Intermodal Round Table and Road Map for Romania Uwe Sondermann, Kai Petri Kombiconsult Gmbh Round Table, Bucharest, 20 November 2013 Road Map, Final 20 November 2013

COSMOS Round Table Romania Road Map on Intermodal Transport Bucuresti, 20.11.2013 in Romania - Final

Intermodal Round Table and Road Map for Romania Uwe Sondermann, Kai Petri KombiConsult GmbH Round Table, Bucharest, 20 November 2013 Road Map, final 20 November 2013

COSMOS Project

Objectives

. Fostering the development of (combined) intermodal transport in South-East Europe

. Cooperative Solutions for Managing Optimized Services (COSMOS)

. www.intermodal-cosmos.eu

. Co-financed by the European Commission in the framework of a Marco Polo Common Learning Action

page 2

COSMOS Project

Partners

KombiConsult Germany Consultancy Adria Kombi Slovenia Intermodal Operator Bohemiakombi Czech Republic Intermodal Operator Crokombi Croatia Intermodal Operator DB Schenker Austria Austria Logistics Service Provider DB Schenker Bulgaria Bulgaria Railway Undertaking DB Schenker Romania Romania Railway Undertaking Ecologistics* Bulgaria Terminal Operator Gysev Cargo Hungary/Austria Railway Undertaking HaCon Germany Consultancy, IT Lokomotion Germany Railway Undertaking Slovenian Railways Slovenia Railway Undertaking Trans Express** Bulgaria Logistics Service Provider

* until 31.08.2013; ** from 01.09.2013 page 3

COSMOS Project

Promoting and disseminating intermodal transport

. Promoting intermodal transport as such, and in particular supporting schemes for modal shift to (intermodal) rail services (administrative, fiscal, technical, financial measures) towards targeted stakeholders (market parties, operational partners and political/public stakeholders)

. Dissemination of project results (“promoting campaign”):  Round tables,  Final seminar,  Knowledge platform (www.intermodal-cosmos.eu),  Other measures such as press releases and COSMOS presentations at conferences and seminars

page 4

Round Tables

2nd Round Table Czech Republic 19 Sep tem ber 2013 3rd Round Table Hungary 16 October 2013 4th Round Table 1st Round Table Romania Slovenia 20 November 2013 23 April 2013

6th Round Table Croatia March 2014

5th Round Table Bulgaria February 2014

page 5

Round Tables

Co-ordinate the findings and innovative ideas of the nucleus partners and CREAM and DIOMIS studies

Intermodal Operators

Railway Ministry of Under- Transport takings Round Infra- Terminal structure Managers Table Manager

Other Stake- Customers holders

page 6

Round Table Romania

Participants (1/2)

Institution Contact Name Present Allianso Terminal Petrica Usurelu OK Ploiesti/ George Petre OK Global Shipping Madalina Peiciu OK APM Terminals Eduard Ovezea (Rail Transport Supervisor) OK Center Tea & Co Diaconu Minel (General Manager) Excused Horatiu Ionescu (Head of Circulation) OK CFR Infrastructure Dorin Mitan OK Stefan Roseanu OK Club Feroviar Pamela Luica OK Dacia/Renault Catalin Luca OK DB Schenker Rail David Kovacs OK Huugayngary Eduard Iancu (General Manager) OK DB Schenker Rail Bogdan Barbu (Sales Manager) OK Romania Nicolae Ciovica (Director Operations) OK Adrian Florian OK Alexandru Godin (Transport Supervisor) OK DP World Constanta Gabriel Gheorghe OK EACI Eric Kenis OK

page 7

Round Table Romania

Participants (2/2)

Institution Contact Name Present Peter Kontor (Sales Manager Intermodal) OK Gysev Peter Levay (Sales Manager Projects) OK

Hupac Alberto Grisone Excused Interferry Boats Gabriela Schubert (Commercial Manager) Excused Intermodal Logistic Int'l Florin Manolescu (General Manager) OK JASPERS-EIB Teo Falato OK Uwe Sondermann (Authorised Represenative) OK KombiConsult Kai Petri (Consultant) OK

Ciprian Danila (Logistic Director) OK Kronospan Friedri ch Ahaaemmer OKO Ministry of Transport Claudiu Dumitrescu (Deputy Director – Infrastructure) Excused Madalin Ionescu (Sales Manager) OK Rail Cargo Romania Aurel Budala OK Railport Arad Dana Olaru OK Adriana Popescu (Business Development Management) OK Tibbett Logistics Kristof Schills OK Transferoviar Grup Ciprian Rosca (Commercial Manager) Excused

page 8

Round Table Romania

Methodology

. Discuss the recent achievements, status quo and future prospects of intermodal transport in Romania

. Achieve a consent about the growth perspective and coordinate regulative, financial and operational measures that will be necessary to foster the increase of intermodal rail services

. Identify relevant actors and time horizons for the realization of the intermodal strategy

. Summarize a “road map on intermodal transport” in Romania

page 9

Road Map

Objectives

. Assessment of development of combined transport in countries selected by 2015/2020

. Evaluation of threats to and requirements for CT growth

. Elaboration of strategic development plan on CT

. Assessment of impact on rail infrastructure and CT terminal capacities in countries selected selected and central Europe

page 10

Round Table Romania

Agenda

10:00 Welcome and Introduction 10:10 Status-quo of the intermodal sector in Romania

Discussion by topic: - Infrastructure - Ports and Terminals 10:45 - Port Hinterland Services - Continental Services - Incentive Schemes

12:30-14:00 Joint Lunch 14:00 Continued Discussion and Actions 15:30 Conclusions

page 11

Analysis of current CT market

General country information - Romania

. Area: 238,391 km² . PltiPopulation: ~20, 122 m il . Density of population: ~84,4/km² (below EU average) . Most city population:  1. Bucharest 1,900,000 2. Iasi 321,000  3. Cluj-Napoca 318,000 4. Timisoara 318,000 . Geographically it features  Largest country in south-eastern Europe, with population evenly spread o ver the co untry ntr  Distributed roughly equally between mountainous, hilly and lowland territories, with the Carpathian mountains dominating

page 12 Source: KombiConsult analysis

Analysis of current CT market

General country information - Romania

. Gross Domestic Product Evolution (2004-2015*)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Billion Euro 61,1 79,8 97,8 124,7 139,8 118,2 124,3 131,3 131,7 141,6 147,9 155,4 Growth 31% 22% 28% 12% ‐15%5%6%0%7%4%5%

. GDP 2012 = 131.7 Billion Euro . Continuous growth since 2004, except for 2009 . Expectations still positive

page 13 Source: Eurostat, KombiConsult analysis; * EU forecast 2013-2015

Analysis of current CT market

General country information - Romania

. Development of economic and social indicators, 2004-2012

300

250

200

GDP

150 Population Exports Imports 100

0 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 14 Source: Eurostat, KombiConsult analysis

Analysis of current CT market

Roles in the physical transport (supply- and value-) chain

Road‐only transport

Forwarder Shipper LSP Consignee Road operator CT CT Operator Operator Rail/Road transport

