15 September 2013CER The Voice of European Railways Rail Freight & Multimodality – CER Perspective CIT-IRU event: “Multimodality: Legal, Political and Practical Environment” 5 September 2013, Bern Dr Libor Lochman, CER Executive Director

25 September 2013CER The Voice of European Railways CER – Representing European railways in Brussels CER stands for… The Community of European Railway and Infrastructure Companies brings together railway undertakings and infrastructure companies from the European Union, Norway and Switzerland, the EU candidate countries as well as from the Western Balkan countries CER is based in Brussels and represents the interests of its members to the European Parliament, Commission and Council of Ministers as well as other policymakers and transport actors CER’s main focus is to to support an improved business and regulatory environment for European railway and railway infrastructure companies.

35 September 2013CER The Voice of European Railways What CER represents… CER represents 80 member companies (23% privately owned), incumbents and new entrants, passenger and freight operators, integrated and separated infrastructure managers. CER does not only represent the incumbent and system operators’ perspective but the largest membership of rail industry actors throughout Europe including service providers and a large number of independent infrastructure managers. Break- down of integrated and non- integrated CER companies Break-down of non- integrated CER companies

45 September 2013CER The Voice of European Railways Rail freight & multimodality: setting the scene

55 September 2013CER The Voice of European Railways Rail freight & multimodality in the 2011 Transport White Paper (1/2) The EU 2011 Transport White Paper highlighted several crucial challenges that Europe will need to overcome in the coming years: Oil dependence and growing oil scarcity Necessity to reduce greenhouse gas emissions & reduce transport’s impact on the environment Growing road and ports congestion Need to be well connected with all regions of the world, in particular Asia Need to maintain the competitiveness of the European transport sector Multimodality was identified as a good solution to these challenges: New transport patterns must emerge, according to which larger volumes of freight and greater numbers of travelers are carried jointly to their destination by the most efficient (combination of) modes. Individual transport is preferably used for the final miles of the journey. Efficient co-modality is needed.

65 September 2013CER The Voice of European Railways Rail freight & multimodality in the 2011 Transport White Paper (2/2) The Transport White Paper set specific objectives for multimodality in freight transport: Optimising the performance of multimodal logistic chains, including by making greater use of more energy-efficient modes. 30% of road freight over 300 km should shift to other modes such as rail or waterborne transport by 2030, and more than 50% by 2050, facilitated by efficient and green freight corridors. To meet this goal will also require appropriate infrastructure to be developed. Set up a fully functional and EU-wide multimodal TEN-T ‘core network’ by 2030, with a high quality and capacity network by 2050 and a corresponding set of information services. By 2050: Ensure that all core seaports are sufficiently connected to the rail freight and, where possible, inland waterway system.

75 September 2013CER The Voice of European Railways Efficient co-modality with a strong rail freight element: a reality in the EU?

85 September 2013CER The Voice of European Railways Rail freight in the EU After 10 years of EU policy… a mixed picture! There has been a significant progress of intramodal competition since market opening 2006: 14% 2008: 19% 2010: 25% BUT, the modal share of rail in land transport dropped by 2.3 points From 18.5% in 2000 Down to 16.2% in 2010 Conclusion Rail freight, which should be a core element of ‘new transport patterns’ is declining, rather than gaining market share. !

95 September 2013CER The Voice of European Railways Are rail freight operators doing enough? Operators do need to play their part but… Quality charters are being signed by an ever increasing number of rail freight operators Efforts take place at sector’s level: Towards a common consignment note for Europe-Asia traffic Towards paperless operations Towards efficient noise reduction To increase trains’ lengths and productivity To facilitate the use of rail in intermodal solutions Efforts are also taking place at individual companies’ level Rail freight operators are doing their best… … But these efforts alone will not prove sufficient

105 September 2013CER The Voice of European Railways What are the advantages of multimodality with a strong rail component for freight? Congestion is a major issue for both ports and roads: Traffic volumes in ports are expected to grow rapidely as from 2015: for period, EC estimates that tonnage handled by European ports will grow between 30% and 50%. This will increase pressure on ports infrastructure and storage space. By 2020, around 31% of the motorway network will be congested in Europe (Fraunhofer ISI & K+P study) Shifting to intermodal solutions with a strong rail component would present the following advantages: Reduce ports congestion by providing efficient links between ports and hinterland terminals Help reduce road congestion Reduce burden of transport’s external costs on society

