1. Noise – an operational and economical challenge for wagon keepers BeWag & UIP Workshop, April 28, 2014, Brussels Markus Vaerst Chairman UIP Topical Committee „Economic Evaluation“

2. Conflict of objectives: Freight traffic growth – Noise exposure
WHO
Revision «ENVIRONMENTAL NOISE GUIDELINES» (2015)
EU Commission
Roadmap / «Cowi-Study»
Dir 2012/34/EU (Article 31 (5))
Connecting Europe Facility
Germany
NDTAC since December 2012
Coalition Agreement 2013
«Kramer-Report» 2013
Switzerland
Amendment «Federal Law on Rail Nosie» (2014) – Ban of Cast Iron Brake Blocks by 2021
Source: AT Kearney, (Study Europ. Tank- & Freightwagons)
Source: BAV (CH), 2

3. Retrofitting existing wagons – the costs
“Europe Train” – Cast Iron (CI) vs. LL
Source: UIC, Europe Train, 2013
Cost Calculation “Germany”
Source: BMVI (MoT DE), March 2014
Retrofitting CI to LL – Consequences:
Monitoring: more frequent (i.e. check of the wheel flange height every 50’000km)
Unit price: 3-4x higher
Durability: x better
Wheel wear: 2x higher
Retrofitting CI to LL
Assumptions:
Number of axles/ wagon: 4
Brake type: Bgu / s
Mileage per year: 30’000 km (DE) / 45’000 km (EU)
Additional operating costs for LL (compared to CI) / WITHOUT cost for retrofitting : 0,0068 € / axle km 3

4. Retrofitting existing wagons – the impact
Examples
Daily cost CI: 40 € € € €
Mileage per year (km) 45’000 / 100’000
Cost increase LL (%) 8,4% ,6% ,4% ,8%
(without cost for retrofitting) 18,7% ,3% ,8% ,3%
Increase (%) total cost rail 1,7% ,9% ,7% ,4%
freight transport 3,7% ,3% ,0% ,5%
Assumption: daily cost for wagons approx. 20% of total cost for transport 4

5. Retrofitting existing wagons – «carrot and stick»?
100% Compensation of costs for retrofitting wagons with K brake blocks (paid by Government). Compensation of higher operational costs for all TSI NOISE compliant wagons (approx. 0,17 €/axle km) – Beneficiary is RU (and not the Wagon Keeper).
Maximum 50% compensation of cost for retrofitting paid by the Government (i.e. 211 € / axle) – Beneficiary is the Wagon Keeper; the operating RU may claim the same maximum for a retrofitted wagon – but, these 50% are „self financed“ by the system: track access charges for trains with less than 80% TSI NOISE compliant wagons are higher (1,5% at present). Higher operational costs are not considered in the German NDTAC System.
Maximum of 4‘800 € per retrofitted wagon on Dutch infrastructure – Beneficiary is the RU (and not the Wagon Keeper).
Measures are possible according «Kramer-Report»
But: Appropriateness and proportionality must be considered (interests of Rail Freight vs. Interests of population)
Possible impact on rail freight will be evaluated in a study commissioned by the VDV (DE) – to be published in September 2014.
Source: DB Schenker 5

6. Retrofitting existing wagons – main «?»
Period until (2022)
Until when will a harmonized European NDTAC System be developed?
Which EU MS (apart from DE and NL) will implement such a voluntary harmonized scheme and when?
Will such NDTAC scheme sufficiently incentivize the Wagon Keeper (being the entity carrying the cost for retrofitting)?
EU and/or MS subsidies for retrofitting and higher operational costs and to which amount?
Beneficiary?
Transaction costs?
Willingness of Lessors / Customers to pay for higher wagon costs?
Which measures can be taken by Keepers / RUs to partly reduce higher costs?
Which regulatory measures will be taken by which MS and when before 2020 (2022)??
EU COM to submit a proposal by end of / beginning of 2015.
AT, BE, CZ, FR, IT, PL signalled to be interested.
Political will and European / national aid laws
Expectation of the sector: minimum 50%
Wagon Keeper
Reasonable
Inter- and Intramodal competition (Road and CI vs. LL)
Monitoring wheel sets by mobile teams
Train composition (only wagons with composite brake blocks)
Germany announced regulatory measures (Coalition agreement) 6

7. Thank you! NVPG (NL) Marklus Vaerst
Chairman Topical Committee “Economic Evaluation”