Road Terminal Railway Terminal Road Shipper Consignee Operator Operator Undertaking Operator Operator

Door-to-Door Infrastructure Terminal-to-Terminal Manager

The Romanian transport sector provides for various forms of logistics concepts including Combined Transport (CT) Operators for rail/road and even barge/road transport.

page 15 Source: KombiConsult analysis

Analysis of current CT market

Roles in the physical transport (supply- and value-) chain

. Combined transport operators (OP) supplying mostly multi-user CT services on account of third parties

. Logistics service providers (LSP) such as forwarding agents or shipping lines operating dedicated or multi-user CT services

. Railway undertakings (RU) providing proprietary CT services in addition to rail traction services

. Shippers, terminal and port operators (Others) supplying CT services to strengthen core business and/or distribution logistics

page 16 Source: KombiConsult analysis; 2012 Report on Combined Transport in Europe

Analysis of current CT market

Infrastructure manager(s)

. Disregarding local or regional lines, public rail network is managed by Romanian National Railway Company “CFR” SA  Established in 1998, after reorganisation of National Company of Railways

. Regulatory agency Romanian Railway Authority (Autoritatea Feroviara Romana – AFER)  Created in 1998, in order to ensure non-discriminatory access to the Romanian railwayyyg network and comply with European regulations  Four other bodies within AFER: Romanian Railway Safety Authority (RRSA – ASFR) Romanian Railway Notified Body (RRNB – ONFR) Romanian Railway Investigating Body (RRIB – OIFR) Romanian Railway Licensing Body (RRLB – OLFR)

page 17 Source: DIOMIS Report on Romania, 2010

Analysis of current CT market

Railway undertakings with focus on rail freight transport

. After first private operator was established in 2000, in 2013 there are 23 companies carrying out rail freight transports

page 18 Source: AFER / OLFR; Club Feroviar

Analysis of current CT market

Railway undertakings with focus on rail freight transport

. Private sector railway’s share increased every year and was able to gain market share of 53% in 2012, one of the highest in Europe

100%

90%

80%

70%

60% share state railway 50% transport

40% share private railway transport 30%

20%

10%

0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

However, the “competition on rail” has not prevented from a total decrease of rail volumes.

page 19 Source: KombiConsult; Club Feroviar; 2008-2011 interpolated calculation

Analysis of current CT market

Railway undertakings with focus on intermodal transport

. CARGO TRANS VAGON . CFR Marfa S .A . . DB Schenker Rail Romania . Grup Feroviar Roman (GFR) . Rail Cargo Romania . Servtrans Invest S.A. . Transferoviar Grup (TFG) . UNICOM TRANZIT . VEST TRANS RAIL . VIA TERRA SPEDITION

page 20 Source: KombiConsult; Club Feroviar

Analysis of current CT market

Railway undertakings - Privatisation of CFR Marfa (I)

. Competition is expected to increase with privatization of national railway freight operator “CFR Marfa ”, but… . 1997 – 2007: intentions to sell . 2007: privatisation officially announced, several tenders . 2011: letter of intent signed by Romanian Government with IMF to sell 20% through Initial Public Offering (IPO) or strategic investor by end of 2011, and total privatisation when market conditions allow it . End of 2012, sale strategy was published, but cancelled again . 2013: Strategy was resumed and adopted in February, announced in April 2013 for selling shares representing 51% and starting price around 180 Million Euro . Three bids submitted: Grup Feroviar Roman, Omnitrax and consortium of Transferoviar Grup and Donau-Finanz GmbH . All bids rejected (due to incomplete documentation) and participation criteria changed by ministry

page 21 Source: Club Feroviar; www.railwayinsider.eu; KombiConsult analysis

Analysis of current CT market

Railway undertakings - Privatisation of CFR Marfa (II)

. After re-launch: Omnimax was disqualified, and the consortium with Transferoviar later decided to withdraw . 20 June 2013, Grup Feroviar Roman announced as new shareholder of 51% for price of 400 Million Euro (for 275 locos, 39.000 rail freight wagons, of which 10.000 not fit to operate) . Still needed the approval of the Competition Council (CC) because of having a 70% market share . October 2013: Sale is off, due to 60-day deadline of procedure and not obtaining approval of competition authorities . 2015: P ri vati zati on process sh all now b e compl et ed i n th e fi rs t ha lf of the year, after a restructuring program of the company

The history of CFR Marfa privatisation can not be called a success-story, despite the strategy was to enchain a potential market party and protect the road sector from competition by rail.

page 22 Source: Club Feroviar; www.railwayinsider.eu; KombiConsult analysis

Analysis of current CT market

Intermodal Operators with “regular” services

. Adria Kombi . Adr ia TtTransport d.o.o. . CFR Marfa EUROLOG . Eurolog Srl . Hupac . IFB . Kombiverkehr . Rail Container S. R. L. . RCO (Hungária Intermodal Kft) . Rocombi . Rom-Rail . Tibbett Logistics

page 23 Source: 2012 Report on Combined Transport in Europe; KombiConsult analysis

Analysis of current CT market

Development of total freight volume, tonnes, 1998 - 2012

. Period of recovery during „accession process“ until 2008 . Drama tic drop o f tot al f rei ght vol ume in 2009 an d 2010, mainly due to loss of road volume related to the economic crisis

-44%

page 24 Source: www.insse.ro, from 1998 only after change of coverage and survey method; KombiConsult analysis

Analysis of current CT market

Development of rail freight volume, tonnes, 1998 - 2012

. Volume stayed on a low level or even decreased . In 2009 , rail vo lumes fe ll to the lowes t leve l . Since than, volatile development

90 Million tonnes

0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 25 Source: www.insse.ro, www.eurostat.eu; KombiConsult analysis

Analysis of current CT market

Development of rail freight traffic - summary

. After the fall of the iron curtain, and during the „accession period“ quick wins could be realised by road transport which was often more flexible, open to entrepreneurship and promoted by truck and construction industry

. In contrast to that the rail sector lacks coherent infrastructure investments, both in maintenance, refurbishment and new builds - which can be exploited fully only after their entire implementation - while improved roads can be used on sections, already

. Old and general poor state or repair of rolling stock

. General mind-set towards road

page 26 Source: KombiConsult analysis

Analysis of current CT market

Development of intermodal traffic, tonnes, 2004 – 2012

. Including RoLa traffic in 2005/2006 . Onl y unaccompan ie d tra ffic s ince 2007 . Achieved about 1.5% of road and 4.5% of rail tonnage (2012)

4.500.000 Tonnes 4.000.000

3.500.000

3.000.000 Transit 2.500.000 Export 2.000.000 Import 1.500.000 Domestic

1.000.000

500.000

0 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 27 Source: Romanian Institute of Statistics; DB Schenker RO; KombiConsult analysis

Analysis of current CT market

Development of intermodal traffic, tonnes, 2004 – 2012

. Including RoLa traffic in 2005-2006, 2010, 2012 . ItIntermo dldal mark ktdet domi nat tdbed by con titainer tra ffic

