1. Railways@Crossover Helping European Railways Transition to the Digital Future through Cooperation 6 December 2011 European Parliament, Brussels Prepared by Antonio E. López and Mick Haynes December 2011

2. Agenda 1.History 2.Strategy Study 3.New Business Strategy 4.Web Services Platform 5.Unique Value Proposition Brussels, 6 December 2011 Railways@crossover 2

3. Who are Hit Rail? (1)  Is a small well funded, non-profit making and neutral company with a strong management team and a vast knowledge of railway environment.  has always been at the heart of a very active Community of Railway companies which constitutes a solid base.  has developed an international prestige in building and coordinating complex pan European projects (e.g. Hermes X.25, Hermes IP Migration, HER, HOSA, IP/MPLS, etc.).  has been in the vanguard of international data communications (Hermes network) technologies for the past 21 years. Brussels, 6 December 20113 Railways@crossover

4. Who are Hit Rail? (2)  Hermes X.25 network took shape in 1978.  In 1990 Hit Rail BV was created.  In 1995 Hit Rail founded Hermes Europe Railtel (HER).  In 1999 Hit Rail developed the Hermes Open Systems Architecture (HOSA).  In 2002 a new Hermes IP VPN network was implemented requiring a synchronised migration to the HOSA architecture.  In 2006 a second generation Hermes IP VPN based on MPLS infrastructure was implemented. Brussels, 6 December 20114 Railways@crossover

5. Hermes Open System Architecture (HOSA)  Hermes Open System Architecture:  The common way of working at the moment.  Implemented by all RUs and IMs to interchange messages and files.  Simple but efficient.  Works over Hermes VPN but also over Internet.  Secure  Security based on IP/MPLS (Hermes VPN) or IPSec (Internet).  Based on open standards and Internet protocols. Railways@crossover 5Brussels, 6 December 2011

6. Hit Rail Today: Shareholders Railways@crossover 6Brussels, 6 December 2011

7. Hit Rail Today: Customers Brussels, 6 December 2011 Railways@crossover 7  ATOC, CFL, DB, Eurostar, ICF, NS International, ProRail, Raildata/ISR, Railion NL, Renfe, RMF, RZD, UIC, VR, RNE, Thalys, OSE, PKP, CFR, TCDD, ZS, UZ.  Small Freight operators: Lokomotion (Rail Traction Company), Nordcargo, Captrain, Crossrail and Express-Rail  Small Passenger Operators: Rhatische Bahn

8. Hermes Network Today: Some Figures  Connects 42 sites in 21 countries.  Involves 12 shareholders and 24+ customers.  Interconnects 23 IMs, 26 Freight RUs, 27 Passenger RUs and 3 International Organisations: UIC, RNE and Raildata.  Exchanges half Terabyte of business data per month.  Monitors the network 24/7.  Has a very high level of security. Railways@crossover 8Brussels, 6 December 2011

9. Agenda 1.History 2.Strategy Study 3.New Business Strategy 4.Web Services Platform 5.Unique Value Proposition Brussels, 6 December 2011 Railways@crossover 9

10. Targeting the Future of Railways ICT Opportunity  Internet as the core technology platform  Technology convergence  Commoditisation of communication networks  Web services to enhance business value Efficiency Modernity Better services Greater value for economy & society Character of the Railway Business  Structural change  separation between RUs & IMs  new companies  Efficiency drive  relentless downward pressure on cost  global economic climate  Culture  incumbents: reluctance to embrace change  new comers: favour simpler & new solutions 10 Railways@crossover Brussels, 6 December 2011 Policy Push  Interoperability  Inter-modality  Competitive markets  Sustainable transport Forces Shaping the Railway Environment

11. Hit Rail’s positioning in ICT provision Network – IP based Web Services as Utilities Applications of Other Sectors Railway Applications Interoperability requirementValue creation opportunity Applications of Other Sectors Railway Applications Web Services as Utilities Applications of Other Sectors Railway Applications Web Services as Utilities Applications of Other Sectors Railway Applications Applications of Other Sectors Railway Applications Web Services as Utilities Applications of Other Sectors Railway Applications Web Services as Utilities Hit Rail as a provider of ICT based utility services to enable other railway organisations to add value through cooperation Brussels, 6 December 201111 Railways@crossover

12. Agenda 1.History 2.Strategy Study 3.New Business Strategy 4.Web Services Platform 5.Unique Value Proposition Brussels, 6 December 2011 Railways@crossover 12

