Increasing competitiveness of rail freight undertaking a BUSINESS or a POLITICAL GAME? Maria Price, DPhil. (Oxon.) Head of EU Policies and Public Affairs International Union of Wagon Keepers Railway Pro Summit, Bucharest, RO 10-13 October, 2016

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Table of content The legislative path to Liberalisation and Single Railway Market Modal Split – numbers speak louder than words Increasing competitiveness the traditional way Increasing competitiveness requires CHANGE Market liberalisation is not enough for competitive rail freight The way forward Conclusions

1. The legislative path to Liberalisation & Single Railway Market railway packages First package Second package Third package DIR 91/440/EC: Independence from state Accounting separation Sound finances 1st market opening DIR 2001/12/EC: Unbundling Greater opening to international freight market DIR 2004/51/EC: Full opening of internat. & domestic freight services DIR 2007/58/EC: Opening of international passenger transport MARKET DIR 95/18/EC: Concept of license valid throughout the EU DIR 2001/13/EC: Conditions for granting of licences LICENSES INFRASTRUCTURE DIR 95/19/EC: Track access charges and capacity allocation: Concept of capacity allocation body, allocation priorities and principles Safety requirements @ EU level DIR 2001/14/EC: User-changes and allocation of infrastructure capacities Safety certificate DIR 2007/59/EC: Certification of train drivers DIR 2004/49/EC: Definition of safety rules at European level SAFETY DIR 2004/881/EC: ERA DIR 2008/110/EC: Update of safety rules ECM Art. 14 (a) DIR 96/48/EC: Interoperability of high speed rail DIR 2004/50/EC: Harmonisation and clarification of interoperability requirements DIR 2001/16/EC: Interoperability of conventional rail DIR 2008/57/EC: Interop conventional update INTEROPERABILITY 1991 - 1996 2001 2004 2007 2008 4

Improve liberalisation framework 1. The legislative path to Liberalisation & Single Railway Market Improve liberalisation framework RECAST 1st Package 4th Package COM 2013/26: Normalisation of the accounts of RUs DIR 2012/34/EC:  (1) strengthening the power of national regulators (2) improving the framework for investment in rail (3) ensuring fair access to rail infrastructure and rail related services MARKET Infrastructure COM 2013/28: Opening of the market for domestic passenger transport services by rail New TEN-T guidelines Connecting Europe Facility Freight corridors 913/2010/EC + LICENSES + COM 2013/29: Opening market for domestic passenger services by rail Governance of the rail infrastructure + INFRASTRUCTURE REG EU 2016/796: ERA regulation – Intermodal level playing field ? SAFETY DIR 2016/797: Harmonisation of interoperability requirements (RECAST) DIR 2016/798: Definition of safety rules at European level (RECAST) INTEROPERABILITY 2012 2013 -2016 5

2. Modal Split - numbers speak louder than words Source: Eurostat, April 2016 6

INFRA, FACILITES, TERMINALS 3. Increasing competitiveness the traditional way MARKET CUSTOMERS INFRA, FACILITES, TERMINALS LOGISTICS PROVIDERS Traditionally associated with nat’l: heavy, bulk, construction, dangerous goods Traditionally fragmented to the bilateral contracts Traditionally associated with restricted access to rail network only and high speed passenger developments Traditionally associated with Delivery and apart from system 7

INFRA, FACILITES, TERMINALS 4. Increasing competitiveness requires CHANGE MARKET CUSTOMERS INFRA, FACILITES, TERMINALS LOGISTICS PROVIDERS Traditionally associated with nat’l: heavy, bulk, construction, dangerous goods Traditionally fragmented to the bilateral contracts Traditionally associated with restricted access to rail network only and high speed passenger developments Traditionally associated with delivery and apart from system TODAY Intermodal Retail market Cross-border All actors along the supply chain and the end users (Operator to Keeper, RU to the IM, shippers to the operators, Consumers to suppliers) Path allocation Last mile & Intermodal links Capacity Cross-border Loading & unloading efficiency Tracking / tracing Electronic live updates on delivery OSS solutions 8

5. Market liberalisation is not enough for competitive rail freight Issues to be addressed: Infrastructure capacity, development, and funding Intramodal competition (Passenger v.s. Freight) Technical and Administrative barriers Regulatory burden and barriers to market entry Intermodal level playing field 9

6. The Way Forward Reliability Competitiveness Sustainability Mindset Attitude Behaviour Actions Results Deliver the goods to the Customer Enhance Economic Growth and Job Market Respect the Environment Reduce road congestion Competition can be a good thing I can be competitive and more attractive Through cooperation Offering more alternatives Reducing charges Reliability Competitiveness Sustainability Time & Cost Efficiency Progress on TEN-T and RFC Mobilise appropriate EU and National Investments Simplify processes Reduce administrative burdens Facilitate cross-border operations /acceptance Regulatory conditions at national and EU level are stable and an incentive rather than a restriction Secure international environment for transport 10

7. Conclusions Liberalisation remains a mean to provide better quality of services through competition Liberalisation has to be based on fair open access structure: avoid any conflict of interests A competitive Single Railway Area needs more than structural changes reduce conflicts between regulatory approaches + closer cooperation with all stakeholders ________________________________________ COMPETITIVE RAIL FREIGHT SERVICES 11

Thank you for your attention! Maria Price, DPhil.(Oxon) Head of European Policies and Public Affairs UIP International Union of Wagon Keepers, a.i.s.b.l. Rue Montoyer 23 B-1000 Brussels tel:  +32 2 672 8847 @: maria.price@uiprail.org W: http://www.uiprail.org @uiprail  UIP Rail 12