4.500.000 Tonnes 4.000.000

3.500.000

3.000.000

2.500.000 RoLa

2.000.000 Semitrailer Container 1.500.000

1.000.000

500.000

0 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 28 Source: Romanian Institute of Statistics; DB Schenker RO; KombiConsult analysis

Analysis of current CT market

Conclusions on accompanied CT „RoLa“

. RoLa services are rather a political than a market measure . DdiDepending on a coup lfftle of factors, e.g.  Transport permissions for international traffic, Visa regulations  Driving bans at night, weekends, holidays, or for specific type of goods or trucks  Subvention by the state to compensate operational losses (real rail costs vs. marginal truck costs) . Hardly impossible to forecast . Traditionally in transit through Hungary/Austria:  Arad – Wels (only 2005-2007, 2010?, 2012?) . Have become obsolete after the end of the Austro-Hungarian subvention terminated and Ökombi/Rocombi stopped service

page 29 Source: DIOMIS Country Report on Hungary, 2010; KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT market

Development of intermodal traffic, TEU, 2004 – 2012

. Unaccompanied CT (containers & swap bodies) . Import ance of d omesti c over i nt ernati onal t ransport , recently tl . Minor role of transit traffic, recently

600.000 TEU

500.000

400.000 Transit 300.000 Export Import 200.000 Domestic

100.000

0 2004 2005 2006 2007 2008 2009 2010 2011 2012

page 30 Source: Romanian Institute of Statistics; DB Schenker RO; KombiConsult analysis

Analysis of current CT market

Development of intermodal traffic - summary

. Accompanied intermodal transport (RoLa), only in 2005 and 2006 (Wels-Arad/Oradea) until accession to EU . Generally small quantities of freight compared to both road and rail . Volatile development in recent years . Domestic services represent the backbone of intermodal transportation (~60%) with container hinterland transport from and to Constanta being by far biggest part of intermodal transport in Romania . International services (()~40%) focusin g on Western Euro pe, in particular Belgium (Genk – Oradea/Arad), but continental intermodal transport still to be developed further . Growth of intermodal transport is directly depending on the country‘s own economic performance and not generated by transit traffic (like in Switzerland or Austria)

page 31 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT market

International intermodal traffic by country, TEU-Share, 2011

5% 20% 7% 49%

Relations TEU Share BE‐RO 21.071 49% RU‐RO 8.800 20% DE‐RO 2.960 7% AT‐RO 2.638 6% 3% IT‐RO 2.540 6% NL‐RO 2.052 5% HU‐RO 1.593 4% BG‐RO 1.417 3% SI‐RO 12 0% Total 43.083 100%

page 32 Source: 2012 Report on Combined Transport; KombiConsult analysis

Analysis of current CT market

Intermodal Services offered, 2013

Country Relation ‐‐><‐‐ Main Operator SI Koper Arad 1 1 Adria Transport d.o.o. RO CttConstanta Plo ies ti 2 2 Allianso ttilerminal IT Piacenza Bucharest 1 1 Eurolog HU Budapest (‐‐> De, NL) Arad 6 7 Hupac BE Genk Arad 4 4 IFB HU Budapest (‐‐> DE) Arad (Ploiesti) 1 1 Kombiverkehr RO Constanta Suceava 2 2 Rail Container RO Constanta Bacau 1 1 Rail Container RO Constanta Miercurea Ciuc 2 2 Rail Container RO Constanta Ploiesti 1 1 Rail Container RO Constanta Bucharest 1 1 Rail Container RO Constanta Pitesti 3 3 Rail Container RO Constanta Brasov 2 2 Rail Container HU BdBudapes t (‐‐> AT, DE AdArad (Plo ies ti) 1 1 RCO (Hungar ia Kft) RO Constanta Pitesti 5 5 Renault‐Dacia RO Constanta Bucharest 0,5 0,5 Servtrans RO Constanta Bucharest 2 2 Tibbett Logistics DE … Bucharest ‐‐Tibbett Logistics AT Wels Bucharest 2 2 Tibbett Logistics DE Duisburg Aiud planned planned Transferoviar Group RO Constanta Aiud planned planned Transferoviar Group Subtotal 37,5 38,5 trains per week Total 76 trains per week

page 33 Source: company websites; KombiConsult analysis

Analysis of current CT market

Intermodal Services offered, 2013

~ 40% international ~ 60% domestic

Genk DE RUSSIA ?

Budapest Suceava

Lambach/Wels Miercurea Ciuc

Arad Bacau Brasov Ploiesti Pitesti Piacenza Koper

Constanta (DPW, APM) Bucuresti

BULGARIA ?

page 34 Source: KombiConsult analysis

Round Table Romania

Agenda

10:00 Welcome and Introduction 10:10 Status-quo of the intermodal sector in Romania 10:45 Discussion by topic: Infrastructure Ports and Terminals Port Hinterland Services Continental Services Incentive Schemes 12:30-14:00 Joint Lunch 14:00 Continued Discussion and Actions 15:30 Conclusions

page 35

Analysis of current CT: infrastructure

Railway network

. Owned by Romanian National Railway Company “CFR” SA

. Characteristics:  total length of network: 10,781 km of track (11,500 km in 1990) ~ of which 3,900 km (36%) are electrified ~ of which 2,950 km (27%) are double-track lines  Power supply: 25 kV, 50 Hz on electrified sections

. Infrastructure generally suffering from a lack of maintenance and investment due to focus on corridors or main railway lines and even greater focus on development of road rather than rail network in the past

page 36 Source: CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Pan-European corridors Country considered to provide a favourable geostrategic position as an important “turntable “ for continental and intercontinental transport along the maihilWin geographical West-EdNhEast and North-ShSouth trac ks Corridor IV Corridor VII Corridor IX

page 37 Source: CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Pan-European corridors

. Corridor IV: “The link with Western Europe” (864 km)  Elect rifi ca tion: 99%; D oubl e-track li nes: 98%  Maximum capacity: 210 trains per day  Maximum speed: 95 km/h (freight), only on Bucharest-Campina up to 120 km/h  Modernisation costs for corridor IV for Romania: € 7.991 Billion  Considerable infrastructure investments recently completed, e.g. • the New Europe Bridge (Danube Bridge 2), the new international rail link between Bulgaria and Romania across the Danube or • the reconstruction of the line linking Constanta Seaport with Bucharest

page 38 Source: DIOMIS Report on Romania; CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Pan-European corridors

. Corridor IX: (595 km)  Elec tr ifie d: 87%  Double-track lines: 87%, important section between Bucharest and Giurgiu is not electrified  Maximum capacity: 216 trains per day  Maximum speed: 95 km/h (freight), only on Bucharest-Ploiesti up to 120 km/h  Modernisation costs for corridor IX for Romania: € 3.506 Billion

. Corridor VII (Danube)  Less important for rail, but competing mode of certain commodities (minerals, bulk, container?)

page 39 Source: DIOMIS report on Romania; CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Ten-T Core Network Corridors Corridor IV and VII were maintained in the attention of the EU and became TEN-T core corridors now. The link to the Baltic States was shifted to EU terrilihfifCidIXitory neglecting the former routing of Corridor IX Corridor IX Rhine-Danube Russia/Balticum Not considered Orient/East-Med

page 40 Source: COM 2011/650; KombiConsult analysis

Analysis of current CT: infrastructure

Rail Freight Corridor (RFC) 7 Alignment of TEN-T and RFC-Corridor on rail network RFC-Implementation Plan achieved in November 2013

