Paris 11June 2010 EFRTC Policy & Research Committee Activity Report Prof. Lothar Fendrich Committee Vice-Chairman.

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Presentation transcript:

Paris 11June 2010 EFRTC Policy & Research Committee Activity Report Prof. Lothar Fendrich Committee Vice-Chairman

2 nd meeting held in Paris on 26 March 2010 with participation of Committee members from France, Germany, Italy, the Netherlands and UK All observers present - EIM represented by Secretary General, CER by Deputy CEO, UNIFE by Senior Infrastructure Manager Work is mainly carried out in joint EIM/CER/EFRTC Working Groups ­ WS A Market Strategy – progress report at this meeting ­ WS E Contracting strategy – remit is a part of this presentation ­ WS B Long term funding and planning – remit completed by EIM, activities will start in 09/10 and SG in relation to other EC activities Current state of art EFRTC GM, Paris

Items discussed at the meeting Progress of the work of the joint EIM/EFRTC/CER Market strategy group Preparation of work on WS B – Long term funding and WS E – Contracting strategy ERRAC Roadmaps project Auto-Main part-EC funded project proposal EFRTC Fact Sheets EIM and CER information on the latest policy and strategy issues Review of the Policy and Research Committee remits Exchange of information on current topical issues EFRTC GM, Paris

Remit WS A, EIM/Network Rail To propose methodology/criteria for IM’s to assess the benefits/disbenefits of contracting in or contracting out Start February 09, very intensive work in the first stage - three meetings held between February and June 2009 In the first stage, 1st questionnaire was drafted, circulated to IM and responses evaluated Meeting finalizing first stage was very good - strong EFRTC representation - Reasonable IM representation - Very proactive Network Rail participation - Reasonably clear set of actions, objectives and programme Joint EIM/CER/EFRTC Market Strategy WG (1) EFRTC GM, Paris

Joint EIM/CER/EFRTC Market Strategy WG (2) 2nd half 2009 major constraints in resources, work stagnation After a critical period in Autumn 2009 (as reported at GM in Berlin) a significant progress was made at the last meeting in London on 15 April 2010 Results of the 2 nd questionnaire discussed in detail and agreement reached on their presentation First draft report entitled “Guidelines for –out, in- sourcing of track maintenance and renewal” reviewed Actions agreed to complete final draft report by end June 2010 EFRTC GM, Paris

1st questionnaire to IM Part A- What criteria/performance measures IM use for decision-making on in- and out-sourcing Technical, financial/cost, market, stakeholders, innovation, risk, legal and others Part B – What criteria IM use for assessing performance of contractors and in-house teams Engineering compliance, costs versus volume, health, safety and environment, timeliness to deliver and others as ­ What infra characteristics increase complexity of network and have major impact on performance ­Charging for possession time, bonus-malus system, impact on time/capacity of network ­ Measures to include for pan-European IM performance benchmarking EFRTC GM, Paris

2 nd questionnaire to IM and contractors (1) Part 1 – decision-making criteria Responses of IM and contractors to the list of issues to mark the priorities and relevance to decision-making Part 2 – contractors and IM position to set of questions aimed at identifying the position of both IM and contractors on principles adding value to the process of interaction and principles damaging behaviour between IM and contractors Responses from 10 contractors from 7 countries (France – TSO, Germany – Leonhard Weiss, Heitkamp, BBT- Schreck-Mieves, Italy – ANIAF, The Netherlands – BAM Rail, Volker Rail, Portugal – SOMAFEL, Spain – COMSA-EMTE, UK – Balfour Beatty Rail) 16 infrastructure managers Excellent coverage for evaluation to be representative EFRTC GM, Paris

2 nd questionnaire to IM and contractors (2) Results well presented marking clearly agreed positions and discrepancies in the opinion between IM and contractors There is a surprising agreement in position of IM and contractors - from about 40 questions the bigger diversity in opinion was found only on following 4 items Development of industry wide training schemes that contractors are able to be get involved in if they wish Openness on the work scheduled to be done over the medium term Long term partnership between client and contractors Switching between in-sourcing and outsourcing Reasons for diversification were discussed and they will be presented in the report EFRTC GM, Paris

