1. October 4th, 2005 Chris Verstegen, Directory for Rail Railway Policy and Legislation in The Netherlands Twinning workshop Ljubljana

2. October 4th, 2005 Chris Verstegen, Directory for Rail2 Contents 1.A brief history 2.Rail policy: objectives & priorities 3.Rail regulation: a new institutional setting

3. October 4th, 2005 Chris Verstegen, Directory for Rail3 Deterioration of all main business indicators: punctuality, customer satisfaction, labour disputes, … Around 2000: Dutch rail falls sick

4. October 4th, 2005 Chris Verstegen, Directory for Rail4 … also in international comparison

5. October 4th, 2005 Chris Verstegen, Directory for Rail5 Level of maintenance costs to high

6. October 4th, 2005 Chris Verstegen, Directory for Rail6 2003-2004: € 853 mln to prevent further detoriation An additional € 1075 will have to be spend to restore reliability No real ‘life-cycle-management’ for the infrastructure: –Renewal instead of maintenance? Backlog in maintenance

7. October 4th, 2005 Chris Verstegen, Directory for Rail7 Changes in corporate setting (untill 1995) NV NS GOVERNMENT (100% shareholder NS) InfrastructureTransport

8. October 4th, 2005 Chris Verstegen, Directory for Rail8 Changes in corporate setting (since july 2002) GOVERNMENT (100% shareholder NS) (100% shareholder ProRail) NS ProRail NS Stations NS International Railinframanager Capacity management Traffic control NS Domestic NS Real Estate

9. October 4th, 2005 Chris Verstegen, Directory for Rail9 The challenge Creating rest & stability Integrated view quality Getting the incentives right A shared vision Keeping politics out

10. October 4th, 2005 Chris Verstegen, Directory for Rail10 Contents 1.A brief history 2.Rail policy: objectives & priorities 3.Rail regulation: a new institutional setting

11. October 4th, 2005 Chris Verstegen, Directory for Rail11 Spatial patterns determine structure public transport 16 mio inhabitants –Randstad 6 mio –Network of cities, e.g. Amsterdam 720.000 –6,9 mio cars Mobility market: –Car and bike leading, but –Public transport has high market share in rush hour in main cities –3.5 mio journeys by public transport daily –Rail share 1/3 of passengers, but 2/3 of passengerkms

12. October 4th, 2005 Chris Verstegen, Directory for Rail12 London Paris Randstad Spatial patterns determine structure public transport

13. October 4th, 2005 Chris Verstegen, Directory for Rail13 Characteristics Dutch rail transport 2806 km of rail track 384 stations –170 small stations (<1500): 6% of passengers –60 best stations (> 8000): 70% of passengers 5000 trains per day > 1 million passengers on a working day Average rail trip is < 40 km > 14 billion passenger-kms per year NS: railways mainlines (>95%pax, 60% network) Noordned, Syntus: regional railways (<5%pax)

14. October 4th, 2005 Chris Verstegen, Directory for Rail14 Characteristics Dutch rail transport

15. October 4th, 2005 Chris Verstegen, Directory for Rail15 National Mobility Plan Facilitate moderate growth of transport Reliable and safe journey from A tot B (all modes) Reliable infrastructure & maintenance No modal-shift policy Decentralisation where possible Price policy : towards variable costs

16. October 4th, 2005 Chris Verstegen, Directory for Rail16 Main objectives for Rail … Focus on ‘core competence’ of rail transport: –Facilitating mass transport (spatial efficiency): mainly commuters between main urban areas –Providing social function (young/old/disabled) –Facilitating (international) freight transport Integrated optimisation of infrastructure & transport operations –Aim for stability & reducing complexity –Focus on yield and capacity utilisation management instead of new infrastructure projects

17. October 4th, 2005 Chris Verstegen, Directory for Rail17 … based on a shared problem- analysis… A joint project with all the involved partners was set up Proved to be a good exercise in cooperation between infrastructure manager and operators: results were surprising and innovative Conclusions: The present way of running the railway system is to complex and not reliable enough. Better utilisation of the infrastructure is needed in order to raise profitability Key factor for a better utilisation is: restoring reliablitity

18. October 4th, 2005 Chris Verstegen, Directory for Rail18 … and lessons from Japan: more reliability = more capacity Example Osaka – Kyoto (70 km): 4-train system, 24 stations, two lines with passing lines >> 18 trains per hour !

19. October 4th, 2005 Chris Verstegen, Directory for Rail19 Contents 1.Brief History 2.Rail policy: objectives & priorities 3.Rail regulation: a new institutional setting

20. October 4th, 2005 Chris Verstegen, Directory for Rail20 New railway regulation: Creating a balanced institutional setting… Contractual relationship between ProRail and TOC’s Public law concessions between government and ProRail and NS Independent regulator Safety regulator within the ministry of public works Advisory right consumers organisations ProRail en NS are private law companies, 100% owned by government

21. October 4th, 2005 Chris Verstegen, Directory for Rail21 New railway regulation: Creating a balanced institutional setting…

22. October 4th, 2005 Chris Verstegen, Directory for Rail22 … in line with European directives

23. October 4th, 2005 Chris Verstegen, Directory for Rail23 Key points in the new railway regulation Main objective is securing stronger cooperation between Inframanager and TOC’s to improve performance Inframanager ProRail and operator NS have become independent, state owned companies Independent Regulatory body to secure non- discriminatory treatment of TOC’s by ProRail Ministry Safety Inspectorate responsible for supervision of railway safety Countervailing power of consumer organisations

