The EU Rail Freight Corridors - Present and Future SEE Freight Logistics Conference Plovdiv – 01 September 2016 Dr. Gerhard Troche Senior Expert Rail Freight and European Issues / EU Rail Freight Corridors Railway Group KTH

Key challenges for rail freight (I) A quality challenge: Improving reliability and punctuality, i.a. through higher interoperability A cost challenge: Improving cost competitiveness by higher productivity and more efficient train operations, i.a. through improved and harmonised infrastructure standards A service challenge: Adding new added-value service features, allowing rail to (re-)enter into new / lost market segments A political challenge: Securing societal and political acceptance and support of rail freight

Key challenges for rail freight (II) … and a 'European' challenge: Achieving a truly Single European Area = Eliminating borders for the users of the rail system = Achieving a European market for rolling stock and infrastructure equipment = A European (corridor) approach to infrastructure development and traffic management = Developing cross-border rail services = … and making them easily accessible

Development trends since 1990-ies … in train operations: increasingly European approach: RUs (incumbents and new entrants) operate in open access with own resources across borders … in Infrastructure and Traffic Management: continued national approach due to: - functions being in the responsibility of national IMs - rail networks being natural monopolies - passenger traffic main user of the networks (share of international traffic: freight: > 50%, growing passenger: <5%, stable)

Lack of a Single European Rail Area - Impact on rail’s competitivness Start Destination Distance Cost Road Rail

Lack of a Single European Rail Area - Impact on rail’s competitivness Border Start Destination Distance Cost Road Rail

Lack of a Single European Rail Area - Impact on rail’s competitivness Start Destination Distance Cost Road Rail Border A Border B Border C

Legal basis of the RFC: Regulation 913/2010 concerning a European Rail Network for Competitive Freight 9 November 2010 – entry into force Principal Routes of the RFCs amended by Annex II of CEF-Regulation 1316/2013/EC Geographical integrity of the original Principal Routes is maintained Extensions in order to match the Core Network Corridors All provisions of Regulation 913/2010 remain fully in force, incl. composition, rights, tasks and obligations of the RFC governance bodies

EU Rail Freight Corridors in 2015 Defined by Regulation (EU) 913/2010

General objectives of the RFCs Reinforce cooperation among Rail Infrastructure Managers (and Member States) Improved capacity and harmonised standard on Rail Freight Corridors Provide rail freight services of good quality Improved customer orientation

RFC Governance structure

Core Network infrastructure requirements in the context of the RFC Requirements on the Core Network (Freight) according to Art 39(2a) of Reg. 1315/2013/EC (TEN-T Guidelines) 740m train length 22,5 t axle-load 100 km/h line speed ERTMS Electrification To be achieved until 2030 RFCs should carry out studies for the implementation of the requirements (elegible for co-funding under the CEF)

RFCs: Achievements - examples (I) Six RFCs operational since November 2013 All nine RFCs operational from November 2015 Setting up of Working Groups/Task Forces in the RFCs addressing specific issues raised by customers, such as: Short-distance interoperability on border sections (language, vehicle authorisation, …) Customs handling in border stations Rules for buffer wagons in Dangerous Goods transport Terms & Conditions for use of infrastructure …

RFCs: Achievements - examples (II) Growing offer and use of dedicated capacity for international freight trains (Pre-Arranged Train Paths & Reserve Capacity) Increased co-operation between different RFCs, aiming at harmonised solutions Studies for implementation of improved infrastructure standards, e.g. 740m long trains Improved loading gauges

Further developments of the RFC Network Extension of RFC Nr 8 to Southern Poland and Prague in 2015 Letter of Intent for setting up of new RFC Nr 11 submitted to European Commission in March 2016 SI, HU, SK, PL Initiative for setting up of a new Alpine-Westbalkan RFC Nr 10 AT, SI, HR, BG, (SRB)

New Amber RFC No. 11 First new RFC Connecting SI, HU, SK, PL Serving existing and potential traffic flows Improving port- hinterland connections Prospect of improved rail freight across EU Eastern border

Pan-European Corridor X and future Alpine-Westbalkan RFC No. 10 Indicative scope of future RFC 10

OSJD Corridors Two OSJD Rail Corridors linking China and EU directly.

of the Eastern Partnership Summit Joint Declaration of the Eastern Partnership Summit (Riga, 21-22 May 2015) (…) In the area of Transport, the Summit participants stress the importance of making transport links between the EU and Eastern European partners safer and more efficient, and of supporting the improvement of logistics systems, including motorways of the sea, and fostering cooperation between rail corridors.

Reference to Rail Freight Corridors in the MEMORANDUM OF UNDERSTANDING on cooperation in technical, operational and commercial development of OSJD Rail Corridors (signed on the OSJD Ministerial Meeting in June 2013) "The Members of OSJD rail corridor No ____ (list of members), hereinafter referred to as Parties: (…) Recognizing the need of close cooperation with the international, intergovernmental and non-governmental organisations, including governance bodies of already existing rail corridors, in development of international transport corridors in EuroAsian area Have agreed as follows: 7. To seek close cooperation and, where appropriate, coordination of activities with international, intergovernmental and non-governmental organisations, including governance bodies of already existing rail corridors, with the aim to develop international rail corridors in EuroAsian area. "

Reasons for evaluation and possible revision of the RFC-Regulation RFCs entering into a new phase – from establishment to development Experiences and feedback from sector stakeholders from the establishment phase and first years of operation Changes in the legal environment TEN-T Guidelines CEF-Regulation Recast 4th Railway Package

Possible future conceptual developments (I) Examples of potential areas to be addressed Co-operation between different RFCs (including Corridor- OSSs)  strengthened network approach Scope and quality of capacity offer, including flexible products Publication of capacity offer in a single place for all RFCs Harmonised and improved customer interfaces (IT-tools) Dual/multiple governance of corridor sections Co-operation between RFCs and CNCs Cooperation with other corridor concepts, such as OSJD Rail Corridors (developing the Europe-Asia axis)

Possible future conceptual developments (II) Examples of potential areas to be addressed Clarification of role of RFCs for deployment of ERTMS and TEN-T Minimum Infrastructure Requirements Better involvement of terminals; terminal capacity offered via C-OSSs, inclusion in governance structure Enhanced regulatory oversight Short-distance interoperability Content and structure of Corridor Information Documents Last-mile issues

Possible future conceptual developments (III) Examples of potential areas to be addressed Improved coordination regarding capacity restrictions Railway Advisory Groups and Authorised Applicants Monitoring and reporting procedures Decision-making procedures Definitions and terminology …

Thank you for your attention ! gerhard.troche@abe.kth.se