116 November 2009CER The Voice of European Railways European Commission Communication: «Sustainable future for transport» - a CER perspective UNECE, Geneva,

116 November 2009 CER

The Voice of European Railways

European Commission Communication: «Sustainable future for transport» - a CER perspective

UNECE, Geneva, 18th November 2009

Jeremy Drew



The Community of European Railway and Infrastructure Companies

75 members include railway undertakings and infrastructure companies from:

– European Union, Norway, and Switzerland

– accession countries

– Other Balkan countries Members include national railways

and new entrants, freight and passenger companies and associations

Based in Brussels - represents interests of members to European Parliament, Commission, Council of Ministers, other policymakers and transport actors



Context - the last 10 years

The last White Paper for transport was published by Commission in 2001

Followed by major legislation to implement the policy

Progress with implementation mixed

10 new members have different problems



Achievements in railways since last White Paper

Communication asserts that the objectives of the 2001 White Paper largely met – in fact:

– Only rail liberalisation objectives met

– Broader policy objectives only met to very limited extent

Decoupling of overall freight growth from GDP - not achieved

Rail’s share of freight has fallen:

– In CEE to 30% by 2007 – target 35% for 2010

– In EU15 to 17% in 2007 – target 19% (the 1998 level)

Efficient and fair pricing between modes - not achieved

Channeling revenue from charges to build infrastructure on competing modes, especially rail - not achieved



Three pillars of policy in White Paper- only one implemented

1

In the 2001 White Paper, the European railwaypolicy rested on 3 ‘pillars’

Market Opening Competition

Fair Competition between modes

Modern railInfrastructure

The original architecture of European transport and rail policy (as set out in the “2001 White Paper”)…

QUALITY PRODUCTIVITY EFFICIENCY

• Competition on rail is now well on its way. BUT • without fair competition between modes and sufficient infrastructure, the railways’ efforts in quality and efficiency do not increase competiveness.

3

Eight years on: the weak points of current European transport policy…

Market Opening

CompetitionFair Competition between modes Modern rail

Infrastructure

QUALITY

PRODUCTIVITY

EFFICIEN

CY

One “almost” straight “pillar” and

two neglected “pillars”!



Freight: small revival in Western Europe - but decline continues in Central Europe Rail freight market share trend in EU27 and White

Paper target

Source:ETIF 2007/2008, Eurostat, CER own calculation

EU15 and EU10 Rail Freight Market Share

14.9%

16%

24.5%

29.7%

0%

10%

20%

30%

40%

50%

60%

1970 1980 1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

EU15 EU10

35% target

24.5% EU10 rail freight market share in 2010 instead of the 35% target of White Paper.



Commission’s new policy initiative could lead to legislation affecting railways

European Commission (DGTREN) published Communication on “Sustainable Future for Transport” in June 2009

CER submitted response October 7

Commission plans new Transport White Paper in late 2010

White Paper will set out policy for next 10 years



Communication does not adequately addressed climate change

Communication recognises problem of climate change

But it does not consider radical solutions It relies too much on technological solutions and

sees standards as key driver of technological change

Role of prices in driving technological change is not recognised

Communication discusses “smart prices” (internalising external costs) - but inevitable need for price increases is not mentioned



Self financing and access charges

The Communication supports the need for greater infrastructure capacity and greater self-financing of investment

CER agrees greater self-financing is both inevitable and desirable

But this implies higher infrastructure access charges – this could create problems for rail operators - unless higher access charges apply to all modes



Internalisation of external costs

Communication supports internalisation of external costs – a long standing Commission policy - but:

– current legislation prevents charging for external costs of heavy goods vehicles

– rail lowest emissions mode – yet perversely it is only mode for which charging for external costs allowed in EU legislation (ETS, rail specific legislation)

Vital that rapid progress is made in putting EU policy on internalisation into practice



Investment in infrastructure

Communication supports integration and interconnection between modal networks – to enable their optimal functioning

This fits with TEN-T policy to promote intermodality

Communication advocates investment in intermodal transhipment platforms

However, EU policy does not mention logical extension of this – focussing TEN-T investment:

– on rail network to serve long distance traffic

– on road for short distance traffic and feeder sections



Thank you for your attention!

For further information, visit our website: www.cer.be

Jeremy Drew

Senior Policy Advisor, Economics

Tel: +32 2 213 08 99

Email: [email protected]

116 November 2009CER The Voice of European Railways European Commission Communication: «Sustainable future for transport» - a CER perspective UNECE, Geneva,

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