Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Peter Hübner, UIC Consultant (retired SBB Environmental director)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Financing of Retrofitting (1) Scope: Retrofitting of ~ Wagons Involved financial volume: 1000 – 3000 Mio Timescale: ~5 – 7 years from starting retrofitting Noise reduction to be expected: 8 – 10 dB(A) Funding or financing? To have in mind 2 kinds of competition : Competition in the total freight traffic market: Additional financial burden to Freight Operators will decline their market share and increase road traffic (and road traffic noise….) Funding solution preferred Competition between rail freight operators All rail freight operator should have equal possibility to benefit

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Controlling of any funding process will be demanding Specific Account Railway Noise abatement; distribution regulation. i.E. EIB Railway Operator A Railway Operator B Railway Operator C Country/National fund X Country/National fund Y i.E. use funds for substitution of noise screens Country/National fund Z Railway operators seek first national subsidies Railway Operator or country asks financial means from European Account if needed. Financing of Retrofitting (2) Direct EU Funding Instrument for structural Policies in Pre_Accession ISPA) Phare Program European Regional Development Fund Cohesion Fund LIFE+ Program for Environment

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Investigated principal EU funding possibilities: European Regional Development Fund: if retrofitting done in the New EU member states, parts of Spain, Sweden & Italy Cohesion Fund: For retrofitting freight fleets of new EU member states, but Distortion in competition! Instrument for Structural Policies for Pre-Accession (ISPA): Only for Bulgaria & Romania; Limited scope + Distortion in competition! Phare Program (ISPA): Out of scope for this project. Direct noise reduction dedicated EU funding No direct fund available yet ! Implementation of noise reduction action plans (framework of END might form background. FINANCIAL INSTRUMENT FOR THE ENVIRONMENT (LIFE +) in preparation and discussion could be addressed Financing of Retrofitting (3)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Financing (raw ideas) Financing is a well-known business for the railways if business case is clear Secondary measure, if funding fails Financing could be of interest in case Interest < annual additional costs of retrofitting See future results of calculation model To be addressed and put to tender on the financing conditions (on, pay back periods and regulations, interests,..) European Investment Bank (EIB) Loan European Bank for Reconstruction and Development (EBRD) loan EUROFIMA Financing of Retrofitting (4)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Results of investigation: 3 funding possibilities to be followed up: European Regional Development Fund (ERDF) Cohesion fund LIFE+ environmental funding instrument. ERDF & Cohesion fund is used for funding railway projects: ( : 2 billion per year including TEN-T Funds) Cohesion fund may be used for all MS after Direct noise related EU Fund for railway retrofitting not available yet. Financing of Retrofitting (5)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe EU support possible and needed! Retrofitting most efficient method to be introduced in action plans for END to reduce Railway noise To be communicated from EC to MS Railway sector only mode of transport which can offer overarching noise reduction strategy with benefits in all countries. Retrofitting should include all rolling stock to be used >10 years in future To initiate, stimulate (and fund!) at least pilots or demonstrators in various countries Support of EC needed to coordinate the various financing among all involved Parties. i.e. Central Accounting & Controlling Financing of Retrofitting (6)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe National support possible and needed too! Cohesion fund & ERDF: MS has to seek funding (together with Railway) MS has to contribute to funding MS could prepare and propose demonstrator or pilot projects Action plans to implement E nvironmenal N oise D irective : Noise related retrofitting of the railways should form first priority action to reduce railway noise LIFE+ is (October 05) still in parliament discussion, it will include all MS. Financing of Retrofitting (7)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Next steps 1.Use of Funds to be concretised Relevant parties within EU Details, how to proceed to get funding 2.Approach of the railways to be coordinated: To limit double work and improve chances of the railways 3.Financing possibilities to be clarified and concretised: Calculation model to be used to get reliable funding and financing data in varying scenarios General clarification of financing conditions. 4.Information of and to all involved parties and levels important: Retrofitting involves many parties: (EC, national authorities, environmental agencies, Railway Sector Large communication of effectiveness of retrofitting needed First important step: Today's Conference! Financing of Retrofitting (8)

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Information of and to all involved parties and levels is important: Retrofitting involves many parties: (EC, national authorities, environmental agencies, Railway Sector Large communication of effectiveness of retrofitting needed After todays conference similar annual events planned 2006, 2007 Also need to inform on a national level! Noise action plans are in the MS responsibility! Which are the messages? 1.Railway noise reduction using retrofitting freight wagons is ~10 fold as efficient as other means, i.e. noise screens: 2.Railway noise is far less annoying as the noise of other modes of transport 3.Conclusion: Noise reduction in retrofitting the freight wagons may be for some decades the sufficient mean to maintain the railways environmental lead! Conclusions

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Conclusion After retrofitting the freight wagons, the almost only noise will be the wind whistling in a corn field! Thanks for listening!

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Noise annoyance air/road/rail traffic daytime EU WG HSEA findings (October 2004) 18 % 30 % 45 %

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Noise annoyance by air/road/rail traffic night time EU WG HSEA findings (October 2004) 10 % 23 % 20 %

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Noise reduction using synthetic brake shoes

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe Retrofitting using K-blocks –Retrofitting investment costs 3 Bill. for all Europe –Costs confirmed in several independent studies, such as 3dparty assessment by AEAT NL –Experience on LCC of several km available Retrofitting using LL-blocks –Retrofitting investment costs could reach ~1Bill. for all Europe –Costs has to be investigated more in detail, as k-blocks may also have to be used for some wagon types –Experience on LCC in progress, not yet available Life Cycle Costs –Will be developed in 2006 –Will form deciding factor to use of LL- or K-block technology in dependency of the mileage of the wagons Actual knowledge on costs

Shaping the railway of the 21st century Implementation of Retrofitting freight fleet Analysis of the EU funding possibilities Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005 Rail Freight Noise Abatement in Europe STAIRRS – Results demonstrate good cost/benefit-ratio