Regulatory framework for freight wagons 28 th April 2014, Brussels (BE) Gilles Peterhans Secretary General

2 Table of contents UIP: International Union of Wagon Keepers Regulatory framework: background Freight wagon: New approach & TSI WAG Conclusions

 Founded in 1950  Represents the interest of wagon keepers and ECMs via 14 National Associations around Europe  Represents a European fleet of about rail freight wagons producing more than 50% of all tonne-kilometres around Europe.  Seated in Brussels Who is UIP?

UIP – External working structures Environment Members: 14 national associations UIP UIC, CER, ERFA, UNIFE, UIRR, EIM, UITP, EPTTOLA, ESC, CLECAT, ETF,... OTIF, UNIDROIT, RSRD 2, national associations, etc. Council of the EU European Parliament Council of Transport Ministers TRAN Committee European Railway Agency (ERA) * EUROPEAN INSTITUTIONS Other int. associations Other organisations MEMBERS keepers workshops shippers NoBos manufacturers... ERA Administrative Board European Commission Commissioner for Transport * ERA draft recommendations for EU COMMISSION on safety and interoperability RISC: Member statesSERAC: Member states

INPUTS  Monitors EU legislation that affects or may affect wagon keepers in the future  Discusses with members their business and operational priorities  Develops members’ positions though joint efforts and expertise in dedicated Topical Committees  Ensure cross-fertilization OUTPUTS  Provides expert knowledge on EU legislation and policy developments  Raises awareness before the EU Institutions and the Rail Sector of the business and operational priorities of rail freight and the wagon keepers  Influences EU legislation at technical and policy levels by promoting member’s positions, best practices, and studies How do we work

6 Table of contents UIP: International Union of Wagon Keepers Regulatory framework: background Freight wagon: New approach & TSI WAG Conclusions

Financing railways: the role of Governments History th century 1991 Private capital Oil shocks Accumulated deficits (often +2% of GDP) Concerns about rail freight market decline States take over services Repairing war damages Rising costs Strikes EU policy … Competition from road transport begins Railways under various forms of public ownership New financing streams Eurofima Private lessor Economic expansions Divergent national policies Increase of public contributions  Government intervention in order to provide appropriate financing  Railways decisions mainly driven by government priorities  Private investments mainly in freight wagons for dangerous good transports  Eurofima to support the railways in renewing and modernizing their equipment

Directive 8 Regulation Recommendation Decision Communication BINDING NON-BINDING MEMBERS EU legislation impact

railway packages: EU Initiatives - Fostering competition LICENSES MARKET SAFETY INFRASTRUCTURE INTEROPERABILITY DIR 91/440/EC:  Independence from state  Accounting separation  Sound finances  1 st market opening DIR 95/19/EC:  Track access charges and capacity allocation:  Concept of capacity allocation body, allocation priorities and principles  Safety EU level DIR 95/18/EC:  Concept of license valid throughout the EU DIR 96/48/EC:  Interoperability of high speed rail DIR 2001/12/EC:  Unbundling  Greater opening to international freight market DIR 2001/13/EC:  Conditions for granting of licences DIR 2001/14/EC:  User-changes and allocation of infrastructure capacities  Safety certificate DIR 2001/16/EC:  Interoperability of conventional rail 1st package DIR 2004/51/EC:  Full opening of internat. & domestic freight services DIR 2004/49/EC:  Definition of safety rules at European level DIR 2004/50/EC:  Harmonisation and clarification of interoperability requirements 2nd package DIR 2007/58/EC:  Opening of international passenger transport DIR 2007/59/EC:  Certification of train drivers 3rd package … DIR 2008/110/EC:  Update of safety rules  ECM Art. 14 (a) DIR 2008/57/EC:  Interop conventional update DIR 2004/881/EC: ERA

2012 EU initiatives – Towards Single Market DIR 2012/34/EC:  (1) strengthening the power of national regulators  (2) improving the framework for investment in rail  (3) ensuring fair access to rail infrastructure and rail related services COM 2013/26:  Normalisation of the accounts of RUs Last mile ? RECAST 1 st package4 th package COM 2013/28:  Opening of the market for domestic passenger transport services by rail COM 2013/29:  Opening market for domestic passenger services by rail  Governance of the rail infrastructure COM 2013/27:  ERA regulation COM 2013/31:  Definition of safety rules at European level (RECAST) COM 2013/30::  Harmonisation of interoperability requirements (RECAST) LICENSES MARKET SAFETY INFRASTRUCTURE INTEROPERABILITY Improve framework Technical pillar TEN-T guidelines: 1315/2013/EU Connecting Europe Facility (CEF): 1316/2013/EU Freight corridors: 913/2010/EC Infrastructure

