Working Party on Rail Transport – 63rd session Geneva, 18 November 2009 EUROPEAN COMMISSION

| 2 European Commission Initiating and implementing railway legislation Competition rules: Merger Control, State Aid Safety and Interoperabilty External Relations Analysis and market observation Financing infrastructure Research

| 3 Simplification of Railway Legislation Now in effect: 8 different directives on market access. Adopted since 1991 Updating, simpliying, clarifying and precising Financial stability and investment framework Access to terminals, charging rules Reinforcing cooperation of different regulators, infrastructure managers and railway undertakings across borders.

| 4 Infringements Objective: Fair Market access Lack of independence of infrastructure manager in relation to (incumbent) railway undertakings Lack of performance incentives – performance schemes, cost management and charges according to market can bear Rail regulator: lack of powers, lack of independence Formal notice of June 2008 to 24 Member States and constructive dialogue with Member States Reasoned opinion to 21 Member States in October 2009

| 5 Commission as a complaint body No complaints 1991 – 2004 Calculation of full costs for infrastructure use Certification of train driver schools Access to sidings: unfavourable access times and user charges Too strong role of incumbent in taffic control centres ‘re-homologation’ of locos already homologated in another Member State

| 6 What is ERTMS? ETCS - Train Control System Ensures adequate safety margin between trains Increases line capacity How ? Speed limits transmitted from track to train Driver’s screen shows permitted maximum speed On-board computer stops the train if the speed limit is exceeded.

| 7 Why an EU action on ERTMS? (1) ATB/ATB-NG AWS TBL TVM/KVB ASFA/LZB EBICAB 700 SIGNUM/ZUB BACC/RSDD EBICAB 700/1000 EBICAB 900 ZUB 123 KHP INDUSI/LZB EVM Over 20 different speed control systems in Europe 17 different train radio systems Over 20 different speed control systems in Europe 17 different train radio systems

| 8 Capital cost : +70% Maintenance cost : +35% Availability rate : -50% Capital cost : +70% Maintenance cost : +35% Availability rate : -50% In the Thalys cab: 7 signalling systems side- by-side Why an EU action on ERTMS? (2)

| 9 Each additional system installed on a locomotive results in an exponential increase in… Cost of equipping the locomotive Number of tests required to demonstrate that all equipment works safely together Without ERTMS….

| 10 Today a foreign locomotive needs 3 to 5 years to obtain safety approval – why? Existing signalling systems are incompatible Safety approval is needed for each and every type of locomotive. Without ERTMS….

| 11 Eurobalise: a standard product Cost decrease (capital, maintenance and training) Increased track capacity and safety Export market for European industry Increased reliability and reduced journey time Strengthening of internal market : removal of cross-border barriers Benefits of ERTMS Universal system (line and traffic type)

| 12 ERTMS: what is the situation today?. Over km in service (freight, passenger, mixed traffic; high speed, conventional) in Europe. High satisfaction of users (performance, ergonomic aspects for drivers). Interoperability between different manufacturers achieved in the framework of different projects.

| 13. Corridor A: Rotterdam-Genoa. Corridor B: Stockholm-Naples. Corridor C: Antwerp-Basel-Lyon 6% of the total network and 20% of total freight traffic ERTMS Corridors: bringing all actors on board. Corridor D: Valencia-Lyon-Ljubljana-Budapest. Corridor E: Dresden-Prague-Budapest. Corridor F: Aachen-Berlin-Warsaw-Terespol

| 14 ERTMS Corridors Ensuring the coordination of activities at an early stage Reaping the benefits of interoperability earlier Increasing capacity and competitiveness Corridors focus on three types of measure: Eliminating infrastructure bottlenecks Deploying ERTMS Harmonising operational rules Ensuring the coordination of activities at an early stage Reaping the benefits of interoperability earlier Increasing capacity and competitiveness Corridors focus on three types of measure: Eliminating infrastructure bottlenecks Deploying ERTMS Harmonising operational rules

| 15 Community Contribution TRANSPORT Community Contribution TRANSPORT network RAIL network % rail over Transport Regional policy (ERDF + CF) ,83 TEN-T fund ,40 EIB loans

| 16 Community Contribution TEN-T Community Contribution TEN-T overall network TEN-T RAIL network % rail over TEN-T Regional policy (ERDF + CF) ,70 TEN-T fund ,40 EIB loans55.000

| 17 TEN-T Priority Projects Community Contribution TEN-T PPTEN-T RAIL PP% rail over PP Regional policy (ERDF + CF) ,78 TEN-T fund ,33 EIB loans25.000

| 18 European Deployment Plan  2015 : requirements to equip substantial parts of corridors  2020 : main freight hubs linked to the corridors  EU-funded projects : mandatory ERTMS  Entry into force – 1 September 2009

ERTMS European Deployment Plan 2020

| 20 Thank you for your attention