Modular Train Path Pricing System 2001

DB Netz AG

Wolfgang Bohrer, Head of Marketing Rome, 09.07.2004

DB Netz AG, N.MM TPS 2001 1 Table of Content

1. DB Netz AG - Facts and Figures 2

• DB Netz AG - The Infrastructure Provider of AG 3 • Competition on the Track is Reality 4 • Facts and Figures 2003 5

2. Train Path Pricing System 2001 7

• Main Features 8 • EICIS 9 • The Price Components 10 Overview 11 Base Price 12 Line Categories 13 Utilisation Factor 14 Products 15 Supplements and Deductions 19

3. The Legal Framework 20

DB Netz AG, N.MM TPS 2001 1 1. DB Netz AG - Facts and Figures

DB Netz AG, N.MM TPS 2001 2 DB Netz AG - The Infr astr uctur e Pr ovi der o f Deutsc h e B ahn A G

A network in the Scandinavia heart of major Facts and figures of 2003 European transport flows Length of lines operated: 35.593 km Poland/ Rotterdam/ Length of all tracks: Russia Antwerp 65. 782 km Operational performance: 988 million train-path km Number of employees: 44.080 South-Eastern Customers: Europe France/ 307 Spain Turnover: 3.774 million EUR Gross capital expenditures: Italy/Alpine transit 6. 254 million EUR

DB Netz AG, N.MM TPS 2001 3 Competition on the Track is Reality

Number of external clients External railway undertakings 350 286 use already about 50% of the operated 300 260 250 lines of DB Ne tz AG 201 207 Number of 200 160 external railway 150 130 100 undertakings in 100 69 40 50 50

0

5 99 96 7 1994 1 9 99 98 0 1 1 9 2 1 1999 00 2 2001 00 003 2 2 Development of train -path km 1200%

1000% The turnover of external customers 800% grew 1998 - 2003 600% about 586 % while the turnover of 400% internal clients 200% remains static

0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 (Plan) (Plan) (Plan)

DB Netz AG, N.MM TPS 2001 4 DB Netz AG - Facts and Figures 2003 Extern al Costume rs *

Passenger traffic Freight Traffic

External costumers External costumers

6% 12%

92% 88%

Internal Costumers Internal Costumers

*Source: DB Netz AG, N.MVV 2003 DB Netz AG, N.MM TPS 2001 5 DB Netz AG - Facts and Figures 2003 Divissoion o f t he Tu rno ve r*

Division of turnover overall Division of external turnover

Long-distance Local-distance passenger trains External passenger trains freigt traffic 15% 35%

22% FihtFreight Traffic1,8% 63% 65% External passenger tra ffic

21,8%

*Source: DB Netz AG, N.MVV 2003, train-path km DB Netz AG, N.MM TPS 2001 6 2. The Train Path Pricing System 2001

DB Netz AG, N.MM TPS 2001 7 DB Netz AG - Train Path Pricing System Main F eatur es

• The current Train Path Pricing System TPS 2001 became effective in April 2001. It replaced the System 98 - a two-stage sy stem with q uantitati ve disco unts .

Main Features:

• SINGLE-STAGE No quantitative discounts - linear price per train-kilometre irrespective of the volume of train-kilometres

• FREE OF DISCRIMINATION All customers pay the same price for the use of identical services (train path products) - irrespective of their contribution to infrastructure capacity utilisation

• MODULAR The modular design ensures a high level of transparency

• FULL COST RECOVERY ThGThe German t rai n path thii pricing sys tem i s en trepreneuri ilal ori en ttdtated an d a ims for fllfull cos t recovery (tki(taking into account grants and interest-free loans), marginal cost pricing provides no incentives for private investment

DB Netz AG, N.MM TPS 2001 8 DB Netz AG - Train Path Pricing System Paatort of EI CSCIS

DB Netz‘s Train Path Pricing System is Part of the European Infrastructure Charging Information System (EICIS).

