Modern rail modern Europe • TOWARDS AN INTEGRATED EUROPEAN RAILWAY AREA Contents Challenges and opportunities for European rail ................................................................................................................................................................ 2 An efficient rail sector .................................................................................................................................................................................................................. 4 An integrated European rail market ....................................................................................................................................................................................... 6 A modern rail system ................................................................................................................................................................................................................... 8 Meeting citizens’ expectations ............................................................................................................................................................................................... 10 Rail in evolution: what the future holds .............................................................................................................................................................................. 12 cover: © Shutterstock A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu). Luxembourg: Office for Official Publications of the European Communities, 2008 ISBN: 978-92-79-07608-4 DOI: 10.2768/22613 © European Communities, 2008 Reproduction is authorised provided the source is acknowledged. Manuscript completed in September 2008. Photos courtesy of: ATOC, DB AG/Dorothea Schmid, Directorate-General for Energy and Transport, ERFA, iStockphoto, OEBB, Peter Lydén/Green Cargo, Shutterstock, UIRR Printed in Belgium PRINTED ON WHITE CHLORINE-FREE PAPER Foreword Rail transport is facing major challenges today. On one hand, We all need modern, safe and clean rail transport. Our economy it must meet the needs of citizens for greater mobility while, also needs an efficient and competitive rail network. We will on the other, it must provide a valid alternative to other therefore spare no effort in building the rail network of the modes of transport against a backdrop of rising fuel prices future in cooperation with all rail sector partners. and the increasing importance of the impact of transport on the environment. In this context, rail transport must be ever more efficient. The European Union is pursuing an active and balanced policy which aims to provide citizens with a quality rail transport service, to improve the management of rail infrastructure, to encourage the development and use of new technologies to build a modern and competitive rail network, and to make rail transport a privileged instrument for European integration. This brochure sets out the principles of that policy. Antonio Tajani Vice-President with responsibility for transport 1 ©OEBB Challenges and opportunities for European rail Europe’s railways started to struggle from the late 1960s, with both rail freight transport and passenger services finding it difficult to compete with the increasing popularity of road and air and to adapt to new customer requirements. This was partly due to a lack of competition on rail networks. The tables are gradually being turned as the European Union (EU) pursues a series of initiatives to modernise the rail sector and to enable it to fulfil its undoubted potential. As this brochure explains, the aim is to build an integrated European railway area based on compatibility between national systems and high levels of performance and safety. Rail past Rail transport in Europe has been in decline in recent decades, especially in freight. Rail’s share in the freight land transport market dropped from 32.6 % in 1970 (EU-15) to just 16.7 % in 2006 in the EU-27. In absolute terms, based on the amount of goods carried and distances transported, rail freight transport activity (EU-15) declined between 1970 and 2006 by about 1 %. However, freight transport by road more than tripled in the same period. Rail has also struggled in terms of passenger transport: in 1970 (EU-15), rail’s share of passenger land transport was over 10 % but this had fallen to a stable 6.9 % in 2006 in the EU-27, even though there was more rail travel in absolute terms. The trends have improved to a certain extent in the past few years. Rail freight volumes have stopped falling and the decline 2 in rail’s market share for freight has slowed. This has also been a period of time in which Europe’s railways have undergone significant structural changes, triggered to a large extent by initiatives taken at EU level to, for instance, open up rail markets to greater competition and increase technical harmonisation. ©ERFA Evolution of the modal share of inland modes for freight (Modal split) % Year Road Rail Inland waterways Oil pipelines 2006 72.7 16.7 5.3 5.2 2005 72.4 16.6 5.5 5.5 2004 72.0 17.0 5.6 5.4 2003 71.6 17.2 5.4 5.7 2002 71.4 17.0 5.9 5.7 2001 70.6 17.4 6.0 6.0 2000 69.7 18.4 6.1 5.8 1999 69.9 18.2 6.0 5.9 1998 68.6 19.0 6.3 6.1 1997 67.4 20.4 6.3 5.9 1996 67.4 20.3 6.1 6.2 1995 67.5 20.2 6.3 6.0 Source: EU energy and transport in figures — Statistical pocketbook 2007/08 Tables 3.2.4c to 3.2.7. Road: national and international haulage by vehicles registred in the EU-27. Rail present: strengths, weaknesses, opportunities, threats Recent difficulties notwithstanding, rail plays a significant part in the European economy. In 2004 in EU-27, rail transport had an estimated turnover of EUR 60 billion and brought EUR 34 billion added value to the economy, accounting for over 900 000 jobs. Rail has a number of strengths it can draw on to build on the recent signs of recovery. As well as being particularly safe, rail is environmentally friendlier and less polluting than other modes of transport — a significant advantage at a time of increasing congestion on Europe’s roads and growing public concern about environmental issues. Moreover, on some market segments, ©Shutterstock rail can be cheaper than road and can outperform both road and air. Taking the train is now often faster than flying even over longer distances, for instance. Meeting the challenges: the EU’s answer In order to capitalise on the strengths and opportunities And there are other opportunities for rail. The increasing and address the weaknesses and threats, the European rail constraints on land use, notably in terms of planning consents sector needs to become more efficient, integrated, modern for the construction of major infrastructure, could hamper the and responsive to customer demand. Building a modern, growth of other modes of transport. Furthermore, rail is likely competitive railway network is indeed a top priority for the EU, to be in demand — from commuters for example, or due to both for the smooth operation of the EU internal market and the increase in the long-distance and bulk transport of goods for the development of a sustainable transport system. brought about by the globalisation of trade and commerce. EU efforts in this regard focus on opening up rail markets However, rail does have certain weaknesses that it must to greater competition, promoting technical standardisation 3 overcome. There is still a certain lack of dynamism, reliability, between rail systems and modernising Europe’s rail infrastructure flexibility and customer orientation on the part of railway — including through the use of new technology — while working undertakings. At times the political influence on the railway to ensure safety and promoting passenger rights. All this is business is too strong, while there is still insufficient essential if the railways are to increase their share of freight interoperability between national rail systems as well and passenger carriage relative to other modes of transport. as insufficient — and decreasing — investment. These are the EU’s chosen policy options for the rail sector: In addition, rail is often hamstrung by outdated business the rest of this brochure will tell you more about them… and operational practices, by the presence of too much ageing infrastructure and rolling stock and by a financial situation that is often weak. Rail’s relatively small share of the overall transport market is another threat that has to be addressed. ©ATOC An efficient rail sector Making the rail sector more efficient is a top priority for the EU, which has spearheaded efforts to encourage greater competitiveness of rail. A separation between managing infrastructure and running train services, and between different aspects of the rail business in accounting terms, is an essential pre-requisite for more competitive railways — and effective public spending. Restructuring the rail sector Ensuring financial transparency Over recent years there have been significant changes in the Ensuring transparency of accounts and processes is a core part structure of the rail sector in Europe. This has seen a shift from of EU efforts to improve rail’s competitiveness. EU rules require a situation where an ‘incumbent’ State-owned company Member States to make incumbent railway undertakings would typically run the national rail network and rail services inde pendent in a financial sense. This is an essential