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Latest Developments at Czech Railways

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Latest Developments at Czech Railways Feature Transition to Market Economy Latest Developments at Czech Railways Jirˇí Havlícˇek The political changes that occurred after 1989 throughout Central and Eastern Europe (CEE) following the collapse of Table 1 Basic Czech Railways (CD) Statistics communism have affected every society in the region. The Czech Republic (CR) 1993 1994 1995 1996 1997 1998 has been no exception. All these changes Freight 123.729 108.762 108.859 107.235 103.360 93.521 have also affected railway transport in the (million tonnes) CR. In addition to changes in manage- Freight (million tonne-km) 25,140 22,703 22,623 22,338 20,739 18,294 ment methods, the former Czechoslovak Passengers State Railways (CSD) was split into two 242.182 228.720 227.147 219.244 202.877 181.977 (million) separate companies—Czech Railways Passengers (CD) and Slovak Railways (ZSR)—as part (million passenger 8,548 8,481 8,023 8,111 7,710 7,001 of the separation of Czechoslovakia into -km) the Czech and Slovak Republics. This article describes the latest developments at CD from the viewpoints of economy and technology. Providing railway services in the CR is passenger and freight volumes in 1998 made more complex by the fact that three were 182 million passengers (7,001 million Basic Information on Czech electrification systems are in use: 25 kV/ passenger-km) and 93.521 million tonnes Railways 50 Hz AC, and 3000 and 1500 V␣ DC. (18,294 million tonne-km), respectively. The CR railway network is one of the The total number of CD employees at 1 Czech Railways is a state organization densest in the world. Although it is quite January 1998 was 90,274. established in 1993 as the successor to convenient for some inhabitants, its Table 1 provides more detailed statistics CSD, following the division of Czecho- maintenance and upgrading represent a on CD traffic volumes. slovakia. It runs the large majority of the substantial burden for CD and the Czech state-owned railway infrastructure of the government. CD Transformation and Private CR and provides most passenger and The company size can be judged by the Sector Opportunities freight railway services in the CR. number of rolling stock at the end of Today, CD operates a total railway net- 1997—3732 locomotives, 5494 passenger To comply with the EU Directives on work of 9435 km (1941 km multiple carriages and 59,694 freight wagons open access for third parties to railway tracked) of which 2859 km is electrified. (about 41,000 in operation). The total infrastructure as well as the CR Transport Policy approved by the Czech government in July 1998, CD does not have a monopoly in railway services, but it does have a relatively strong position in the Czech general transport and railway markets. The Transport Policy sets the main targets and strategies for developing each transport mode in the CR. The leading idea is integration of the CR into the European transport infrastructure. Clearly, the Czech legislation and position of railway operators will have to comply with the EU Directives, especially EU Directive 91/440/EEC. A key target of the Czech transport policy is creation of a level- playing field for all transport modes. For the railways, the success of concrete Local CD trains standing at Praha Station (Y. Akiyama) measures to eliminate discrepancies 14 Japan Railway & Transport Review 21 • September 1999 Copyright © 1999 EJRCF. All rights reserved. Reproduction in whole or in part without permission is prohibited. between transport modes is especially important. To be as profitable as possible, railway transport must focus on services that can compete with other transport modes, especially long-distance bulk haulage (such as coal, wood, sulphates), combined transport, and transit services. Czech Law 266/94 enables open access to the CR railway infrastructure. However, unlike the EU, it does not require proof of financial competence. At present, this difference would hinder some Czech operators providing transport services in the EU, and it will have to be ironed out by further legislation by the Czech Ministry of Transport and Communications. Also the issue of the future legal status, ownership, and structure of CD should be part of the state transport policy. Obviously, Reconstructed track on Brno–Breclav section of Crete Corridor IV (Czech Railways) if the Czech government wants to achieve entrepreneurial independence for CD in ship is direct involvement of private presents a variety of challenges for line with EU Directive 91/440/EEC, it investors in specific projects to upgrade private capital. The right procedures are must create the pre-requisite conditions. infrastructure or rolling stock, and in needed to generate profits (and divide It will have to define the public service providing railway services. The most risks) for the state, for private investors, obligation (PSO) requirements and set difficult issue is the division of risk, which and last but not least, for