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the railway business magazine

Year IX ■ No. 1.1 (103) ■ 2014

Good news for research and innovation in the railway industry

Railway PRO

Kazakhstan plans to become a logistics hub between Asia and Europe

Freight & Logistics

Журнал железнодорожный бизнес

Horizon 2020: EUR 15 Billion for the first two years

UIP: “The freight wagon is a key indicator of rail productivity...”

Railway could win a share by building competitive and reliable products Interview with Mr. Christophe De KORVER, General Manager GEFCO Romania GEFCO: “Железнодорожный сектор может найти выгоду в транспортной квоте при создании конкурентоспособной и надёжной продукции” йнтервью с Кристоф де Корвье, Генеральным Директором GEFCO Румыния.


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editor’s note 1

W

e are all expecting the coming Winter Olympic Games, this time hosted by the Caucasian resort Sochi. The event is more than a traditional sports competition for Russia, it is a chance to confirm itself once more as an important player in the global logistics market. A tradition resort in the Russian area through its maritime offer, Sochi has been radically modernized in the past years so as to host the most important winter sports events. The Russian railway has been one of the main engines of this effort and it will be opportune for it to show its strength during the Olympics. If everything goes as scheduled, Sochi 2014 will be a huge PR event for the Russian railways, in particular, and for the railway system, in general. A positive, much-needed event if we want this transport system to continue its positive fight to reducing the impact of human activities on the environment. A study issued by the energy department of

the European Commission at the end of 2013 shows that the ambitious objectives of reducing the greenhouse gas emissions by 2050 could be missed. Next to other sectors where side slips are envisaged, the transport sector seems to follow the same path. Among the causes, there is also the inertia of shifting volumes to less polluting transport modes (for example, the railways), but also the high technological inertia of the railway transport sector. Speeding up electrification works is a solution for ensuring the independence of fossil energy sources. Stimulating research and innovation will significantly help identifying new solutions and technologies that would reduce pollution in both absolute values and in report with carried passenger and freight. Thus, a research programme, such as SHIFT2RAIL, becomes mandatory and the steps taken so far give us hope. Major demographic shifts and development of production and consumption areas bring another series of challenges to railway

transport. Adapting to a reality where population enters demographic decline and aging is not easy, but it should be shaped to maintain competitiveness to the other transport modes and economic feasibility. Also, in freight transport harmonized collaboration between multimodal centres or for the takeover of trains by opening pan-continental areas will ensure the transfer to railways and will reduce pollution. And thus Sochi is a turning point because the security of freight and passengers is a key factor in the decision making process and the way in which the Russian Federation will prove its capacity to ensure security without violating the fundamental rights of people during Sochi 2014 will accelerate the development of Eurasian railway transport routes.

Can railways protect the environment? Issue published with the support of Romanian Railway Industry Association & Club Feroviar – The Railway Business Club Журнал издаётся при поддержке Асоциации Железнодорожной Промышленности и Club Feroviar – ЖД Клуб Деловых Людей

Может ли железная дорога обеспечить защиту окружающей среды? Мы в ожидании зимних Олимпийских Игр, которые в этот раз пройдут в Кавказском регионе Сочи. Для России, это событие является не только традиционным спортивным соревнованием, но и возможностью вновь проявится в качестве важного игрока на уровне глобального рынка логистики. Традиционный курортный регион российской территории с точки зрения возможностей в морском секторе, за последние годы Сочи был полностью модернизирован, для того чтобы организовывать наиболее важные зимние спортивные события. Российский железнодорожный сектор являлся одним из основных элементов необходимых для достижения результатов, имея возможность доказать свою роль во время Олимпийских Игр. Если всё пройдёт в соответствии с планом, Сочи 2014 будет грандиозным мероприятием с точки зрения связи с общественностью, в особенности для российского железнодорожного сектора, но и для общей железнодорожной системы. Это должно быть позитивным событием, необходимым при перспективе продолжения важной роли железнодорожной системы, в борьбе в области снижения негативного воздействия деятельности человека на окружающею среду. Исследование

департамента по энергетике при Европейской Комиссии соответствующее концу 2013 года показывает, что смелые цели в области снижения парникового эффекта, достижение которых запланировано до 2050 года, подвергаются неудаче. Транспортный сектор, расположенный рядом с другими секторами в которых ожидаются несоответствия с планом, намечает подобные тенденции. Среди причин можно назвать и пассивное отношение в связи с передвижением грузооборота и пассажиропотока на транспорт, оказывающий менее негативное влияние на окружающею среду (например, железнодорожный), а также, явную пассивность в области технологии железнодорожного сектора. Ускорение работ электрификации является решением задачи независимости от энергии из ископаемых видов топлива. Толчок в области развития и исследования окажет значительное содействие в установлении новых решений и технологий, способствующих снижению загрязнения окружающей среды, на уровне общих параметров, но и в отношении с грузопотоком и пассажиропотоком. Программы исследования подобные SHIFT2RAIL должны непосредственно осуществляться, в то время как нынешние достижения приносят

нам волну оптимизма. Главные демографические изменения и развитие производственных и потребительных зон, предоставляют новую серию провокаций в области железнодорожного транспорта. Адаптация к реальности, соответственно которой население входит в демографическое ухудшение и в процесс старения, не является лёгкой задачей, но должна осуществляться для поддерживания конкурентоспособности железнодорожного транспорта в сравнении с другими видами транспорта и экономического состояния. Также, в области грузовых перевозок, гармоничное сотрудничество мультимодальных узлов или станций примыкания и расширение панконтинентальных участков, будет способствовать перемещению на железнодорожный транспорт и снизит загрязнение окружающей среды. И так, Сочи это решающий момент, безопасность грузов и пассажиров являясь ключевым фактором принятия решений, Российская Федерация имея возможность продемонстрировать способность предоставить безопасность без нарушения прав человека на протяжении мероприятия Сочи 2014, факт который отразится в развитии евроазиатских железнодорожных трасс. January 2014 | www.railwaypro.com


2 cOntent POLICIES & STRATEGIES

MARKET DEVELOPMENT

РАЗВИТИЕ РЫНКА

24 26

Railways have to become the backbone of multimodal transport Железнодорожный сектор должен быть основой мультимодального транспорта

International trade has exceeded the growth of global GDP and the development of trade across borders is supported by the optimisation of transport and IT segment, cost reduction and transparency improvement. Для эффективного и непрерывного транспорта, который способен удовлетворить требования и необходимости мобильности грузов, интероперабельность это решение задач.

POLICIES & STRATEGIES

34 Freight Corridor no. 7, an

essential connection between Central Europe and South-East Europe

photo: club feroviar

36 TEN-T core network, a

Editor’s note the railway business magazine

Railway PRO

ISSN - 1841 - 4672

1

Can railways protect the environment? lex

Publisher: Editura de Transport & Logistică S.R.L. 30, Virgiliu Street, Sector 1 Bucharest, postal code: 010881 Tel.:+4 021 224 43 85; +4 021 224 43 87 Mobile: +40 721 723 724 Fax: +4 021 224 43 86 E-mail: editors@railwaypro.com Web-site: www.railwaypro.com

Editors: Elena Ilie elena.ilie@railwaypro.com Pamela Luică pamela.luica@railwaypro.com Department of translations: Alina Vuţulicu Veronica Lupan Contributors: Viorel Lucaci Marian Ciofalcă Graphic design: Petru Mureşan Layout and DTP: Petru Mureşan petru.muresan@railwaypro.com Photo: Radu Drăgan Advertising Enquiries: advertise@railwaypro.com www. railwaypro.com/advertise

16 Fourth Railway Package:

new stimulus for railway freight transport

40 International trends will

stimulate the liberalization of Russian railway freight transport

42 Republic of Moldova

External funds for the Transport and Logistics Strategy 2022

52 Railway tunnel under

the Bearing Strait is a technical challenge

member states can choose between holding and vertical separation

MARKET DEVELOPMENT

30 UIP: “The freight wagon

44 Kazakhstan plans to

ПОЛИТИКА И СТРАТЕГИЯ

UIP: “The freight wagon is a key indicator of rail productivity...”

Interview with Mr. Gilles Peterhans, Secretary General UIP (International Union of Wagon Keepers) UIP: “Грузовой вагон это ключевой показатель производительности” Интервью с Джиллес Петерханс, Генеральный Секретарь UIP There are transport policies in Europe aimed at boosting and developing railway freight transport, there are many statistical data on economic situations and estimates on transport demands, but we have to consider that rolling stock is the most important asset of railway transport in reaching economic performance and adjusting to logistics chain demands. Freight wagons are major elements in a modern transport system connecting railway transport and related logistics services. Грузовые вагоны являются основой современной транспортной системы, предоставляя связь между железнодорожным транспортом и соответствующими логистическими услугами; для соответствия тенденциям рынка, сектор железнодорожного транспорта должен оптимизировать свою эффективность путём инновации проектирования и использования грузовых вагонов. Для получения подробностей в связи с ролью подвижного состава в железнодорожной системе, необходимостью предоставления финансирования для закупки новых подвижных средств, а также, в связи с нынешней ситуацией железнодорожного рынка...

24 Railways have to become Research & DEVELOPMENT the backbone of multimodal transport 20 Horizon 2020: EUR 15 Billion for the first two years 26 E-rail freight, method of increasing the attractiveness of freight transport 22 Good news for research and innovation in the railway industry 38 For the development of the Port of Bar, public-private partnerships is the most realistic Engineer POLICIES & STRATEGIES situation Railway infrastructure 28 GEFCO: “Railway could win 43 G-Global: the project that 46 financing – an aspect with vast a share by building competitive brings authorities, organizations implications in railway and reliable products” transport system operation and companies face to face is a key indicator of rail productivity...”

www.railwaypro.com | January 2014

become a logistics hub between Asia and Europe

Statistics

50 Freight statistics


cOntent 3

Редакционная статья

ПОЛИТИКА И СТРАТЕГИЯ

РАЗВИТИЕ РЫНКА

исследования и разработки

24 Железнодорожный Коридор грузоперевозки сектор должен быть основой 20 Горизонт 2020: 15 млрд. но. 7 является основной мультимодального транспорта евро на первые два года связью между Центральной и Юго-Восточной Европой 22 Хорошие новости в ЛЕКС области исследования 26 E-rail freight – и инновации в 36 Центральная сеть возможность повысить привлекательность грузовых железнодорожной 16 4-ый Железнодорожный TEN-T – новый толчок промышленности для железнодорожных перевозок Пакет: Государства-члены грузоперевозок смогут выбрать холдинговую структуру или вертикальное разделение 38 Государственно-частные инженер 40 Международные партнёрства: наиболее тенденции приведут к реалистический выбор для либерализации сектора развития Порта Бар ПОЛИТИКА И СТРАТЕГИЯ железнодорожных 46 Финансирования железнодорожной грузоперевозок в России инфраструктуры – аспект с 28 GEFCO: широкими вовлечениями в “Железнодорожный сфере функционирования 43 G-Global: проект, 42 Республика Молдова сектор может найти системы железнодорожного который ставит лицом к лицу Внешние фонды для выгоду в транспортной транспорта власти, организации и проектов Стратегии квоте при создании компании Транспорта и Логистики 2022 конкурентоспособной и надёжной продукции” СТАТИСТИКА 44 Казахстан намерен 52 Железнодорожный стать узловым центром под Беринговым 30 UIP: “Грузовой вагон это тоннель логистики между Азией и проливом является 50 Железнодорожного ключевой показатель Европой технологической статистика производительности” провокацией

1

Может ли железная дорога обеспечить защиту окружающей среды?

34 Железнодорожный

January 2014 | www.railwaypro.com


news 5 Makedonski Zeleznici-Transport buys freight wagons

EIB supports upgrade of Polish railways with EUR 186m loan

FYR Macedonia: Railway operator Makedonski Zeleznici-Transport has signed a contract with Slovakian company ZOS Trnava on the acquisition of 150 freight wagons. The contract amounts to EUR 13.2 Million. The new wagons will be delivered in 52 weeks. Makedonski Zeleznici-Transport currently has 950 freight wagons.

