Lille, 17th November 2010 Ernest GODWARD The Report on Vehicle Authorisation - Costs and Complexities

Report content Executive summary 1.References, terms & abbreviations 2.Railway vehicle authorisation background 3.Railway vehicle authorisation trends and methodology 4.Analysis of vehicles authorisation processes 5.Analysis of costs drivers related to vehicle authorisation 6.Obstacles to vehicle authorisation for placing in service 17/11/2010Cross Acceptance Workshop - The Bridge to the Future2

Sources of information 1.ERA questionnaire to MSs/NSAs on processes 2.ERA questionnaire to the sector (manufacturers, RUs) on costs & delays 3.ERA workshop with the sector on obstacles 4.Bi-lateral meetings with the NSAs/ Sector from 07/2009 to 07/2010 on the processes and business cases 17/11/2010Cross Acceptance Workshop - The Bridge to the Future3

Processes: key findings Different ways to place a vehicle in service amongst the 28 NSAs (25 EU+ NIE + NO + CH) Current processes are extremely complex, take time and cost a large amount Even with the current XA agreements, there are still improvements to be made related to APS 17/11/2010Cross Acceptance Workshop - The Bridge to the Future4

Processes: key findings Recall the findings from the NSA questionnaire: Mean number of vehicles authorised per type (2004 – Q2 2009) From the bi-lateral meetings, the Sector Workshop and other sources we were able to examine 83 observations of 62 cases of APS 17/11/20105Cross Acceptance Workshop - The Bridge to the Future WagonsLocomotivesPass. VehiclesFixed formation NewExistingNewExistingNewExistingNewExisting Processes\Veh. Category WagonsLocomotivesPass. VehiclesFixed formationTotal New type Additional authorisation Additional authorisation under XA Modification of an existing type

Forecasts of future APS – UNIFE/BCG WM Study 17/11/2010Cross Acceptance Workshop - The Bridge to the Future6

Forecasts of future APS – ERA based on UNIFE/BCG WM Study 17/11/2010Cross Acceptance Workshop - The Bridge to the Future7

Time for APS Sample of 5 varied projects across Europe 17/11/2010Cross Acceptance Workshop - The Bridge to the Future8 Time for stages of the APS – Start to finishStatistical mean time in days Project (First contact to APS)745 Application (Technical File completed to APS)457 All Tests173 Assessment24 Assessment to final Authorisation (Internal handling by NSA) 8

Costs of authorisation for vehicles Costs to authorise vehicles to APS is split into three parts: To meet Contractual Requirements - Manufacturer and Contracting Entity/Railway Undertaking To meet Essential Requirements by being placed in “Design Operating State” – Manu/CE/RU and National Safety Authority (NSA) To meet Technical Compatibility Requirements – NSA in conjunction with Infrastructure Manager(s) All of the above costs overlap. To date, our case studies have only seen the total costs for these three items. The total figures have more of an impact than the split costs 17/11/2010Cross Acceptance Workshop - The Bridge to the Future9

Ranges of authorisation costs 17/11/2010Cross Acceptance Workshop - The Bridge to the Future10 Vehicle categoryCosts First authorisations Wagon1% of Contract price Multi-system Locomotive€ 5 to 7 Million Subsequent authorisations Multi-system Locomotive for a MS€ 1 to 4 Million Multi-system Locomotive for 5 MSs€ 16 to 20 Million

Cost Drivers for additional authorisation Open points or Specific Cases in CCS TSIs Equipment of Locos with additional Class B systems Different requirement leading to exchange of pantograph Testing to proof running (dynamic) behavior Aerodynamic effects Different brake performance requirements Different requirements to design and equip Driver’s cab Different national requirements on Push Pull controls 17/11/2010Cross Acceptance Workshop - The Bridge to the Future11

Relative Cost Impact of Cost Drivers 17/11/201012Cross Acceptance Workshop - The Bridge to the Future Parameter Averaged Relative Cost Impact (100%: complete costs of an additional authorisation) Open points or Specific Cases in CCS TSIs15 Equipment of Locos with additional Class B systems15 Different requirement leading to exchange of pantograph10 Testing to proof running behaviour10 Aerodynamic effects5 Different requirements to design and equip Driver’s cab5 Different brake performance requirements5 Different national requirements on Push Pull controls1 Others34

Impact of XA on additional authorisations Current situation  MoU in place: Significant reduction in the authorisation costs  Differences in Infrastructure (between first & subsequent MS) The greater these are, the higher the authorisation costs will be  Worst case: No existing MoU and significant difference of infrastructure Additional authorisation vary between €0,9 - €2 M per locomotive type Future expectations  APS cost decreases: if more MoUs are established, or if MS implement APS in line with the Directives and DV29  Additional APS costs may be lowered to be in the range of €0,4 – 0,5 Million 17/11/2010Cross Acceptance Workshop - The Bridge to the Future13

Next Steps First draft submission to XA Core Group – 26/10/2010 XA Core Group comments by 15/11/2010 Submission to the XA WP - 01/12/2010 Dissemination 17/11/2010Cross Acceptance Workshop - The Bridge to the Future14

Thank you for your attention Any questions? 17/11/2010Cross Acceptance Workshop - The Bridge to the Future15