Increasing competitiveness of rail freight undertakings – a business or political game? Jürgen Maier-Gyomlay Head International Affairs & Projects Juergen.maier@bls.ch

BLS Cargo AG – Who we are Service provider - mostly - on the central north-south corridor through Switzerland Founded 2001 Main shareholder: BLS AG Headquarters in Berne ISO 9001: certified in 2008

Remember 2015 Key Drivers for a better rail market share Attractiveness Low obstacles to enter the market Regulation (part of 4 RWP) Fair Level Playing Field (inter- and intramodal) Framework to attract rail Costumer Orientation Market Offer Cost/Benefit-Prices Quality Flexibility Economical Structure Price Sensitivity Market Demand Land-us planning Customer Needs Operational Rules / Instruments Reliable infrastructure Interoperability Standards Political will Financing (Start-up, instruments) Or Political game Innovation

„Political Games“ are everywhere Success for rail freight can only appear in a whole system, but failures as well System Missing strategy for freight (rail and overall) Lack of funding National thinking Bigger lobby for passenger traffic No pressure / need for change Politics Customer Missing will for a shift to rail Lack of information / communication Missing new Business Models «Political» game Business Technical Insufficient infrastructure (fulfills actual requirements) Missing Cross-Border-Interoperability No competition No customer orientation Missing cooperation within logistic chain Who moves first?

Some thesis's Most countries are not interested to develop rail freight Conflicts with passenger divisions is unavoidable, additional financial burden, additional priorities and intensive talk to road associations. Further national, technical barriers can avoid competition The same is valid for few infrastructure managers Similar arguments as above Some RU’s are not willing (have not) to change their business model / strategy Adapt strategy to new products and customer requirements, offer more flexibility and customer care

„Political Games“ could be positive (I) System Financial support and instruments Sustainable planning Public votings Taking over responsibility on national, regional and urban level Politics Customer Will to use rail and road Will of collaboration (operators, companies..) «Political» and Business WILL New Business Models, new products High customer orientation (no excuses) More competition Business Technical Reducing technical barriers Developing terminals and “last mile” More business for the whole sector

„Political Games“ could be positive (II) Example Switzerland: It was and is still a long way to get our results – further work is ahead Political and Business Will Heavy Vehicle 2000: 1.5 Mio. 2016: 0.98 Mio. = - 35% Modal Split (Transit) 2016: 70.1% Rail / 29.9 % Road

Some possible recommendations Defining a freight strategy Countries and companies could define a common national strategy for freight (rail, road, water) and outline the most crucial investments, but also in line with TEN-T and European Rail Freight Corridors 2. Evaluating new products RU’s could create – together with industries, enterprises – new offers to stimulate freight 3. Changing mindset Teaching people (ministries, IM’s, RU’s….) to be customer-orientated and thinking as a network and not in silos

Efficient modal shift is only possible in real collaboration