Poland: The European Investment Bank (EIB) is lending EUR 186 Million to PKP Intercity for the renewal and expansion of its existing fleet by 2015. The Bank has now supported rail investments in Poland for 23 years, promoting the improvement of both infrastructure and rolling stock. PKP Intercity will boost its investment programme which consists in particular of acquisition of 20 Electrical Multiple Unit trains (EMU), modernisation of 218 passenger, purchase of 25 passenger coaches, acquisition of 10 diesel mainline locomotives and modernisation of 20 diesel shunting locomotives . The new and modernised rolling stock

Saudi Arabia to tender the design of the railway network in 2014

include drafting of documents in order to obtain the building permit and the executive design for the Pragersko station upgrade. The upgrade of the Pragersko railway station represents a continuation of the development of public railway infrastructure in the northeastern part of Slovenia, the modernisation of PP6 and guarantee of a suitable connection to the planned electrified and upgraded Pragersko–Ormož– Hodoš railway line. Following the studies, completion of the works will enhance the traffic flow and capacity of this important hub on PP6 and will contribute to making rail transport faster and more attractive for

freight and passenger operators. The studies will be monitored by the Trans-European Transport Network Executive Agency (TEN-T EA) and are set to be completed by August 2015. RZD could participate in the railway projects in Sudan International: Russia may rebuild Port Sudan – Khartoum railway. Respective memorandum of understanding was signed by Russia and Sudan. In total Russia is considering 25 joint projects in the railway, energy, air communication industries. RZD has already expressed its interest in working with Sudan.

Spain: ADIF is separated into two entities

Aeroexpress to invest USD 700 Million in development projects

International: The Council of Ministers in Spain has approved the separation of the railway infrastructure manager ADIF into two companies. One of them, called Adif Alta Velocidad, will manage the highspeed network and will take over all its debts. The other company will manage the conventional network. ADIF will implement the separation at the beginning of this year.

photo: tentea.ec.europa.eu

International: The Saudi Railway Organization will issue tenders for the design of the Gulf Cooperation Council (GCC) train project in the Kingdom in February. Tenders will involve international companies and the design should be finalized at the end of 2014 so that the project could be implemented as of 2015. Every individual GCC state would be responsible for the design and implementation of their part of the project. The 2,200-km GCC railway project will link all member states, starting from Kuwait and ending in Oman, and cost USD 15.5 Billion.

will run at faster speeds and thereby reduce journey times. It will also ensure higher levels of passenger safety and comfort as well as easier access, particularly for people with reduced mobility. “The cooperation with the European Investment Bank enables PKP Intercity to implement a broad investment plan, thanks to which by the end of 2015 the company will replace or modernise 70% of its rolling stock. The loan agreement signed is closing the process of financing investments carried out in the EU’s 2007-2013 financial framework. We are pleased that for the European institutions we are a credible and reliable partner”, said Paweł Hordyński, Member of the Management Board and Chief Financial Officer of PKP Intercity.

Russia: Aeroexpress plans to invest RUB 23 Billion (USD 700 Million) in development of projects, said a source of Prime agency, quoted by rzd-partner.com. According to the source, private shareholders are going to find these funds, because

Польша: ЕИБ предоставит компании PKP Intercity кредит в 168 млн. евро для обновления и дополнения парка подвижного состава до 2015 года. БЮР Македония: Железнодорожный оператор Makedonski Zeleznici-Transport заключил контракт по закупки 150 грузовых вагонов. В мире: В феврале 2014, Железнодорожная Организация Саудовской Аравии пустит в ход тендер по проектированию Саудовской железнодорожной сети. В мире: Совет Министров Испании принял решение разделения оператора железнодорожной инфраструктуры ADIF на два

общества. В мире: Возможно, РЖД восстановит железнодорожную линию, связывающею Порт Судан со столицей Хартум; с этой целью, Россия и Судан заключили меморандум о взаимопонимании. В мире: Были завершены предварительные работы для анализа технико-экономического обоснования для осуществления железнодорожного участка из Афганистана – часть коридора Туркменистан-АфганистанТаджикистан. Турция: Турция будет производить высокоскоростные поезда, которые будут пущены в эксплуатацию в 2018 году

Studies for Slovenian rail station upgrade at Pragersko awarded EU funds Slovenia: The European Union will co-finance with EUR 2.1 Million from the TEN-T Programme a series of dedicated studies aimed at eliminating a key regional bottleneck and improving rail traffic, thus contributing to the realisation of the “Railway axis Lyon-Trieste-Divača/KoperDivača-Ljubljana-Budapest-Ukrainian border” (TEN-T Priority Project 6). The studies, selected for funding under the 2012 TEN-T Multi-Annual Programme,

January 2014 | www.railwaypro.com


6 news

FPC wants to buy 295 wagons in 2014 Russia: Federal Passenger Company (FPC) plans to buy 295 passenger wagons of different types in 2014. Investment in the rolling stock will be approximately RUB 21.4 Billion (USD 6.5 Billion).The company’s press-service said that RUB 5.2 Billion (USD 158 Million) will be allocated to purchase 127 units of rolling stock to replace coaches in 8 premium service trains. Of that, RUB 1.5 Billion (USD 45.6 Million) will be spent on renewal of 40 couchette railcars.

Giurgiu and Ruse agree to cooperate in 2014-2020 International: Romanian and Bulgarian authorities in Giurgiu-Ruse Euroregion want an improved cooperation in 2014-2020 to access European funds, was the conclusion of Ruse Prefect Ventsislav Iliev Kalchev and of Giurgiu County Council President Vasile Mustăţea, after signing a cooperation agreement between Giurgiu County (Romania) and Ruse District (Bulgaria). “The reunion is a very special moment because together with our partners from Bulgaria, we set the foundation of new

Россия: «Аэроэкспресс» намерена вложить 23 млрд. рублей в проекты развития. Словения: ЕС предоставит совместное финансирование 2.1 млн. евро для исследований с целью устранения транспортного затора и оптимизации железнодорожного движения вдоль оси Лион – Триест - Дивака\ Копер - Дивака – Любляна – Будапешт – граница Венгрии. Беларусь: Андрей Болтрик, Президент Экономического Комитета провинции Гродно (Беларусь), объявил, что существуют планы строительства трёх центров www.railwaypro.com | January 2014

collaboration for 2014-2020 that I believe it would be much better than before. Our collaboration has been a good practice example in the entire border region with Bulgaria”, declared Vasile Mustăţea, Giurgiu CC President after signing GiurgiuRuse cooperation agreement. He believes that the important projects for which the Romanian and Bulgarian sides have to work together to attract European funds are infrastructure projects, followed by culture, tourism, social and sanitary projects. In turn, Bulgarian partners said they were very happy to continue collaboration with Giurgiu authorities. “I am very eager to get to Giurgiu today because signing the cooperation agreement between Giurgiu County and Ruse District is in fact an extension of everything we have done before and I agree that we have to go further using the experience so far because there is no other Euroregion on the Romanian-Bulgarian border to have reached the results that we have in Giurgiu-Ruse Euroregion”, declared Ruse Prefect Ventsislav Iliev Kalchev.

pass the Bosporus as the Strait can only accommodate ships with container carrying capacities of up to 6,500 TEUs. AsyaPort is located on the Sea of Marmara side of the Bosporus, and will be able to handle megavessels with capacities up to 18,000 TEUs. This will not only reduce transportation costs, it will also increase efficiency.

EBRD grants credit to terminal in Asya Port

Kyrgyzstan conditions accession to the Customs Union

Turkey: The EBRD is providing a USD 92 Million loan for Turkey’s first transhipment container terminal Asya Port. The Bank’s financing will be used to design, build, operate and maintain a new container terminal in the town of Barbaros, Tekirdag province, some 130 km west of Istanbul. The International Finance Corporation (IFC) and Turkiye Is Bankasi will contribute with parallel loans, of USD 69 Million and USD 106.6 Million, respectively. Equipped to handle 1.9 million TEUs – twenty-foot equivalent unit, the standard industry measure for containers – AsyaPort is set to become a major transhipment hub for cargo bound for Black Sea ports. At present, large vessels cannot

Kyrgyzstan: Kyrgyzstan President Almazbek Atambayev has said his country will not join the Customs Union of Belarus, Kazakhstan, and Russia based on a roadmap that was prepared without Kyrgyzstan’s involvement. Atambayev told journalists that Kyrgyzstan plans to join the Moscow-led Customs Union but will demand that any association agreement take into account its national interests. The statement follows a decision by Ukraine in November to suspend a planned association deal with the European Union in favour of closer ties with Russia and the Customs Union. “Ukraine can choose, and we have little choice, but we will only choose the path that is good for us,” Atambayev said. The Kyrgyz Government has put forth its conditions for inclusion in the roadmap: creation of a mechanism to support countries that join the Customs Union but are less economically developed, creation

photo: www.ebrd.com

транспорта и логистики. Россия: Федеральная Пассажирская Компания намерена приобрести 295 пассажирских вагонов в 2014 году. В мире: На протяжении периода 2014-2020, власти Румынии и Болгарии намерены оптимизировать сотрудничества в области использования европейских фондов в Евро - регионе Джурджу – Русе. Румыния: Существует проект модернизации портов Дуная, который воспользуется европейскими фондами стоимостью 750 млн. евро. Турция: Европейский

TCDD trains

manufactures

high-speed

Turkey: Turkey will produce high-speed trains which will be put into service by 2018, the country’s transport minister Binali Yildirim said. The trains will be produced at three factories of the State Railways, the minister said. photo: www.tcdd.gov.tr

RZD has no opportunities to make such investment. That’s why RZD is ready to sell a 25% stake from its shares in the company to other shareholders. RZD has a 50% stake in Aeroexpress now, Delta-Trans-Invest (a part of Transgroup AS) has a 25%, businessmen Andrey Bokarev and Iskander Makhmudov have 7.5% stake and 17.5% stake respectively. According to the source of the agency, RZD plans to keep the rest 25% stake in Aeroexpress. According to the representative of Aeroexpress, this sum comprises of funds for the purchase of rolling stock, construction of a terminal in the Domodedovo airport, reconstruction of a depot, etc. RUB 20 Billion will be spent on rolling stock, RUB 2 Billion – on the terminal in Domodedovo, approximately RUB 2 Billion – on the reconstruction of the Ilyich depot.

Банк Реконструкции и Развития предоставит кредит 92 млн. долларов для строительства первого терминала пересадки контейнеров с порта Асияпорт, Турция. Кыргызстан: Президент Кыргызстана, Алмазбек Атамбаев, объявил, что государство не войдёт в Таможенный Союз пока система Союза будет действовать без вовлечения Кыргызстана. В мире: Цель нового плана компании SNCB в области транспорта, который вступает в силу в этом году, состоит в оптимизации услуг и пунктуальности.


news 7 Belarus builds three transport and logistics centres

SNCB develops new transport plan International: The new transport plan of SNCB, effective since 2014, will better answer to demand and improve punctuality, according to the project presented by the new CEO of the company, Jozef Cornu. The new plan, valid for 3 years, will replace the old transport plan in 1998 which is currently overwhelmed by the increasing number of passengers, among others. Punctuality will be increased by extending the travel time, by considering the delays caused by infrastructure works and by providing attention to ensure links. The train speed will be reduced by less than 1% and the average duration of journeys will increase by 3.3%.

France finances new railway projects International: In the section “vehicles for the future” of the investment programme launched in 2011, the French state retained five railway transport projects. They will receive financial support of EUR 32.4 Million, the total cost of projects amounting to EUR 90.9 Million. The content of two projects has not been revealed. The other three include virtual computer-based prototypes (Cervifer project), braking systems for high-speed trains (GLGV project) and the intermodality for railway freight transport (ECOPMS project).

EBRD to credit the modernisation of the HZ Infrastruktura infrastructure Croatia: Ministry of Transport announced that HZ Infrastruktura, the Croatian railway infrastructure manager, and EBRD would sign a loan agreement. The EUR 40 Million loan will be used to finance the modernisation of railways. The company will use the special credit to buy equipment for line maintenance, for the installation of an information system for power management and for the partial financing of the layoffs programme.

Belarus: Andrei Boltrik, Chairman of the Economy Committee of the Grodno Oblast Executive Committee, said there are plans to build three transport and logistics centres. The oblast administration has approved the proposal to sign an investment contract with the enterprise Beltamozhservis, which intends to build a logistics centre near the service area of the border checkpoint Kamenny Log at the Belarusian-Lithuanian border. A land plot of 10ha has been allocated for building the facility. The investment project is worth about EUR 41.5 Billion and is scheduled for implementation in 2014-2015. This

Ukrzaliznytsia puts to scrap 7% of freight wagons Ukraine: In 2013, Ukraine put to scrap 8.956 freight wagons because of 100% depreciation. Ukrzaliznytsia’s fleet of cargo wagons has reduced by 7.1% to 116,000 wagons. In 2012, Ukrzaliznytsia put to scrap 5,500 wagons, especially open wagons. At present, over 50% of the freight wagons owned by Ukrzaliznytsia have exceeded their life expectancy.

India: 4 qualified bids for eastern freight corridor contract International: Four bids have been qualified for phase I of the contract on the installation of electric, signalling and telecommunications systems for the eastern freight-dedicated corridor in India. The shortlisted companies are InabensaAnsaldo-EME-BCEPL, KEC-ElecnorKyosan, the Siemens-led consortium and the consortium led by Alstom. The tender refers to the Bhaupur-Khurja section of the eastern corridor of 343 km. The project of the eastern corridor is partially financed by the World Bank with a credit of USD 2.7 Billion, of which an instalment of USD 975 Million was already allocated in 2011.

Keolis interested in the American railway market International: Keolis operator, 70%

photo: www.novilist.hr

owned by SNCF, wants to expand operation on the commuter train market in the United States, as part of its development priority axis. Estimated at around USD 4 Billion, this В мире: В рамках отдела “транспортные средства будущего” – инвестиционной программы пущенной в ход в 2011 году, государство Франции сохранило пять железнодорожных проектов. Украина : Украина исключила из парка 2013 8.956 грузовых вагонов на основании обесценивания в 100%.. В мире: Для первой фазы работ по установлению систем для восточного коридора грузоперевозки Индии квалифицировались четыре предложения.

year the Grodno Oblast administration has also signed investment contracts on building two more logistics centres. The company Vlate Logistik intends to build them near the border checkpoints Bruzgi and Berestovitsa at the Belarusian-Polish border.

photo: www.belarus.by

of labour-intensive production facilities in Kyrgyzstan, creation of free economic zones for businesses in Kyrgyzstan and Kyrgyzstan’s joining the agreements regulating labour migration.

is the market which has the highest short and medium-term potential for the French operator. Five tenders are scheduled in 2015-2018, in Austin, San Diego, Miami, Los Angeles and Stockton. Together with its contracts in Boston (awarded in February 2014) and Montréal (Canada), these contracts could ensure an annual total income of around USD 550 Million. VTG-Kuehne & Nagel merger was approved International: The authorities in Germany and Austria have cleared the proposed merger between rail logistics firms VTG and Kuehne & Nagel in a deal that will launch a new rail operator on January 1. The new company, to be named VTG Rail Logistics, will combine VTG’s current operations in the EU, Russia and North America with Kuehne & Nagel’s rail logistics operations focused in the EU and Asia. The deal, however, will not include Kuehne & Nagel’s intermodal rail logistics business. VTG Rail Logistics will expand industrial, agricultural and petrochemical services across these regions.

France-Spain direct high-speed line was inaugurated International: The direct high-speed line connecting France and Spain was inaugurated on 15 December. As of now, passengers will no longer be forced to change trains at border. However, the line is not yet completed and trains continue to run on the conventional railway between

В мире: Оператор Keolis, который 70% принадлежит компании SNCF, намерен расширить свою операционную деятельность на рынке пригородного транспортного сообщения в СШA. В мире: Власти Германии и Австрии согласовали объединение компаний железнодорожной логистики VTG и Kuehne & Nagel. В мире: Прямая высокоскоростная линия, предоставляющая связь между Францией и Испанией была официально открыта 15 декабря January 2014 | www.railwaypro.com


8 news

Romania: According to the declaration of the Romanian Minister of Transport, Ramona Mănescu, there is a project for the modernisation of the bridges across the Danube that benefit from European funds worth EUR 750 Million. “There are many important projects, but one of them, that I can hopefully complete, is that of the Danube-Main-Rhine corridor and the integrated project which helps us not only make the Danube navigable and with very high economic potential, but also modernise all the Danube ports, upgrade them to multimodal, intermodal and logistics centres”, declared the

Minister of Transport. “This project is to be completed using the Connecting Europe Facility, we have EUR 750 Million for this project, it is an integrated project, because we cannot talk only about navigable routes, we also talk about rebuilding the ports and the logistics centres that will be in the ports”, said the minister.

photo: www.romanian-ports.ro

Funds of EUR 750 Million for the modernisation of the bridges across the Danube

Montpellier and Perpignan. The project, launched in 2008, was completed a year and a half later than estimated. For the beginning, French and Spanish operators, SNCF and RENFE, will run five pairs of trains every day. The offer will be increased gradually, especially during tourism peak times. SNCF said it estimates that around 1 million passengers will travel on this line in 2014.

signed the local carrier status and operates at a certain route; the operator transports the goods with own locomotive at a certain route but does not enjoy the operator status; lease of private locomotives by RZD. The last two options are already exercised. Last autumn, President Vladimir Putin asked the government to analyse the feasibility of allowing private locomotives to operate in RZD’s network.

Container transport reports good outcome on transit routes

EUR 350 Million for TEN-T projects

Ukraine: In the first ten months of 2013,

Ukrainian Railways carried over 65,000 containers. The largest volume of containers (13,356) has been carried on the transit route Slovakia-Russia. At the same time, other 7,414 containers were carried on the route Nikopol-IIyichevsk; 6,492 on the route Romania-Russia; 6,182 on the route Kiev-Lisky-Dorneşti (Romania); 5,725 on the route ChinaUkraine-Hungary and 4,465 on the route Odessa-Kiev-Lisky. Lithuania and Belarus provide new ROLA transport service International: Lithuanian and Belarus Railways have launched a new railway semi-trailer service, called Nemunas. Tests for the new service, connecting Kaunas/ Vilnius and Minsk, were carried out on 1824 November. Nemunas trains will carry 30 semi-trailers and a passenger wagon. The Nemunas Service could be extended to include Klapeida in its route over the next year.

Russian authorities analyse option for private locomotive operation Russia: Three options are considered to allow the operation of private-owned locomotives in the Russian railway network, was stated during a reunion led by Prime Minister Arkady Dvorkovich. The three analysed options are: the operator is aswww.railwaypro.com | January 2014

Intenational: EC launched calls for proposals worth EUR 350 Million to finance the infrastructure (TEN-T) in all EU member states and for all transport modes: railway, air, naval, maritime and road. This year’s multi-annual calls, the last ones to be held under the 2007-2013 budget, focus on five fields, with EUR 280 Million of total indicative budget available: for 30 Priority Projects (except for MoS) the budget is EUR 50 Million, for MoS the budget is EUR 80 Million, for ERTMS, EUR 70 Million, air traffic managementEUR 30 Million, and for ITS (Intelligent Transport Systems), EUR 50 Million. The deadline for submitting proposals is 11 March 2014.

Хорватия: Министерство Транспорта Хорватии объявило заключение договора по предоставлению кредита между Инфраструктурной компанией HZ Infrastruktura и ЕБРР. Украина: На протяжении первых десяти месяцев года, Украинские железные дороги перевезли более 65.000 контейнеров. В мире: Железные дороги Литвы и Белоруссии пустили в ход новую услугу железнодорожного транспорта для полуприцепов, под названием Nemunas. Россия: Учитываются три варианта для того, чтобы пустить в движение по российской железнодорожной сети локомотивы, принадлежащие частным компаниям.

EIB credits PKP Cargo Poland: The European Investment Bank has granted a credit of EUR 47 Million for PKP Cargo S.A. in order to upgrade the rolling stock of the Polish operator. PKP Cargo will use the funds to buy and modernise locomotives and wagons. The acquisition of new rolling stock is included in the company’s investment programme for the next three years.

Azerbaijan and Turkey to complete design of Kars-Nakhchivan line International: Azerbaijan and Turkey have started work on the design of the railway, which will connect Kars with Nakhchivan, Turkish Minister of Transport Binali Yildirim said. “The Kars- Susuz -Diludzhu- Nakhchivan railway project will take shape during the next meetings with the Azerbaijani side. This project will become more important after commissioning the Baku -Tbilisi-Kars railway”, Yildirim added. “There were some delays with the project implementation connected with technical issues. In particular, there were problems with control issues on the Turkish-Georgian border. It will partially pass through the railway tunnel. All these issues were resolved. Of course, the problems with political and financial support for the project are out of the question”. The length of Kars-Susuz-Diludzhu-Nakhchivan will amount to 223.6 kilometres, according to the preliminary data.

Railway company renews rolling stock fleet Azerbaijan: Azerbaijan Railways plans to purchase 50 new rail cars, the company’s head Arif Asgarov declared. He said that the company also intends to purchase 12 new passenger cars. “The rail car supplier will be determined after a tender, and this may happen in 2014,” Asgarov said. Asgarov previously said that the company is also considering the purchase of 300 new tank wagons.

В мире: Европейская Комиссия выпустила запросы для проектов по предложениям, стоимостью 350 млн. евро для финансирования инфраструктуры TEN-T в области всех видов транспорта. Польша: ЕИБ предоставил кредит 47 млн. евро компании PKP Cargo с целью модернизации подвижного состава. В мире: Азербайджан и Турция начали проектирование железнодорожной линии, предоставляющей связь между городами Карс и Нахичевань. Азербайджан: Железные дороги Азербайджана намерены закупить 50 новых вагонов, объявил директор компании, Ариф Аскеров.


