128 May 2014 CER

The Voice of European Railways

SEE rail infrastructure investment – the prerequisite for sustainable economic growth

28 May 2014, Zagreb

Dr. Libor LochmanCER Executive Director

228 May 2014 CER

The Voice of European Railways

CER membership’s diversity and interlocutors

328 May 2014 CER

The Voice of European Railways

Weighing the CER membership

428 May 2014 CER

The Voice of European Railways

Rail (low) congestion,(high) demand forecasts, and(negative) market developments

528 May 2014 CER

The Voice of European Railways

EC forecast in 2025 for freight East-West transport

The traffic will be ever more intense on the routes that come from Turkey, Lebanon, Israel, Egypt. Maritime traffic seems to be the main competitor for the infrastructures of Greece and the Balkans (in particular the Adriatic-Ionian transport area).

628 May 2014 CER

The Voice of European Railways

Opportunities are present:Low saturation of lines

ACRO

SSEE

dat

a 20

14

728 May 2014 CER

The Voice of European Railways

However:Strong need of rail for regional integration!

— Rail is vital for ensuring proper regional integration and trigger the potential for regional traffic. This is true for both passenger and freight

— Most of the SEE area is a potentially single job market: commuter traffic can and will grow E.g. Ljubljana-Zagreb link to be revitalized! The could work for Zagreb-Osijek/Vinkovci/Split axes! And there are plans already for Belgrade-Budapest

— Coordination of national economies and the interplay of the comparative advantages should and eventually will restructure subregional economies along a coherent value chain Sea-rail links at ports will be key for economic development! Rail links to industrial manufacturing sites will be a must!

828 May 2014 CER

The Voice of European Railways

Current situation rather negative: Freight market development in the Western Balkans 1970 - 2011

928 May 2014 CER

The Voice of European Railways

Passenger market development in the Western Balkans 1970 - 2011

1028 May 2014 CER

The Voice of European Railways

Huge demandfor good

East-Westlogistic

Positive railPass & Freightdevelopment

Low congested

infrastructure

What’s wrong?

1128 May 2014 CER

The Voice of European Railways

First answer:low investments in rail infrastructure

1228 May 2014 CER

The Voice of European Railways

Rail infrastructure investments and maintenance spending 1995 – 2011 (euro)

1328 May 2014 CER

The Voice of European Railways

Shares of rail vs. road investment in Croatia, Serbia and Slovenia 1992-2011 (ITF data).

Road investments dominate over rail investments in Croatia, Serbia and Slovenia.(Percentages are calculated as ration of total rail+road infrastructure budget for investments and maintenance)

Source: ITF.

19951996199719981999200020012002200320042005200620072008200920102011

0%

20%

40%

60%

80%

100%

Croatia

railroad

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110%

10%20%30%40%50%60%70%80%90%

100%

Slovenia

railroad

19951996199719981999200020012002200320042005200620072008200920102011

0%10%20%30%40%50%60%70%80%90%

100%

Serbia

railroad

1428 May 2014 CER

The Voice of European Railways

Limited number of double-track lines

ACRO

SSEE

dat

a 20

14

1528 May 2014 CER

The Voice of European Railways

Second answer:huge problems at border crossings

1628 May 2014 CER

The Voice of European Railways

Total (waiting and procedural) transit times for crossing each pair of

Road and Rail BCPs (reported as average, in

both directions, in minutes, on a given list of border

crossing points)

* refers to a single BCP – not a pair

Time spent at BCPs(ACROSSEE data 2014)

1728 May 2014 CER

The Voice of European Railways

Solutions?

EU funding instruments:Regional funds and CEF

1828 May 2014 CER

The Voice of European Railways

Focus: Availability of regional funds in Croatia

Croatia will be entirely tagged as less developed region by the new regulations. This opens the possibility for large and more flexible funding.

Data in Billion-euro from ec.europa.eu

1928 May 2014 CER

The Voice of European Railways

At least 50 % of the total ERDF resources at national level shall be allocated to subset of thematic objectives: 1, 2, 3 and 4

One of the rail-friendly objective is then among the ERDF spending priorities: “(4) supporting the shift towards a low-carbon economy in all sectors by: […] (e) promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multimodal urban mobility and mitigation-relevant adaptation measures;”. It must be stressed that the concept of “urban areas” covers the cities’ functional areas, so that in some cases it may be stretched to cover commuters’ traffic under PSO.