Main corridor

Secondary line

Main line via Brasov / mountain area with 30%o gradient impede efficient freight service -> study for expensive long tunnel and gradient of 12%o under preparation

“Secondary” line via Targu Jiu used “mainly” ddtue to wor ks on thiltkthe single track ma iliin line -> rail operators require a more coordinated planning of the works along the corridor

page 41 Source: EU 913/2010; KombiConsult analysis

Analysis of current CT: infrastructure

Electrified lines on RFC 7 Main corridor lines electrified Despite Craiova –Calafat / Vidin section

Electrified

non-electrified

Craiova – Calafat “heading for new (eltifidlectrified) DbDanube bidbridge to Vidine (BG) requiring Diesel traction on around 90 km

page 42 Source: CFR SA Network Statement; Foto: Railvolution 5/13; KombiConsult analysis; COSMOS Round Table Romania

Analysis of current CT: infrastructure

Electrified lines of the main network

Other main network sections electrified, too.

Electrified

non-electrified

page 43 Source: CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Double lines of the main network

RFC7 southern branch (towards BG/GR/TR) only single line.

Double lines

Single lines

Shall be maintained single line, but electrified, because space does not allow for second line Gradient of 32%o at Drobeta/Turnu Severin require double traction and limit train length at 600 m

page 44 Source: CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Intermodal Loading Units – Semi-trailers

13.6 m long 4m4 m external height 3 m internal height Flexible to use For different cargo Required loading profile „P400“

Semi-trailers became standard equipment in international road transport and thus intermodal operation

page 46 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Impact of „P400“ profile on intermodal development

. The „P400“ loading gauge became effective on Brenner line München (DE) and Verona (IT) by the year 2000

Loading units p.a.

Total unaccompined CT Semi-trailers

Due to enlargement the number of transported semi- trailers increased by 600% in eight years.

page 47 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Loading gauge & Weight class on RFC 7

HU: P/C 400! P/C 78/402 until Curtici P/C 70/400 (Rail Port P/C 45/375; C3 Arad) Non classified All loading gauges too small for continental CT, mainly due to tunnel profile -> Investigation worth to be required

Weight class „C3“ provides for axle load of 20t axle load, only, even after rehabilitation P/C 45/375

page 48 Source: CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Maximum permitted train length on RFC 7 RFC7 south branch (towards BG/GR/TR) good length, but single line Other sections (Brasov/Predeal) limited train length on double line

750 – 720 m 675 – 640 m 600 – 550 m

page 49 Source: CFR SA Network Statement 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Impact of the maximum permitted train length

Maritime Continental Train length 600 m 700 m 600 m 700 m Wagon length 26 m 26 m 34 m 34 m N°of wagon 23 26 17 20 Capacity 4 TEU 4 TEU 2 ST 2 ST Total Capacity* 92 104 34 40 Difference 12 TEU 6 Semi-Trailers (ST) Efficiency +13% +17% Wagon type Sggnss/Sggr/ss 80‘ T3000 104‘ * Maximum train weight may reduce the total capacity

An increase of the maximum permitted (wagon) train length from 600 to 700 m would bring a gain in efficiency by 17% in continental and 13 % in maritime traffic.

page 50 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Impact of the maximum permitted train length

Maritime Continental Train length 600 m 700 m 600 m 700 m Wagon tara 21.5 t 21.5 t 35 t 35 t N°of wagon 23 26 17 20 Tare weight 495 t 560 t 595 t 700 t Total Capacity 92 TEU 104 TEU 34 ST 40 ST Ø Weight 12 t/TEU 28 t/ST Load weight 1.104 t 1.248 t 952 t 1.120 t Total weight 1.599 t 1.808 t 1.527 t 1.820 t Difference 209 t 273 t Efficiency +13% +17% Wagon type Sggnss 80‘ T3000 104‘

page 51 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Border crossing stations Diacovo (UA) / Teresva (UA) / Vadu Siret (UA) / Halmeu Campulung la Tisa Vicsani Ágerdőmajor (HU) / Carei Berlibas (UA) / Valea Viseului Nyírábrány (HU) / Valea lui Mihai

Biharkeresztes (HU) / EU border Episcopia Bihor Ungheni(MD) / Ungheni Prut Kotegyan (HU) / External border Salonta Lokoshaza(HU) / Problems encountered for?: Important station Curtici . Opening Time (MD) / Kikinda (RS) / Falciu Jimbolla . Transition Time . Hand-over procedure Giurgiulești (MD) / . Capacity Galati . Availability of tracks, Vrsac (RS) / Stamora Moravita shunting persons, locos

Vidin (BG) / Ruse (BG) / Kardam (BG) / Calafat Giurgiu Negru Voda

page 52 Source: CFR SA Network Statement 2013; KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: infrastructure

Border crossing stopping times – examples 2009

4 hours

page 53 Source: CREAM project, HaCon analysis, 2009

Analysis of current CT: infrastructure

Border crossing – challenges discussed in Round Table

. Infrastructure managers (IM) and railways (RU) have accepted the traditional, relatively long processing times. . Romania (and Bulgaria) could not enter the Schengen-Area as planned so that border police and customs activities are still required on the – sometimes two – border stations . Due to the relatively long waiting times at the Curtici station (RO-> 25 hours; HU->RO 7 hours) the train parking capacity is limited . Next to the time table slots in particular somewhat „uncoordinated“ works on either side of the border have been experienced and should be avoided in future by an improved coordination between IM . The impact of the malfunction was a block of the trains, stop of production site and consideration to close the site and remove it to Western Europe

Border crossing remains on the agenda of infrastructure managers and railway undertakings, in particular when customers needs on fast and reliable international train services are taken into account.

page 54 Source: COSMOS Round Table Romania 2013

Analysis of current CT: infrastructure

Maximum permitted speed on RFC7 Commercial speed „50 km/h“ is far below design speed.

Design Speed! >120 km/h Operational Speed? 100 – 95 km/h Commercial Speed? 85 – 60 km/h

- lack of maintenance or re- investment in the past, - lack of traffic management system - use of old wagons - operational stops of railways - a „performance regime“ including penalties is projected

page 55 Source: CFR SA Network Statement 2013; KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: infrastructure

Port of Constanta – Bucharest line

Rehabilitated double track line Not rehabilitated Port and private sidings Cables (partly) dismantled by theft Insufficient use for Modernised to the needs of users Mixed use by pax and freight buffering trains Slow (max. 60 km/h) heavy (3.000t) freight trains determine speed Lack of modern dispatching centre Direct dependency X X

Main Line Freight Station Port Lines to Bucuresti - Constanta „Valu lui Traian “ Terminals

Mobilize police against theft Rehabilitation needed Create bundles of container train slots by CFR S.A. for higher speed (100 km/h) (or by Port Authority if property sold) and lighter (1.800t) trains Industrialised production Implement modern dispatching centre overnight trains

page 56 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: infrastructure

Capacity on RFC7 Already the RFC7 Implementation plan highlights lines with limited capacity. Improvement measures are (partly) identified but their effective implementation takes more time.