EICIS participants: B-Rail, Belgium ProRail, Netherlands DB Netz, Germany PKP, Poland CD, Czech Republic ZSR, Slovakia MAV, Hungary RFI, Italy SBB, Swit zerl an d BLS, Switzerland ÖBB, Austria

DB Netz AG, N.MM TPS 2001 9 The Price Components

The single-stage Train Path Pricing System contains three modular pricing determinants:

1. Line category and utilisation Base price

2. Train path products Product factor

3. Supplements and deductions Special factors

DB Netz AG, N.MM TPS 2001 10 The Modular Train Path Pricing System TPS 2001 - OOevervi ew 2 004

Base prices Product factor Special factors LINE Supplements/ PRODUCTS CATEGORIES Deductions

Fplus Express Path • Steam engine F1 High Speed Long Distance Regular Interval P. • Out-of-gauge tanttant F2 Rapid r trainsr trains Local Regular Interval Path eeee ssss ssss F3 High Performance Economy Path

lineline F4 Priority fast Lokomotive train Path TRAIN F5 Priority slow x = PATH x PassengPasseng Long-Di Long-Di F6 Local fast PRICE Express Freight Path Regional Factor Standard Freight Path Z1 Regional (local passenger Feeder Path trains only) FreightFreight eedereeder

lineslines Z2 Periphery

FFFF Lokomotive Train Path

S1 URT (S-Bahn) + S2 DC-URT Load weight lineslines UrbanUrban Axle Load >22,5 t Utilisation factor (1, 2) Tilting x on busy sections

DB Netz AG, N.MM TPS 2001 11 The Modular Train Path Pricing System 2001- Base Price (2004)

StreckenkateLine categorygggorien and undutilisation Auslastun g Grund Basep reiseprice

Base Price normal utilisation high utilisation [€/Trkm] [€/Trkm] Long-Distance-Lines F+ 8,30 9,96 F1 3,51 4,21 F2 2532,53 3043,04 F3 2,28 2,74 F4 2,20 2,64 F5 2,03 2,44 F6 2,00 2,40 Feeder-Lines Z1 2,13 2,56 Z2 2,20 2,64 Urban Lines S1 1461,46 1751,75 S2 2,09 2,51

DB Netz AG, N.MM TPS 2001 12 Line Categories (2004)

Short description of the line categories

Line Category Type Basic Infrastructure Parameters Long-Distance F + High-speed line + Vmax > 280 km/h, OHL, double-track F 1 High-speed line Vmax > 200 km/h, OHL, double-track F 2 Upgraded line Vmax 161-200 km/h,,, OHL, double-track F 3 Mixed-traffic line Vmax 101-160 km/h, OHL, double-track F 4 Priority for fast services Vmax 101-160 km/h, OHL, double-track F 5 Priority for slow services Vmax 101-120 km/h, OHL F6F 6 Fast local passenger services Vmax 101-160 km/h Feeder Lines Z 1 Complementary lines Vmax 51-100 km/h Z 2 Freight railways (primarily) Vmax < 51 km/h, simple form of operation Urban Lines S 1 Dedicated URT lines Vmax to 120 km/h, OHL, double-track S 2 Dedicated URT lines (Hamburg) DC (direct current) urban rapid transit

DB Netz AG, N.MM TPS 2001 13 The Modular Pricing System 2001- Utilisation Factor (2004)

Kiel Rostock Stralsund Utilisation Factor Lübeck Hamburg Schwerin

To enable better capacity management Bremen and redirect traffic flows an routes with low traffic volumes, a supplement of 20% for Hannover PotsdamBerlin /O. routes with extremely high utilisation ist charged. Münster Magdeburg Hamm Göttingen Essen Halle Kassel Bebra Görlitz Köln Siegen Dresden Erfurt Aachen Gießen Fulda Hof Frankfurt a. M. Trier MannheimWürzburg

Saarbrücken Nürnb erg Stuttgart Passau Augsburg FibFreiburg Münc hen Kempten Basel

DB Netz AG, N.MM TPS 2001 14 The Modular Pricing System 2001 - Product Factors (2004)