The most rail-friendly objective is however n°7: “(7) promoting sustainable transport […] by […] supporting […] the TEN-T; […] by connecting secondary and tertiary nodes to TEN-T infrastructure […] in order to promote sustainable regional and local mobility; developing and rehabilitating comprehensive, high quality and interoperable railway systems, and promoting noise-reduction measures; […];”

ERDF spending in Croatia

2028 May 2014 CER

The Voice of European Railways

Focus: Availability of regional funds in Slovenia

Slovenia will include a less developed region and a more developed region, which will be subject to different spending flexibilities.

Data in Billion-euro from ec.europa.eu

2128 May 2014 CER

The Voice of European Railways

In more developed regions, at least 80 % (instead of 50% for less developed regions!) of the total ERDF resources at national level shall be allocated to subset of thematic objectives: 1, 2, 3 and 4. This constrains a lot more the spending flexibility for each public authority.

The rest of the ERDF can be spent as for HR also on objective number 7, which is the one of most interest for rail transport.

ERDF spending in Slovenia

All Member States have submitted all their Partnership Agreements before the 22 April 2014, and will submit before the autumn all Operational Programs: the time to lobby your governments is NOW!

2228 May 2014 CER

The Voice of European Railways

SEE is crossed by TEN-T corridors – of both the core and comprehensive network

Mediterranean Corridor (Ravenna/Trieste/Koper - Ljubljana – Budapest)

Rhine-Danube Corridor (Budapest – Vukovar)

Baltic-Adriatic Corridor(Graz – Maribor –Ljubljana – Koper/Trieste)

2328 May 2014 CER

The Voice of European Railways

Actions implementing the core network in accordance with Chapter III of Regulation (EU) No 1315/2013, including the deployment of new technologies and innovation in accordance with Article 33 of that Regulation, and projects and horizontal priorities identified in Part I of Annex I to this Regulation;

Actions implementing transport infrastructure in nodes of the core network, including urban nodes, as defined in Article 41 of Regulation (EU) No 1315/2013;

What can be financed through CEF if on the core network

2428 May 2014 CER

The Voice of European Railways

Actions implementing the comprehensive network in accordance with Chapter II of Regulation 1315/2013 (“The comprehensive network”), when such actions contribute to

bridging missing links, facilitating cross-border traffic flows or removing bottlenecks

and when those actions also contribute to the development of the

core network or interconnect core network corridors Studies for cross-border priority projects as defined in Annex III to

Decision No 661/2010/EU of the European Parliament and of the Council (2)

Actions supporting ERTMS Actions supporting sustainable freight transport services Actions to reduce rail freight noise, including by retrofitting

existing rolling stock Actions implementing safe and secure infrastructure

What can be financed through CEF on the core and comprehensive network

2528 May 2014 CER

The Voice of European Railways

Conclusions and recommendations

2628 May 2014 CER

The Voice of European Railways

Strong transport sector for strong economies

Between 1995 and 2011 transport (of freight in particular) and EU27 GDP grew almost in parallel

Strong economies need strong logistic chains as much as strong logistic chains need strong economies

Rail transport is key for this growth to be safe, environmentally sustainable and creating no additional congestion

Source: EU Transport in figures 2013

2728 May 2014 CER

The Voice of European Railways

Problems seem to regard more the quality of the network rather than its extension

Problems seem to regard more issues of administrative nature and allocating the funds

There is huge margin for improvement in regional coordination on infrastructure development & maintenance, as well as in streamlining administrative procedure

Regional coordination is urgent and possible both on the infrastructure management side, and on the operations side The idea of a Rail Freight Corridor on Corridor X is

supported The idea of a One-Stop-Shop as well as joint

operations for rail freight logistic is good and compatible with EU competition law

South East Europe: need for “regional” thinking

2828 May 2014 CER

The Voice of European Railways

Railway system: each party must deliver!

2928 May 2014 CER

The Voice of European Railways

All three key elements of the sustainable rail development must always be promoted!

Infrastructure

Intermodal level playing field

Intramodal competition

3028 May 2014 CER

The Voice of European Railways

Thank you for your attention!

For further information, visit our website: www.cer.be

Dr. Libor LochmanCER Executive Director Tel: +32 2 213 08 71Email: libor.lochman@cer.be