STUDY ON COMPETITION IN RAILWAY FREIGHT TRANSPORT IN SPAIN ICN, Sydney, May 1st 2015 María Sobrino Ruiz Head of Market Studies Unit CNMC
Interest of the Study Lack of effective competition in rail freight market in Spain after ten years of liberalisation Large number of studies/ position papers/ European Commission and European Parliament initiatives European context: New Directive (Recast) and negotiations on Fourth Railway Package Areas of interest: Competitive situation in the Spanish Market Restraining factors on the level of competition in the Spanish railway market Factors related to infrastructures Factors related to the management of railway infrastructure Factors related to access regulation and the pursuit of the activity Specific advantages of RENFE-Operadora (incumbent) Inadequate institutional development of railway regulator (CRF) Interest of the Study
Methodology Previous investigation (competition cases, papers, other studies) Jan.12 Mar.12 May.12Jul.12 Sept.12 Nov.12Jan.13Mar.13 May.13 Press Release Meetings with stakeholders (12) Information request (49) Database Drafting the report
Economic characteristics of rail freight transport in Spain Renfe-Operadora is, certainly, the largest operator in the market:
Competitive Situation 4.Various indicators show that Spanish Railway is less efficient than other European countries DB AGRENFESNCFFS Income / Worker (F + P, mill. €)0,510,20 0,22 EBITDA / Worker (F + P, mill. €)0,060,040,010,04 Labour Costs / Income (F + P)0,290,310,440,48 Freight Income. (mill. €) / Nº Freight Wagons0,170,020,040,03 Nº Drivers / Nº locomotives (F + P)3,629,143,973,70 Nº Drivers (M + P )/ Nº Freight Wagons0,170,370,590,35
Recommendations First: The cost-benefit analyses as part of planning rail infrastructure in Spain and of investments must incorporate factors relating to their impact on effective competition in the market. Investments that promote interoperability with other European countries Investments that promote access to ports Second: Improving traffic management To give priority to economic criteria in allocating capacity where there is congestion Introducing penalties for reserving unused capacity Third: Improving terminal management To make terminal opening dates and timetables more suited to the needs of the rail companies To increase transparency and access to up to date information about all logistics terminals, both public and privately-owned
Recommendations Fourth: To adjust access in line with the principles of necessity, proportionality, transparency and non-discrimination The requirements laid down for obtaining railway undertaking company licenses and safety certificates should be made simpler, cheaper and more flexible To make the requirements laid down for the approval of rolling stock simpler, cheaper and more flexible Fifth: To improve the design of charges Transparent methodology To simplify charges and introduce criteria for imposing penalties for non-utilisation of reserved capacity To abolish or change the structure of the access charge
Recomendaciones Sixth: To make RENFE-Operadora more independent of the Ministry of Development and infraestructure management To ensure that RENFE-Operadora is not attached to the same body as the system regulator or the infrastructure administrator To ensure that RENFE-Operadora is autonomous and financially self-sufficient Eighth: To make the provision of railway services independent of all other related activities within RENFE-Operadora To make the companies which sell and lease rolling stock and maintain and repair of rolling stock independent from RENFE-Operadora in legal, accounting and functional terms Transparent sale and leasing prices and non-discriminatory access by third parties to rolling stock currently owned by RENFE-Operadora Ninth: Strengthening the rail regulator (CRF) Legal personality, financial autonomy and sufficient material and human resources to fulfil its responsibilities Increase competences