Improvement Measures? sufficient restricted

page 57 Source: RFC7 Implementation Plan 2013; KombiConsult analysis

Analysis of current CT: infrastructure

Railway network – overall actual status

Parameter Unit Objective Actual value

Lauding gauge P/C 70 – P/C 400 P/C 45 – P/C 375 85-90 Nominal speed km/h 120 (25 km/h commercial speed) 22,5 v≤100 km/h Mass per axle t/axle 20, 5 20 v≤120 km/h Minimum useful m 750 500-700 siding length Gross tonnage t 1.500 1.400-3.000 of trains

page 58

Analysis of current CT: infrastructure

Infrastructure access charges

Second highest access charges compared to neighbouring RFC7 countries in 2012.

page 59 Source: RFC7 Implementation Plan; KombiConsult analysis

Analysis of current CT: infrastructure

Modernisation of railway network

. Most activities originate from accession process should be already completed by 2013, but are behind schedule  Building double-track lines  Improvement of maximum permitted axle weight to 22,5t  Increased maximum speed to 120 or 160km/h

. Romania is one of the countries with lowest rate of using the European structural funds budgets

page 60 Source: KombiConsult analysis

Analysis of current CT: infrastructure

Railway network – Summary and Conclusions

. Continuation of Pan-Europp,ean, Trans-Europpgean and Rail Freight Corridor lines on Romanian territory . RFC7 implementation plan as a good starting point requiring more orientation to the users and transparent monitoring of realisation . Works required on long time identified sections to complete corridors usable by rail traffic . Loading gauge analysis and eventually enlargement starting from Curtici to Bucharest to involved terminals . Accept (limited) weight class “C3” as stipulated in the RFC7 . Facilitate 700m (wagon) train length in coordination with neighbouring IM and RU . Improve border crossing procedures in close cooperation with customs/border police, IM and RU . Seek to obtain cheaper network access charges for block trains

page 61 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Round Table Romania

Agenda

10:00 Welcome and Introduction 10:10 Status-quo of the intermodal sector in Romania 10:45 Discussion by topic: Infrastructure Ports and Intermodal terminals Port Hinterland Services Continental Services Incentive Schemes 12:30-14:00 Joint Lunch 14:00 Continued Discussion and Actions 15:30 Conclusions

page 62

Analysis of current CT: intermodal terminals

Intermodal terminals - overview ~ 30 terminals altogether, but majority is non-operating

Botosani Baia Mare Suceava CFR terminals Zalau Port terminals Oradea Est Bistrita Socola (Iasi) Private terminals

Cluj Napoca Est

Turda Bacau Targu Mures

Arad Glogovat Medias

Semenic Sibiu Brasov Triaj

Galati Marfuri

Ploiesti Buzau Sud Bujoreni Valcea

Bradu de Sus / Ploiesti Crang Pitesti Leordeni

Bucharest Bucuresti CPB Bucuresti Noi Bucuresti Sud Constanta APM Constanta CSCT Craiova Constanta SOCEP Constanta UMEX

page 63 Source: KombiConsult analysis

Analysis of current CT: intermodal terminals

Intermodal terminals – “CFR Marfa”

. There are about 25 intermodal terminals, owned by CFR Marfa and operated by CFR Transauto (now Rofersped) . Mostly built in 1970s, when trucks were not permitted to drive over 100 km . Since then they have not been well maintained or used properly, no big investments were made . Thus terminal infrastructure is in poor condition . Modernising the majority of these facilities does not appear to be a sound investment, currently . Bacau, Baia Mare, Brasov, Medias, Sucueva, Turda and Zalau Nord known to be operating of CFR Marfa terminals, operated by Rofersped (before CFR Transauto)

page 64 Source: DIOMIS Report on Romania, 2010

Analysis of current CT: intermodal terminals

Intermodal terminals – “Private”

. Small number of private terminals in:  AdArad (Con ta iner Term ina l Ra ilpor t Ara d), operated by SC Railport Arad SRL  Bucharest (Bucharest Intermodal Terminal), operated by Tibbett Logistics  Constanta (2 terminals): operated by APM, DP World  Leordeni (Center Tea & Co Terminal), operated by SC Center Tea & Co S.R.L.  Pitesti (Dacia)  Ploiesti (Allianso Terminal Ploiesti), operated by Allianso Terminal-Rail Cargo TSA

. Planned terminal in Aiud by Transferoviar Group in 2013

page 65 Source: DIOMIS Report on Romania, 2010; www.intermodal-terminals.eu

Analysis of current CT: intermodal terminals

Intermodal terminals – Most active sites

Botosani Baia Mare Suceava

Zalau Bacau (Rofersped) Oradea Est Bistrita Socola (Iasi) Railport Arad Cluj Napoca Est

Turda Bacau Targu Mures Brasov (Rofersped) Arad Glogovat Medias

Semenic Sibiu Brasov Triaj Ploisti (AlliansoGalati Marfuri )

Ploiesti Buzau Sud Bujoreni Valcea

Bradu de Sus / Ploiesti Crang Pitesti Leonardi (Tea & Co) Leordeni

Bucharest Bucuresti CPB Bucuresti Noi Bucuresti Sud Constanta APM Constanta CSCT BucharestCraiova Intermodal (Tibbett) Constanta (APM,Constanta SOCEP DP World) Constanta UMEX

page 66 Source: KombiConsult analysis

Analysis of current CT: intermodal terminals

Intermodal terminals – Details on handling tracks, equipment, annual capacity (and volume)

GantryMobile Total tracks Capacity (LU p.a.) Name Operator RMG RTG N° RS N° m handling tracks Min Allianso Terminal Ploiesti ALLIANSO TERMINAL-RAIL CARGO TSA 1 3 1.800 30.000 112.500 30.000 Baia Mare Rofersped S.A. (Baia Mare) 2 2 384 100.000 24.000 24.000 Brasov Rofersped S.A. (Brasov) x 1 2 600 50.000 37.500 37.500 Bucharest Intermodal Terminal Tibbett Logistics 2 2 500 60.000 31.300 31.300 Center Tea & Co Terminal SC Center Tea & Co S.R.L. 1 1 300 30.000 18.800 18.800 Constanta Port (APM) APM Terminals (Constanta) x 1 2 1 650 110.000 40.600 40.600 Constanta South Container Terminal DP World Constanta x 2 3 1.848 100.000 115.500 100.000 Container Terminal Railport Arad SC Railport Arad SRL x 1 2 2 1.300 110.000 81.300 81.300 Medias Rofersped S.A. (Medias) 2 2 320 100.000 20.000 20.000 Rofersped Terminal Bacau Rofersped S.A. (Bacau) x 1 1 150 50.000 9.400 9.400 Suceava Rofersped S.A. (Suceava) 2 2 300 100.000 18.800 18.800 Turda Rofersped S .A . (Turda) 1 2 230 50. 000 14. 400 14. 400 Za la u Nord Rofersped S.A. (Zalau Nord) x 1 2 220 50.000 13.800 13.800

940.000 537.900 439.900

Assumptions: 12 hours per day; 250 days p.a.; RMG 25/RS 15 LU/hr; 1.5 LU/wagon; flow factor 1,5 (which is high and requires storage tracks nearby) further limitation by small storage space not considered, yet

Generally sufficient handling capacity for the currently (low) handling volumes.

page 67 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: intermodal terminals

Intermodal terminals – operators can update their data

www.intermodal-terminals.eu/database

page 68

Analysis of current CT: intermodal terminals

Intermodal strategy Romania 2020

. Maximization of cargo bundling 2011-2015, by  OtiiiOptimizing n° oftf termi nal s i n re ltilation to cargo bun dling targe t  Only support development of terminals on locations, where: • Large industrial complex already is present • Large production and/or assembly and/or trading activities are planned in an industrial park with a size of at least 50ha • Enter a dialogue with private sector to develop a collaborative strategy focused on intermodal terminal dev.

