/58/EC on the opening of the market of international rail passenger transport; 5. Commission Staff Working Document on the Impact Assessment related to the revision of the ERA regulation; 6. Commission Staff Working Document on the Impact Assessment related to opening of the market for domestic passenger transport services by rail; 7. Commission Staff Working Document on the Impact Assessment related to the governance of railway infrastructure in the single European railway area.

How was the package prepared? Consultation of a high number (nearly 500) of stakeholders Eurobarometer survey: 25.000 citizens in 25 Member States Stakeholders workshops and conferences External support studies Stakeholders studies and position papers 3 Impact assessments

Interoperability and safety Issues High market entry costs for operators wanting access to EU railway markets due to technical and administrative barriers Solution: An enhanced role of ERA in the safety certification of RUs and for issuing individual vehicle authorisation to avoid overlapping and non-transparent national rules Ultimate responsibility for ERA will lead to a faster, cheaper and better coordinated certification procedure

Domestic Rail Passenger Market Issues Inadequate service quality (punctuality, comfort, cleanliness, etc.) Limited passenger choice Inefficient use of public funds (for infrastructure and PSO) Due to Low degree of intra-rail competition and lack of competitive pressure for incumbents Incomplete Internal Market Heterogeneous business conditions across Member States

Domestic Rail Passenger Market Proposals Open Access Open access for all EU operators on all domestic passenger markets Subject to economic equilibrium test to protect public services where necessary PSC Award Compulsory competitive tendering for public service contracts of a certain size Clear cut-off date on existing directly awarded contracts (10 years transition from now)

Domestic Rail Passenger Market Proposals Framework conditions Competent authorities to ensure fair access to rolling stock so that new entrant operators are able to take part in tenders Integrated ticketing schemes between operators encouraged Transfer of workers between PSC contractors required by cross-sectoral legislation in specific conditions but MS always permitted to impose it even when such conditions are not met.

A better governance for infrastructure Efficiency challenge: Infrastructure manager as natural monopolies may lack responsiveness to customers' needs Insufficient incentives for infrastructure managers (IM) to reduce costs and improve services Lack of cross-border co-operation Equal access challenge: Conflict of interest of integrated IMs, having to grant nondiscriminatory access to new entrants and, at the same time, take account of interests of a rail holding Discrimination opportunities Lack of financial transparency/cross - subsidisation

Governance Proposals Efficency measures: All infrastructure management functions in the same hands (unifed IM) Coordination body for infrastructure managers and users Establish EU network of IM's for international coordination

Governance Proposals Equal access measures: Institutional separation as the general rule to remove conflicts of interest Possibility to maintain existing integrated structure under strict independence rules (based on the experience of the ITO model in Energy) Strict process of verification of compliance allowing MS to protect their market in absence of level playing field

Conclusion Initiatives are mutually beneficial and re-enforcing Will enhance modal shift Removing discrimination and conflicts of interest Improve value for money through competition Make industry more responsive to customer needs Create conditions to attract skilled labour force Create conditions for growth in the railway sector