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European Rail Market and the Role of the Channel Tunnel

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European Rail Market and the Role of the Channel Tunnel COMMITTEE ON THE EUROPEAN UNION INTERNAL MARKET, ENERGY AND TRANSPORT SUB-COMMITTEE European Rail Market and the role of the Channel Tunnel Written and corrected oral evidence Contents Alstom—Written evidence ...................................................................................................................... 3 Alstom—Oral evidence (QQ 199-233) .............................................................................................. 11 Lord Berkeley—Oral evidence (QQ 300-330) ................................................................................. 26 David Briginshaw, Editor-in-Chief, International Rail Journal—Written evidence .................... 41 Department for Transport—Written evidence ................................................................................ 44 Department for Transport—Oral evidence (QQ 253-299) .......................................................... 49 Deutsche Bahn AG—Written evidence ............................................................................................. 67 Deutsche Bahn AG—Oral evidence (QQ 87-131) .......................................................................... 73 European Rail Infrastructure Managers (EIM)—Written evidence ............................................... 87 European Railway Agency—Written evidence ................................................................................. 90 Eurostar—Written evidence ................................................................................................................. 94 Eurostar—Oral evidence (QQ 42-86) ................................................................................................ 99 Eurotunnel—Oral evidence (QQ 331-366) ..................................................................................... 116 Eurotunnel—Written evidence .......................................................................................................... 135 Ferrovie Dello Stato—Written evidence ......................................................................................... 139 High Speed 1 Ltd—Written evidence ............................................................................................... 141 High Speed 1—Oral evidence (QQ 132-162) ................................................................................. 149 High Speed 1 Ltd—Supplementary written evidence .................................................................... 162 Interfleet—Written evidence .............................................................................................................. 163 International Air Rail Organisation—Written evidence ............................................................... 165 Ivor Morgan—Written evidence ........................................................................................................ 167 MDS Transmodal—Written evidence ............................................................................................... 177 Network Rail—Written evidence ...................................................................................................... 181 Office of Rail Regulation (ORR)—Written evidence ..................................................................... 185 Office of Rail Regulation—Oral evidence (QQ 163-198) ............................................................. 190 Passenger Focus—Written evidence ................................................................................................. 206 P&O Ferries—Written evidence ........................................................................................................ 209 Rail Freight Group—Written evidence ............................................................................................ 210 Rail Freight Group—Supplementary written evidence ................................................................. 214 Seat 61 (The Man in Seat Sixty-One)—Written evidence ........................................................... 217 Seat 61 (The Man in Seat 61)—Oral evidence (QQ 234-252) .................................................... 226 DB Schenker Rail (UK) Limited—Written evidence ..................................................................... 235 Professor Roger Vickerman, Professor of European Economics, University of Kent and Dean, University of Kent, Brussels—Written evidence ............................................................................ 240 Professor Roger Vickerman—Oral evidence (QQ 1-41) ............................................................. 245 2 Alstom—Written evidence Alstom—Written evidence Summary (i) The EU has a world-leading rail industry with potential for further growth & job creation. (ii) Alstom supports liberalisation of rail markets as a way to increase competition, bring new investments and generally to increase rail ridership. (iii) Alstom is concerned about national differences of approach, which underlines the need for a single EU rail market (iv) More competition in the EU rail passenger services market will mean more business opportunities and employment. The UK example is a case in point. (v) Common rules though need to be agreed, governed by an appropriate overarching body with authority and real teeth. That body needs to have a clear relationship with national authorities. (vi) Faster deployment of the European Rail Traffic Management System (ERTMS) is the highest priority in order to develop an EU rail market (following lead of Benelux, Italy & Switzerland). (vii) Funding allocated at national and European levels to rail projects – especially those which promote international travel - must be increased in the next financial perspective 2014-20, particularly the TEN-T programme. (viii) Differences in some train types and some level of incompatability in cross-border European rail market will always exist as long as infrastructure remains different. (ix) Safety is a priority for cross border passenger traffic, but commercial efficiency is also important. Alstom supports a stronger European oversight. (x) The EU Supply Chain is among the best in the world, but as very few cross-border projects reach fruition, it is relatively fragile. New entrants to the market from Asia benefit from security of closed home markets. Alstom believes this is a strategic issue for the EU supply chain. (xi) Alstom strongly supports the Transport White Paper, which calls for a 60% GHG emissions reduction in the transport sector by 2050. About Alstom 1. Alstom is primarily a designer, manufacturer and supplier of high-speed trains and turnkey systems (see paragraphs 41-45 for more detail). Detail Q1. How can more competition in international rail passenger services in the EU be achieved, and what barriers still exist? 2. The question can be broken down into four areas: (i) operations; (ii) trains; (iii) infrastructure; and (iv) regulations & standards. Operations 3 Alstom—Written evidence 3. We support the liberalisation of rail markets, but we are concerned about the differences of national approach, which underlines the need for a single EU rail market. Rail market liberalisation - through the 2004 legislative Third Rail Package – could be more evenly and rapidly implemented across the EU. 4. National state railways dominate most of the rail network across Europe and there are substantial opportunities to develop competition in most countries. However, there needs to be political will within member states to make meaningful changes. In addition, a lack of transparency over subsidies of some state-run railways acts as a potential block to liberalising passenger services, as there is little clarity over the true costs of train operation and infrastructure provision. 5. In addition, technical barriers still exist that prevent new operators from entering the EU market. Cross border services do not seem to be a priority for many State operators and are outside the franchise scope of many private operators. The infrastructure costs and constraints make many possible services unbankable or unprofitable, which creates the need for further State, or EU, investment and legislation. 6. The UK example where different, non-incumbent, rail passenger services were developed in the domestic market - improving the traffic and quality of rail services offered to passengers - is a good illustration of the potential room for improvement in international rail passenger transport. 7. At a technical level, several barriers still exist, including gauge, electrical and signaling system differences, and treatment of safety standards, which make this area notoriously difficult to navigate. The supply industry is striving to develop innovative ‘go anywhere’ solutions. But this has the tendency to drive up costs for a market which is, in order of magnitude, not very significant and to say the least erratic. Trains 8. For a train with passengers to cross an international border, at least two signaling systems and a specific on-board solution are required, so as to be recognised by the ‘receiving’ country signaling system. Due to safety rules, a train must be ‘seen’ and ‘handed over’ as it crosses the border. If the service is not to be disrupted, this has to be highly reliable and instant. A train also has to pass each country’s safety case procedure, a process which can take up to 18 months to 2 years to complete. Infrastructure 9. There is still much to do on infrastructure and rolling stock. Top priorities are to adopt the least proscriptive application design criteria and for
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