An intermodal strategy is needed at country level to guide public and private investment. The intended “dialogue” is appreciated by the stakeholders but did not take place, yet.

page 69 Source: Intermodal strategy Romania 2020; Round Table Romania

Analysis of current CT: intermodal terminals

Intermodal terminals – Short / mid-term locations Locations should respect the investments and capacity of present terminals and fill gaps, only. Terminal investments should be accompanied by a thorough market analysis and take into account efficient train productions systems to link with other terminals. Botosani Baia Mare Suceava

Zalau Oradea Est Bistrita Socola (Iasi)

Cluj Napoca Est

Turda Bacau Targu Mures

Arad Glogovat Medias

Semenic Sibiu Brasov Triaj

Galati Marfuri

Ploiesti Buzau Sud Bujoreni Valcea

Bradu de Sus / Ploiesti Crang Pitesti Leordeni

Bucharest Bucuresti CPB Bucuresti Noi Bucuresti Sud Constanta APM Constanta CSCT Craiova Constanta SOCEP Constanta UMEX

page 71 Source: Intermodal strategy Romania 2020; KombiConsult analysis; Round Table Romania

Analysis of current CT: intermodal terminals

Intermodal strategy Romania 2020

. Efficient rail access ry . Effici ent road access . Non-exclusive, so open to all users . Capability of receiving full trains mandato  750m minimum, 2 tracks . Total surface of at least 8 hectares . Inclusion of empty container depot . Stacking capacity of 200 LU ionally t . 24/7/52 year round operation

op . Secured, accommodating extended customs gate solution . State-of-art ICT connections

Criteria, generally useful, but only the first 4 should be mandatory, while the others are depending on the market to be attracted and the operation concept

page 72 Source: Intermodal strategy Romania 2020; Photo: DUSS Frankfurt am Main (Ost); COSMOS Round Table RO 2013

Round Table Romania

Agenda

page 73

Analysis of current CT: Port Hinterland Services

Port of Constanta

. Domestic transport dominated by maritime hinterland traffic from and to Port of Constanta . One of the largest EU port in the Eastern Europe: Europe’s Eastern gateway and “hub” on the Black Sea . Positioned on Pan-European Corridor IV, VII and IX . 4 container stevedore companies:  APM Terminal  Socep  Constanta South Container TeTerminalrminal (DP World Constanta)  UMEX

page 74 Source: DIOMIS Report on Romania, 2010; KombiConsult analysis

Analysis of current CT: Port Hinterland Services

Port of Constanta - Map

APM CSCT

page 75 Source: Port web site; KombiConsult analysis

Analysis of current CT: Port Hinterland Services

Port of Constanta – development strategy

. Master Plan developed, including a development strategy to 2020 and short term by 2013  Building new container terminal for big tonnage capacity vessels  Increasing handling capacity of DP World to 2 Million TEU  Extension of railway system, linking South port more efficiently and improving rail transit times, additional lines, building a systematised railway complex (the latter financed by SOP-T); and  Total handling volumes to be increased up to 2.5 Million TEU . Idea of developing common collaborcollaborationation projects with the port of Rotterdam (Memorandum in 2011) – but no results, yet

page 76 Source: DIOMIS Report on Romania, 2010

Analysis of current CT: Port Hinterland Services

Port of Constanta – Development of CT, 2003 - 2020

. Volumes dropped significant due to economic crisis in 2009

3.000.000 ~40% Hinterland transport (by road, rail or waterway),

2.500.000 ~45% of which by rail

2.000.000

1.500.000

Masterplan

1.000.000 Tot al

Others: APM Te r mi nal & UMEX

500.000 Socep

DP World

‐ 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

page 77 Source: DIOMIS Report on Romania, 2010; KombiConsult analysis

Analysis of current CT: Port Hinterland Services

Port of Constanta – development measures

. Thus, in 2012, a new Masterplan was initiated  Medi um an d long term s tra teg ic p lann ing 2012-2040 for an optimum planning of investments  To be financed by the SOP-T; application for financing is analysed  Tender for selection of consultant to prepare Master Plan was launched, 8 candidates have submitted interest, 7 were invited and 6 of them submitted bids

. ADB Multiplatform (Adriatic-Danube-Black-Sea Multimodal Platform)  Part of Transnational Cooperation Programme South East Europe  To better integrate South-eastern Europe on EU’s market by increasing efficiency, attractiveness and competitiveness of transport system in the region (integrated network)

page 78 Source: Port of Constanta; KombiConsult analysis

Analysis of current CT: Port Hinterland Services

Intermodal Services 2013 – Port Hinterland Services

Genk DE

DE Single wagon load Budapest Suceava

Lambach/Wels Miercurea Ciuc

Arad Bacau Brasov Ploiesti Pitesti Koper

Constanta (DPW, APM) Bucuresti

page 79 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: Port Hinterland Services

Intermodal Services 2013 – Port Hinterland Services

Botosani Baia Mare Suceava

Zalau Oradea Est Bistrita Socola (Iasi)

Cluj Napoca Est

Turda Bacau Targu Mures

Arad Glogovat Medias

Semenic Sibiu Brasov Triaj

Galati Marfuri

Ploiesti Buzau Sud Bujoreni Valcea

Bradu de Sus / Ploiesti Crang Pitesti Leordeni

Bucharest Bucuresti CPB Bucuresti Noi Bucuresti Sud Constanta APM Constanta CSCT Craiova Constanta SOCEP Constanta UMEX

page 80 Source: KombiConsult analysis

Round Table Romania

Agenda

page 81

Analysis of current CT: Continental Services

Intermodal Services 2013 – Continental Services

Genk DE

DE Single wagon load Budapest Suceava

Lambach/Wels Miercurea Ciuc

Arad Bacau Brasov Ploiesti Pitesti Piacenza Koper

Constanta EUROLOG (DPW, APM) Bucuresti

page 82 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: Continental Services

Continental intermodal services - Conclusions

. Continental freight transport in total achieved a market share of ~40% (2012)

. Principle trade lanes are between the Romanian intermodal “hot spots” of Curtici/Arad and Ploiesti with Belgium/Germany