10 news Softronic Craiova developed first electric unit

International: The European Investment Bank (EIB) is lending EUR 250 Million to finance the implementation of Hungary’s railway infrastructure rehabilitation and upgrading investment programme for the period 2013-2016. The objective is to improve the safety, capacity and performance of the existing conventional railway infrastructure with positive impacts on commuters and long-distance travellers as well as on freight traffic. The EIB loan will help the Hungarian railways to become more competitive and attractive in comparison will less environmentally friendly modes of transport such as by road. The project comprises various schemes located across the whole country, particularly involving the improvement of tracks, signalling, telecommunications and bridges, as well as the modernisation of stations and passenger buildings, including increasing their accessibility for people with reduced mobility.

romania: Softronic Craiova has developed the first electric unit in Romania with low-floor and asynchronous traction, with two maximum speed variants, of 160 km/h and of 200 km/h. The construction of the electric unit called Hyperion has requested an investment of over EUR 5 Million for which GarantiBank has granted a financing of EUR 4.3 Million to Softronic Craiova. The vehicle is capable to accommodate 180 passengers on seats. At present, the train

would further link Saudi Arabia and Syria when complete. This would join Iraq and Jordan with the new GCC Railway Network which will be operational by 2017. Ensour said that if the network was to benefit one country only, there would be no point in constructing it. When complete, the project would link Baghdad with Amman and Aqaba. This would enable Jordanian agricultural products to be sold in Iraq, as well as gaining a new route for cargo between the Mediterranean and the Gulf.

photo: raillynews.com

Half of all Europeans are satisfied with their railways

Russia not decided on funding of Armenian railway section International: The Russian railways

have not yet decided on the funding of the construction of the Vanadzor-Fioletovo railway section in Armenia. “South Caucasus Railway” Closed Joint-Stock Company General Director Victor Rebets told the aforesaid to Armenian NewsNEWS.am. In Rebets’s words, although the technical and economic bases for the project are ready, no decision was made along the lines of Russian President Vladimir Putin’s recent visit to Armenia. A railway network could link Baghdad and Amman International: In a summit between the two countries, ministers of Iraq and Jordan discussed the potential of improved infrastructure, including road and railways, linking the two countries in the near future. The summit on the 25th December also discussed political and strategic concerns shared between them. Prime Ministers Abdullah Ensour ( Jordan) and Nouri al Maliki (Iraq) said that the two countries have identical visions of a new railway network linking Iraq and Jordan, expressing hope that the network www.railwaypro.com | January 2014

International: According to a Eurobarometer survey published on December 16, 58% of Europeans are satisfied with rail services in their country. However, comparatively few Europeans take the train. In some countries, the number of users who consider it overly complicated to buy tickets is worryingly high. And some 19% of Europeans do not use the train because of accessibility issues. Persons with reduced mobility complained in particular about bad accessibility of train carriages and platforms and a lack of information on accessibility when they are planning their journey. The results of the survey confirm that more needs to be done to make railway a customer-friendly mode

Румыния: GarantiBank предоставила финансирование 4.3 млн. евро, румынской компании, производящей локомотивы - Softronic Craiova, для строительства электропоезда. Электропоезд, назван Hyperion, имеет два строительных варианта максимальной скорости: 160 км\ч, или 200 км\ч. Венгрия: Европейский Инвестиционный Банк предоставляет Венгрии кредит 250 млн. евро для восстановления железнодорожной инфраструктуры. В мире: В рамках двустороннего саммита, премьер-министры Ирака и Иордании провели дискуссии на тему перспектив развития железнодорожной инфраструктуры. В мире: В рамках двусторонней встречи между представителями

is completed and performs speed tests and will be put to sale as of February.

photo: Softronic Craiova

EIB supports the rehabilitation of railway infrastructure in Hungary

of transport. The overall level of satisfaction with the ease of buying tickets has not improved since 2011 (78% satisfaction) with however big improvements in Austria and Greece (14 and 10 percentage points increase respectively), but worrying increases in dissatisfaction in Italy, Denmark and Slovenia (all more than 10 percentage points). Satisfaction with the provision of information during train journeys, in particular in the event of delays has remained insufficient (less than 50% satisfaction). The highest rates of satisfaction are found in the UK (70%), Finland and Ireland (68% and 62%). Highest rates of dissatisfaction are found in France (47%) and Germany (42%). The 4th railway package contains proposals that will enable common information and integrated ticketing systems. Pakistan - Turkey railway MoU signed International: A Memorandum of Understanding to build a railway between Islamabad, Tehran and Istanbul was signed on the 25th December at bilateral talks between Pakistan and Turkey during Prime Minister Recep Erdogan’s visit to Islamabad. The 6500km railway will consist of 1900km through Pakistan, 2570km through Iran and 2036km

Пакистана и Турции был подписан Меморандум о Взаимопонимании в связи со строительством железнодорожной связи между Исламабадом, Тегераном и Стамбулом. В мире: РЖД пока не приняли решение в связи с финансированием строительства железнодорожной линии Ванадзор – Фиолетово, в Армении. Казахстан: В 2014 году в Казахстане будут пущены в эксплуатацию пять высокоскоростных линий, среди которых линия Астана – Защита, Алма-Ата – Защита, и международная трасса Алма-Ата – Ташкент. В мире: Соответственно соцопросу Европейского уровня, который был опубликован Европейской Комиссией, 58% европейцев довольствуются услугами железнодорожного транспорта в их стране.


news 11 through Turkey. It will further enhance the so-called Iron Silk Road linking Europe with the Middle East and to the Far East by rail. It is hoped that as well as cargo, there will be passenger services along this route. Initially the railway will enhance the two countries’ relations through container trade along the new corridor. Through the railway the prime ministers expressed the hope that there would be wider regional co-operation due to increased trade. Turkey’s Prime Minister Erdogan said of the deal, “We want to enhance cooperation with Pakistan in areas of aviation‚ railways and maritime.” Turkey will invest in Pakistan’s road and rail infrastructure as well. The agreements come as part of the Economic Co-operation Organisation (ECO) which first mooted the idea of the railway network in 2008. 10 states in the region form this group, including Afghanistan, Azerbaijan and Tajikistan which will all benefit from such economic investment in the long term.

Kazakhstan to launch 5 railway lines in 2014

photo: tcdd.gov.tr

up the implementation of the Corridor, ultimately contributing to making rail a more attractive mode of transport for freight across Europe. The studies will be monitored by the Trans-European Transport Network Executive Agency (TEN-T EA) and are set to be completed by the end of December 2015.

EU supporting future Rail Freight Corridor 1 through co-financed project International: The European Union will co-finance with EUR 1.61 Million from the TEN-T Programme a series of actions to promote the concept of Rail Freight Corridors, which are important sections of pan-European rail infrastructure identified by EU Regulation 913/2010. In particular, the project will promote the implementation of the RotterdamGenoa Corridor 1. The initiative consists of studies to cover the development of the corridor information system. The studies also look at how to improve the quality of operations. Establishing an integrated corridor management system will also be one of the actions for this initiative. Once completed, the studies will speed-

Азербайджан: Власти города Ганджа намерены модернизировать вагонное депо, которое будет использовано для производства пассажирских вагонов. Россия: Согласно менеджменту РЖД, частичная приватизация компании не осуществится ранее 2018 года, говорится в документах Газпромбанка. В мире: Европейская Комиссия одобрила принятие фондов из государственного бюджета компанией PKP Intercity, стоимостью 93 млн. евро, с целью приобретения пассажирских поездов дальнего расстояния.

Passenger coaches to be built in Ganja city Azerbaijan: A factory for the production of modern passenger coaches is planned to be built on a base of wagon depot in Ganja city. Azerbaijani transport minister Ziya Mammadov informed on it in the inauguration ceremony of Ganja railway station’s administrative building. According to him, negotiations regarding the issue is currently being held with the Swiss “Stadler” company. “Project is on the stage of document preparation now. It is envisaged to realize the project after several months” - he said.

Customs Union trade reduces International: According to the operative data, the volume of foreign trade of members of the Customs Union and the Common Economic Space with third countries in January-October 2013 amounted to USD 762 Billion, including export – USD 479.4 Billion and import –

В мире: Евросоюз предоставит софинансирование 1.61 млн. евро, в рамках Программы TEN-T, для осуществления ряда действий, цель которых состоит в поддержке стратегии Международных Железнодорожных Коридоров Грузоперевозки. В мире: На протяжении периода январь-октябрь 2013, стоимость товарооборота в рамках Таможенного Союза, в который входят Россия, Беларусь и Казахстан, достигла 762 млрд. долларов, из которых экспорт составил 479.4 млрд. долларов, а импорт 282 млрд. долларов.

photo: poti.ge

Kazakhstan: Five high-speed railway lines will be launched this year in Kazakhstan, Minister of Transport and Communications Askar Zhumagaliyev said at a press conference in the Central Communications Service. “Last year we launched three high-speed trains. Next we will open 5 more high-speed lines “Astana-Zashchita”, “Almaty-Zashchita” international route “Almaty-Tashkent”, etc,” he said. “In the future, the number of routes will increase. Every year we plan to open 4-5 routes,” the minister added.

USD 282 Billion. Compared with the same period of 2012, the volume of foreign trade has decreased by 1% or USD 7.5 Billion. The exports of goods have decreased by 2.4% or USD 11.9 Billion and imports have increased by 1.6% or USD 4.4 Billion. EIB supports upgrade of Polish railways with EUR 186m loan International: The European Investment Bank (EIB) is lending PLN 800 Million (EUR 186 Million) to Polish railway operator PKP Intercity for the renewal and expansion of its existing fleet by 2015. The Bank has now supported rail investments in Poland for 23 years, promoting the improvement of both infrastructure and rolling stock. Thanks to this EIB loan, PKP Intercity will boost its investment programme which consists in particular of acquisition of 20 Electrical Multiple Unit trains (EMU), modernisation of 218 passenger, purchase of 25 passenger coaches, acquisition of 10 diesel mainline locomotives and modernisation of 20 diesel shunting locomotives. The new and modernised rolling stock will run at faster speeds and thereby reduce journey times. It will also ensure higher levels of passenger safety and comfort as well as easier access, particularly for people with reduced mobility. “The cooperation with the European Investment Bank enables PKP Intercity to implement a broad investment plan, thanks to which by the end of 2015 the company will replace or modernise 70% of its rolling stock. The loan agreement signed today is closing the process of financing investments carried out in the EU’s 2007-2013 financial framework. We are pleased that for the European institutions we are a credible and reliable partner”, said Paweł Hordyński, Member of the Management Board and Chief Financial Officer of PKP Intercity.

Uzbekistan to invest USD 586 mln in railway projects Uzbekistan: The national rail company, Uzbekistan Railways, plans to invest USD 568.6 Million in 2014, resources directed January 2014 | www.railwaypro.com


12 news

Poland: The European Commission has approved that PKP Intercity should receive state budget funds worth EUR 93 Million for the acquisition of long-distance passenger trains. EC concluded that financing the acquisi-

to the modernisation and development of industry. Compared with 2013, next year’s investments will be 1.7 times higher. Uzbekistan Temir Yollari is planning to invest USD 319.5 Million of own resources in industry development. The company will also attract a loan from the Fund for Reconstruction and Development of Uzbekistan (FRDU) at the size of USD 173.7 Million and foreign loans for USD 75.4 Million. Next year, the company will continue its work of construction of new electrified railway Angren-Pap with the length of 122.7 km. Within the project with the cost of USD 1.7 Billion, it is planned to utilize USD 120 Million in 2014. Uzbekistan Railways will also continue the electrification of the Maraqand-Qarshi and Qarshi-Termez railways with total length of 465 km. Apart from infrastructure projects, freight and passengers wagons will also be refurbished. DB tenders contract to install the ETCS International: Deutsche Bahn’s long-distance passenger division, DB Fernverkehr, has issued a call for tenders to fit European Train Control System (ETCS) to its ICE1 fleet of high-speed trains. According to the contract, 80 401-class trains will be equipped, with an option to equip another 38 trains. The trains will have to be approved for operation in time for the start of the December 2017 timetable. ICE1 trains are used both for national, as well as cross-border transportation, providing connections with Austria and Switzerland.

First pilot train launched via BakuTbilisi-Kars by the end of 2014 International: The first pilot train will run via the Baku-Tbilisi-Kars railway at the end of 2014, Azerbaijani Transport Minister Ziya Mammadov declared. “Realization of the project continues dynamically. After the commissioning of the Marmaray project, the BakuTbilisi-Kars will provide direct transport between Europe and Asia,” Mammadov said. Mammadov said the construction of the new international sea trade port is underway in Alat town of Azerbaijan. A large logistic centre will be built in the territory of the sea trade port. Upon completion of the first phase, transportation capability of the facility www.railwaypro.com | January 2014

WTO countries sign agreement to eliminate trade barriers

tion from the state budget is not against EU standards. Polish authorities plan to co-finance the acquisition of high-speed trains as part of a program financed from the Cohesion Fund. The Polish state will grant direct subsidies of EUR 93 Million for this project representing around 22% of the total cost of the acquisition.

International: Member States of World Trade Organisation (WTO) signed an agreement to reduce world trade obstacles by simplifying customs procedures, limiting agriculture subsidies and encouraging trade with less developed economies. “For the first time in our history the WTO has truly delivered,” said WTO Director-General Roberto Azevêdo. The trade facilitation decision includes delivering assistance to developing countries in order to upgrade and rehabilitate infrastructures and train staff. The agreement will boost world economy by USD 400 Billion to USD 1 Trillion by reducing trade costs by 10-15%, increase commercial flows and collect revenues, create a stable business environment and attract foreign investments. The document adopted in Bali (WTO Bali Ministerial Conference was held from 3 to 6 December 2013) is not final, although the substance will not change. It will be checked and corrected to ensure the language is legally correct, aiming for the General Council to adopt it by July 2014.

will be 10 million tonnes of cargo and 50,000 large volume containers per year. At subsequent stages, the capacity can increase to 25 million tonnes of dry cargo and one million tons of containers”, said Mammadov. RZD privatization is hardly possible until 2018 Russia: According to RZD managers, the partial privatization of the company is not possible earlier than 2018, say documents of Gazprombank summing up the results of the “Investor’s Day”. Earlier, the RF Federal Agency for State Property Control (Rosimuschestvo) was going to sell a 5% stake in RZD before the end of 2014, and another 20% before the end of 2016. “In the words of the managers, partial privatization of RZD is possible not earlier than 2018,” say documents of Gazprombank. It is noted that the term of the privatization is not defined, because of the decision about the increase in the company’s authorized capital in 20142017, the necessary realization of the “roadmap” approved by the Government, and the lack of approved long-term tariff and network contract.

Makedonski Zeleznici – Transport seeks consultant for upgrade of locomotives

photo:trainpix.org

EC approves state funds for PKP Intercity

В мире: Итальянские компании заинтересованы участием в строительстве проекта высокоскоростной линии длинной 330 км, связывающей Куала-Лумпур с Сингапуром. Узбекистан: В 2014 году, Узбекские Железные Дороги намерены вложить 568.6 млн. долларов в модернизацию и развитие железнодорожной промышленности. Германия: Отдел Пассажирские перевозки дальнего следования компании Deutsche Bahn, DB Fernverkehr, предпринял тендер по установке системы ETCS в высокоскоростных поездах ICE1.

FYROM Macedonia: Macedonian railway operator Makedonski Zeleznici - Transport is seeking a consultant to a project for the rehabilitation of old electric locomotives and implementation of energy efficiency measures, the European Bank for Reconstruction and Development (EBRD) said. The contract will be financed from the proceeds of a EUR 50 Million EBRD loan, of which EUR 7 Million is aimed for the rehabilitation of part of existing old electric locomotives and EUR 2.2 Million for the implementation of energy efficiency measures in the complex of Skopje, the EBRD said in a statement. Interested firms are invited to submit expressions of interest by March 18. The assignment is expected to start in May and last about three years. В мире: Первый испытательный поезд по линии Баку – Тбилиси – Карс будет запущен в конце 2014 года, согласно министру Транспорта Азербайджана, Зия Мамедов. В мире: Государства-члены Всемирной Торговой Организации заключили договор, цель которого состоит в устранении ограничений в области мировой торговли. В мире: Железнодорожный оператор Республики Македония Makedonski Zeleznici Transport намерен связаться с консультантом по развитию стратегии разделения бизнеса, объявил ЕБРР.


14 news

International: The European Commission is stepping up its support to towns and cities in a new “urban mobility package” adopted on December 17. The Commission will reinforce the exchange of best practice, provide targeted financial support and invest in research and development. In addition, it is encouraging the development of “sustainable urban mobility plans” to stimulate a shift towards cleaner and more sustainable transport in urban areas. A new Eurobarometer survey published also on December 17 shows that European citizens are concerned by the negative impacts of urban mobility and many of them are pessimistic about the prospects for improving mobility in their cities. A large majority consider congestion (76%), air quality (81%) and accidents (73%) to be serious problems. Less than a quarter believe that the situation will improve in the future (24%) and most believe it will stay the same (35%) or get worse (37%). Vice-President Siim Kallas, EU commissioner for mobility and transport, said: “Ad-

dressing the problems of urban mobility is one of the great challenges in transport today. With coordinated action we can be more successful. Local authorities are the key decision makers. They are best placed to take important local decisions, but they should benefit from support at national and EU level.” The Commission will set up in 2014 a European platform for sustainable urban mobility plans. This platform will help cities, planning experts and stakeholders to plan for easier and greener urban mobility. The Civitas 2020 initiative in the framework of Horizon 2020 will allow cities, companies, academia and other partners to develop and test novel approaches for urban mobility.

photo: Club Feroviar

The Commission supports towns and cities in a new “urban mobility package” adopted

Dublin receives European financing for underground line

Germany: Mulheim city buys 10 trams

International: The European Union will co-finance with over EUR 1.4 Million from the TEN-T Programme a study to lay the groundwork to renew the train signalling systems within the Greater Dublin Area. The project will contribute to the realisation of the “Railway/road axis Ireland/United Kingdom/continental Europe” (TEN-T Priority Project 26). The project will support the realisation of a study to design a new signalling system between Connolly Station to Sandymount Station.The DART Underground rail line, which would run from Docklands to Inchicore, would complete the trebling of the Greater Dublin area’s rail service capacity from 33 million passenger journeys annually now to 100 million passenger journeys upon completion.

International: Mulheim Transport Authority (western Germany) has concluded a contract with Bombardier Transportation on the delivery of 10 Flexity Classic trams at a cost of EUR 27 Million. “With this tram we have achieved a high level of standardization which will result in short servicing and maintenance periods. The tram’s operating efficiency over the entire lifecycle is of utmost importance for us and our transport activities”, declared Klaus-Peter Wandelenus, Managing Director, MVG. The trams are 30-m long, have a capacity of 172 passengers and are equipped with the Mitrac propulsion system.

India: new metro projects International: The Indian Government said new metro rail projects were under consideration in several cities and they were waiting for details from the state authorities for the projects. Among the cities where new metro projects could be developed, there are Ahmedabad, Lucknow, Pune, Chandigarh, Punchkula and Mohali. For now, the Minister of Urban Development has not received any proposal for new metro rail projects in West Bengal. The ministry has decided to give priority to cities having population of more than 2 million, adding that the availability of funds are considered before the project is sanctioned. www.railwaypro.com | January 2014

RDIF wants to finance the acquisition of metro trains in Moscow Russia: The Russian Direct Investment Fund (RDIF) plans to help finance the

В мире: Путём принятия “пакета мер городской мобильности”, Европейская Комиссия усиливает свои поддерживающие деятельности для городских администраций. В мире: В середине декабря был официально открыт продолжительный участок линии А, принадлежащей трамвайной сети города КлермонФерран. В мире: Евросоюз предоставит софинансирование 1.4 млн. евро для исследования необходимого для

purchase of wagons for the Moscow metro, also with contributions from foreign investors. The Moscow Government intends to tender three lots for the purchase and servicing of 2,500 to 3,500 metro wagons to be delivered between 2015 and 2020, Dmitriyev said. Foreign investments in Russian infrastructure projects will reach around USD 10 Billion, Dmitriyev said without specifying projects. France: Clermont-Ferrand inaugurates the extension of the tram network international: The extension of line A of the tram in Clermont-Ferrand was inaugurated at the middle of December. The extension is 1.7km long and connects Champratel and Vergnes district. The project amounted to EUR 29.6 Million, plus other EUR 6.2 Million for the acquisition of two additional trams that would be used to increase the frequency of units to 5-8 minutes.

Local rail transport, headliner at the Romanian Railway Galas Romania: On December, Club Feroviar and the Romanian Railway Industry Association (AIF) organised the Railway Galas 2013, to award the railway excellence awards. Of the 6 awards of this year’s edition, 4 were granted to rail public transport companies. The railway excellence award for development of local rail transport was awarded to Iaşi Municipality for important investments in the modernization of tram lines, for the modernization of tramways and for having supported the activities for the establishment of Iaşi Metropolitan Area. The railway excellence award for heritage preservation was awarded to Arad Public Transport Company for its effort of preserving the heritage of the electrified railway Arad-Podgoria. “The line operates on a length of 60 km and was built to ensure the connection between the city and the wine-growing area in its east. This is the first electrified railway on Romania’s current territory”, declared Petre Cuvineanu, Technical Director of

возобновления системы сигнализации подземной линии в Большом Регионе города Дублин. В мире: Правительство Индии объявило, что рассматривает новые проекты метро во многих городах и ждёт данные от государственных органов в связи с этими проектами В мире: Транспортные власти города Мюльхайм (запад Германии) заключили договор по доставки 10 трамваев Flexity Classic с компанией Bombardier Transportation.


news 15

photo: Club Feroviar

Athens Metro expands Greece: The western extension of line 3 of Athens Metro was inaugurated at the middle of December. The 1.4km long extension connects Egaleo to Aghia Marina. The EUR 250 Million project has been financed by the Greek Government and by the European Investment Bank. It is estimated that the extension will increase by 30,000 the number of passengers who use metro line 3 every day. Currently, another extension of 7.6 km be-

Association for the preservation of narrow gauge lines in Romania for the past years’ effort of reconstructing and re-launching activity on various narrow-gauge railways in Romania. “This year, we carried 5,000 people in Moldoviţa. It is an activity I do with pleasure and passion, but over the past four years I’ve struggle to continue this project. This is the first time in four Россия: Российский Фонд Прямых Инвестиций планирует поддерживать приобретение вагонов для Московского метро. Греция: В середине декабря состоялось официальное открытие западного продолжительного участка 3-ей линии метро в Афинах. Румыния: 5 декабря Club Fero-

tween Aghia Marina and Dimotiko Theatro is in construction.

photo: wikipedia

CTP Arad. The railway excellence award for industrial activity was awarded to Swietelsky for its success in reconstructing the tram infrastructure and conventional railways. One of the latest projects successfully completed is the reconstruction of the tram line in Cluj Napoca where the company participated in consortium with other local and international constructors. The railway excellence award for business of the year was awarded to Oradea Transport Local for successfully identifying alternative financing sources in order to support the rolling stock maintenance activity and building a modern mechatronics laboratory. The railway excellence award for preserving tradition was awarded to the

years I feel our activity is acknowledged”, declared Georg Hocevar, the president of the association. The railway excellence award for lifetime achievement was awarded to Mr. Ion Stafie for its activity dedicated to railways and introducing the best principles and technologies in the construction and maintenance of railway infrastructure. viar и Ассоциация Железнодорожной промышленности Румынии (AIF) организовали Галлу Железнодорожной отрасли 2013, предоставляя награды совершенства в железнодорожной отрасли. В этом году, из 6 наград, 4 были присуждены компаниям, оперирующим в области рельсового общественного транспорта.

January 2014 | www.railwaypro.com


16 lex

Fourth Railway Package: member states can choose between holding and vertical separation

[ by Elena Ilie ]

The main objective of the Fourth Railway Package consists in improving the quality and efficiency of railway transport services by removing the still-existing barriers, thus encouraging the performance of the railway sector and consequently, competitiveness and economic growth. These barriers can be grouped into four categories, technical, administrative, institutional and legislative barriers.

T

he four above-mentioned obstacles are approached through the initiatives included in the legislative proposals of the Fourth Railway Package. Thus, the legislative proposals refer to the actual method of institutional organisation of the railway market, to the approach of legislative barriers regarding the access to the domestic passenger transport market, as well as to the initiatives that refer to the role of the European Railway Agency (ERA), interoperability and safety. The current situation proves to be difficult for the railway sector and for the competitiveness of the railways as transport mode. Authorisation and certification procedures are expensive and time-consuming. The entire process of authorisation of vehicles in Europe can last more than two years and can thus block assets worth EUR 1.2 Billion which wait to be authorised and cannot be put in service. Authorisation and certification procedures have to be simplified as fast as possible and the European Railway Agency (ERA) has to gradually become a one-stop shop for authorisation and certification. In order to meet this objective, an evolution plan has to exist for the increase

Source: www.europarl.europa.eu

of ERA’s competences and clear responsibilities for a single certificate for safety and authorisation of vehicles. The three basic pillars of the Fourth Railway Package clearly stipulate the establishment of consequent authorisation procedures for interoperability and railway safety (known as the Technical Pillar), the liberalisation of the domestic passenger market and the establishment of better structures and authorities for infrastructure managers. The lack of standardisation, the existence of a highly specialized rolling stock fleet, the resulted investment costs, as well as the costs of entering and leaving the railway transport market, are major problems for the single transport market. Authorisation procedures are long and difficult and safety certification fees are expensive. On 17 December, the Transport Committee of the European Parliament approved the package of legislative measures aimed to increase the attractiveness of railway transport by stimulating competitiveness and setting up joint plans for the certification of railway products. However, the European

railway network remains fragmented along national lines and largely dominated by integrated rail companies that operate both the network and the trains running on it. This can make it difficult for new operators to enter the market. As discussed and debated on during the past year – Railway Pro published information about these debates – the six legislative


17

Source: Club Feroviar

lex

measures which compose the Fourth Railway Package aim to unravel once and for all the ravelled threads of the European railway system, focusing mainly on a greater separation between the railway management activity and the railway transport activity. Moreover, all operators will have access to the national railway infrastructure. These proposals are currently debated by the European Parliament. Both the Parliament and the European Union Member States will have to approve these new rules so that they could become effective. The vote of the TRAN Committee assigns the negotiation team of the European Parliament to initiate negotiations with the European Council and member states. The results of the TRAN Committee’s vote are good for the European railway sector because the vote gives green light to improving national railway services by opening public service obligations to competition. Operators are thus granted fair access to railway infrastructure and safety certificates will be harmonised so as to improve interoperability and buy new and performing rolling stock. The new approved regulations guarantee that these public service obligations provide the best quality-price report by reducing their duration and by guaranteeing that they would not be assigned directly and without justification. The rules thus approved at the middle of December will facilitate fair access to the market for new entrants. Also, the much-expected vote simplifies new rolling stock safety certification procedures and gradually transfers certification responsibilities to the European Railway Agency. A transition period of five years was established for the transfer of certification responsibilities to the Agency.

Clear conditions for the direct attribution of public service contracts Member states may continue to award public service contracts for rail passenger transport directly on certain conditions, but the awarding authority would be required to justify how direct award can meet efficiency criteria such as punctuality of services, cost-efficiency, frequency of train operations, and customer satisfaction. If these requirements are not met, the regulatory body could oblige the competent authority to award the contract through competitive tendering. A deadline of 2022 would be set to allow competent authorities to phase in competi-

tive tendering. Also, to ensure that new entrants and smaller operators are able to fulfil public service contracts, a minimum number of public service contracts to be awarded in a member state should be set, based on national market volume of rail passenger transport under public service contracts. Rail service provision would be subject to open access, but for routes covered by public service contracts, access may be limited, if a regulatory body decides, based on an economic analysis, that this would adversely affect the viability of the public service. In cases where member states opt for competitive tendering for public service contracts, member states could block open access for operators.

Source: ec.europa.eu

January 2014 | www.railwaypro.com


18 lex Consolidated tasks for ERA and cutting red tape

The draft text sets out conditions to be met, including strict requirements for financial transparency and separation in the case of integrated structures. If these conditions are not met, the Commission may start infringement proceedings and other member states may restrict access to their markets for the railway operator considered to be in breach of the rules.

Financial transparency for railway infrastructure access

The Community of European Railway and Infrastructure Companies (CER), one of the strongest voices that militate for fair railway transport, believes that some aspects of the vote held at the European Parliament Transport and Tourism (TRAN) Committee clearly represent improvements to the European Commission’s proposal, while others put in serious danger the efficiency of the railway business in Europe. CER is especially disappointed by the vote results with respect to the new separation requirements. “There is strong evidence that no model guarantees market opening per se. CER will therefore continue to plead for more flexible arrangements in the choice of governance models aligned with the powers of regulatory bodies. Similarly, the adopted provisions for network of infrastructure managers and integrated ticketing are too rigid and therefore we look forward to a further constructive dialogue with all relevant parties to find the right compromise”, believes the railway organisation. “I do wish to express my appreciation to the MEPs for their work. However I have to state that this vote is a mixed bag for Europe’s railways: while a good job has been done on a number of issues, I consider that the proposal of the European Commission on the issue of governance has not been sufficiently amended. Governance models have to respect various conditions across the EU Member States: the right of choice is a precondition for a necessary search for greater economic efficiency and better use of public money for Europe’s railway networks. These considerations were sadly mostly absent from the recent discussions”, CER Executive Director Libor Lochman emphasised.

Member states may choose between an integrated structure with a single holding company for the rail operator and infrastructure manager or a separation of infrastructure managers and operators, in order to avoid conflicts of interest and ensure fair access to infrastructure for all operators.

Photo: www.publicdomainpictures.net - Katrina Joyner

To cut red tape and costs related to vehicle authorizations, after a four-year transition period the European Railway Agency would be responsible for authorizing vehicles to be placed on the market. A clear distribution of tasks between the agency and national authorities during the transition period would be established. The Agency could delegate specific tasks and responsibilities to national safety authorities on the basis of contractual agreements, but would have to take the final decision in all authorisation procedures. To reduce the safety certification burden for rail companies, the European Railway Agency would be responsible for issuing a single safety certificate to all railway op-

erators with the exception for “isolated networks” (Baltic States) after a four-year transition period. During this period it would gradually take over from national safety authorities the responsibility for issuing safety certificates. A division of responsibilities and tasks for European Railway Agency and national safety authorities would also be put in place.

www.railwaypro.com | January 2014

At the same time the vote of the TRAN Committee has also been appreciated by the European Rail Industry Association (UNIFE), an association which, as the name suggests it, has many times pleaded for the development of the European railway industry and for its competitiveness in report to that of foreign markets. The Technical Pillar is of great importance for the entire rail sector as it will reform the way authorisation is done in Europe. It will lead to quicker, more efficient and less costly authorisation procedures, providing railway operators and European citizens with new vehicles in a quicker and more predictable manner.


lex

19

Photo: www.publicdomainpictures.net - Katrina Joyner

the Technical Pillar. It will enhance the competitiveness of rail as a transport mode and that of the European rail industry visà-vis its global competitors”, stated Philippe Citroën, Director General of UNIFE.

Moving towards an internal market for rail equipment, the Technical Pillar represents a cornerstone of the Single European Railway Area. It will help create a strong home market which the European rail industry needs to maintain its world leadership.

UNIFE hopes that the European institutions start trialogue discussions and adopt the Technical Pillar during this mandate of the Parliament so the European rail sector can benefit from the Technical Pillar as soon as possible. “The rail sector urgently needs

4-ый Железнодорожный Пакет: Государствачлены смогут выбрать холдинговую структуру или вертикальное разделение Соответственно решению в связи с I4-ым Железнодорожным Пакетом, государства-члены смогут выбрать интегрированную структуру, с единой компанией в виде холдинга – соответствующей железнодорожному оператору и оператору железнодорожной инфраструктуры, или вертикальное разделение названных двух юридических лиц, для избегания столкновения интересов и для предоставления равноправного доступа к железнодорожной инфраструктуре всем операторам.

January 2014 | www.railwaypro.com


20 R&D

Horizon 2020: EUR 15 Billion for the first two years [ by Pamela Luică ]

Almost a year after the adoption of the “Horizon 2020” Programme by the European Parliament (November), the European Commission has for the first time submitted project demands within the research and innovation programme for which a budget of EUR 80 Billion has been set for the next multiannual programming period. In 2014-2015, the programme budget has been established at EUR 15 Billion.

E

C has announced that financing for the first two years of the programme will be worth EUR 15 Billion, an amount dedicated to European economic stimulation based on knowledge and which approaches aspects that impact on the citizens’ life. Financing includes 12 areas focusing on the actions in 2014-2015, including sectors such as customized medical assistance, digital security and intelligent urban projects. “It is time for action. Financing within Horizon 2020 is essential for the future of research and innovation in Europe and it will trigger growth, jobs and improve life quality. We have created the Horizon 2020 Programme to obtain results and we have eliminated bureaucratic barriers to facilitate participation in the programme. There-

fore, I call on the researchers, the universities, the undertakings, including SMEs, as well as other entities to subscribe to the programme”, declared MáireGeogheganQuinn, the European Commissioner for Research, Innovation and Science. The majority of 2014 budget demands are opened to the submission of projects and other demands will be launched during the year. Only demands of the 2014 budget amount to a total of EUR 7.8 Billion, the financing being especially oriented to the three fundamental pillars of the Horizon 2020 Programme. EUR 3 Billion is available for the excellent science pillar, EUR 1.8 Billion for the industrial leadership position (including areas such as IT, nanotechnologies, advanced manufacturing systems, robotics, biotechnologies

and space), and a fund of EUR 2.8 Billion is dedicated to societal challenges for the projects of the seven societal challenges within the Horizon 2020 Programme. Within Horizon 2020, there will be separate demands published for specific partnerships with industrial sector and with member states. In 2014, the total budget allocated to research, including administrative elements and costs, will be of EUR 9.3 Billion and will increase to up to EUR 9.9 Billion in 2015. The final amount for 2015 is subject to the decision regarding the annual budget for 2015. Those who will submit projects for funds will benefit from a simpler structure of the programme and financing, a sole set of rules and a reduction of the task related to financial controls and audits.

Investment in R&D is part of the solution to exit from the economic crises Investment in R&D is part of the solution to exit from the economic crises

Source: DG Research and Innovation

www.railwaypro.com | January 2014


R&D 21 Figure 1: Europe’s technological performanceperformance compared with North with America Asia and (3) Asia Europe’s technological compared Northand America

Source: The design and societal impact of Horizon 2020, European Commission, DG Research and Innovation

Source: Directorate-General for Research and Innovation. Data: -#!"ČŠN?RCLRČŠB?R?@?QCČŠ?LBČŠQNCAGČ?AČŠQRSBGCQČŠ4).

Public transport is encouraged

first demands will finance projects aimed for collaboration actions. In order to acceat developing new technologies for vehi- lerate project implementation, DG MOVE “Intelligent andthan communitiesâ€?, one cles with lowtoemissions,hope reducing willinnovation develop policies and problems will invests the and renewcities rather discard; labourers will need that congesscience and can tackle ofbe theretrained 12 Horizon areas,will financing tionprotection and improving intelligent mobility. funds of Horizon 2020clean to generate and2020 citizens need social such as climate change, clean energy, trans-synerresearch will be aimed at identifying soluWith investments worth EUR 6.3 Billion gies with other national, international and $PGCLBQČŠMDČŠ#SPMNCČŠCRČŠ?J

ČŠ ČŠ1NCAGČ?AČŠPCQC?PAFČŠMLČŠ port, an ageing they lookincluding to Europe’s tions with high potential in sectors such as in Horizon 2020 (for the timeframe 2014-population; regional and programme, the Con1 2  4 energy digital services “Intelligent, necting Europe theseefficient, aspectsdelivery will beofneeded as well. 2020), the programmeresearch and ecoinnovation system toFacility. come up with new and information for citizens or intelligent friendly and integrated transportâ€? is the The initiation of Horizon 2020 Prosources jobs and higher of living. mobility services. The 2014 budget for this largest investment project in the of transport grammestandards (in transport) means the launch   ȧwill5FMȧGQȧ?ČŽCARCBȧ@WȧRFCQCȧNPM@JCKQ sector be of EUR 92 Million. research and innovation area. The objec- of CIVITAS 2020: innovation for energy Another area, “Mobility for growthâ€?, tive is to transform the European efficiency competitiveness in urban Europe’stransport Enterprises requireand a strong science and will have a budget of EUR 375 Million for system into a competitive and efficient sys- mobility and transport. innovation system ifResearch they are compete,actions expand 2FCČŠ Transportation NPM@JCKQČŠ GBCLRGČ?CBČŠ ?@MTCČŠ ?ČŽCARČŠ ?JJČŠ EPMSNQČŠ GLČŠ 2014. is responsible for tem. andtoinnovation will imand move into the emerging markets of the future. 63% of oilinconsumption and 29% this investment programme, prove mobility in urban areas. Also, new society diverse ways, and of if total nothing Through is done, the carbon dioxide emissions and congestion will help concepts willcoordination be developed and Theresults problem of poormobility knowledge triangle negative impacts will continue to grow. DG MOVE estimates that reduces the attractiveness of cities for both reach the objective of reducing transport tested, as well as transport organisation, RF?RČŠ RFCWČŠ BGČ‘ASJRGCQČŠ GLČŠ JGLIGLEČŠ RM ČŠ ?LBČŠ citizens and the business environment and emissions by 60% by KC?LQČŠ 2050. Within the F?TCČŠ logistics and planning that will help reduce has total costsAGRGXCLQ of EUR 80 Billion per year European Commission, DG MOVEbasic is oneresearch air andand noise pollution, as awell energy exploiting, in tapping into poolasof #SPMNC?Lȧ ?PCČŠ ?ČŽCARCBČŠ ?APMQQČŠ ?ČŠ P?LECČŠ MDČŠ inissues: the EU.they require and expect high-quality of the general directorates that implement transportand andnotanon-mototrained researchers.efficiency. EuropeanPublic companies, healthcare Research and innovation for equipment the Horizon 2020 programme and will rised transport, as well as energy-efficient @JWČŠ1+#Q ČŠ?JQMČŠD?ACČŠNPM@JCKQČŠGLČŠ?AACQQGLEČŠRFCČŠČ?L?LACČŠ and solutions to fatal andwill debilitating they elements and vehicle systems increase illnesses; dedicate financing worth EUR 1.9 Billion transport alternatives have to be widely the share of environmentally friendly trans- in the programming period developed to become real alternatives to they2014-2020. need for innovation. port, thus reducing fossil fuel consumption Reflecting the need of strategic implica- motorised individual vehicles. and improving air quality. The main objec- tion in these investments, this amount will  ČŠGČŠ$MPČŠC?AFČŠRCAFLMJMEWČŠČ?CJB ČŠRFCČŠ6 ?VGQČŠMDČŠRFCČŠEP?NFČŠQFMUQČŠRFCČŠEJM@?JČŠ EU infrastructures, Universities and public research centres must tives of Horizon 2020ininterms transport include be dedicated to transport market share of Europe of EPO/PCT patents compared with the the implementation of innovating systems andurban mobility 2020), market share of Asia (expressed as a logarithm), the Y-axis shows (CIVITAS perform in intelan ever more global environment by the marketmanagement share of Europe and compared with the market sharelogistics of North systems and applications regarding information ligent ГОриСОнт 2020:and 15 ПНрд. raising the quality of their research attractAmerica advanced (expressed as a logarithm); the broad technology systems, travel services,(ii)efficient and willdomains cover research in developing and оврО на порвыо два гОда are shown in bold. logistics, as well as construction and main- integrating technologies,ing as well demonthe asbest scientists worldwide. But competition 4. Data for the broad technology domains were taken from a study by tenance of technologies. For example, the strative and innovating activates especially for funding is still very nationally based, as are the Research Division INCENTIM (MSI, Faculty of Business & Economics, Đ&#x;Очти ĐźĐľŃ Ń?ц Ń ĐżŃƒŃ Ń‚Ń? принŃ?тиŃ? KU Leuven), and UniversitĂ Commerciale Luigi Bocconi, KITeS; data for прОграППы â€œĐ“ĐžŃ€Đ¸ĐˇĐžĐ˝Ń‚ 2020â€? Đ•Đ˛Ń€ĐžĐżĐľĐšŃ ĐşĐ¸Đź the research projects themselves and — when enabling technologies taken from– Funding the ‘European in Work Programme 2014 forCompetitiveness calls and financial instruments Đ&#x;арНаПонтОП (нОŃ?ĐąŃ€ŃŒ), Đ•Đ˛Ń€ĐžĐżĐľĐšŃ ĐşĐ°Ń? )CWČŠ #L?@JGLEČŠ 2CAFLMJMEGCQČŠ NPMHCAR ČŠ GPEGRČŠ QAFFMČŽ ČŠ "GPIČŠ !P?QQ ČŠ )?RPGLČŠ scale is a factor for success — they face limĐšĐžĐźĐ¸Ń Ń Đ¸Ń? впорвыо ĐżŃ€ĐľĐ´Ń Ń‚Đ°Đ˛Đ¸ĐťĐ° СаŃ?вки Cremers, Christoph Grimpe, Christian Rammer (ZEW, Mannheim), Felix Excellent Science Pillar:~ â‚Ź 3 billion – total calls: 18 its as to what they can achieveв раПках in terms of breakĐ´ĐťŃ? прОоктОв прОграППы Brandes, Fernando Diaz-Lopez, Rosalinde Industrial Leadership Pillar:~ Klein â‚Ź 1.8Woolthuis, billion Michael – totalMayer, calls: 15 (+Financial instruĐ¸Ń Ń ĐťĐľĐ´ĐžĐ˛Đ°Đ˝Đ¸Ń? и иннОвации, Đ´ĐťŃ? кОтОрых !?PJMQČŠ+MLR?JTMČŠ2,- ČŠ"CJČ“ ČŠČŠ+?WČŠ ČŠ1RSBWČŠAMKKGQQGMLCBČŠDMPČŠRFCČŠ throughs. They have mixed success in forging links ments-for 2 calls) на прОтŃ?Монии Ń ĐťĐľĐ´ŃƒŃŽŃ‰ĐľĐš ПнОгОНотноК European Commission, Directorate-General for Enterprise and Industry; all Societal Challenges Pillar:~ â‚Ź 2.8 billion – total calls: 24 of which UGRFČŠ GLLMT?RGML ČŠ ?LBČŠ APC?RGLEČŠ QNGL MČŽČŠ AMKN?LGCQ ČŠ other data from the OECD Patent Database. прОграППы Ń„Đ¸Đ˝Đ°Đ˝Ń ĐžĐ˛ĐžĐłĐž раСвитиŃ? йыН • Secure, clean and efficient energy – 4 calls: â‚Ź 600 million ŃƒŃ Ń‚Đ°Đ˝ĐžĐ˛ĐťĐľĐ˝ йюдМот 80 ПНрд. оврО. Đ?Đ° • Smart, green and integrated transport – 3 calls: â‚Ź 540 million пориОд 2014-2015, в раПках даннОК • Climate action, environment, resource efficiency and raw materials – прОграППы йыН ŃƒŃ Ń‚Đ°Đ˝ĐžĐ˛ĐťĐľĐ˝ йюдМот 15 3calls: â‚Ź 300 million ПНрд. оврО. Source: europa.eu

January 2014 | www.railwaypro.com


22 R&D

Good news for research and innovation in the railway industry [ by Elena Ilie ]

The European Commission adopted the “SHIFT2RAIL” initiative, a new public-private partnership that gives green light to an investment of just under EUR 1 Billion in research and innovation to get more passengers and freight onto European railways. Although rail is among the most efficient and climate-friendly forms of transport, currently it only carries only about 10% of European cargo and 6% of passengers each year. Investments in research and innovation will definitely increase railway transport share as related to the other transport modes.

T

he project will involve virtually all ship which will manage a 7-year work proof Europe’s rail industry suppli- gramme of targeted research and innovaers, including innovative small and tion to support the development of better medium enterprises, to accelerate the de- rail services in Europe. It will develop and velopment of new technologies and bring accelerate the bringing to market of technothem to the market. It will also involve rail logical breakthroughs. operators and infrastructure managers in With “SHIFT2RAIL”, the European Comorder to ensure that research activities are mission is more than tripling its financing aligned to market needs. To date, rail equip- for rail research and innovation to EUR 450 ment manufacturers Alstom, Ansaldo STS, Million (2014-2020) compared to EUR Bombardier, Siemens, Thales and CAF, as 155 Million for the previous period. This well as infrastructure managers Trafikverket will be matched by EUR 470 Million from and Network Rail, have already confirmed the rail industry. The net gains of this long that they will each make a contribution of at term collaborative approach will give a very least EUR 30 Million to the SHIFT2RAIL substantial boost to innovation in the rail initiative which brings the project a total of industry, compared to previous co-funding EUR 270 Million apart from the financing of individual projects. of the European Commission. The SHIFT2RAIL initiative aims to deliver: a reduction, by up to 50%, in the lifeMaking Funds Available for Rail Transport Launched by the European Rail Industry cycle cost of railway transport example Making Funds Available for Rail (for Transport TEN-TAssociation, and Connecting Europe Facility (CEF) the “SHIFT2RAIL” initiative of building, Europe operating, maintaining TEN-T costs and Connecting Facility (CEF) is an ambitious public-private partner- and renewing infrastructure and rolling

ion for 3,2

the sive (an for the by

 UNIFE Actions  Ensure that the maximum amount of these funds are available for rail  Advocating the completion of the TEN-T rail corridors across Europe, such as the Pan-European Corridor IV and IX which cross through Romania

Source: UNIFE

www.railwaypro.com | January 2014

stock), an overall increase in capacity of up to 100% and an overall increase in reliability of up to 50% in the different rail market segments. The research and innovation will focus on five key areas. First of all, in order to improve the quality of services, it will focus on developing a new generation of high capacity trains which are cost-efficient and reliable. Secondly, to increase capacity and get more trains running on the same lines – it will develop better intelligent traffic management and control systems. The third research area will seek to provide reliable, high quality, infrastructure, including reducing track noise, cutting costs and developing intelligent maintenance. Also, to provide integrated ticketing and journey planners – it will develop innovative IT solutions and services. To allow rail to compete effectively in more markets, the fifth research area will develop better logistics and inter-modal freight solutions, so rail can connect better with other forms of transport. “If we want to get more passengers and freight on Europe’s railways, then rail needs to provide better services and offer an attractive choice to more customers. For that to happen, rail needs to innovate. This public private partnership is a major breakthrough”, believes Siim Kallas, the European Commission Vice President Siim Kallas responsible for Transport. In turn, the Commissioner for Research Máire Geoghegan-Quinn said that “this investment will allow for a major industrial effort, combining public and private funding from throughout the whole rail sector, to develop strategic technologies and solutions that will help to strengthen the competitiveness of European businesses and retain Europe’s leadership in the global rail market.”


