1. 1 The Voice of European Railways European Union Policy and Passengers SIAFI Paris, 26 September 2007 Alberto Gallo CER Passenger Policy Advisor

2. 2 The Voice of European Railways Introduction: political context Third Railway Package Conclusion Public service regulation

3. 3 The Voice of European Railways Political context Legislative developments  ‘Third Railway Package’ → original Commission proposals on March 2004….  ‘Public Service Regulation’ → original Commission proposal in 2000…  Both will be finally adopted on September 2007 as European Parliament and Council have already reached the agreement!!

4. 4 The Voice of European Railways Introduction: political context Third Railway Package Conclusion Public service regulation

5. 5 The Voice of European Railways Third Railway Package Three pieces of legislation  A) Passenger Rights Regulation – directly applicable in Member States  B) Passenger Liberalisation Directive – needs to be transposed by Member States within a deadline  C) Directive on train crew certification

6. 6 The Voice of European Railways a) Passenger Rights Regulation Main topics covered  Travel information and availability of tickets  Liability of railway undertakings for passengers: death and injury  Compensations, re-routing and assistance in case of delays  Accessibility/assistance to disable persons and persons with reduced mobility  Security, complaints and quality service

7. 7 The Voice of European Railways a) Passenger Rights Regulation  information to be provided to passengers before (upon request) and during the journey  distribution channels at least ticket offices/selling machines or telephone/internet or on board train  Information and selling ticket technical specifications proposed by European Railway Agency to the Commission 1 years after the adoption of Regulation → thus implemented by railways Travel information and availability of tickets

8. 8 The Voice of European Railways a) Passenger Rights Regulation Liability for death and injury  deleted the unlimited liability provision for death and injury → COTIF CIV applies  No minimum insurance coverage required  Advance payments (not less than 21.000 Euro) granted to passengers in order to meet their immediate economic needs, but limited cases to recover the amount if RU is not responsible

9. 9 The Voice of European Railways a) Passenger Rights Regulation Delay compensation  25% and 50% for delays over 1 and 2 hours respectively  possibility for RUs to not compensate the passenger when ticket does not specify the place of departure/destination  Payment in cash at simple passenger’s request  Deletion of the link to the exceptions for circumstances that are not under control of RUs

10. 10 The Voice of European Railways a) Passenger Rights Regulation Reimbursement and re-routing  when a delay of more than 60 minutes is expected the passenger shall be offered -the reimbursement of the full cost of ticket for part or parts already not made and part or parts made if the journey is no longer serving any purpose -Continuation or re-routing to the final destination at the earliest opportunity at the later date at passenger’s convenience

11. 11 The Voice of European Railways a) Passenger Rights Regulation Assistance  in case of a delay more than 60 minutes passenger will be offered free of charge: -Meals and refreshment if available in train or station or can reasonably be supplied -Hotel in case a stay of one or more night is necessary, where and when physically possible -If the train is blocked on the track, transport to the station/alternative departure point/final destination

12. 12 The Voice of European Railways a) Passenger Rights Regulation Persons with Reduced Mobility  No additional costs; no refusal to accept a reservation/issue a ticket, unless strictly necessary to comply with access rules (ex. safety reasons)  accessibility to stations and rolling stock is guaranteed through compliance of PRM TSI  Assistance on board train and in stations → generalisation of the ‘all reasonable efforts’ criteria seems a feasible and flexible solution  Information to be provided in the most appropriate format, with particular attention to PRM needs

13. 13 The Voice of European Railways a) Passenger Rights Regulation Specific compartments for wheelchairs, baby carriages, bicycles, etc..  a watered provision requests RUs to enable passengers to bring bicycles on the train, where appropriate for a fee, ‘if they are easy to handle, it does not adversely affect the specific service and the rolling stock so permits’ Service Quality Standards  RUs shall define service quality standards for international and domestic services and monitor their performances. They have to publish a report on quality performances each year, through both their websites and ERA one

14. 14 The Voice of European Railways a) Passenger Rights Regulation SCOPE  Although the scope has been extended to domestic traffic, MSs may grant the following exemptions: 1)for domestic rail passenger services, for 5 years + 5 years + 5 years; 2)for urban, suburban and regional passenger services, as defined in Directive 91/440 (no limitation in time); 3)for particular services if a significant part of them is operated outside the Community, for a maximum period of 5 years  However, these exemptions do not apply to some specific provisions that are therefore considered as ‘basic passenger rights’ (availability of tickets, liability, insurance, information to PRM, right to transport for PRM, personal security of passengers)

15. 15 The Voice of European Railways a) Passenger Rights Regulation Entry into force  2 years after the publication date: all Regulation provisions apply to international services + ‘basic passenger rights’ apply to domestic services  But…at that time Member States could exempt -urban, suburban and regional services and; -long distance domestic services, up to 15 years.

