Business advantages of the international railway lawfor railway undertakings on the Arabian peninsula5th Annual Middle East Rail Opportunities, 5-6 May 2014

Cesare Brand, Secretary General, CIT

Ref. H0a2

The CIT

200 railway undertakings and maritime companies

Association under Swiss law located in Bern

2

Tasks:

1. Practical implementation of COTIF and EC law (transport law)

2. Standardisation of contractual relationships between carriers and carrier-customers in passenger and freight transport

3. Representation of members’ interests towards authorities andother associations

New international railway traffic (freight and passenger)

Technical, operational and legal interoperability

3

Why is legal interoperability important for the business?

4

Country A

Transport contract

LiabiIity

Transport documents / consignment note

Tickets

Claims

Country B

Transport contract

Liability

Transport documents / consignment note

Tickets

Claims

A One legal regime B

- 10% administrative costs

Legal certainty, less legal costs

5

COTIF 1999

Uniform Rulesconcerning the

Contract for International

Carriage of Passengers by

Rail

Uniform Rules

concerning the

Contract forInternational Carriage of Freight by

Rail

Regulations concerning the

International Carriage of Dangerous

Goods by Rail

Uniform Rulesconcerning the

Contracts ofUse of Vehicles

inInternational

Rail Traffic

Uniform Rulesconcerning theContract of UseOf InfrastructureIn International

Rail Traffic

Uniform Rulesconcerning theValidation of

Technical Standardsand the Adoption ofUniform Technical

Prescriptionsapplicable to

Railway Material intended to be used

in InternationalTraffic

Uniform Rulesconcerning the

Technical Admissionof Railway Material

used in InternationalTraffic

Convention concerningInternational Carriage by Rail

Protocol on the Privileges andImmunities of OTIF

Relationships governed by international law

6

CustomerCustomer

CarrierCarrier CarrierCarrier

Infrastructure managerInfrastructure manager

AuxiliaryAuxiliaryWagon keeperWagon keeper

Substitute

Carrier

Substitute

Carrier

CIM / CIV(partially PRR) CUV

CUI(partially

EU-regulation)

CUI(partially

EU-regulation)

Infrastructure managerInfrastructure manager

COTIF: uniform rules for international contracts

For contracts of: international carriage of passengers or goods: CIV + CIM use of vehicles in international traffic: CUV use of infrastructure in international traffic: CUI

Prevail over: national law general terms and conditions individual contracts

Well adapted for a liberalised market: large contractual freedom: different types of relations possible

between railways good protection for customers: mandatory liability rules

7

Hierarchy of norms

STC: Standardised bilateral contractual rules developed by RUs for their customers

GTC: Standardised multilateral contractual rules at the CIT’s members disposal

Charter: Soft law: Political declarations for improving quality

International law

STC

GTC

Passenger / Freight Charters

CIM / CIV

RUs / UIC

OTIF

CER

CIT

12.05.148

CIT products

9

Legal relationship railway – customer

General Terms and Conditions Customer Agreement Checklist Claims Handling Consignment Note Manual

Legal relationship railway – railway

General Terms and Conditions for cooperation Boilerplate contracts, sub-contracts, hire etc CIT freight and wagon manual Ticketing Manual Agreements concerning handling of claims

Implementation of contractual relationship throughout CIT products

10

CIT’s principles

11

Conclusion

Proven legal system for international passenger and freight traffic Working in practice since many years Modern and business oriented Fair and balanced for all business partners Freedom for the railway industry and business partners to develop

standards

12

Thank you for your attention!

13

For further information, visit www.cit-rail.org

Cesare Brand

Secretary General CIT

Tel: +41 31 350 01 90

Email: cesare.brand@cit-rail.org