Identification and effective use of international and EU sources, clarity of presentation of European policies and institutional contexts.

Rail transport: the current situation and the Commission's initiatives

The status quo: a worrying decline

In the 1970 the railway carried 21% of all freight in the fifteen countries of the present

European Union; however by 2000 the figure was 8.1 %. Within this same period freight going by road rose from 30.8% to 43.8% and tonne-kilometer performance of railway freight fell by 12%, while the volume of tonne-kilometers carried by road has tripled and passenger transport has fallen from 10.2% to 6.3%.

An uncompetitive service

Rail transport delivery times are far less predictable than road, on some international routes, times have doubled or even trebled. This is however critical for industries which work on tight schedules. Nonetheless railways have unique advantages, they are safe and clean mode f transport, while one train can contain up to 50-60 truckloads. A top priority within the European Union is invigorating the railways, although the EU is not trying to privatise railways as it is not possible due to article 295.

Directive 91/440

Directive 91/440 is one of the first major legislative pieces which date back to 1991. The directive requires Member States:

• To manage railway undertakings in such a way that these understand the need for competitiveness and sound financial management. .
• To make railway undertakings independent by giving them a budget and system of accounts which are separate from those of the State.
• On specific terms, to guarantee rights of access for rail transport operators in other Member States to international combined transport services.
• To have separate accounting for railway infrastructure (track and related equipment) and the operation of transport services as such.

 

Operating licences and allocation of paths

Directive 95/18 was adopted in 1995, setting out common criteria for licensing of railways. Rules were also laid down on the allocation of railway infrastructure capacity (Directive 95/19), however replaced in 2001 by Directive 2001/14. Through this Directive “path allocation” was established.    

This directive requires Member States to create an organisation (Infrastructure manager) to allocate railway infrastructure capacity in a fair and non-discriminatory way. The directive also lays down a number of guiding principles for the charging of fees for infrastructure use. Member States must also ensure that the prices charged are market prices, and must not charge fees which are unfair or discriminatory.

However, railway activities confined to urban, regional and suburban transport or road vehicle shuttle service through Channel Tunnel was not covered in this Directive.  

http://europa.eu.int/comm/transport/rail/overview/licence_en.htm

The 1996 White Paper

In 1996 the European Commission published a White Paper with a Strategy for Revitalising the Community's Railways.  It proposed a new four-step plan towards the revitalization of the union’s railway by:

1. Clarifying a division of financial responsibility between the state in order to relieve the railways debt and allow independent financial management.
2. Assuring provision of public service.
3. Closer coordination to integrate infrastructures, co-ordinate research and development, harmonise technical standards;
4. Designate a network of rail “freeways”.

Dealing with railways finances

The commission proposes to report regular intervals on the progress made by member states in reducing debt and improving finances. However in the case of debts accumulated since 1993, the commission will authorise state aids if they are in accordance of the treaty.

Introducing market forces into rail transport

This is a key element of the proposed strategy to revitalise rail transport , the commission therefore proposes;

• Speed up modification of the existing EU legislation, (including rights to railway infrastructure for freight and for international passenger services (directive 91/440/EC)).
• Infrastructure management and transport operations to have separate business units with management and balance sheets.
• Study further principles for infrastructure changing and capacity allocation

Public service

Two major improvements are proposed;

1. Moving from a mixed system of obligations imposed by the State and of public service contracts, to the application of contracts negotiated between the State and the railway operator to all types of public service, including the urban, suburban and regional.
2. Market forces should be introduced into the operation of services. This could improve domestic passenger transport just as much as international passenger or freight services. Much of the public is strongly dissatisfied with the service it receives. Punctuality and reliability are often inadequate and standards of comfort poor.

Integrating national rail systems

The commission is working to tie national transport infrastructure together into Trans-European networks and to provide a framework for the coordination of hitherto separate research activities in the member states through the community.

Social aspects

Over the last 20 years half a million jobs have been lost which has resulted in social implications, therefore if the railways do not become competitive they will lose markets and have to reduce employment even more contributions from the European social fund will be considered to introduced substantial program to retain redundant workers.  

The Infrastructure package

To improve the effectiveness of the existing legislation, three new proposals where put forward in July 1998, however the council did not adopted these until 2001. The directives are known better under the name Rail infrastructure Package.  

 modifies Directive  on the development of the Community’s railways. It requests the Member States to adapt their national legislation to enable the extension of access rights for international freight transport services to the national section of the Trans European Rail Freight Network (TERFN), which has a length of approximately 50.000 km. It also states that for transport operations and infrastructure management different organisational entitles must be set up, while different accounts should be set up for passenger and freight transport services.  

  amends directive  on licensing of railway undertakings by defining the conditions, these being financial, economical and safety, under which companies can obtain a licence to run rail freight services. Directive 2001/14 replaces directive 95/14, which deals with the allocation and charging of railway capacity. The directive states that infrastructure manager shall produce a statement containing information on the technical and limitations of the network, access conditions, rules on capacity allocation and tariff structure.  

The 2001 White Paper

The White Paper on European transport policy for 2010: time to decide was published in September 2001. The objectives of the European Commission for the next ten years are to refocus Europe’s transport policy on the demands and needs of its citizens. The European commission wants to ensure that the development of transport in Europe goes hand in hand with an efficient, high-quality and safe service for citizens. The first of these measures is designed to shift the balance between modes of transport by 2010 by revitalising the railways, and linking the different modes of transport.

For railways to achieve the goal of an efficient, high-quality and safe service by 2010, it must maintain the modal share of rail transport at the same level of 1998. A reverse in the decline of rail transport over the last 30 years is needed. As a result of these changes the demand for rail transport is expected to grow significantly by 40% in 2010 from 1998.  

Implementation Infrastructure package

Eleven countries have failed to notify the commission of any transposition of the rail infrastructure package opening the market of international rail freight services. Therefore legal proceedings have been launched against: Austria, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal, Spain, Sweden, and United Kingdom. The current legal action is a result of failing to notify the commission in time and will be heard before the European Court of Justice.  

However, it has to be noted that among these 11 Member States, 5 have already opened their rail freight market to competition (Sweden, United-Kingdom, The Netherlands, Austria and Germany) and 3 have done it partly (Italy, Portugal and Spain). This does not exempt them to notify their national measures concerning the market opening, as well as the measures related to the other aspects covered by the rail infrastructure package. This package requires members to guarantee access rights to the Trans-European rail freight network for international rail freight services, set charges for the use of infrastructure according to common principles, and define transparent and fair rules and procedures for the allocation of train paths. 

---