115 September 2013CER The Voice of European Railways Combined transport: a promising segment Rail-road combined transport is doing much better than other rail freight products Total European combined rail-road traffic is set to increase further But the emergence of megatrucks could put this development at risk

125 September 2013CER The Voice of European Railways Rail-maritime freight: more efforts needed to realise its full potential Intermodal transport has developed dramatically in the past 30 years Rail can bring efficient solutions to both road and ports congestion… … but it is not used to its full potential yet

135 September 2013CER The Voice of European Railways Specific constraints & recommendations for intermodal freight transport

145 September 2013CER The Voice of European Railways Specific constraints affecting the development of intermodal freight transport Lack of appropriate infrastructure connections (e.g. connections between ports’ hinterlands and rail corridors) Policies and technological developments which are not always compatible with combined transport Insufficient use of existing solutions which can already be used across modes & tendency to « reinvent the wheel » Lack of level playing field between modes, which distorts competition and hinders the competitiveness of multimodal freight transport

155 September 2013CER The Voice of European Railways Weight & dimensions of road vehicles: impact on combined transport It is crucial to ensure that aerodynamic devices on standard trucks do not impair combined transport Directive 96/53/EC revision proposal is currently being discussed in the European Parliament and Council Megatrucks have a negative impact on combined transport: According to a Fraunhofer ISI/K&P study, the 44t/25.25m vehicles cause the highest back shift for Combined Transport, with as much as 13% losses for combined transport on Corridor 2

165 September 2013CER The Voice of European Railways Specific recommendations for intermodal freight 1. Rail freight links to seaports need to be reinforced 2. Proper connections should be established between rail-road/inland waterway terminals and rail corridors 3. The cost of trans-loading activities needs to be covered by public funding 4. Technological innovations and policy developments should take into account the needs of combined transport (e.g. weight & dimensions of road vehicles) 5. Existing e-freight solutions which can already be used across modes need to be supported (CIM consignment note & its electronic use; switch to e- administration/customs)

175 September 2013CER The Voice of European Railways Additional recommendations for multimodality with a strong rail freight component

185 September 2013CER The Voice of European Railways Need to improve rail infrastructure availability & quality TEN-T/CEF are one important step in the right direction, but more efforts are needed at national level Rail freight corridors could be instrumental in reinforcing rail freight’s competitiveness, but they need to be implemented in an harmonised manner High infrastructure charges also damage rail freight’s competitiveness Predictability of funding is a must for infrastructure managers It is also crucial for rail freight customers, as it has a significant impact on prices It also has a bearing on attractiveness of multimodal solutions with a strong rail component Improving rail infrastructure’s availability and quality is a crucial pre- requisite to be able to shift to efficient co-modality with a strong rail element

195 September 2013CER The Voice of European Railways Removing technical and administrative bottlenecks: an essential pre-requisite Rail operators face important problems in the process of authorisation of placing vehicle in service As a part of the 4. Rail Package the Commission proposed to create hierarchical link between ERA and National Safety Authorities (NSAs), where ERA monitors and coordinates the work of NSAs, so that potential conflicts are solved before they happen Total costs of the system proposed are lower than costs related to the several procedures in place today This proposal will ensure non-discrimination with the insertion of provisions to introduce binding coordination by ERA foster competition by lowering the total costs of the authorisation process

205 September 2013CER The Voice of European Railways Time to act! CER calls on European decision makers to implement as a matter of urgency the following conditions: 1. Sufficient investment in infrastructure to guaranty the availability of a well-connected and well-maintained network for rail 2. A framework in which all transport modes can compete on a level-playing field 3. Measures to remove technical & administrative bottlenecks There is no time to waste if Europe wants to have a chance to get closer to its objective of a sustainable & efficient transport sector

215 September 2013CER The Voice of European Railways For more information

225 September 2013CER The Voice of European Railways Thank you for your attention! For further information, visit our website:  Dr Libor Lochman CER Executive Director Tel: 