1. SURVEY ON HEAVY RAIL CONTRACTS A comparison between the different public services contracts for heavy rail administered by the EMTA Authorities EMTA Budapest Meeting 15 -16 April 2010

2. 2 FOREWORD Heavy rail is one of the most relevant public transport services in metropolitan areas. It involves huge investments in infrastructure building and maintenance and higher cost of operation if compared to the other PT modes (metro, tramway, buses). The aim of this document is to highlight the different contract structures and the average level of public subsidy where financial data is not a confidential information. The information received from the Members can be useful for all the other EMTA members to add more strength to the contract management. Our objective is to verify how the unit cost of our rail service is aligned with the average cost in the other European metropolitan areas, in order to quantify the right amount for the tender offers.

3. 3 AUTHORITIES THAT FILLED OUR QUESTIONNAIRE Our initiative was launched in September 2009 with a 2 pages questionnaire that was circulated among the EMTA Members. As of now we have received contributions from: - Stuttgart Region - RMV Frankfurt - ATM Barcelona - SYPTE Sheffield - ZTM Warsaw - AMT Montréal In addition to this we examined the Contract 2008 – 2011 between STIF and SNCF for the rail service in Ile- de-France (available on paper).

4. 4 THE RAIL SERVICES OFFER The table shows the offer in Train*Km per year. The amount of service offered varies between the 57 million train*km of Région Ile-de-France to the 2,8 M Km of Barcelona. However it must be underlined that in the case of Barcelona only the service surveyed is light rail and not heavy rail. Financial data concerning the AMT contracts are not available due to pending negotiations. AuthorityOffer (in train km per year) AMMT Torino2,5 M train Km (Trenitalia) 1,0 M train Km (GTT) Stuttgart Region9,8 M train km RVM Frankfurt38 M train Km ATM Barcelona2,8 M train Km SYPTE Sheffield3,4 M train Km ZTM Warsaw2010 about 5 M vehicle Km 2011 about 11 M vehicle Km 2012 about 16 M vehicle Km (start of 2 new airport lines), trains with different number of cars STIF Ile-de-France57,5 M AMT MontréalCanadien National : 613138 Train km Chemin de fer Canadien Pacifique : 705474 Train km

5. 5 OPERATORS AND TYPE OF CONTRACT The table shows the type of contract adopted by each authority. The Net cost contract is more frequently used (5 cases out of 7). AuthorityName of the heavy rail operator Type of Contract AMMT TorinoTrenitalia S.p.A. GTT S.p.A. Net cost Stuttgart RegionDB Regio AG (S-Bahn)Net cost RVM FrankfurtDeutsche Bahn AG, Hessische Landesbahn GmbH, VIAS and more (8) Gross cost ATM BarcelonaLight rail: Tramvia Metropolità Net cost SYPTE SheffieldNorthern RailNet cost ZTM WarsawSzybka Kolej Miejska Sp. z o.o. (Urban Rapid Rail Ltd.) Gross cost STIF Ile-de-FranceSNCFNet cost

6. 6 THE AMOUNT OF SUBSIDIES The table shows the amount of subsidy for each contract. Some contracts include also a subsidy for the infrastructure charge. In some cases data were confidential and not publicly available. None of the Authorities’ contracts calculated the unit amount on a different basis (i.e. per train hour instead of train km) 2. AMOUNT OF PUBLIC SUBSIDIES / YEAR for operations for infrastructure access Unit price in € per train km AMMT TorinoRail Operator “Trenitalia” 22,9 M€ (+ VAT) Rail operator “GTT” 20,0 M€ (+ VAT)* *: GTT subsidy includes the infrastructure maintenance charge 9,16 € (Trenitalia) 6,80 € (GTT) Stuttgart Region58,7 M€, (for operation and infrastructure access for rail, stations and transmission of electricity), no VAT to pay for these services 6,01€ (= 58,7 m€ / 9,8 m train km) RVM FrankfurtNo specifications ATM Barcelona26,14 M€ (+VAT), total cost of operation 16,50M€ (+VAT), total subsidy for operation 28,3 M€ (+VAT)9,31 € SYPTE Sheffield34,015 M€ (at April 2010 conversion rates) for total cost of the operation The contract is for the agreed level of service (capacity, timetable, rolling stock class). ZTM Warsawoperator has not enabled ZTM to fill in the exact financial data STIF Ile-de-France1.211 M€ for operations, investments and other specific arrangements 21,09 €

7. 7 INVESTMENTS This table show the different investment policies set up by the Authorities. In some cases investments are included in the contract subsidies. Are investments included in the contract? New rolling stock Building of new infrastructure Other.... AMMT TorinoNo Stuttgart RegionYes, operator buys 83 new trains, worth 450 m€; no extra costs for the region, they are included in 6,01€/train-km No RVM FrankfurtYesNoYes ATM BarcelonaNo SYPTE SheffieldNo ZTM WarsawYes (17 new trains till 30.06.2011) No STIF Ile-de-FranceYes (Quadrennial investments plan) PQI ? (Confidential information) Renewal of stations, accessibility for people with reduced mobility, information to travellers AMT MontréalNo

8. 8 ADDITIONAL SERVICES 4. ADDITIONAL SERVICES Train announcements with loudspeaker in stations/stops Ticket office availability Customer service counter (timetable info, disabled passengers assistance, groups) Is there an additional charge in case a newer or higher quality rolling stock is used? AMMT TorinoNo Stuttgart RegionReal time information at each platform in the S- Bahn network, loudspeaker information is not necessary. Ticket offices only at larger stations, included No RVM FrankfurtYes No ATM BarcelonaNo SYPTE SheffieldYes (automated with manual over-ride) 7 stations (out of 27)Timetables Disabled assistance Cycles carried No ZTM WarsawNo average unit price and max total payment per year put into the contract – prices may vary depending on vehicle type STIF Ile-de-France AMT MontréalProvide directly by AMT No

9. 9 ADDITIONAL SERVICES 4. ADDITIONAL SERVICES Is there an additional charge for off-peak or Sundays / holidays service? Is there an additional charge for low demand services Other, specify.... AMMT TorinoNo Stuttgart RegionNo RVM FrankfurtNoYesNo ATM BarcelonaNo SYPTE SheffieldNo SYPTE are able to buy-in enhancements. Northern Rail funded separately for station upgrade works, above maintenance of the station asset which is part of the contract. ZTM WarsawNoNo (it’s a gross contract)No STIF Ile-de-France AMT MontréalNo

10. 10 CONCLUSIONS  The European regulations impose specific Public Service Obligations to the operators  The Service contract is a strategic tool for the Authorities to promote improvements in the quality of service  Our proposal is to set up an Observatory of the Public Services Contracts inside EMTA with the following tasks: Compare the main indicators that influence the cost of operation and therefore the amount of subsidy needed to run the service (i.e. cost of personnel, infrastructure access charge, traction charge) All the results of this activity can be included in a periodic report to be circulated among Members.