1. RAIL TRANSPORT SEMINAR: RAILWAY INFRASTRUCTURE – KEY TO ACHIEVE SUSTAINABLE TRANSPORT Operation on the Bulgarian railway market – current situation and challenges facing the freight forwarders in Bulgaria Dr. Ivan Petrov General Manager - Trans Express Sofia, 21.01.2015

2. GENERAL CONDITIONS ON THE RAIL MARKET IN BULGARIA - Limited cargo committed to rail; - Profile of the economy; - Transit shipments of bigger importance; - Lack of adequate infrastructure and many problems with longer trips, stops in traffic; - Rail operators in Bulgaria are better than most in neighboring countries; - Rail charges in Bulgaria are higher than trucking charges; - Private rail operators – cherry picking attitude; - Single wagonload vs. truck – the only potential for development of rail business.

3. WHAT IS THE SINGLE WAGONLOAD? The transport of freight in individual railway wagons or groups of wagons (the shipment is less than a whole trainload). The transport of freight in individual railway wagons or groups of wagons (the shipment is less than a whole trainload). The SWL supply includes grouping and sorting of wagons in order to assembly full trains with different shipments, in order to take advantage of the full train size and, thus, increasing the productivity. The SWL supply includes grouping and sorting of wagons in order to assembly full trains with different shipments, in order to take advantage of the full train size and, thus, increasing the productivity. Grouping / sorting can take place through marshalling in dedicated yards where each train is disassembled and the groups of wagons are classified to form new full load trains for the next yard, or more simplified arrangement with removal / addition of groups of wagons at intermediate stops. Grouping / sorting can take place through marshalling in dedicated yards where each train is disassembled and the groups of wagons are classified to form new full load trains for the next yard, or more simplified arrangement with removal / addition of groups of wagons at intermediate stops. Any kind of wagons including the one loaded with combined transport units can be moved in SWL supply chain Any kind of wagons including the one loaded with combined transport units can be moved in SWL supply chain Source: Study on Single Wagonload Traffic in Europe Objectives, results and recommendations - PwC

4. HOW IT IS PRODUCED Source: Study on Single Wagonload Traffic in Europe Objectives, results and recommendations - PwC  The studies analysed a number of SWL production models in terms of type of network, related drivers, level of flexibility, etc.  Three production models appear to be the most relevant in the Countries examined in detail  Network structure is in most cases supply- oriented aiming at optimising SWL productivity against demand constraints in terms of distribution, frequency, balance between directions etc.  Main challenge is to design the network in a way allowing the respect of demand requirements in particular in terms of pick- up & delivery time constraints  The production models adopted by main RUs govern the utilisation of relevant infrastructure (main and small marshalling yards, freight stations etc.) Connected Hubs 2-level connected hubs Corridor

5. HOW IT IS PRODUCED Source: Study on Single Wagonload Traffic in Europe Objectives, results and recommendations - PwC  For a typical shipment, the main leg (inter- marshalling yards trains) costs just 13% of the total, + 10% for charges for track access, in total 23%.  Marshalling yards services in first and last marshalling yards are 15% of total costs. If we consider also the intermediate marshalling (7%), the total marshalling costs represent 22% of the total.  Distribution costs (distribution trains + sorting at node stations) excluding marshalling yards services costs in first and last marshalling yards are 25 % of total costs,  Commercial costs and overhead represent the remaining 20%.  The complexity of the SWL production chain imply that also the cost structure is relatively complex.  Cost structures appear to be quite different among the RUs for which data are available  Specific "local" factors appears to have a strong impacts (e.g. level of infrastructure charges, average length of the "long haul" trips, adopted production models etc.)

6. Different from national rail paths Harmonized business conditions Business interoperability WHAT IS FREIGHT CORRIDOR PRODUCT PROJECT TRAIN PATH ORGANIZATION Open access Utilizing infrastructure Authorized applicants Not bound on national legal acts Legally authorized to underline further harmonization steps SecretariatOne-stop-shop Operators Operators Working groups Terminals Terminals

7. RAIL FREIGHT CORRIDORS Infrastructure requirements on the Core Network (rail freight) by the European Commission:  740m train length  22,5 t axle-load  100 km/h line speed  ERTMS  Electrification  To be achieved until 2030

8. CORE PORTS, TERMINALS AND INTERMODAL SERVICES Terminals Design Parameters Mandatory Mandatory Efficient rail access Efficient rail access Efficient road access Efficient road access Non-exclusive, so open to all users Non-exclusive, so open to all users Capability of receiving full trains Capability of receiving full trains 740m minimum, 2-4 tracks 740m minimum, 2-4 tracks Optionally Optionally Surface with extension option Surface with extension option Inclusion of empty container depot Inclusion of empty container depot Sufficient Stacking capacity Sufficient Stacking capacity 24/7/52 year round operation 24/7/52 year round operation Handling of dangerous goods Handling of dangerous goods Secured, accommodating extended Secured, accommodating extended customs gate solution customs gate solution State-of-art ICT connections State-of-art ICT connections

9. Future Project Trans Express

10. BENCHMARK

12. Thank you!