European Commission - Directorate General for Energy and Transport EIA Round Table « Development of North-South Freightways » Port of Copenhagen, 30 October 2002 n° 1 Prerequisites for competitive rail freight services in Europe Jan Scherp European Commission Directorate General for Energy and Transport Unit “Railway Transport and Interoperability”

European Commission - Directorate General for Energy and Transport n° 2 Overview l What are the EU transport and rail policy objectives l What do we have achieved in terms of modernising the regulatory framework for rail freight in the EU l What obstacles do operators of international rail freight services still face l What measure must be taken to make the new regulatory framework for competitive rail freight services operational

European Commission - Directorate General for Energy and Transport n° 3 Transport White Paper 2001 Transport policy objectives: l Securing the efficiency of the European Union transport system l Aiming at a high level of safety l Striving towards sustainability of transport l Achieve by 2010 the same modal shares as in 1998: u Rail has to absorb a greater share of expected increase of transport volumes (freight: + 38% by 2010, base 1998) u Effective measures to increase competitiveness of rail are needed

European Commission - Directorate General for Energy and Transport n° 4 Transport White Paper 2001 Most important measures for rail l Revitalisation of the rail sector Establishment of an Internal Market for rail services in Europe l Development of Trans-European transport Networks Concentrate European Union funding on elimination of bottlenecks l Coherent infrastructure charging across all transport sectors Objective: fair and efficient pricing in all countries of the European Union

European Commission - Directorate General for Energy and Transport n° % National Freight Traffic International Freight Traffic Cautious Scenario 2010 Optimistic Scenario % +33% +32% +66% Sources: DB Cargo, VLS, BVU, Forecast 1998 International freight traffic will continue to grow in significance in the years ahead. Importance of international freight in Europe

European Commission - Directorate General for Energy and Transport n° 6 What has been achieved … and needs still to be implemented The EU regulatory framework has to cater for European business strategies in the rail sector The experience made with the political concept of European Rail Freight Freeways has been transferred into generally applicable EU regulatory framework (rail infrastructure package Directives: 2001/12-14) l From 15 March 2003: open access to TERFN for international rail freight services, from 2008 access to the whole network l Transparency on access conditions through publication of Network Statement

European Commission - Directorate General for Energy and Transport n° 7 What has been achieved … and needs still to be implemented l Effective separation of essential functions (e.g. infrastructure charging, train path allocation) from rail service provision is important for non-discrimination National regulatory bodies ensuring non-discriminatory access (appeal body, observation of competition) International co-operation of infrastructure managers is essential for competitive international services: Establishment of Rail Net Europe on 24 September 2002 setting up One-Stop-Shops and co-ordinating international train paths revision clause: possible amendments after Technical harmonisation through interoperability Directives (conventional rail systems) in the making

European Commission - Directorate General for Energy and Transport n° 8 What practical problems remain l International open access services are possible now on certain corridors but problems subsist (a few examples): u Interoperability/ATC u Administrative obstacles such as obtaining a licence/insurance coverage and safety certificate u Track access charges vary strongly from country to country u Access to local facilities (marshalling yards, fuelling stations) sometimes problematic u Access to border stations/facilities (especially in Eastern Europe) refused due to old border traffic agreements u Confidentiality of commercial data when applying for capacity sometimes not ensured

European Commission - Directorate General for Energy and Transport n° 9 Challenges ahead l Commission proposes (voluntary) measures to make the infrastructure package Directives fully operational (I): u common dates for Network Statement (NS) publication and deadline for train paths requests u regulatory bodies should ensure a fair arbitration between conflicting requests for facility capacity u Co-operation of regulatory bodies shall ensure non- discriminatory access for international services F European Commission will use its powers (Art. 10(4) of Dir. 2001/12) to ensure fair access after consultation of regulatory committee

European Commission - Directorate General for Energy and Transport n° 10 Challenges ahead l Commission proposes (voluntary) measures to make the infrastructure package Directives fully operational (II): u standardised rail licence document (e.g. languages, insurance coverage) to be proposed (e.g. Commission Decision) u common criteria for the mutual recognition of safety certificates to be elaborated u standard formats for track access contracts (Art. 10(5) Dir. 2001/12) and framework agreements on capacity (Art. 17 Dir. 2001/14) to be proposed by infrastructure managers and to be published in Network Statement

European Commission - Directorate General for Energy and Transport n° 11 Challenges ahead l Adoption of second rail package (of January 2002) u Open access for all kinds of rail freight services u Safety Directive u Amendment of interoperability Directives u European Railway Agency u Mandate to negotiate EU accession to COTIF l Technical discussions in Council well advanced l EP votes amendments of 1st reading in November 2002 l Political agreement at transport Council in December 2002 possible

European Commission - Directorate General for Energy and Transport n° 12 Résumé Rail infrastructure package and 2nd railway package (if adopted) establish regulatory prerequisites for rail freight revitalisation in the EU Specific measures to ensure high level of rail freight service quality required (e.g. Regulation on compensations in case of non-compliance with contractual quality requirements) Crucial: coherent and quick implementation of European Directives in Member States Crucial: the rail market needs entrepreneurs pursuing European business strategies by using the opportunities of the European regulatory framework

European Commission - Directorate General for Energy and Transport n° 13 For further information on EU rail policy: