Funding of European Rail Infrastructure

1. Funding of European Rail Infrastructure Michael Clausecker UNIFE Director-General

2. 1. Rail investments in Central and Eastern Europe

3. UNIFE Objectives • Overall objective: Transform funds in turnover for our industries • Sub-objectives: • Maximum absorption of the funds allocated to the new Member States • Maximum share of rail investments among the modes of transport • Increase the size of tenders to make them more attractive for our members

4. Strategy and achievements • UNIFE actions: • Internal work – Objectives: gather and exchange information (funds available, spending situation, problems) • special UNIFE working group on rail investments in Central and Eastern Europe; involvement of UNIFE UNIRAILINFRA and National Associations Committees; co-operation with CER; • new database of major transport infrastructure projects • Work with the EU institutions (in particular DG Regio) – Objectives: improve internal co-ordination at the Commission; improve financing; increase pressure on the Member States • Work with the Member States (in particular Transport Ministries, Infrastructure Managers and local stakeholders) – Objectives: increase awareness about problems encountered by the industry, improve the investment process. • Work with stakeholders – Obejctives: train stakeholders and exchange best practices in order to improve project development, management and implementation : Joint UNIFE-Commission-RBF Seminar on the Implementation of Rail Infrastructure Projects in new EU Member States in July 2007

5. UNIFE database on rail projects in Central and Eastern Europe • Contents: • Compilation of the indicative lists of projects of the Transport Operational Programmes of the CEECs • Information on length, financing, timeframe, scope (new/modernisation/upgrading), type (main line/light rail/regional passenger transport/rolling stock/signalling), speed and other details • Limits: • Official information, but not concrete projects • Major projects mentioned in the OP can be sliced into a lot of smaller projects • Next steps : • Objective: include concrete projects in the pipeline, contracts awarded, distribution of the projects over the period

6. Next steps • Next steps and projects: • Training for DG Regio officials on ERTMS • Seminar on Rail Investments in Central and Eastern Europe in December 2008 in Romania • In cooperation with AIF and the European Commission • Financed by TAIEX (technical assistance information exchange unit) • Workshop topics: overview of regional aid for transport for the 2007-2013 period; financing (EU funds, EIB loans, PPPs); public procurement; project development; project implementation; best practices (turnkey, high-speed, cross-border cooperation); ERTMS • Targeted attendance: representatives from the Transport ministries of the new Member States, from the infrastructure managers, from the rail supply industry • Development of the database (pending demand of information to CER) • Meetings with Ministries of Transport in the new Member States to be scheduled

7. 2. Trans-European Networks - Transport

8. Trans-European Networks – Transport • On 21 November 2007, the European Commission issued its proposal for the selection of projects to be financed by TEN-T funds for the period 2007-2013, which was then approved by the Member States. • Total amount of applications for funding: € 11.5 bn exceeds by far the budget dedicated to TEN-T priority projects (about € 5,301 m, including Galileo). • Rail transport is granted the lion’s share in the Commission’s proposal: out of a total budget of € 6,811 m for the multi-annual programme 2007-2013, € 272 m are granted for ERTMS deployment and € 5,111 m for priority projects, excluding Galileo. Out of these €5,111 m available for priority projects, 74.2% of the money is awarded to rail projects.

9. Loan Guarantee Instrument for TEN-T projects (LGTT) • On 11.1.2008, the European Commission and the EIB launched the Loan Guarantee Instrument for trans-European transport network projects • The LGTT aims at facilitating greater participation of the private sector in the financing of transport infrastructure especially where there is a high level of revenue risk in the early operational period of a project • The LGTT will partially cover this risk. The capital contribution of €1 billion (€500 million each from the Commission and the EIB) is intended to support up to €20 billion of total capital investment.

10. 3. ERTMS

11. ERTMS • Recent developments (1): • Signature of a new ERTMS Memorandum of Understanding (MoU) • Aim of the MoU: agree on commitments from both the European Commission and the railway associations (UNIFE, UIC, CER, EIM) to expand ERTMS • Commission issued a first draft for a new MoU in April 2008 • Final drafts are currently discussed • Finalisation expected very soon (signature likely in June/July)

12. ERTMS • Recent developments (2): • EU ERTMS Deployment Plan • The Commission intends to develop an ERTMS EU Deployment Plan, to force Member States to further invest in ERTMS ERTMS Deployment by 2020 (Source: EC) ERTMS Deployment by 2012

13. ERTMS • Recent developments (3): • EU ERTMS Deployment Plan • Current Status • Advantages of having a binding plan are obvious for the industry: binding deployment plan=more investment in ERTMS • UNIFE responded to a Commission consultation on the ERTMS deployment plan in January 2008 • Commission took on board our recommendations and will now develop a “Binding ERTMS European Deployment Plan based on a target deployment rate” • Next steps, Commission currently discussing details of the future plans with the Member States. Proposal to be released at a later stage.

14. 4. Role of Innovation & Harmonisation in European Rail infrastructure

15. Innovation & Harmonisation • Innovation & Harmonisation through Research & Development • INNOTRACK project (2006-2009) • The primary objective is to achieve a reduction in LCC of 30% and improved RAMS parameters. • The project is currently in its initial stages of LCC evaluation; indications are that the 30% target will be achieved – a crucial area in reaching this target is in the contractor led Logistics. • There is a strong potential to develop an agreed European wide standard for the evaluation of LCC and definition of RAMS. • It is a “first of its kind” project in bringing together the Industry and Railway Undertakings in pursuing ambitious targets. • Other cooperative European funded infrastructure projects • Urban Track (2006-2010) – urban orientated infrastructure project aimed at reducing maintenance & renewal costs through innovative track forms and methods with the overall objective to achieve LCC reductions of 25%. • A number of future projects focused on cost effective infrastructure are envisaged; it is clearly a priority area of the European Commission and contractors will be instrumental in these initiatives.

16. Innovation & Harmonisation • ‘Interoperability’ stimulating investments in infrastructure • Market opening • Of fundamental importance to Industry; put simply: that the same product or process can be employed in a number of countries (ultimately Europe wide). Market opening encourages competition and allows new entrants into markets previously inaccessible. • Cross-border operation • Of greater importance to Operators than Industry but still very positive in terms of growth in international rail traffic. • 3 ‘avenues’ of Interoperability • ERTMS • TSIs – Technical Specifications for Interoperability;- technical regulations which are enforceable anddeveloped as a result of Interoperability directive • Voluntary standardisation initiatives • Interoperability = market opening & increased investment