Project N°: TREN-05-FP6TR-S07.43661-513504 TREND Towards new Rail freight quality and concepts in the European Network in respect to market Demand Instrument: CO-ORDINATION ACTION Thematic Priority: Sustainable Surface Transport Deliverable B6 – Business Model for international Co-operation Due date of deliverable: PM XXX Actual submission date: 31.07.2006 Start date of project: 01.02.2005 Duration: 18 Month 31.07.2006 Organization name of lead contractor for this deliverable: HaCon Ingenieurgesellschaft mbH Hanover, Germany Revision: final, 31.07.2006 Project co-funded by the European Commission within the Sixth Framework Programme (2002-2006) Dissemination Level PU Public X PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the consortium (including the Commis- sion Services) CO Confidential, only for members of the consortium (including the Commis- sion Services) Contract N° 51350 Business Model for international Co-operation TREND Project The TREND Project is funded under the 6 th Frame- work Programme of the European Commission Contract N° 51350 Business Model for international Co-operation Table of contents 1 INTRODUCTION .................................................................................. 6 1.1 Background and overall objective ............................................................ 6 1.2 Summary ............................................................................................. 7 1.3 Workpackage organization and structure .................................................14 1.4 Definition of basics................................................................................16 1.4.1 Business Models (BM)............................................................................16 1.4.2 Co-operations ......................................................................................16 1.4.3 Co-operations as an appropriate Business Model for TREND .......................17 2 SYNTHESIS OF INTERNATIONAL TREATIES, BI-/TRILATERAL AGREEMENTS AND BEST PRACTICES FROM OTHER TRADES.............. 18 2.1 Introduction .........................................................................................18 2.1.1 Competitiveness of the rail freight industry ..............................................18 2.1.2 Operational and/or commercial co-operation in international rail freight services.....................................................................................19 2.1.3 Creation of an intra modal competitive environment by the European authorities ...........................................................................................20 2.1.4 “Integrated” and “non integrated” railways ..............................................20 2.2 The main players – present situation and strategies..................................23 2.2.1 The Infrastructure Managers ..................................................................23 2.2.2 The Railway Undertakings......................................................................24 2.2.3 The emergence of logistic companies and operators in international transport .............................................................................................25 2.3 International rail freight: elementary aspects ...........................................29 2.4 Possible organizations and examples .......................................................30 2.4.1 Co-operative models .............................................................................34 2.4.2 Competitive models ..............................................................................35 2.5 An analysis of non rail co-operations .......................................................37 2.5.1 Customer driven co-operations...............................................................37 2.5.2 Co-operations of service providers ..........................................................38 2.5.3 Co-operations of service providers with central sales and marketing elements .............................................................................................40 2.5.4 Co-operations with indirect effects on market development........................41 3 COMPONENT ANALYSIS AND GENERALIZATION ............................... 43 3.1 Deduction and structuring of co-operation components..............................43 3.2 Description and definition of the co-operation components.........................45 3.3 Applications of the co-operation components............................................51 Table of Contents Page 3 of 210 Contract N° 51350 Business Model for international Co-operation 4 CONDUCTION OF COMPONENTS TO A COMPREHENSIVE BUSINESS MODEL ............................................................................. 56 4.1 Methodical approach .............................................................................56 4.2 Specific framework for existents co-operations .........................................57 4.3 Development of an exemplary corridor Business Model..............................61 4.3.1 Choice of an example Corridor................................................................61 4.3.2 Main characteristics of the example Business Model ..................................62 4.3.3 Specific framework for the example corridor ............................................65 4.3.4 Components of the Business Model .........................................................68 5 VERIFICATION OF THE BUSINESS MODEL......................................... 76 5.1 Verification against competition law ........................................................76 5.1.1 Strategic alliances.................................................................................76 5.1.2 Structures of strategic alliances ..............................................................77 5.1.3 Antitrust and competition law.................................................................77 5.1.4 Other provisions in competition law.........................................................78 5.2 Verification in the light of the legal and administrative conditions and prerequisites taking into consideration the necessity of competition ............79 5.2.1 The CREAM model.................................................................................79 5.2.2 The components of the CREAM model......................................................80 5.2.3 The legal rules and regulations in the concerned countries .........................81 5.2.4 The limitations required by the European Commission ...............................82 5.2.5 Conclusions..........................................................................................83 6 EVALUATION OF THE INFLUENCE OF THE TECHNICAL SPECIFICATION FOR INTEROPERABILITY ("TELEMATIC APPLICATIONS FOR FREIGHT SERVICES") ON THE REALIZATION OF OPERATIONAL BUSINESS MODELS........................ 85 6.1 General ...............................................................................................85 6.2 Implementation of the TAF TSI...............................................................85 6.3 Conclusion ...........................................................................................87 7 EVALUATION OF ADVANTAGES AND DISADVANTAGES OF IMPLANTATION WITH RESPECT TO BUSINESS CASES....................... 88 8 RECOMMENDATIONS OF FURTHER PROCEDURES .............................. 92 9 TABLE OF APPENDICES ..................................................................... 93 Table of Contents Page 4 of 210 Contract N° 51350 Business Model for international Co-operation Table of Figures Figure 1-1: Positioning of workpackage B6 within the framework of TREND ........... 6 Figure 1-2: Cluster of analyzed co-operations .................................................... 7 Figure 1-3: Overview of co-operation components .............................................. 9 Figure 1-4: Specific framework for Business Models ...........................................10 Figure 1-5: Example corridor for a new Business Model ......................................11 Figure 1-6: Companies and representatives involved .........................................14 Figure 1-7: Structure and workflow of TREND workpackage B6 ...........................14 Figure 1-8: Meetings of TREND workpackage B6................................................15 Figure 1-9: Spectrum for Business Models ........................................................17 Figure 2-1: Analyzed example co-operations.....................................................31 Figure 3-1: Structured overview of co-operation components (maximum case)...........................................................................................44 Figure 3-2: Principle of volume bundling and interlining......................................45 Figure 3-3: Principle of yield management ........................................................46 Figure 3-4: Definition of the co-operation components .......................................47 Figure 3-5: Relative frequency of component usage in different forms of co- operation models ..........................................................................52 Figure 3-6: Usage of co-operation components in existing Business Models ..........53 Figure 4-1: TREND Business Models – Methodical approach ................................56 Figure 4-2: General spectrum of specific framework for Business Models ..............58 Figure 4-3: Specific framework for the Business Models of