The Potential of Closing the Missing Links of Small Scale Infrastructure in Europe’S Border Regions for Growth and Employment

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The Potential of Closing the Missing Links of Small Scale Infrastructure in Europe’S Border Regions for Growth and Employment The potential of closing the missing links of small scale infrastructure in Europe’s border regions for growth and employment Recommendations for the way ahead This report was written by Jürgen Pucher (Project Leader), Wolfgang Schausberger and Jakob Weiss (Metis GmbH). It does not represent the official views of the Committee of the Regions. More information on the European Union and the Committee of the Regions is available online at http://www.europa.eu and http://www.cor.europa.eu respectively. Catalogue: QG-04-16-505-EN-N ISBN: 978-92-895-0891-9 doi:10.2863/763863 © European Union, 2016 Partial reproduction is allowed, provided that the source is explicitly mentioned. Contents Executive Summary ............................................................................................ 1 Introduction ......................................................................................................... 9 Overview of the Study ................................................................................... 9 Part 1: Overview and analysis of the issue of missing cross- border transport links at local and regional level in the EU .......... 11 1 Modes of transportation ........................................................................... 12 2 Cross-border passenger flows .................................................................. 15 2.1 Cross-border commuting ........................................................................ 15 2.2 Other purposes for secondary border crossings...................................... 20 3 Cross-border road infrastructure ............................................................ 21 3.1 Typology of borders ............................................................................... 21 3.2 Analysis .................................................................................................. 30 3.3 Examples ................................................................................................. 32 3.4 Cost-benefit analysis ............................................................................... 34 4 Cross-border rail infrastructure .............................................................. 37 4.1 Rail mode of transport ............................................................................ 37 4.2 Gaps in rail infrastructure ....................................................................... 38 4.3 Rail examples .......................................................................................... 42 4.4 Cost-benefit analysis ............................................................................... 43 5 The trans-European transport networks (TEN-T) ................................ 46 Part 2: Existing funds, possible financing through ESIF, EFSI and EIB and other options for developing a small scale transport infrastructure.............................................................................. 51 1 Infrastructure financing at national and subnational level .................. 52 2 Assessment of EU funding ........................................................................ 56 2.1 European Structural and Investment Funds (ESIF) ................................ 56 2.2 Connecting Europe Facility (CEF) ......................................................... 68 2.3 European Fund for Strategic Investment (EFSI) .................................... 71 2.4 European Investment Bank (EIB)........................................................... 74 3 Assessment of private sector involvement .............................................. 77 4 Conclusions ................................................................................................ 82 Part 3: Detailed presentation of several case studies demonstrating the lessons learned and best practices potentially replicable through the EU .......................................................................... 85 i 1 Selection of case studies ............................................................................ 86 2 Appraisal of case studies ........................................................................... 88 3 Conclusions of case studies ..................................................................... 113 Part 4: Recommendations ........................................................................ 115 1 Challenges ................................................................................................ 116 2 The policy framework ............................................................................. 119 2.1 Building the policy framework ............................................................. 119 2.2 Identifying the missing links ................................................................ 122 2.3 The perspective of LRAs ...................................................................... 124 2.4 EGTCs as policy instrument ................................................................. 126 3 Recommendations for closing the funding gaps ................................... 130 4 Business models for small-scale infrastructure projects ..................... 136 4.1 Rail transport ........................................................................................ 136 4.2 Road transport ....................................................................................... 139 4.3 Other modes of transportation .............................................................. 141 5 Harmonisation and interoperability ...................................................... 142 6 The last word ........................................................................................... 145 References ........................................................................................................ 147 Annex 1 ............................................................................................................. 163 Annex 2 ............................................................................................................. 165 Annex 3 ............................................................................................................. 167 Annex 4 ............................................................................................................. 169 ii List of Figures, Maps and Tables Figure 1. TEN-T Core Network Corridors .......................................................... 47 Figure 2. Institutional structure of TEN-T .......................................................... 49 Map 1. Cross-border commuting – main increase zones in Europe ................... 19 Map 2. Overview of case studies ........................................................................ 87 Table 1. Summary of costs and benefits of small-scale border crossings ............ 2 Table 2. Modes of transport, secondary networks and their characteristics ....... 12 Table 3. Number of commuters – comparison 2006 – 2014 ............................... 16 Table 4. Overview on the typology of borders ................................................... 23 Table 5. Population density – distance between border crossings ...................... 31 Table 6. Type of Member State – distance between border crossings ................ 31 Table 7. Geographical obstacles – distance between border crossings .............. 31 Table 8. Average external cost per 1,000 passenger-kilometres in EUR (2008) 35 Table 9. Summary of costs and benefits of small-scale border crossings .......... 35 Table 10. Gaps in European cross-border rail infrastructure according to the EP .................................................................................................. 39 Table 11. Transport infrastructure funding at national level .............................. 52 Table 12. Overview of EU transport networks ................................................... 53 Table 13. Role and capacity of LRAs concerning transport infrastructure ........ 54 Table 14. Ex-ante conditionalities for ESIF transport projects ........................... 60 Table 15. ESIF: TO 7: Network infrastructures in transport and energy ............ 65 Table 16. ESIF: achievements (targets) in km; EU-28 and the respective major MS ............................................................................................. 67 Table 17. List of transport projects financed via EFSI ....................................... 72 Table 18. Evaluation grid for funding possibilities ............................................. 82 Table 19. Identification of actors ...................................................................... 119 Table 20. Conducted Interviews ........................................................................ 147 Table 21. Some examples for CEF-co-funded projects aiming at the closure of missing cross-border links ................................................................................. 163 Table 22. Sample transport projects financed by EIB loans ............................. 164 Table 23. Sample transport projects of other EIB financing instruments ......... 165 iii Abbreviations a Year (annus) Art. Article BeNeLux Belgium, Netherlands, Luxembourg BEUR Billion Euro (109) CBC Cross-border cooperation CEF Connecting Europe Facility Cf. Compare (confer) CF Cohesion Fund CPR Common Provisions Regulation (Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural
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