. Main commodities were chemicals, food, non-food and various industrial and consumer merchandise

. Infrastructure limitations (max. axle load < 20t, loading profile

. Technically-operationally loading units are suited for almost all types of goods (see next page)

page 83 Source: DIOMIS Report on Romania, 2010

Analysis of current CT: Continental Services

Continental intermodal services – Loading units

page 84 Source: COSMOS project website

Analysis of current CT: Continental Services

Strategic competition on land and short sea routings

Frankfurt LdLudwi gsh hfafen

Trieste Start of operation: 07.10.2013

Operational Parameters: Pendik Fast transport by train and ferry 3x Local pick-up/delivery by truck Suitable for 4-m high semi-trailers („P400“) 3 / 6 departures / week x direction Multi-client train open for forwarders 6x Patras Synchronised services Complementary to existing services

page 85 Source: Kombiverkehr/KombiConsult

Round Table Romania

Agenda

page 86

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. Government Ordinance N° 88/1999, article 6, establishing rules for combined transport . Ministry of Transport & Infrastructure: Sustainable Transport Strategy 2008 . Spatial Planning of the National Territory, Section I – Transport Networks (law no. 363/2006) . Sectorial Operational Programme on Transport 2007 – 2013 (SOPT) . Intermodal Transport Strategy Romania 2020 . General Transport Master Plan

page 87 Source: DIOMIS Report on Romania, 2010; KombiConsult analysis

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. To promote intermodal traffic, the following instruments have been implemented:  Article 6 in Government Ordinance no.88/1999, establishing rules for combined transport of goods, stating that economic agents Not been involved in CT may be granted temporary exemptions for income granted ,yet tax in return for investment in infrastructure development and for acquisition/modernisation of installations relating specifically to CT;  To promote operation of rail block trains between terminals, it is Not been planned that block trains receive a reduction in rail access granted , yet charges (~ 60%)

page 89 Source: DIOMIS Report on Romania, 2010; KombiConsult analysis

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. Sectorial Operational Programme on Transport 2007 – 2013 (SOPT)  Financ ing the cons truc tion and mo dern isa tion o f termi na ls  18 Million EUR fund  2011: Guide for applicants published  Project submissions expected by end of 2013  only together with railway infrastructure manager (CFR SA) to get funds, despite the fact that CFR SA does not own or operates such terminals  Amendment in 2013 with a list of 13 cities as key locations for modernization and construction of intermodal terminals

Thus, no Euro has been spent from the funds allocated by EC and state budget

page 90 Source: DIOMIS Report on Romania, 2010; Club Feroviar; COSMOS Round Table Romania 2013

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. In January 2012, Romanian Government approved Memorandum signed by Ministry of Transport and Infrastructure and Romanian Ministry of Economy and Trade on creating an interministerial structure to ensure general management of interministerial Programme “Logistics Centre for RE-Export in Central and Eastern Europe” . Objectives (amongst others)  turn into account competitive position of transport infrastructure  Increase intermodal transport  Improve qualityyy and efficiency of services  Reduce effects of economic crisis, greenhouse emissions and environmental impact to the minimum  Development of regional centre in Recas (Timisoara) for relaunching intermodal transport

page 91 Source: Club Feroviar

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. Intermodal Transport Strategy Romania 2020  Pu blis he d in 2011 b y R omani an Mi n is try o f Transpor t an d Infrastructure  Target for 2020: intermodal transport accounting for 40% (1,4 million TEU) of movement of relevant goods (Containers, ILU, swap bodies and other boxes, trailers)  Maximization of cargo bundling especially in 2011-2015  To develop intermodal terminals in particular in Bucharest, Constanta and Timisoara  Budget plan 2011-2013: 61 Million EUR  Budget plan 2014-2020: 114 Million EUR

Needs to be revised taking into account the recent market development, terminals developed by the private sector in the meantime, shortcomings on rail infrastructure and transparent rules for application by market parties including realistic business plan.

page 92 Source: Intermodal Strategy Romania 2020; KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. Intermodal Transport Strategy Romania 2020 – Actions (I)  ISR2020 St ra tegy Adop tion  Intermodal Terminal development 2011-2015  Intermodal Terminal development 2016-2020  Preparation SOPT 2014-2020  ISR Organization  Supply Chain & Logistics Education and Training  Accessibility of Europe via Black Sea  CFR Infrastructure use contracts

Actions generally appreciated but need to be prioritized with stakeholders, who are willing to support this.

page 93 Source: Intermodal Strategy Romania 2020; KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. Intermodal Transport Strategy Romania 2020 – Actions (II)  EtExtend dded cus toms gat es ?  RoLa Carpathian mountains ?  RoLa Black Sea  Zero emission Danube vessels  Fiscal & legislative measures  Key performance indicators development  “Go inter-modal” programme

Actions generally appreciated but need to be prioritized with stakeholders, who are willing to support this. RoLa generally questionable.

page 94 Source: Intermodal Strategy Romania 2020; KombiConsult analysis; COSMOS Round Table Romania 2013

Analysis of current CT: Legal Framework

Framework of Romanian transport policy and actions

. General Transport Master Plan  IAilIn April 2012, siiigning an agreemen t on consu ltancy serv ices for elaboration (EUR 2 million) for General Transport Master Plan, funded by European funds and to be completed in 23 months  Deadline has been extended and final draft is expected in Spring 2014  Public consultation is planned afterwards

page 95 Source: Club Feroviar

Analysis of current CT: Legal Framework

Catalogue of incentives for CT and their application in RO

No . Financial aid for CT operations: start-up or continuous support of CT services; No . Financial aid for investments in infrastructure, e.g. CT terminals; No . Financial aid for investments in CT equipment; No . Financial aid for investments in information systems, training etc; No . Derogation from Directive 96/53/EC governing the weights and dimensions of heavy good vehicles. No . Any special treatment as far as maximum dimensions and weight is concerned in force for vehicles moving in CT No . Exemption from driving bans for road vehicles, e.g. weekend ban No . Vehicle tax exemption of up to 100% for vehicles used exclusively in terminal pick-up and delivery operation** No . Exemptions from road usage fees or tolls for vehicles in CT *Council Directive 96/53/EC “Maximum authorized weights and dimensions” **Directive 92/106/EEC “Establishment of common rules for certain types of combined transport “

page 96 Source: KombiConsult analysis; COSMOS Round Table Romania 2013

Round Table Romania

Agenda

page 99

Evaluation of CT: SWOT-Analysis

SWOT Analysis

Strengths Weaknesses . Integration into European trade . Not competitive railway network lanes via corridors (outdated and worn railway means) . Deep-sea access via the Port of . Poor connectivity of main rail and Constanta on own territory port line without buffer capacity . Trade-oriented economy with . Low reliability of rail services due to skilled workforce infrastructure deficits and border crossing procedures (non Schengen regime) . Industrial sites producing also for . Lack of prioritisation of investments export goods (chemical, and coordination with commercial automotive, IT hardware) stakeholders . Competent international and . Only small increase of GDP per national companies in the rail and capita does not yet allow import of logistics sector consumer goods