24. October 4th, 2005 Chris Verstegen, Directory for Rail24 Market structure Concession NS to operate passenger trains on ‘core network’ until 1-1-2015 Concession ProRail to maintain entire network until 1- 1-2015 Concession High Speed Line to Brussels/Paris(/London) from 2007 to 2022 Concessions for TOC’s on ‘regional networks’ Open access for freight-TOC’s

25. October 4th, 2005 Chris Verstegen, Directory for Rail25 NS is granted an exclusive 10 year concession for the main railway network Main railway network is indivisible Main task: providing reliable mass transportation into and between the urban area’s In these area’s the spatial efficiency of rail transport is needed most M ain railway network…

26. October 4th, 2005 Chris Verstegen, Directory for Rail26 The regional networks are (to be) decentralised On regional lines regional authorities can determine (and pay for) the service- level they want Regional operators do already appear: Noordned and Syntus … and regional networks.

27. October 4th, 2005 Chris Verstegen, Directory for Rail27 Financial footprint rail sector Situation 2001, million € MIN. OF. TRANSPORT NS PRORAIL PASSENGERS REGIONAL GOV. TAX PAYERS FREIGHT TOC’S FREIGHT COMPANIES REGIONAL TOC’S 17 78 1030 175 903 2745 17 AMOUNTS IN ITALIC ARE ESTIMATIONS BASED ON AVAILABLE DATA AMOUNTS IN ITALIC ARE ESTIMATIONS BASED ON AVAILABLE DATA 24 1 37 0 CONSTRUCTORS 1747 New infrastructure HSL-Zuid Betuweroute Other projects Maintenance Traffic controll Capacity management 2001200220032004200520062007 385886123158188218 Development infra charges, million euro (estimated) Student-card 279 MIN. OF. EDUCATION 279 Contract-sector

28. October 4th, 2005 Chris Verstegen, Directory for Rail The concession and migration from input- to output-steering Twinning workshop Ljubljana

29. October 4th, 2005 Chris Verstegen, Directory for Rail29 Institutional setting since 1-1- 2005

30. October 4th, 2005 Chris Verstegen, Directory for Rail30 Focus in this session

31. October 4th, 2005 Chris Verstegen, Directory for Rail31 What is a concession? A “one –way” public law instrument in which an exclusive right is given and obligations are laid down for the concessionaire (opposed to a “two-way”private law contract) Concession discribes the “relationship” between government and ProRail and the instruments for communication and intervention Features ProRail concession: –Duration: 10 yrs (2005-2015) –Geographical scope: complete Dutch heavy rail network

32. October 4th, 2005 Chris Verstegen, Directory for Rail32 Key elements ProRail concession ProRail has exclusive right on maintenance of rail-network with obligations to: provide: –Good and safe infrastructure, –Accessible and safe transfer, –Infrastructure which can be efficiently used by trains, –Guaranteed minimal levels of capacity. lay down a yearly plan with performance-proposal professionalize more develop step by step towards output-steering

33. October 4th, 2005 Chris Verstegen, Directory for Rail33 Begroting Jaar t The cycle of performance & money Instemming Prestaties & Subsidieverlening Concessions overeenkomsten Vervoerplan Begroting jaar t ProRail - vervoerders Budget year t+1 Budget year t+1 jaar t+1 check Beheerplan Budget year t Budget year t Maintenance plan Transport plan Contracts Agreement on performance & money Agreement on performance & money

34. October 4th, 2005 Chris Verstegen, Directory for Rail34 Which steering-instruments does the government have? Concession: (half)year reports additional information (transparancy) cooperation with audits Eventually: fining and forcing But also: Laws & regulation on specific issues Licenses Regulation (safety & non-discrimination) Money National Mobility Plan

35. October 4th, 2005 Chris Verstegen, Directory for Rail35 Migration from input steering tot output steering Rail sector still in transition Politics demands stability therefore: step by step change (instead of ‘big bang’)

36. October 4th, 2005 Chris Verstegen, Directory for Rail36 What is output steering? Government is responsable for transport and infrastructure… …but NS and ProRail take care of safe and reliable transport,well-maintained railtrack, reliable traffic control and effective capacity The government doesn’t have to deal with operational issues…. … because she has high level performance targets and the necessary steering instruments when things go wrong.

37. October 4th, 2005 Chris Verstegen, Directory for Rail37 When is it reached? Knowing the link between operational performance, own activities and the results; Knowing the interaction-effects between own activities, own targets and the targets of the train operators; Knowing the long term effects of (life-cycle); Being able to create an organisation, culture and instruments to achieve this.

38. October 4th, 2005 Chris Verstegen, Directory for Rail38 Migration from input-steering to output-steering Output-targets Input-targets MIGRATION PHASE TIME TYPE OF STEERING

39. October 4th, 2005 Chris Verstegen, Directory for Rail39 Performance-targets during transition phase (2005-2008) During the transition phase two types of targets: 1.Hard targets –Has the target been reached? 2.Soft targets & measures –Have the measures been taken?

40. October 4th, 2005 Chris Verstegen, Directory for Rail40 ProRail NS Production plan 2003 2004 2005 2006 Verbeter plan sector (100% optimalisatie) ca. 50% Opt. ca. 10% Opt. Production plan Productie + Verbeter plan Productie + Verbeter plan Productie + Verbeter plan Productie + Verbeter plan Productie + Verbeter plan Productie + Verbeter plan Migration to joint optimalization