The French reform of rail system

Pierre CARDO,

President of the French regulatory body

(ARAF - Autorité de régulation des activités

ferroviaires)

DB Symposium, January 29, 2015

• Reform announced in 2012

• Adopted on 4 August 2014

• Entered into force on 1st January 2015

1. What is in the reform?

2. A reform introducing competition in the

rail sector?

3. Latest evolutions in France : competition

in bus market

Introduction

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I. What is in the reform?

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1. Recasting rail governance architecture

2. A reform to merge the rail system

3. Social conditions

4. Finances in SNCF

5. The Regulatory body

I. What is in the reform?

• New organization of the SNCF:

I. Content of the reform 1. Recasting rail governance architecture

SNCF Head & strategy

SNCF Réseau

Infrastructure manager

SNCF Mobilités

Transport operator

• Organization of the public group SNCF

I. Content of the reform 2. A reform to merge the rail system

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The head of public group: SNCF

A strategist for the group

• An executive board with two heads and a

supervisory board

• Cross-company functions

For the Regulatory body

• Ensure SNCF Réseau’s independance

I. Content of the reform 2. A reform to merge the rail system

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SNCF Réseau : Infrastructure manager

• Merger of RFF, SNCF Infra and DCF (allocating

paths)

• Executive board

• Accounting separation

• Centralising some service facilities

• Railway stations managed and owned by traditional

operator (SNCF Mobilités)

• For the Regulatory body: • Ensure access to the network, to railway stations and

to service facilities

I. Content of the reform 2. A reform to merge the rail system

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The railway undertaking of transport: SNCF Mobilités

• The entity for transports

• Accounting separation

• Public services

• Providing international services of transport

• Managing passengers stations

• For the regulatory body • Ensuring access to passengers stations

• Issuing an assent on access charges for stations

• Approve accounting separation

I. Content of the reform 2. A reform to merge the rail system

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• Common basis for all employees in the

rail system:

• Article L. 2162-1 : Harmonisation of working

conditions of all the employees of the rail

sector

• Negociation of a sector-based collective

agreement to be adopted on 1ˢᵗ July 2016

• No jurisdiction for regulatory body

I. Content of the reform 3. Social conditions

• To solve the debt problem

I. Content of the reform

4. Finances at group SNCF

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• The « collège » of ARAF

• Assent on tariffs of the network maintained

• Assent extended on tariffs of the service facilities and

stations

• Reasoned opinion on framework agreements b/n State-

SNCF and State-SNCF Réseau

• Reasoned opinion on financial flows in SNCF Réseau

• Reasoned opinion on investment plannings

• Separated sanctions commission from the « collège »

I. Content of the reform

5. Strengthening the Regulatory body

II. What timeline for opening the sector to

competition?

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• Limited opening to competition :

• Rail freight in 2003 and 2006

• International passengers services in 2010

• Complete opening of passengers services

of transport?

• Interpretation of Regulation PSO (1370/2007)

• Fourth package adopted in first reading by

European Parliamant on 26 February 2014

The opening to competition… waiting

for the fourth package

III. Latest evolutions in France:

Opening bus market to competition

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• Liberalisation of bus market

• Possibility for the public transport authority to

limit or to prohibit intra-regional transport

• Liberalisation and economic equilibrium of the

public service contract

• Management of bus terminals

Law for growth and economic activity

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Thank you for your attention

www.regulation-ferroviaire.fr

The end

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