16. 16 The Voice of European Railways b) Passenger Liberalisation  Opening up of international passenger traffic by 2010*, with possibility of cabotage (two or more stops in the same Member State) -The Parliament surprisingly voted in second reading against the opening up of domestic market -The Commission should only assess ‘the state of preparation of a further opening up of the passenger rail market’ in the report on the Directive implementation to be presented by 2012 * 2012 if international traffic is more than 50% of passenger turnover of RUs in that MS

17. 17 The Voice of European Railways b) Passenger Liberalisation  1) in order to avoid that the introduction of new international services would be used to open up the domestic market as well, there has been envisaged the ‘principle purpose’ of the international service: -The international service must have the principal purpose to carry passengers between 2 stations located in different MSs -The principal purpose is evaluated by the national Regulatory Body taking into account some criteria (such as proportion of turnover and volume, length of service, etc..)

18. 18 The Voice of European Railways b) Passenger Liberalisation  2) in order to avoid that the introduction of new international services would jeopardise public service contracts: -MSs may limit the cabotage in case: -it compromises the ‘economic equilibrium’ of a public service contract; -an exclusive right to convey passengers has been granted under a concession contract awarded before the entry into force of the Directive through a fair competitive tendering procedure -If the economic equilibrium would be compromised is determined by the relevant national Regulatory Body

19. 19 The Voice of European Railways b) Passenger Liberalisation The Levy  MSs may authorise the competent authority to impose a levy on RUs providing international passenger services which are operated between 2 stations in the same MS, in order to finance PSO  If the levy is applied, it shall apply to the national passenger services operated between the same routes  The total levies shall not endanger the economic viability of the rail services on which they are imposed and shall not excide what is necessary to cover all or part of the cost incurred in the relevant PSO, taking into account the relevant receipts and a reasonable profit

20. 20 The Voice of European Railways b) Passenger Liberalisation Framework contracts  In case of specialised infrastructure, such as speed lines, framework agreements may be concluded normally up to 15 years Reciprocity clause  Will apply until the opening up of the international passenger service in 2010

21. 21 The Voice of European Railways Introduction: political context Third Railway Package Conclusion Public service regulation

22. 22 The Voice of European Railways Regulation 1191/69 revised in 1991 (Reg. 1893/91) Background Commission considered that the text does not meet anymore EU transport policy objectives (White Paper 2001) Current legislation

23. 23 The Voice of European Railways ☛ two proposals (in 2000 and 2002) ☛ blocked in Council as they were conceived as pure tools for opening up passenger rail services ‘The saga’ Successive attempts to revise existing legal framework Commission third revised proposal released on 20 July 2005 Adopted by the Council and the European Parliament in September 2007

24. 24 The Voice of European Railways Regulation 2007/??? COMPROMISE TEXT! Discussions in the EP and the Council were difficult: the Council was not flexible

25. 25 The Voice of European Railways Overall objective Provide a simplified legal framework for the compensation of public service obligations as defined in a contract Public Service Regulation

26. 26 The Voice of European Railways Straight forward Subsidiarity Facilitate the provision of public service transport; higher quality; safer transport Favour enhanced competitiveness through incentives to reduce costs Simplified

27. 27 The Voice of European Railways Contract Conclusion of a contract is compulsory for all public service obligations Difference with current legal framework! Scope of application: national and international passenger transport More limitative Whatever legal form of contract Flexibility

28. 28 The Voice of European Railways Compensation direct financial influx and/or exclusivity Provision of PSO against adequate compensation including a ‘reasonable profit’ text could be more clear with regard to the obligation to PAY!!! CER fought for this in EP but lost because of political pressure in the Council…

29. 29 The Voice of European Railways Payment conditions must be enshrined in contract in a transparent manner ➽ PSO clearly defined ➽ clear description of their cost ➽ parameter for compensation clearly defined in advance ➽ payment to cover PSO costs and a reasonable profit Definition: “a rate of return on capital that is normal for the sector in a given MS and that takes account of the risk, or absence of risk, incurred by the operator”. Annex describes payment conditions Transparency in compensation

30. 30 The Voice of European Railways Flexible award Principle public tendering procedure Exemption heavy rail transport Other exemptions internal operator de minimis: small contract value and SME disruption of service or imminent risk

31. 31 The Voice of European Railways Transitional clauses Transition period 10 Years Transitional application to freight for 3 years Respect of existing contracts Exclusion clause

32. 32 The Voice of European Railways CER concerns Protection of PS transport in the new EU Member States –Obligation to pay!!! –Prohibition of obligation to make cross subsidies from profitable business: only indirectly covered in the annex! – minimum contract duration: not included

33. 33 The Voice of European Railways Introduction: political context Third Railway Package Conclusion Public service regulation

34. 34 The Voice of European Railways Liberalisation is well underway But at a more reasonable pace than what the Commission wishes and taking better account of the rail specificities