customers. fares and subsidy rates. The legal status is very high in such projects, between the of CD will have to be changed to a normal state and private investors. Modernization of Czech Rail- joint stock company—perhaps 100% However, there are a number of inter- way Infrastructure government owned to start with. If the mediate solutions for investing private business results are good after consolidation, capital in CR railways. Private companies In May 1985, the European Agreement privatization could be started, either by could invest in upgrading infrastructure on Main International Railway Lines (the seeking business partners or by public (especially main corridors), providing so-called AGC) was adopted by the EEC/ offering of shares on the stock market. new rolling stock such as tilting trains for UNO. It was also accepted by the then Clearly, it will not be possible to build main corridors, and in maintaining infra- Czechoslovak Socialist Republic. This and maintain the railway infrastructure structure and rolling stock. Many of these agreement recommended adopting nor to provide better railway services activities were carried out by CD but have operating speeds of at least 160 km/h for without attracting other funding to been privatized. Private capital could selected main lines. The subsequent supplement the shrinking state subsidies also play a minor role in financing main political and social changes in the CEE or state-guaranteed credits—a so-called CD projects using commercial credits. countries created a boom in new markets, public–private partnership. Indeed, this Further division or privatization of CD but the transport infrastructure did not public–private partnership is a suitable assets is very important, but the Czech keep up with this boom in terms of investment model for railways in all the transport policy must clearly state that the capacity and quality. In the early 1990s, transition economies. It is the only way goal of privatization must be to offer the Czech government passed laws 287/ to upgrade the technical standards of the higher levels of service and customer 93 and 445/93 to help railway transport infrastructure and rolling stock to levels satisfaction—privatization should not be meet the nation’s transport needs. The comparable with the rest of Europe and carried out just for its own sake nor to first debates on improving the connections other industrialized countries. shed responsibility for a particular area. between important political, economic The most effective public–private partner- Obviously, railway transport in the CR and cultural centres in CEE countries had Copyright © 1999 EJRCF. All rights reserved. Reproduction in whole or in part without permission is prohibited. Japan Railway & Transport Review 21 • September 1999 15 Transition to Market Economy Petrovice u Karvine and Ostrava to Breclav, where it connects with Corridor Table 2 Details of Crete Corridors IV and VI in Czech Republic IV, and a second branch via Zwardon to Zilina, where it connects with Corridor Corridor IV Corridor VI V. The Czech Republic designates this Total Completed Total route as the Czech Railways Transit Length of main tracks (km) 802.6 393.7 673.9 Corridor II. From the viewpoint of Number of switches 812 446 884 revenues, this route has the highest Total length of platforms 21,199 12,879 46,695 economic significance, because it carries Bridges, overpasses, subways 434 205 187 the majority of profitable transit freight Culverts 270 103 38 traffic, forming 22% of total CD revenues New lines (main track km) 333 225 365 for both freight and passenger services. Reconstructed lines (main track km) 287 82 394 Table 2 shows the details of Crete New buildings 33 19 80 Corridors IV and VI. Reconstructed buildings 14 5 51 The government is also preparing Czech Acoustic barriers (km) 43,995 8,184 20,885 Railways Transit Corridor III from the CR border to Germany, Cheb via Plzen, Praha, Ceska Trebova, Prerov, Ostrava, to Petrovice u Karvine and Poland or to already started at the 1st Pan-European Corridor IV runs from Berlin via Dresden, Mosty u Jablunkova and Slovakia, and Transport Conference in Praha (Prague) Decin, Praha, Ceska Trebova, Brno and Czech Railways Transit Corridor IV from in 1991. The ideas became more concrete Breclav to Austria and Slovakia and then the CR border to Germany, Decin, Praha, at the 2nd Pan-European Transport south-east to Constanta, Thessaloniki and Veseli nad Luznici and further to Ceské Conference in Crete in early 1994, where Istanbul, one branch of this corridor links Velenice or Ceske Budejovice, Horni the concept of the Crete Corridors was Nürnberg, Plzen and Praha. The Czech Dvoriste and Austria. Although the imple- born. The Crete Corridors were further Republic designates this route as the mentation date is still undecided, the extended and amended at the 3rd Pan- Czech Railways Transit Corridor I, and launch is expected after completion of European Transport Conference in the branch from Cheb via Plzen to Praha Czech Railways Transit Corridors I and II.
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