Trassenprodukte Produktfaktoren Train path products Product factor

Product Factor Passenger Traffic Paths Express Path 1,80 Regular Interval Path 1,65 Economy Path 1,00 No-Load Path 1,00 Freight Traffic Paths Express Path 1,65 Standard Path 1,00 No-Load Path 0,65 Feeder Path 0,50

DB Netz AG, N.MM TPS 2001 15 Train Path Products (2004)

Passenger Train Paths

Express Path offers the fastest and most direct connection between the conurbation centres in long-distance and local passenger traffic, as well as cross-border express services (e.g. ICE Sprinter). Express train paths are given top priority in terms of planning and implementation.

Regular-Interval Paths Local Services refers to all local-service paths interlinked by means of regular-interval and connecting services. Long-Distance Services refers to all long-distance paths interlinked by means of regular-interval and connecting services.

Economy Path is an inexpensive option for both local and long-distance passenger services that do not run at regular intervals. The railway undertaking has to accept lower priority than express and regular-interval- products.

No-Load Path gives passenger traffic customers the opportunity to effect operational locomotive and traction unit movements as well as transfers of defective locomotives and wagons to maintenance depots.

DB Netz AG, N.MM TPS 2001 16 Train Path Products (2004)

Freight-Traffic Paths

Express Path offers the fastest possible direct and reliable connections between major centres in Germany and is given top priority in planning and implementation terms within freight traffic and in relation to passenger economy and no-load train paths (e.g. PIC)

Standard Path is available to all freight paths that are neither Express nor Feeder paths. Freight traffic standard train paths are normally interlinked with each other via connections or are subject to certain restrictions, such as fixed arrival times.

Feeder Path can be ordered for transferring loaded and empty wagons locally between freight traffic points and train form ati on f acilit ies o f DB Net z AG . Feede r t ra in pat hs must be d irect ly co nnected to th e usage of a freight traffic standard path.

No-Load Path gggives freight traffic customers the o ppypportunity to effect o perational locomotive and traction unit movements as well as transfers of defective locomotives and wagons to maintenance depots.

DB Netz AG, N.MM TPS 2001 17 The Level of the Product Factor is Determined by the Quality and Willingness to Pay

Express 1,8

Reg-Int 1,65 Express

ing to Reg-Int 1,65 dd 1,65

Economy/

al power Standard pay accor No-ldload 1,00 1,00

financi No-load Traffic gness to 0,65 nn Long- Feeder Dist. Willi 0,50

Local Demands on qualtity in terms of time and Freight routing

DB Netz AG, N.MM TPS 2001 18 The Modular Pricing System 2001 - Supplements and Deductions (2004)

Zu-Supplements und Abschlä andge deductions SonderfaktorenSpecial factors

Additive Special Factors Multiplicative Special Factors

Weight Classes Steam locomotive 1,20

Out-of-gauge 1,50 1200-1599t 0,51 €/Trkm

1600-1999t 0,77€/Trkm

2000-2399t 1,08 €/Trkm

> 2399t 1,33 €/Trkm

Axle-Load > 22,5 t 0,64 €/Trkm

Tilting 0,51 €/Trkm

DB Netz AG, N.MM TPS 2001 19 3. The Legal Framework

DB Netz AG, N.MM TPS 2001 20 Non-discriminatoryyy Access to DB Railway Infrastructure

Germany has not only completely fulfilled EU legal requirements; additional federal legislation has even surpassed them.

Basic Constitutional Law (Grundgesetz) Art. 87 e

Access General Contract Railway Terms and Infrastruc Condition Train path Directive order 91/440/EEC ture s for General Usage Using the in the vers. Train path Railway Regulatio Rail construction of Dir. Act [AEG] n Infrastruct 2001/12/EC ure TiTrain path (Art. 10) (§ 14) (EIBV) (ABN) offer

Terms and Contractual European law National (federal) law Conditions of Process Relation business

DB Netz AG, N.MM TPS 2001 21