4 th railway package – Expectations More interoperability, “interoperable” safety & strengthened role for ERA may boost investments:  Schengen for rail vehicles and railways  Same exams and same pass marks over Europe  Reduction of time to market and costs to market  Reduction of risks when launching new products  Clear framework of roles & responsibilities  Clear framework to limit national and protective rules Boost innovation Boost market access Boost productivity

Legal framework in rail: the role of OTIF O rganisation intergouvernementale pour les t ransports i nternationaux f erroviaires Zwischenstaatliche Organisation für den Internationalen Eisenbahnverkehr Intergovernmental Organisation for International Carriage by Rail Межправительственная организация по международным железнодорожным перевозкам المنظمة الحكومية الدولية للنقليات الدولية السككية  Inter-governmental organisation  Founded 1 st May 1985 predecessor of OTIF was OCTI (Office Central des transports internationaux par chemins de fer, 1893)  48 Contracting States + 1 associated Member (Giordania) more than 270,000 km of railway lines  Official languages: English, French and German  Headquarters: Bern, Switzerland, 22 Staff

13 Technical Prescriptions Appendix F UR APTU Uniform Rules concerning the Validation of Technical Standards and Adoption of Uniform Technical Prescriptions applicable to Railway Material intended to be used in International Traffic Admission Procedure Appendix G UR ATMF Uniform Rules concerning the Technical Admission of Railway Material used in International Traffic OTIF Technical Admission Convention concerning International Carriage by Rail Appendix А UR CIV Uniform Rules concerning the Contract of International Carriage of Passengers by Rail Appendix B UR CIM Uniform Rules concerning the Contract of International Carriage of Goods by Rail Appendix C RID Regulation concerning the International Carriage of Dangerous Goods By Rail Appendix D UR CUV Uniform Rules concerning Contracts of Use of Vehicles in International Rail Traffic Appendix E UR CUI Uniform Rules concerning the Contracts of Use of Infrastructure in International Rail Traffic COTIF > COTIF 1999 TSIECM Guided by the policy and legislation of the European Community (EC), particularly the Directive 91/440/EEC

14 Status All COTIF appendics (31) Without ATMF (1) Without CUI/APTU/ATMF (8) Without CUV/CUI/APTU/ATMF (1) Without CIV/RID/CUV/CUI/APTU/ATMF (1) COTIF not yet ratified (3) Membership suspended (2) Associate Members (1) Geographical scope of COTIF and its appendices

15 EU  Member States, EU shares competences with MS resp. has exclusive competences according to the Treaty (public law).  Define common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States OTIF  Contracting States, OTIF provides a legal interface (contractual base) which offers the CS with the opportunity to make their various railway laws compatible so that international traffic can be developed.  Define a uniform system of law for all contracts (carriage of passengers and goods, use of wagons, use of infrastructure, carriage of dangerous goods) Differenze tra EU - OTIF

16 OTIFEU Liability for consignments and vehicles √ Liability rules concerning carriage of goods or passengers √ Harmonised technical requirements for vehicle authorisation √√ Requirements for infrastructure (*)√ Authorisation checks of vehicles independent from RU/IM √√ Authorisation checks according to assessment modules √√ Harmonised responsibilities for maintenance (ECM) √√ Harmonised responsibilities for independant IM and RUs √ Competition rules / open access to new RUs √ Open market rules for railway products (new approach) √ EU – OTIF: differences

APTU & ATMF UTPs EN Standards, UIC leaflets, etc. Interop & Safety Directives TSIs EN Standards, UIC leaflets, etc. Differences in objectives Functional and technical requirements (equivalent not identical) Means of compliance (identical) 17 Technical rules: EU vs OTIF

Table of content UIP: International Union of Wagon Keepers Regulatory framework: background Freight wagon: New approach & TSI WAG Conclusions 18

19 International agreements COTIF, AGC, AGTC,... International Norms UIC leaflets, RIV, RIC, EN National norms with or without mutual recognition Directive 2008/57: new approach  Legislative harmonisation is limited to essential requirements that products placed on the Community market must meet, if they are to benefit from free movement within the Community.  The technical specifications of products meeting the essential requirements set out in the directives are laid down in harmonised standards.  Application of harmonised or other standards remains voluntary, and the manufacturer may always apply other technical specifications to meet the requirements.  Products manufactured in compliance with harmonised standards benefit from a presumption of conformity with the corresponding essential requirements. Yesterday Today

