12 5 EUROPEAN CONFERENCE OF MINISTERS OF TRANSPORT EUROPEAN INTEGRATION OF RAIL FREIGHT TRANSPORT Europe's rail-freight market is undergoing sweeping change. While an expanding long-distance export market is favourable to OF RAIL FREIGHT TRANSPORT EUROPEAN INTEGRATION rail transport, railways have been steadily losing EUROPEAN market share to road hauliers. The reasons for this are numerous and range from a sub-standard quality of service, lack of sophisticated INTEGRATION computer technology and transport logistics, and a shortage of commercial know-how. OF RAIL FREIGHT As rail networks open up to competition, new rail firms are springing up. Will the current operators keep pace with change or are they TRANSPORT threatened with extinction? Are new firms going to be commercially viable in areas in which traditional operators have always failed? The Round Table attempted to answer these questions by taking a look at how the European railway landscape is being reshaped. ROUND 12 5 In doing so, it learned lessons which stand to benefit transport policy throughout Europe. ROUND TABLE TABLE ECONOMIC RESEARCH CENTRE 12 5 -:HSTCSC=VVXV^[: (75 2004 06 1 P1) ISBN 92-821-1319-1 2004 cover-a.fm Page 1 Wednesday, July 7, 2004 10:13 AM ECONOMIC RESEARCH CENTRE REPORT OF THE HUNDRED AND TWENTY FIFTH ROUND TABLE ON TRANSPORT ECONOMICS held in Paris on 28th-29th November 2002 on the following topic: EUROPEAN INTEGRATION OF RAIL FREIGHT TRANSPORT EUROPEAN CONFERENCE OF MINISTERS OF TRANSPORT cover-a.fm Page 2 Wednesday, July 7, 2004 10:13 AM EUROPEAN CONFERENCE OF MINISTERS OF TRANSPORT (ECMT) The European Conference of Ministers of Transport (ECMT) is an inter-governmental organisation established by a Protocol signed in Brussels on 17 October 1953. It is a forum in which Ministers responsible for transport, and more specifically the inland transport sector, can co-operate on policy. Within this forum, Ministers can openly discuss current problems and agree upon joint approaches aimed at improving the utilisation and at ensuring the rational development of European transport systems of international importance. At present, the ECMT’s role primarily consists of: – helping to create an integrated transport system throughout the enlarged Europe that is economically and technically efficient, meets the highest possible safety and environmental standards and takes full account of the social dimension; – helping also to build a bridge between the European Union and the rest of the continent at a political level. The Council of the Conference comprises the Ministers of Transport of 43 full member countries: Albania, Armenia, Austria, Azerbaijan, Belarus, Belgium, Bosnia-Herzegovina, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, France, FYR Macedonia, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, the Russian Federation, Serbia and Montenegro, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine and the United Kingdom. There are seven Associate member countries (Australia, Canada, Japan, Korea, Mexico, New Zealand and the United States) and one Observer country (Morocco). A Committee of Deputies, composed of senior civil servants representing Ministers, prepares proposals for consideration by the Council of Ministers. The Committee is assisted by working groups, each of which has a specific mandate. The issues currently being studied – on which policy decisions by Ministers will be required – include the development and implementation of a pan-European transport policy; the integration of Central and Eastern European Countries into the European transport market; specific issues relating to transport by rail, road and waterway; combined transport; transport and the environment; sustainable urban travel; the social costs of transport; trends in international transport and infrastructure needs; transport for people with mobility handicaps; road safety; traffic management; road traffic information and new communications technologies. Statistical analyses of trends in traffic and investment are published regularly by the ECMT and provide a clear indication of the situation, on a trimestrial or annual basis, in the transport sector in different European countries. As part of its research activities, the ECMT holds regular Symposia, Seminars and Round Tables on transport economics issues. Their conclusions serve as a basis for formulating proposals for policy decisions to be submitted to Ministers. The ECMT’s Documentation Service has extensive information available concerning the transport sector. This information is accessible on the ECMT Internet site. For administrative purposes the ECMT’s Secretariat is attached to the Organisation for Economic Co-operation and Development (OECD). Publié en français sous le titre : L’INTÉGRATION EUROPÉENNE DES TRANSPORTS FERROVIAIRES DE MARCHANDISES Further information about the ECMT is available on Internet at the following address: www.oecd.org/cem © ECMT 2004 – ECMT Publications are distributed by: OECD Publications Service, 2, rue André Pascal, 75775 PARIS CEDEX 16, France. TABLE OF CONTENTS INTRODUCTORY REPORTS Report by G. ABERLE (Germany) ............................................................................................. 5 1. European freight transport markets.................................................................................... 9 2. The modal split problem in European freight transport................................................... 10 3. European integration of rail freight transport – a multi-faceted problem........................ 13 4. Integration of rail networks and intramodal competition ................................................ 16 5. Co-operation and strategic alliances in European rail transport: pitfalls and opportunities .................................................................................................................... 19 6. EU enlargement towards central and eastern Europe – further complications for rail freight transport ................................................................................................... 20 7. Conclusions...................................................................................................................... 22 Report by S. BOLOGNA (Italy) ................................................................................................ 27 Players in the rail transport market and liberalization Introduction............................................................................................................................ 31 1. National rail company acquisitions in the third-party logistics and road haulage distribution sectors........................................................................................................... 33 2. Intermodal transport of swap bodies, semi-trailers and heavy goods vehicles................ 41 3. Rail transport of maritime containers .............................................................................. 46 Conclusions............................................................................................................................ 55 Report by C. NASH/T. FOWKES (United Kingdom) ............................................................. 61 Rail privatization in Britain – Lessons for the rail freight industry 1. Introduction...................................................................................................................... 65 2. The privatisation process ................................................................................................. 66 3. Barriers to competition .................................................................................................... 73 4. Intermodal competition and the freight grant regime ...................................................... 78 5. Prospects for rail freight in Great Britain ........................................................................ 82 6. Lessons for Europe .......................................................................................................... 85 Annex: Trends in road and rail freight in Great Britain ....................................................... 87 ECMT, 2004 3 SUMMARY OF DISCUSSIONS (Round Table debate on reports)................................................................................................... 97 LIST OF PARTICIPANTS .............................................................................................................. 111 4 ECMT 2004 Gerd ABERLE Justus-Liebig University Giessen Germany ECMT, 2004 5 SUMMARY 1. EUROPEAN FREIGHT TRANSPORT MARKETS....................................................................... 9 2. THE MODAL SPLIT PROBLEM IN EUROPEAN FREIGHT TRANSPORT............................ 10 2.1. The continuing decline in rail freight’s share of the market .................................................. 10 2.2. Causes of declining market shares ......................................................................................... 12 3. EUROPEAN INTEGRATION OF RAIL FREIGHT TRANSPORT – A MULTI-FACETED PROBLEM ................................................................................................ 13 3.1. Different ways of interpreting integration.............................................................................. 13 3.2. Analysis of different integration alternatives ........................................................................