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RENFE-Operadora 1 II WORKSHOP ON TRANSPORT ECONOMICS Competition and Regulation in Railways Juan Matías Archilla Pintidura International Projects Director MARCH 12, 2012 2 Spanish Railway Undertaking 3 RENFE-Operadora • It is the main railway undertaking in Spain. • It is a Government owned company. • It is the only passenger operator on Spain’s National Railway Network (RFIG) and the main freight operator. 4 RENFE-Operadora organization Corporate centre Employees 904 PASSENGERS: FREIGHT MANUFACTURING • High Speed & & MAINTENANCE • Long Distance • Regional LOGISTIC SERVICES OF • Commuter ROLLING STOCK Employees Employees Employees 8,027 1,606 3,434 TOTAL PERSONNEL 13,971 5 Main traffic figures (2011) PASSENGER TRAFFIC: PASSENGER PER KM (Millions) ………......................... 22,825 PASSENGER (Millions) ……………….………………….. 427 FREIGHT TRAFFIC: NET TONNES PER KM (Millions) ……….….….…....…… 8,031.1 NET TONNES (Millions) ………..……...………………….. 17.4 PRODUCTION: TRAINS / DAY………………..………………..… ~ 5,000 6 Evolution of Spain’s Railways 7 Historic evolution BEFORE 1941 1964 1987 1991 1994 1995 2001 2003 2005 1941 64 YEARS AS RENFE CREATION Land Transport Law NEW LEGAL STATUTE FIRST LEGAL OF RENFE (LOTT) FOR RENFE Operadora STATUTE NEW (Spanish National • Specific rules Railway Network) FOR RENFE RAILWAY SEVERAL Infrastructure/Operation NEW MODEL, TWO INTEGRATED •Financial Relations TRANSPORT PRIVATE SEPARATED A SOLE RENFE TO DOMESTIC with Government ACT ENTITIES COMPANIES STATE-OWNED OPERATE NETWORK •Management Autonomy RAILWAY UNDER Management UNDERTAKING COMMERCIAL (Law 39/2003) commissioned 1st ”Contract-Programme” (PUBLIC ENTITY) LAW to RENFE (1994 – 1998) Creation of BU’s Separation of Dir. 440/1991 infrastructure Dir. 12/2001 and operation EUROPEAN Dir. 18/1995 Dir. 13/2001 Railway Undertakings / License UNION FRAMEWORK Dir. 19/1995 Dir. 14/2001 Infrastructure Manager/Capacity Allocation 8 Railway model in Spain Defines railway policy, MINISTRY OF RAILWAY legislates and plans PUBLIC WORKS AUTHORITY Extinction GIF JANUARY Supervises and RAILWAY solves possible REGULATING Grants licenses conflicts COMMITTEE - 2005 In charge of Tenders for SERVICE construction/ services of SUPPLIERS Transformation administration public interest Infrastructure charges RAILWAY RENFE-Operadora INFRASTRUCTURE MANAGER Capacity allotment OTHER RAILWAY TRANSPORT UNDERTAKINGS 9 Liberalization of the railway market 10 European Framework The strategy of the European Union regarding railways has the following objectives: Promote market opening Improve performance of rail Encourage innovation and quality Improve the interoperability and safety 11 First Railway Package - 2001 Designed to: Open the international rail freight market Clarity formal relationship between the State, the infrastructure manager and railways undertakings Set out the conditions that freight operators must meet in order to be granted a license Introduce a defined policy for capacity allocation and infrastructure changing 12 Second Railway Package - 2004 Designed to: Develop a common approach to rail safety Harmonize interoperability of the high speed and conventional rail systems Open up both national and international freight services since 1 January 2007 Create The European Railway Agency 13 Transparent and balanced access to the railway network 14 Charges and access tariff of Spanish infrastructure Network Statement - Adif CHARGES FOR USE OF REFIG RAILWAY LINES: CLASS A - Access tariff regulates the general right to use the REFIG CLASS B - Reserve capacity tariff is imposed for the availability of the route requested CLASS C - Operating tariff regulates actual use of reserved capacity CLASS D - Traffic tariff is imposed for traffic using the railway infrastructure CHARGES FOR USE OF STATIONS AND OTHER RAILWAY FACILITIES: CLASS A - Tariff for railway station use CLASS B - Tariff for stabling and use of platforms at stations CLASS C - Tariff for passing track gauge changers CLASS D - Tariff for use of sidings CLASS E - Tariff for provision of services requiring permission for use of public railway property 15 CLASS A - Access tariff to REFIG LEVEL VOLUME OF TRAFFIC € / YEAR N1 < 1 million Train-km / year 62,952.29 N2.A >1 and < 5 million Train-km / year 162,380.74 N2.B >5 and < 10 million Train-km / year 357,237.64 N3.A >10 and < 15 million Train-km / year 746,951.42 N3.B > 15 million Train-km / year 1,526,378.97 16 CLASS B, C and D - Tariff to reserve capacity, operating and traffic V1 (>260 Km per hour) V2 (<260 Km per hour) M (Freight) P (tests) TIME LINE LINES CLASS B CLASS C CLASS D CLASS B CLASS C CLASS B CLASS C CLASS B CLASS C PERIOD TYPE RESERVE OPERATING TRAFFIC RESERVE OPERATING RESERVE OPERATING RESERVE OPERATING € Train-km €/100 seat-km € Train-km € Train-km € Train-km AV (UIC), except A1 3.69 2.16 1.36 2.26 0.83 - - 0.92 - PEAK lines type A2 AV Madrid-Sevilla (07:00-09:29) A2 La Sagra-Toledo 3.59 2.06 1.28 2.16 0.75 - - 0.83 - and Zaragoza D.-Huesca (18:00-20:29) B1* Valencia -Tarragona* 3.04 0.65 - 0.55 0.06 0.33 0.06 0.06 - C1 Conventional - - - 0.20 0.06 0.33 0.06 - - AV (UIC), except A1 2.37 2.14 0.75 1.13 0.82 - - 0.92 - NORMAL lines type A2 AV Madrid-Sevilla 09:30-17:59) A2 La Sagra-Toledo 2.26 2.04 0.70 1.08 0.74 - - 0.83 - and Zaragoza D.-Huesca (20:30-23:59) B1* Valencia -Tarragona* 0.20 0.64 - 0.20 0.06 0.05 0.06 0.06 - C1 Conventional - - - 0.20 0.06 0.05 0.06 - - AV (UIC), except A1 0.83 2.14 - 0.75 0.82 - - 0.92 - lines type A2 OFF-PEAK AV Madrid-Sevilla A2 La Sagra-Toledo 0.75 2.04 - 0.70 0.74 - - 0.83 - (00:00-06:59) Zaragoza D.-Huesca B1* Valencia -Tarragona* - 0.64 - 0.10 0.06 0.05 0.06 0.06 - C1 Conventional - - - 0.10 0.06 0.05 0.06 - - 17 Railway Companies licensed by the Ministry of Public Works: Renfe Comsa Rail Transport, S.A. Continental Rail, S.A. Acciona Rail Services, S.A. Activa Rail, S.A. Tracción Rail, S.A. Eusko Trenbideak - Ferrocarriles Vascos, S.A. Arcelor Mittal Siderail, S.A. Logitren Ferroviaria, S.A.U. Ferrocarriles del Suroeste, S.A. FGC Mobilitat, S.A. ALSA Ferrocarril, S.A.U. Guinovart Rail, S.A. Ferrovial Railway, S.A. 18 Railway Undertakings with European license English Welsh and Scottish Railway International Limited Other companies with license for capacity allocation Transportes Ferroviarios Especiales (TRANSFESA), S.A. Sicsa Rail Transport, S.A. Logística y Transporte Ferroviario, S.A. Conte Rail, S.A. Pecova, S.A. Tramesa, S.A. 19 New freight business model . Specialized companies . Management autonomy . Different structures adapted to the market they serve . Up to 45% of the shares open to private sector 20 Market share per net ton*km (2010) 21 Number of km-train run by private operators (8.10%) (3.97%) (1.69%) (0.80%) 22 Third Railway Package - 2007 Designed to: Open the international rail passenger services since 1 January 2010 Lay down conditions and procedures for the certification of train drivers Ensure basic rights for passengers 23 Cross border operations can be managed in different ways Partnership agreement Joint marketing company NATIONAL OPRATORS NATIONAL Joint railway undertaking COOPERATION BETWEEN COOPERATION COMPETITION 24 Partnership Agreement between Renfe and CP (Portuguese railways) Surexpreso Train hotel • Lisboa - Hendaya Vigo Hendaya Talgo Rolling Stock Class IV Lusitania Train hotel: Porto • Lisboa – Madrid Talgo Rolling Stock Class IV Madrid Regional services: Lisbon • 2 daily trains between Porto - Vigo 25 Partnership Agreement between Renfe and SNCF Mediterranean Corridor Talgo "Mare Nostrum" • Cartagena - Montpellier Talgo Rolling Stock Class VI Montpellier Narbone Perpignan Figueres Barcelona Tarragona Castellón Valencia Murcia Alicante Cartagena 26 European Economic Interest Grouping (EEIG) París Nìmes Montpellier Narbone Perpignan Figueres Barcelona TRANSITIONAL SERVICE: . 2 direct TGV trains between Paris Gare de Lyon and Figueres Vilafant 27 Joint Marketing Company for night rail services between Spain - France / Italy / Switzerland ELIPSOS INTERNATIONAL SERVICES: • 1daily train Madrid-Paris • 1daily train from Barcelona to Paris, Zurich and Milan. Paris Zurich Milan Madrid Barcelona 28 Result of passengers liberalization Until now no company (public or private) has shown interest in operating passenger railway services to or from Spain Thank you for your attention .
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