ZABALA Innovation Consulting, S.A. H2020 – Opportunities for the rail sector AMAIA MENDOZA, ARTIZA ELOSEGUI Brussels, 23 Octubre 2014

H2020 – Opportunities for the rail sector 1.OVERVIEW 2.H2020 – ‘ Smart, green and integrated transport’ Work Programme 3.JU SHIFT2RAIL 4.CEF TRANSPORT 5.FORTHCOMING CALLS 2

1. Overview 3

Key challenges of the rail sector 1. Insufficient growth of rail markets. 2. Poor consumer satisfaction. 3. Fragmentation of rail markets and diversity of national standards. 4. Low profitability due to product customisation, capital-intensity of investments, long product lifecycles, and long and costly authorisation procedures. 5. Reliance on public subsidies. 6. Increasing global competition in the rail industry. 7. Technical know-how in decline with 30% of sector workforce retiring within next 10 years. 1. Overview 4

Key documents and actors European transport strategies : - White paper 2011 – ‘Roadmap to a Single European Transport Area’ - Future of Transport (2009) - Maritime Transport (2009) - Greening transport (2008) - Logistics: Keeping freight moving (2007) - Keep Europe moving Rail strategies and main actors : -Rail: ‘An Integrated Industrial Policy for the Globalisation Era – Putting Competitiveness and Sustainability at Centre Stage’An Integrated Industrial Policy for the Globalisation Era – Putting Competitiveness and Sustainability at Centre Stage -Main actors: UNIFE and ERTRAC 1. Overview 5

White Paper – A vision for rail transport 1. Overview 6

Why innovation is needed in the rail transport The rail sector needs major and coordinated investments in R&I that respond to market needs and contribute to completing EU transport policy objectives: 1. To reduce the costs of public service obligations 2. To optimise traffic management 3. To reduce the costs of infrastructure maintenance & renewal 4. To increase demand for rail passenger services 5. To increase demand for rail freight services 6. To ensure provision of adequate competence and skilled human resources 1. Overview 7

Transport research in Horizon 2020 The proposed budget for transport research is € 7.7 billion, which is the equivalent of 9% of the total Horizon 2020 budget, with 23 % of the budget being reserved for tackling societal challenges. We strive for a balanced approach that takes into account the specifics of each mode (rail, road, waterborne and air transport) while remaining holistic; an approach which reconciles competitiveness with sustainability and which invests both in technology and in relevant socio- economic research. The four main priorities for transport research under Horizon 2020 are: 1. Making transport more sustainable : resource-efficient transport that respects the environment. 2. Making transport and transport systems seamless : better mobility, less congestion, Greater Safety and security. 3. Keeping transport competitive : the European transport industry as a global leader. 4. Making transport research responsive : socio- economic research and forward looking activities for policy-making. 1. Overview 8

Horizon 2020 Funding 1. Overview 9

RAIL SECTOR IN THE TRANSPORT CHALLENGE Mode-specific challenges : - SHIFT2RAIL Transport integration challenges : - Urban; Logistics; ITS; Infrastructures. - CEF Transport Cross cutting issues: - Socio-economic issues; Small business and Fast track innovation. 1. Overview 10

2. H

TRANSPORT – SURFACE MODES RAIL According to the work programme… Progress: service, costs, interoperability, capacity, noise reduction and competiveness, and carbon footprint Goal: fast and smooth start-up of large-scale initiatives Proposals could include: Feasibility of solutions/applications Proof-of-concepts Fast-prototyping Business case Definition of technical, operational or service requirements Planning or standardisation activities Critical technologies Validation/certification strategies 2. H

TRANSPORT - INTEGRATION INFRASTRUCTURES : Projects should: Increase performance, robustness and efficiency of infrastructure To face challenges: public budgets, small lendings and banking regulation Topics : - MG Facilitating market take up of innovative transport infrastructure solutions [Public procurement] - MG Smart governance, network resilience and streamlined delivery of infrastructure innovation [100% - 2 stage; 70% - 2 stage; CSA 100%] 2. H