Final report Foreword by the Presidents of EIM, EFRTC and CER Background I - INNOTRACK report II - Initiative from EIM, EFRTC and CER to establish joint working groups III - Remit of the Market Strategy group IV - Group composition and working method V – Understanding the European landscape Part 1 - Decision making criteria used by Infrastructure Managers I - Identifying types/categories of relevant criteria (questionnaire 1) II - Measuring performance of maintenance and renewal works III - Refining and weighing range of criteria identified Part 2 - Understanding the importance of behaviour I – Methodology II - List of value-adding vs. value-destroying behaviours III - Response from IMs and contractors and analysis IV - Summary/conclusion Part 3 – Catalogue of best practice examples I – Introduction II - Individual case studies General conclusions and recommendations Annexes

Case studies PRORAIL on process of outsourcing track maintenance in the Netherlands RFF – examples from performance contract which may affect outsourcing in France Network Rail system of performance assessment of contractors offers and works Finland on collaborative process of product life cycle and performance assessment by outsourcing Switzerland (contractor contribution) – positive experience from collaborative way of working in all supply chain with client (from long term planning to performing the work) Other contractors are free to enhance the report by their contribution/experience working with clients Case studies linked to the findings of questionnaire EFRTC GM, Paris

WS B – Long term funding and planning Remit and Chairmanship – EIM To deliver proposals on how to empirically measure the benefits of Long Term Funding and Strategic Planning in the railway industry in respect of track M & R The ability to measure the benefits will enable more effective lobbying for long term funding Most of the work to be done by IM but contractors will be asked for examples supporting multi-annual contracts in terms of costs charging through length of contracts More in the letter of Committee Chairman to Board and Delegates Work will start in September 2010 and will last about 8 months with 3 to max 4 meetings EFRTC members are requested to make appointments EFRTC GM, Paris

WS E – Contracting Strategy (1) Remit and Chairmanship – EFRTC Purpose: To develop and propose strategic guideline for railway track work contractors which Reflect the specific conditions for railway track work services, e.g. heavy and expensive track machinery designed for special scope of works, well skilled operators; Aim at transparency in competition and at equality of opportunity in tenders; Bring about a shift from outdated culture of mistrust to one of confidence and partnership; Could be acceptable for small, medium-sized and large companies as well For more details concerning scope and deliverables see draft circulated for GM EFRTC GM, Paris

WS E – Contracting Strategy (2) Work shall be carried out in two phases In the 1st phase, IM and contractors shall jointly ­ analyse existing contracting practices ­ identify the main strategic elements of contracts ­ to find an agreement on the implementation of the identified elements of the best practices as resulted from INNOTRACK In the 2 nd phase, based on agreed positions of IM and contractors, deliverables shall be drafted jointly with IM aimed at producing ­ Guideline for Contracting and/or ­ Concept of a Code of Practise and if possible also ­ Models for Partnership contracts, Compliance regulations and Conflict resolutions; Work shall be completed in 12 months. EFRTC GM, Paris

EC Research relevant to EFRTC EFRTC is partner in ERRAC – European Rail Research Advisory Council SG is member of Steering Committee and Working Group on Infrastructure Low workload, costs covered by EC, participation focused at maximizing benefit for EFRTC Auto-Main project proposal for EC funding Similar initiative as INNOTRACK project but with far low EC funding and limited scope to track maintenance only EFRTC involvement is limited to commenting on findings (control that nothing adverse to contractors will result from project), dissemination and organisation of joint workshops with IM No funding from EFRTC members required, cost of SG covered by EC funding, low workload not affecting his duties EFRTC GM, Paris

EIM and CER information/presentations EIM reported on Increasing role of regulators to set up performance regimes for infrastructure managers Role of ERA in safety regulations and in acting as future auditor of safety authorities for the railway sector Qualification of staff and certification of training schemes, extension beyond current practice applicable for drivers and driving licence Cross acceptance – common standards/requirements for works CER reported on financing of infrastructure in general multi-annual contracts stable financial architecture as a precondition for sustainable railways EFRTC GM, Paris

Other issues Fact sheets – reported by Secretary General Review of the Policy and Research Committee remit and Exchange of information on current topical issues and all other issues – see minutes of P & R Committee All supporting documents are on CD ROM including the minutes of the P & R Committee All appendices to the minutes, presentations and all other documents at EFRTC Member Area website EFRTC GM, Paris

Thank you for your attention!!!