1. Rail Investments in the new Member States Overview of the situation and debriefing on UNIFE activities Michael Clausecker UNIFE Director-General Appendix 4

2. Rail investments in the new Member States 1.Opportunities 2.Challenges 3.Case studies 4.Objectives 5.UNIFE Strategy and Achievements

3. 1. Opportunities The Central and Eastern European Countries: a huge market for our industries –Historically, high market share of rail transport –Considerable need for investment in infrastructure and rolling stock Age of rolling stock in the CEECs, Source: CER, UIC, 2004

4. 1. Opportunities Large available funding from the EU: between €40bn and €50 bn will be spent on transport; at least €15bn for rail transport 85% EU co-financing rate Possibility to finance infrastructure and some rolling stock units CountryTransport (in € bn) Rail (in € bn) Poland18,06,0 Hungary6,31,8 Slovakia3,80,9 Czech Rep.5,42,8 Latvia1,00,2 Estonia6,00,2 Romania4,01,9 Bulgaria1,40,8 Slovenia0,90,4 Lithuania1,60,6 TOTAL48,415,6 Estimates according to the Operational Programmes

5. 2. Challenges Competition from other modes of transport  Investments in road infrastructure are easier and quicker  Modal shift from rail to road and air Source: CER, 2004 Trend in demand for passenger and freight transport by rail

6. 2. Challenges Main variables hindering/facilitating rail investments –Political stability –Quality of the public administration (bureaucracy vs. new public management; situation of the IM vs. government) –Presence/lack of experts –Legal rules for investments (public procurement, expropriations…) Very different national situations in the CEECs, but some common problems –Preference for line modernisation rather than new lines construction –Reluctance vis-à-vis high-speed –Lack of Master Plan

7. 3.1 Case study: Poland Biggest beneficiary of EU funds: around € 6 bn for rail investments Lagging behind: too limited absorption capacity –very slow investments –not enough projects developed –preference for small projects Situation improving: –Ambitious master plan almost finalised –political stabilisation –Improvements in the legal framework

8. 3.1 Case study: Poland Polish network in 2030 as foreseen in the Master Plan Source: CNTK, 2007

9. 3.2 Case Study: Slovakia EU funds allocated to rail transport for 2007-2013: € 872 m Objective 2007-2013: –165 km of modernised railways up to the speed of 160 kph –Continuation of Priority Project Nr 23 and Realisation of Priority Project Nr 17 Problems: –The network is obsolete and very dense –No clear Master Plan, but main priorities in line with TEN-T priority projects. However, this Master Plan needs to be prepared in order to stop the losses in passenger transport and to increase the share of rail freight. –Main problems regarding rail investments : preparatory work of the projects and tendering procedures.

10. 3.2 Case Study: Slovakia Source: OP Transport Slovakia 2007-2013, 2007

11. 3.3 Case Study: Czech Republic EU funds allocated to rail transport for 2007-2013: € 2.6 bn + € 297 m for urban transport (including urban rail) Clear objectives set, massive investment (more for rail than road) Main priorities: –Construction and modernisation of TENT-T corridors and its linkages –Construction and modernisation of regional tracks –Construction and modernisation of important transport connections within Prague –Modernisation of rolling stock (€ 90 m investments in 2007) Some problems and limits: –Problems of coordination with Poland regarding corridor VI /priority project n°23 –Modernising infrastructure in the Czech Republic is useless if neighbouring countries do not invest as well (problems with Austria and Germany); –Problems to get funds to deploy ERTMS on Corridor E.

12. 3.3 Case Study: Czech Republic Passengers Freight Railway network – planned investments – 2015 Source: OP Transport of the Czech Republic, 2007

13. 4. Objectives Overall objective: Transform funds in turnover for our industries Sub-objectives:  Maximum absorption of the funds allocated to the new Member States  Maximum share of rail investments among the modes of transport  Increase the size of tenders to make them more attractive for our members

14. 5. UNIFE Strategy and achievements 1.Gathering information (funds available, spending situation, contacts) 2.Going to the new Member States (meetings with Transport Ministers and local stakeholders): meeting with the Czech Deputy Minister of Transport on 25 October 2007; meeting with the Slovenian Transport Minister on 12 December 2007 3.Events: Seminar on the Implementation of Rail Infrastructure Projects in new EU Member States, 11-12 July 2007; Meeting with all infrastructure managers from the NMS + Rail industry national associations planned for 2008 4.Cooperating with CER/EIM (common actions to develop) 5.Cooperating with DG Regio (exchange of information) 6.Involving UNIFE National Associations Committee + UNIRAILINFRA: discussions inside the committees + setting up of a special working group (1st meeting on 8 November 2007)