13. Hit Rail New Business Strategy (1) Brussels, 6 December 2011 Railways@crossover 13

14. Hit Rail New Business Strategy (2) Brussels, 6 December 2011 Railways@crossover 14

15. Brussels, 6 December 2011 Railways@crossover 15 International Railway Organisations

16. Develop Business Alliances ApproachCollaborative partnership with railway stakeholders to enable win-win Value Proposition Reduction in partners’ ICT Capex & Opex Ease of access, simplified interfaces to cross-border railway applications Secure connection to the open Internet A one stop shop for interoperability Offer Leverage Hit Rail’s Utility Services to provide partners with, for example Publishing of partners’ services Translation Forms input Pass through Publish and subscribe Additional TSI support to lower the risks by providing proven migration Common Interface support for their requirements Initial prospective partners Raildata TAF CCG RNE Xrail Our goal is to add value to business partners’ own offering Brussels, 6 December 201116 Railways@crossover

17. Alignment with EU Policy Proactive support of a smooth migration to TAF-TSI: Freight message exchanges. Infrastructure message exchanges. Participation in TAP-TSI working groups. Support automatic distribution of standard code lists and reference data. Support for the Common Interface. Support for the small players which are SMEs. Targeting the new industry players (e.g. Wagon Owners and Maintenance firms). Brussels, 6 December 201117 Railways@crossover

18. Agenda 1.History 2.Strategy Study 3.New Business Strategy 4.Web Service Platform 5.Unique Value Proposition Brussels, 6 December 2011 Railways@crossover 18

19. Hit Rail Web Service: Basic Principles Service Oriented Architecture (SOA) compliant. Open standards based. Optimal use of open source software. Hardware and software independent. Organic growth from inside out. Anticipating the future. Safe-guarding Hermes as a network of choice. Brussels, 6 December 201119 Railways@crossover

20. Hit Rail Web Service Platform IMs: Infrastructure managers RUs: Freight Operators RUs: Passenger Operators  Data communication  Authentication & identification  Validation of messages  Transformation of messages  Data enrichment  Routing of messages  Data communication  Authentication & identification  Validation of messages  Transformation of messages  Data enrichment  Routing of messages Digital cooperation Benefits:  Reduce Cost  Improve efficiency  Decrease failures  Improve customer satisfaction  Increase visibility Hit Rail Web Service: Cooperation Note: Web services may be delivered in partnership with other railway organisations

21. Web Service Block: –Web service Hub, Login Security and authentication, Service management and monitoring, Validator, Repository. Alternative Transport Block: –HOSA FTP and MQ. Translation Block: –Mapping tool. –Messages H30 and H01. Publish & Subscribe Block: –P & S Service. Client Agent Block: –Client service. Form Block: –H30 form. Hit Rail Web Service: Functional Blocks 21 Railways@crossover Brussels, 6 December 2011

22. Hit Rail Web Service: Support to the Railways Reservation requests (UIC 918-1). Conversion of freight messages between versions. Conversion between UIC messages and TAF messages. Data Capture for generation of UIC or TAF messages. Exchange of reference files (Pub&Sub). Facilitate RUs sending train formation messages to IMs. Facilitate progressive TAF implementation Forwarding path requests (IMs). Transmission of bulk accounting files (RUs). Support for Common Interface. A test bed for experimentation! Brussels, 6 December 201122 Railways@crossover

23. Contract signed with Copernicus (NL) and Oltis (CZ) companies to build the basic Hit Rail Web Service Platform. Develop incrementally during 2011 and 2012. Ready for Production: end 2Q 2012. Initial offering in 3Q 2012 will cover: –Low entry freight users. –Support for Passenger xml messages. –Specific services by IM, Freight and Passenger groups. Plan to progressively enhance the services through to 2016. Additional services to be considered based on railways’ needs. An incremental step towards migration to cloud computing (2016+). Hit Rail Web Service: Implementation 23 Railways@crossover Brussels, 6 December 2011

24. Agenda 1.History 2.Strategy Study 3.New Business Strategy 4.Web Services Platform 5.Unique Value Proposition Brussels, 6 December 2011 Railways@crossover 24

25. Unique Value Proposition A solid history, proven track record and success in mobilising stakeholders to deliver long term, tangible results. Commitment to work collaboratively with other railway stakeholders by providing non-competitive utility services that others can build on. Commitment to interoperability and other EU policy objectives as a trusted and neutral facilitator. New business strategy by tapping into new opportunities in ICT. Implementing Web Services to facilitate interoperability of cross border business applications. Brussels, 6 December 2011 Railways@crossover 25

26. Hit Rail’s Vision for the Future Effective competition Transparency to allow customer choice Open access and ease of access Quality services at lower cost Sustainable transport Continuous business innovation The ICT business is Hit Rail’s business, Hit Rail’s business is the railways’ business Brussels, 6 December 201126 Railways@crossover