20 Interop: placing a structural subsystem in service

21 RST WAG TSI NOI TSI Network ENE TSI Operations, telematics INF TSI LOC&PAS TSI LOC&PAS TSI OPE TSI Transverse TSIs SRTPRM CCS  Merging of high speed (HS) e conventional rail (CR)  Extension of scope : from TEN-T to the whole EU rail system  5 structural subsystems: APIS done Member States;  3 functional subsystems: no placing in service, no EC declaration of verification, no NoBo; TAF TAP TSI actual revision (2014)

22 STI & EN standards: the interface TSI:

European Railway Agency No decision power for the Agency. The Agency gives recommendations to the Commission and technical opinions upon specific request! Working Party (CER, EIM, UNIFE, NSA,...) NSA Network … Internal reconcilement … Commission -> RISC Social partners Passengers/ Customers Adoption Agency Recommendation + Impact Assessment + Accompanying Report Parliament Scrutiny ERA: how are decisions taken? 23

24 Interoperabilty Unit WAG TSI (467 pages) Requirements interoperability Technical solutions Requirements operative regime Requirements other EU legislation TSI WAG: before 2008/57

Interoperabilty Unit 25 Technical solutions Appendix C (optional) Revised WAG TSI Requirements other EU legislation Requirements operative regime Core TSI (mandatory) Core TSI: functional requirements interoperability STI WAG: new approach Clause (optional)

Source in revised WAG TSIAspects belonging to... clausedescription …interoperability, network compatibility...operational regime, business case C.1Manual coupling systemx C.2UIC footsteps and handrailsx C.3Ability to be hump shuntedx C.4Free space under lifting pointsx C.5Marking of units (RIV)x C.6G1 gaugex C.7Compatibility with train detection systemsx C.8Tests concerning longitudinal compressive forcesx C.9UIC brakex C.10Location of parking brake handlesx C.11Temperature ranges for air reservoirs, hoses and greasex C.12Welding (EN :2007)x C.13Track gaugex C.14Specific brake thermal capacityx C.15Specific product properties concerning the wheelx C.16Tow hooksx C.17Protective devices on protruding partsx C.18Label holders and attachment devices for rear-end signalx 26 STI WAG: Conformity in operations

After Before 2006 PeriodDocument UIC - RIV TSI WAG 2006 TSI WAG Decision 2009 TSI WAG 2013 Go Everywhere wagons First digitMarking 0 or 1EUROP RIV2 or 3 TEN – RIV (not allowed but existing) TEN and somewhere else G1 TEN GE and somewhere else G1 Other wagons First digitMarking 4 or 8 Nothing or Bilateral plate 4 or 8 Nothing or Bilateral plate or Derogation plate 4 or 8 Nothing or Derogation plate 4 or 8 or … TEN CW and somewhere else gauge marking Nothing or or TEN and somewhere else G1 STI WAG: Marking

 CHAPTER 5 defines as Interoperability Constituents (ICs) only: Running gear, Wheelset, Wheel, Axle and Rear-end-signal  The mentioned components have to be assessed as a part of the Subsystem. The new EC Regulation 321/2013, i.e. TSI Rolling Stock – Freight Wagons attempts to simplify the assessment process and to give more responsibilities to both manufacturer of the components and keeper of the wagons. Buffer Draw Gear Brake Listed in the former TSI, but taken out in the new version. Yet they need to be interoperable at operational level. STI WAG: Verification procedure for IC components that are no longer considered as such

For NB-Rail it means a change in the verification process  New verification process for each component that is not an IC -> high costs for manufacturer  Double verification for already approved ICs: CHAPTER 6.5.a of the new TSI WAG (Regulation (EU) 321/2013) asks for re-verification. Consequences for the Wagons:  For Wagons that are still built in accordance with former TSI (Regulation (EU) 107/2009 valid until ) existing certificates for constituents that are taken out of the new TSIWAG 321/2013 are accepted  For wagons built in accordance with 321/2013, constituents that are taken out of the new TSI WAG must be re- assessed as part of the Subsystem STI WAG: Verification procedure for IC components that are no longer considered as such…

Table of content UIP: International Union of Wagon Keepers Regulatory framework: background Freight wagon: New approach & TSI WAG Conclusions 30

31 Interop & Safety directives: 2 sides of the same medal

EN norms in Praxis

Conclusions Promote a new sector-wide platform for the development of European norms and standards  to support the transformation of the rail system  to effectively migrate to emerging technological innovation  to reduce sector’s costs  to harmonise maintenance and minimise freight wagon downtimes Final: improve cost-competitiveness that is key to deliver reliability and exploit market segments until now largely untapped by rail! Together successful or fail together!

Thank you for your attention GILLES PETERHANS Secretary General NVPG (NL)