page 100 Source: KombiConsult analysis, updated 2013

Evaluation of CT: SWOT-Analysis

SWOT Analysis

Opportunities Threats . Geographical position with respect . Redirection of transit flows to to important European parallel networks due to slow development axis development of public rail infrastructure . Further stabilisation of Eastern . Redirection of port handling to Balkans and Turkey European Western ports due to lack of integration will bring increase of efficient rail link to/from Constanta transport flows, incl. Rail in transit . Transfer of less demanding . Increase of number of bottlenecks production to Asia and imports of in rail network due to slow goods via Black-Sea/Adriatic ports improvement . Growth poles of industrial sites, . Lack of confidence in implementing agglomeration, logistics facilities originally agreed “plans” and and access to networks absorption of available EU funds

page 101 Source: KombiConsult analysis, updated 2013

Evaluation of CT: Volumes

Development of intermodal transport, TEU, 2007 - 2020

. Transit of continental transport with Turkey and Greece on land route via Hungary, Romania, Bulgaria because of EU access and improved border crossing on this line, rather than Serbia . International maritime transport generated to/from the enlarged port of Constanta (Masterplan) . International continental transport due to the involvement of Romania in industrial products (cars, IT hardware, textiles) as well as chemical products . Several projects and efforts for increasing intermodal transport, e.g. in 2013 Romania joined the VIKING project . Domestic maritime transport to/from port of Constanta . Domestic continental transport hardly to asses due to size, truck circulation and imbalance of traffic . Increase of intermodal volume by 9.6% p.a. (2020/2007)

page 102 Source: DIOMIS Report on Romania 2010; KombiConsult analysis

Evaluation of CT: Volumes

Development of intermodal transport, TEU, 2007 - 2020

1.400.000

1.200.000

1.000.000

800.000 9.6% p.a. Transit Export 600.000 Import Growth path feasible 2009/2011! Domestic 400.000

200.000 But economy/transport too volatile 0 2007 2008 2009 2010 2011 2012 2020

page 103 Source: DIOMIS Report on Romania 2010; KombiConsult analysis

Evaluation CT market: Evolution of transport

Evolution of CT: Conclusions (1/3)

. The Romanian transport sector provides for various forms of logistics concepts including CT-Operators for rail/road transport. . Private sector railway’s increased to gain market share of 53% in 2012, one of the highest in Europe. However, the “competition on rail” has not prevented from a total decrease of rail volumes. . After the fall of the iron curtain, and during the „accession period“ quick wins could be realised by road transport which was often more flexible, open to entrepreneurship and promoted by truck industry. . In contrast to that the rail sector lacks coherent infrastructure investments, both in maintenance, refurbishment and new builds while improved roads can be used on sections, already . Alignment of TEN-T and RFC-Corridor on rail network were achieved by the RFC-Implementation Plan in November 2013, but also highlighting lines with limited capacity. . Improvement measures are (partly) identified but require effective implementation (financing, timing, monitoring). page 104 Source: Round Table Meeting, KombiConsult analysis

Evaluation CT market: Evolution of transport

Evolution of CT: Conclusions (2/3)

. Accompanied intermodal transport (RoLa), only in 2005 and 2006 (Wels-Arad/Oradea) until accession to EU. . Intermodal market dominated by container traffic with a clear importance of domestic (~ 60%, Constanta hinterland) over international transport (~ 40%, focusing on Western Europe). . Growth of intermodal transport is directly depending on the country‘s own economic performance and not generated by transit traffic. . Semi-trailers became standard equipment in international road transport and thus intermodal operation, but all rail loading gauges are too small for continental CT, mainly due to tunnel profiles. . Intermodal terminals, generally, provide for sufficient handling capacity for the currently (low) handling volumes. . Training of personal engaged with transport decisions on the merits of intermodal transport would be required.

page 105 Source: Round Table Meeting, KombiConsult analysis

Evaluation CT market: Evolution of transport

Evolution of CT: Conclusions (3/3)

. An intermodal strategy is needed at country level to guide public and private investment. The intended “dialogue” is appreciated by the stakeholders but did not take place, yet. . The strategy needs to be revised taking into account the recent market development, terminals developed by the private sector, shortcomings on rail infrastructure and transparent rules for application by market parties including realistic business plan. . The strategy should investigate (re-)activating incentive scheme in favour of intermodal transport such as  Derogation from Directive 96/53/EC governing the weights and dimensions of heavy good vehicles (“44 tonnes”).  Exemption from driving bans for road vehicles, e.g. weekend ban  Vehicle tax exemption of up to 100% for vehicles used exclusively in terminal pick-up and delivery operation  Exemptions from road usage fees or tolls for vehicles in CT

page 106 Source: Round Table Meeting, KombiConsult analysis

Conclusions

What‘s next?

. KombiConsult will send the (updated) transparencies to all invited participants by November 27, 2013. . All invited participants were asked to validate the facts, findings and conclusions and send additional information or modification requests to KombiConsult by December 13, 2013. . KombiConsult will consolidate the comments received by than and send the final version to all participants by December 20, 2013. . Participants are invited to use the joint findings whenever possible to promote intermodal transport in Romania. . Additional Round Tables will take place in further countries (see next page)

page 107

Round Tables Series

Praha, 19.09.2013

Wien, 6/2014 (Final Conference)

Budapest, 16.10.2013

Ljubljana, 23.4.2013

Zagreb, 3/2014 5th RdRound TblTable Bulgaria Bucuresti, 20.11.2013 25 February 2014 Sofia, 2/2014

page 108

Announcement of the 2014 Report on CT in Europe

2012 Report on Combined Transport in Europe

. Survey on Intermodal Industry

. Business Models

. Unaccompanied Transport

. Accompanied Transport

. Total Transport 2005/2009/2011

. Outlook 2012/15

. Service Providers

We kindly invite you to support us with statistical data for the 2014 report, that will be elaborated on the year 2013 in spring/summer 2014.

page 109 Source: www.kombiconsult.com

KombiConsult Profile

page 110

Intermodal Road Map Romania

Sources of Information

. CREAM Project Reports, www.cream-project.eu . DIOMIS P roj ect R eport s, www.ui c.org/DIOMIS . Report on Combined Transport in Europe 2012, www.kombiconsult.com . Club Feroviar compendium on Rail in Romania, 2013 . CFR SA Network Statement 2013 . Romanian Institute of Statistic, www.insse.ro . Implementation Plan for RFC7 . Romanian Office of Tou rism (front page photo) . Websites, information and data provided by the Round Table Participants

page 111

Intermodal Road Map Romania

Disclaimer

The present Road Map presentation has been compiled by one or more COSMOS partners with the support of third parties and may contain business sensitive information. You may use the content totally or selectively without changing the content of the single slides, if clearly identifying the source: COSMOS Project, Intermodal Road Map Romania, Hacon / KombiConsult, 2013, www.cosmos-project.eu

page 112

Thank you for your attention..

Klaus-Uwe Sondermann KombiConsult GmbH Zum Laurenburger Hof 76 60594 Frankfurt am Main, Germany Email: [email protected] Phone: +49 69 244 32 93 172