Transportation of postal items by rail 12 October 2016, Bucharest, European railway business in a global environment Cesare Brand, Secretary General (CIT)

The CIT 130 railway undertakings and maritime companies as full members 6 associated members Association under Swiss law with legal personality Objectives: Implementation of the COTIF and European law that has an impact upon transport law Standardisation of the contractual relationship between carriers and between carriers and their customers for passenger and freight traffic Representation of its members’ interests with the authorities and other organisations The CIT is an association bringing together about 130 railway undertakings and maritime companies as full members and more than 80 companies through the associated members (VöV, VDV, TBNE, Eurail, IVT, ATOC). Its headquarters, like the OTIF, are in Bern. It covers Europe from East to West, the Black Sea region and the Maghreb. Members are all railway undertakings performing international carriage of passengers and/or goods. Old Railway undertakings and new entrants are members, too. The members are based in EU Member States or States outside the EU. The CIT helps to implement the law at the undertakings level. These laws are mainly the international COTIF law (CIV and CIM Uniform Rules) but also European laws that have an impact on transport law (i.e. the Regulation concerning passenger rights). CIT’s helps to achieve increased efficiency and cost savings thanks to legal certainty and standardisation. Because membership is limited to railway undertakings (i.e. no infrastructure managers) it is able to effectively represent the interest of RU.

Potential for parcel transportation between China and Europe by rail

Development of E-commerce in China

Freight traffic between China and Europe Proportion Duration Convention ~90% > 40 days Haag-Visby/Hamburg Rules < 10% 1 day Montreal Convention ~1% ~15 days National law, COTIF/CIM, SMGS

Opportunities & challenges for railway companies Eurasian Freight Corridors - An existing market with potential Freight traffic China-Europe ~90% Sea / 40 days <10% Air / 1 day ~1% Railway / ~15 days ~30 Freight trains per week 6

Rules for postal transports by rail Relevant organisations are working together to define the legal framework for postal transport by rail on the Eurasian corridors MoU between UPU, CIT and CCTT (2016-03-13)

Scope of application of COTIF/CIM and SMGS Situation on 1 August 2016 SMGS CIM CIM + SMGS Membership suspended Associate Member

POST CN (DO(O))/OEForwarder Forming or acceptance of a parcel by DO(O) Interaction between postal and rail regulation CIT: CIM/SMGS Consignment Note Post D (DO/OE) Con-signee? 15-17 days (in future – 10 days) POST CN (DO(O))/OEForwarder 3 3 RU 2 3 UPU: CN 37, CN 34, CP 83 RU 1 4 Forming or acceptance of a parcel by DO(O) 4 2 4 Buyer/Con-signee 6 Buyer/Con-signee ULE CN Post SELLER/ Consignor 5 SELLER/ Consignor? Buyer/Con-signee Return Merchandise Service (RMS) DE Post

Use of Common CIM/SMGS consignment note Implements both contracts of carriage Recognised as a customs and bank document Does not undermine the CIM/SMGS liability conditions The “sum” of the CIM and SMGS consignment notes Based on: - Article 6 § 8 CIM + Article 6 § 11 and 7 § 15 SMGS - Layout based on the United Nations Layout - Key for trade documents

Electronic CIM/SMGS Consignment note as next step Legal and functional specifications: Last update – 1st October 2013; Revision by the CIM/SMGS Legal and Experts Group; Key issues: enforceability of standard clauses (applicable law, place of jurisdiction and duration / amendment / termination of the EDI contract) + accompanying documents in e-form (lack of legal basis); Functional Specifications: new edition 1st January 2016 Legal Specifications: under revision by the SMGS Experts Technical Specifications: No update since issuance May 2009; Revision by the ad hoc technical Expert Group

Solutions to increase railway competitiveness: GTC Eurasia as instrument on contractual level General Terms and Conditions for EurAsia Rail Transport Contracts of the CIT (GTC EurAsia) Point 3 - of the UNECE Political Declaration Framework contract - for participating railways (on different corridors) Applicable law - mandatory provisions of the national law shall apply Precondition – opting-in through the participating railways (for example DB, PKP Cargo, BC, RZD and CCTT or GETO) Legal basis - international private law (IPR)

Unified Rail Transport Law Solutions to increase railway competitiveness: UNECE Joint Declaration Joint Declaration on the promotion of Euro-Asian Rail Transport and activities towards Unified Railway Law (26 February 2013, Geneva) Important step towards a solution to unify different legal regimes State of play: Draft of relevant legal provisions to be included into a new international legal railway regime for transmission to the forthcoming session of the Inland Transport Committee (24–26 February 2015). CIT strongly invites the states and stakeholders to coordinate their work for consistent legal layers - for the benefit of a performant transport logistic and the competitiveness of the railway transportation. SMGS COTIF/CIM Unified Rail Transport Law

Status of the project Two postal transport pilots between China (Harbin) and Russia (Moscow) on passenger trains successful Pilot to transport postal items from China (Chongqing) to Germany (Duisburg) by container train in preparation by the end of the year Launch of several new rail/post services between China and Europe in 2017 (US Postal Train)

Success key for rail carriage of postal items Good quality of transport infrastructure and liable services Competitive prices Strong collaboration between postal organisations, customs, railways and customers Use of existing and proved transport and postal documents (paper and in short digital) Reduction of administrative burdens Stable and fair legal framework

Thank you for your attention! Cesare Brand Secretary General CIT Tel: +41 31 350 01 93 Email: cesare.brand@cit-rail.org  For further information, visit www.cit-rail.org 