TRANSPORT – CROSS-CUTTING ISSUES SOCIO-ECONOMIC AND BEHAVIOURAL RESEARCH : MG Transport societal drivers [CSA 100% – 1 stage] MG Fostering transnational cooperation in European transport research and innovation – NCP network [CSA 100% – 1 stage] CALL ‘SMALL BUSINESS AND FAST TRACK INNOVATION FOR TRANSPORT’ : IT Small business innovation research for Transport [SME instrument 70%] IT Fast Track to Innovation 2. H

3. SHIFT2RAIL 15

JU SHIFT²RAIL (The Future Rail Joint Technology Initiative) Mision and objectives : Focused R&I and market-driven solutions Integration of technologies into rail product Fostering of better trains to the market Innovative rail network Reliable from the beginning Low life cycle cost More capable f or larger mobility demand According to paradigm modal shift Benefits: job creation, less pollution, and public investments. Targets: -Enhance the CAPACITY -Consolidate the RELIABILITY -Improve on LIFE CYCLE COSTS Impact in all segments : High Speed/Mainline, Regional, Urban/Metro & Suburban, and Freight. 3. SHIFT2RAIL 16

JU SHIFT²RAIL (The Future Rail Joint Technology Initiative) 3. SHIFT2RAIL 17

JU SHIFT²RAIL – Stakeholder involvement 3. SHIFT2RAIL 18 Entities can participate via 4 different mechanisms : - as an associated member (individually or consortium) - as a subcontractor, consultant or other arrangements - through the fully open calls - through dedicated working groups

4. CEF TRANSPORT 19

Connecting Europe Facility - Transport Main objectives : - Remove infrastructure bottlenecks - Unified PAN-EU transport network - Investment in infrastructure are needed - Focus on TEN-T networks and greener nodes Policy context : To build new or upgrading existing infrastructure To foster opportunities and job creation Long-term commitment by EU member states and investors Investment and EU added value 4. CEF TRANSPORT 20

CEF Transport – Priorities & Work Programme objectives (1/2) Priorities : - Major cross-border projects - Pre-identified projects on core networks - Implementation of horizontal priorities - New technology and innovation Objective 1: Remove bottlenecks and bridge missing links Includes:  Railways, inland waterways and roads projects on the Core Network  Projects on the Comprehensive Network  Projects to connect the TEN-T with infrastructure networks of the neighbouring countries 4. CEF TRANSPORT 21

CEF Transport – Priorities & Work Programme objectives (2/2) Objective 2: Ensure sustainable and efficient transport systems in the long run Enabling all modes of transport to be decarbonised Optimising safety Includes: -Deployment of new technologies and innovation -Freight transport services -Actions to reduce rail freight noise Objective 3: Optimise the integration and interconnection of transport modes Enhance the interoperability of transport services Ensuring the accessibility of transport infrastructures Includes: -Telematic applications systems -Better accessibility -Infrastructure in nodes of the core network -Multimodal logistics platforms 4. CEF TRANSPORT 22

5. FORTHCOMING CALLS 23

FORTHCOMING CALLS H2020 : - SME instrument (17/12/2014; 18/03/2015) - MG,2015-2stages (23/04/ stage 1) SHIFT2RAIL : - Associates partner call (12/11/2014) CEF TRANSPORT : - Annual call 1 – 2014 (26/02/2015) 5. CALLS 24

ZABALA INNOVATION CONSULTING years of experience since 1986 technically qualified professionals 8 offices strategic locations clients +600 supported companies +1,500 National projects per year +1,500 European projects per year +100 LONDON BRUSSELS

EUROPEAN PROGRAMMES # GLOBAL FIGURES million € secured for our clients participating in FP7projects % European projects Submitted to FP7 success rate in terms of financed projects* (*) “Average approved proposals in FP7 in the whole of the EU is 17%" 26 7FP figures ( ) H2020 figures (since 2014) 123 Proposals already submitted to H2020 calls* 59 Phase I proposals 64 Complete or phase II proposals 47% Success rate (financed proposals or ahead to phase II)* (*) Data corresponding to evaluations receieved until Sept 2014 ZABALA INNOVATION CONSULTING

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