Source: Shift2Rail.org

R&D 23

The studies elaborated in the past years have shown that Research & Innovation in the rail sector is currently carried out in a fragmented manner and therefore, coordination is necessary to create the Single European Railway Area, not only in infrastructure management or freight and passenger transport operation, but also in the railway industry which delivers equipment and rolling stock. UNIFE has launched the Rail Joint Technology Initiative SHIFT2RAIL within the Horizon 2020 Programme, the first such initiative in the railway industry in order to increase research and innovation for more competitiveness in the European railway sector. The Rail Joint Technology Initiative SHIFT2RAIL refers to the whole European railway sector, especially to wide range innovation and competitiveness and to the consolidation of the European industry in order to face international competition. SHIFT2RAIL will develop and implement a new way of addressing the challenges for innovation in railway technology. Two key objectives have been identified by the initiative, the first one is increasing capacity so as to enable rail to absorb a greater share of traffic growth and the second is to attract business and improve the efficiency of the rail transportation mode as a whole. The initiative will contribute to an increase in the overall efficiency of the rail transport system, satisfy transport user’s needs, and at the same time help foster the competitiveness of the European manufac-

turing industry, through the implementation of technological innovation. “After more than 10 years of already close Research & Development cooperation within EU projects, the European rail supply industry in concert with a growing number of operators and infrastructure managers are now pushing for a real step change in rail Research and Development. As well as coping with growing demand, this initiative would result in increased user satisfaction with Europe’s railways, whilst at the same time reducing their cost and augmenting the competitiveness of the European rail supply industry. The latest developments on SHIFT²RAIL include the extension of the SHIFT²RAIL promoters’ circle, the finalisation of the technical preparatory work by the signatories as well as the growing interest and support for the initiative throughout Europe and within the European Institutions”, declared Philippe Citroën, Director General of the Association of European Rail Industry (UNIFE) in the July 2013 issue of Railway PRO. SHIFT²RAIL will not only maintain and possibly improve the competitiveness of EU industry against growing competition from Asia. The initiative, supported by railway product suppliers, transport operators and railway institutions will overcome some of the present deficiencies of the EU rail market, namely: fragmentation of production, low collaboration and partnership among the rail industry, different operating procedures among railway undertakings, low standardization, and low efficiency.

“SHIFT2RAIL will bring together on a large scale for the first time in our history, industry, railway undertakings, urban operators, infrastructure managers, SMEs and research centres/academia from all over the European Union to solve our collective transport challenges”, said Philippe Citroën at the approval of the Technological Initiative.

Хорошие новости в области исследования и инновации в железнодорожной промышленности Инициатива SHIFT2RAIL будет способствовать общему развитию железнодорожной системы, удовлетворит потребности пользователей в области транспортных услуг, а также, повысит уровень конкурентоспособности европейской промышленности, путём использования инновационной технологии. Технологическая Инициатива SHIFT2RAIL, пущена в ход Ассоциацией Европейской Железнодорожной Промышленности (UNIFE), является масштабным партнёрством между общественным и частным сектором, управляющим специфической программой исследования и инновации, со сроком действия 7 лет. January 2014 | www.railwaypro.com


24 Market development

Railways have to become the backbone of multimodal transport [ by Pamela Luică ]

International trade has exceeded the growth of global GDP and the development of trade across borders is supported by the optimisation of transport and IT segment, cost reduction and transparency improvement. For Europe, developing markets are moving to the east and south, thus also increasing the distances of freight transport. 

The evolution of the eastern market is characterised by an intense industrial activity in Russia and in western China, the increase of domestic consumption which made the emergence of new markets in Russia, China and Central Asia possible, foreign direct investments have increased their share especially in the Wider Black Sea Area (WBSA) and the exploitation of natural resources is in constant growth. In this context, these elements are the main factors for railway development”, declared Ivan Petrov, Chairman - CLECAT Rail Transport Institute / Vice President The Bulgarian National Forwarders Association (NSBS), during the Railway Days – Railway Investment Summit in Wider Black Sea Area. The freight volume between Europe and Asia carried by sea amounts to 15 million TEUs and estimates show an increase which proves the high potential of multimodal transport development. “There are at least two premises believed to be important for the development of the business environment in this segment: the existence and development of traffic flows between Europe and the Moscow Region, but also on the corridors from Russia to Central Asia – China and Kazakhstan. Competitiveness has also a say: railway transport is the most competitive because, for customers, time, price and safety are key elements when selecting a long-distance transport mode: there is significant interest in the Eurasian railway market, but we also need products that would ensure multimodal

RailwaySolution Transittime:3weeks Highfrequencyofshipments Fewercontainerspershipment Highlevelofflexibility Terminalsattheborderstations 

traffic and partners to get involved”, explained Petrov. Compared to maritime transport, railway transport delivers the most efficient travel time solution – the transit time between the two continents is 3 weeks, compared to 4-6 weeks by sea, but also the best frequency and transport reliability solutions. However, railway transport means higher costs. “Railway transport has 20-30% higher costs than maritime transport, but freight transit time is by 30 days faster than maritime transport. Railway transport competitiveness can be significantly improved if the costs of maritime transport increase, thus inevitably eliminating the gap between the two modes and also a massive additional capacity of maritime freight volumes will be confronted with new challenges imposed by direct competitiveness”, explained Petrov. On the long term, the trends of maritime and railway transport prices will also be almost the same due to high energy costs and additional costs. Also, trends will focus on reducing the railway transport transit time due to infrastructure, technological development and consolidation of cooperation

ModalsplitEUFreightTransport,%oftkm Modal split EU Freight Transport, % of tkm

Source: Ivan Petrov, Chairman, CLECAT Rail Institute

Airandsea:onlydomesticandintraͲEU27

www.railwaypro.com | January 2014 Source:EUtransportinFigures,2012,p.36

DeepSeaVessel Transittime:4Ͳ6weeks Slow/superslowsteaming Unstablerates   between market players and institutions. For an efficient and seamless transport that would provide solutions to freight mobility demands and requirements, “interoperability is the answer to all problems. Thus, it is necessary to continue developing ports and railway connections in hinterland allowing transport volumes in WBSA to grow. Also, all European corridors providing connection from Europe to Asia and Middle East have to be upgraded. However, a real interoperability between continents and transport modes is also necessary. Multimodality has to place railway transport in the core of activities to encourage sustainable development and to focus its activity on the other transport modes, besides railway transport”, added Petrov.

Железнодорожный сектор должен быть основой мультимодального транспорта Для эффективного и непрерывного транспорта, который способен удовлетворить требования и необходимости мобильности грузов, интероперабельность это решение задач. Необходимо иметь в виду непрерывное развитие портов и железнодорожных связей внутренних районов, которое позволит повысить объём перевозок в Широком Черноморском Регионе. Также, необходимо предоставить реальную интероперабельность между континентами и различными видами транспорта. Для долгосрочного развития, железнодорожный сектор должен стать главным представителем мультимодального транспорта, который должен постоянно развиваться, остальные виды транспорта, планируя свою деятельность в соответствии с железнодорожным сектором.


www.railforce.ro

Rail passenger transport Rail freight transport Shunting services Contact: 2 Oltului St. 500283 - Brasov Romania Tel: +40 268 310 697 Fax: +40 268 310 859

SPIACT BRAĹžOV


26 Market development

E-rail freight, method of increasing the attractiveness of freight transport [ by Elena Ilie ]

In general, railway operators are little oriented to the needs and growing expectations of their customers that mainly refer to reliability and price levels, available capacities, information management, transport time and flexibility. Consequently, railway freight transport is currently confronted with various difficulties which partially explain its incapacity of increasing the market share.

T

he quality of services is still the weak point of rail freight transport and its customers require a higher commitment and transparency in the area. The European Commission believes that the services supplied along the European railway network oriented to freight transport have to have an optimal level of quality that, once improved, should have a positive effect for the railway freight transport sector. The quality of freight-dedicated corridors could become a benchmark for this sector in Europe. One of the methods for increasing the attractiveness on freight transport by railway is to reduce the volume of necessary “paper”

documents and to increase electronic support. The manual system for information provision generates errors, slows down the ticket booking process and increases costs. Last year, DG MOVE published a questionnaire aimed at assessing the progress on the e-Freight project. Through this project, the European Commission plans to improve Europe’s economic competitiveness paying special attention to the transport sector. The details of the analysis launched by DG MOVE are not yet public, but a complete report will most probably be launched soon. The e-Freight integrated programme (European e-Freight Integrated capabilities for co-modal transport Project – EFIP) began

Rail transport of goods by country in 2012 - billion/tkm

in 2010 and ends in 2014. 30 partners of 14 EU member states, plus Norway, are involved in a platform-programme aimed at proving and validating the capabilities and innovations brought by the computerization of elements related to the bureaucracy of freight transport. The computerisation of freight transport can only add value to the process from economic grounds. The electronic applications for simplifying railway freight transport procedures, e-freight, are considered key initiatives in the establishment of the Single European Railway Area in the White Paper on Transport of 2011. The computerization of railway freight transport is an ambitious and complex process of the European Union. Despite its acknowledged advantages, especially for the heavy and large capacity cargo, railway transport is burdened by reasons related to both technical and legal aspects. We are talking about those barriers that need to be overcome in order to create an interoperable network across Europe, but also on the corridors that link Europe to Asia.

E-rail freight – возможность повысить привлекательность грузовых перевозок

Source: epp.eurostat.ec.europa.eu

www.railwaypro.com | January 2014

В общем, железнодорожные операторы уделяют слишком мало внимания потребностям и перспективам с точки зрения их клиентуры, в то время как эти потребности становятся всё более строгими, направлены в основном на надёжность и цены транспортировки, объём допустимой нагрузки, обработку данных, время транспортировки и подвижность.


ELECTROPUTERE VFU SA

member of GRAMPET GROUP Calea Bucureşti, 80, C9, etaj 3, Craiova 200440, România Tel.: +40740900549 Tel./fax: +40251/439053 E-mail: office@electroputerevfu.ro

Tradition and Innovation

ISO 9001:2008, ISO 14001:2004, OHSAS 18001:2007 Autorizatie de Furnizor Feroviar AFER seria AF nr. 5708


28 Policies & Strategies

GEFCO: “Railway could win a share by building competitive and reliable products” [ by Pamela Luică ]

The takeover of GEFCO’s shares by Russian Railways (RZD) is a development opportunity for the company’s activity in the Eurasian area. This is due to the fact that RZD holds a top position in the transport market, ensuring a traffic flow of 1.3 Billion tonnes of freight per year and 1.3 Billion passengers per year. At the end of last year, the French group PSA Peugeot Citroën and RZD signed the contract on the sale of 75% in the capital of GEFCO’s logistics division for EUR 800 Million. The transaction allows the two companies to improve the attractiveness of freight transit flows on the Europe-Asia axis and to supply competitive transport services. For GEFCO, the transaction will consolidate its position in the international market by developing new future directions. Mr. Christophe De KORVER, General Manager GEFCO Romania, has told us more in the interview below about competitiveness in the railway and logistics transport segment, the business development potential in the multimodal transport segment, on the two continents, and about the challenges the company is facing for providing attractive services. RailwayPRO: What does it mean for GEFCO the takeover of the majority package of shares of the logistics division by RZD? Christophe De Korver: Now GEFCO has a very strong partner to support the group in its development. The main assets beneficial for GEFCO are the access to a network covering Eurasia in its entirety and important growth opportunities in Russia and the region surrounding Russia.

T

he eastern market has a huge potential for the development of business in the multimodal transport segment with the possibility to develop flows between Europe and the Moscow Region, as well as on the corridors from Russia to Central AsiaChina, Kazakhstan, the competitiveness of railway transport being ensured by prices and transit time. These aspects have made the interest in the Eurasian railway market grow, as well as the need for partners and products ensuring multimodality. Regarding GEFCO’s solutions for extending and developing the transport activity, a policy of strategic corridors is considered for the company (France-Russia, France-Spain, France-Slovakia, Germany-Turkey, the Baltic region and Central Asia), the supply of regular services for limited volumes and the development of industrial companies from Central Europe and Asia Minor. Apart from activity development plans, there are challenges which require the appropriate approach that makes transport services competitive and efficient.

www.railwaypro.com | January 2014

we can say for sure is that there is a strong focus of GEFCO on development in the Russia zone. RailwayPRO: What do you think the new opportunities for the transport and logistics sectors are in Europe and Russia? Christophe De Korver: We have been experiencing in the last period of time a shift from huge volumes made for Western Europe to alternative destinations of export, such as Russia zone, the Middle East and South Africa, where consumption is growing. Regarding the Russia area, there is more and more activity from Europe towards the region of Moscow and developing flows on corridors from Russia to Central Asia.

RailwayPRO: GEFCO can now easily expand its activity in Eurasia. What is the RailwayPRO: How has GEFCO’s activ- company’s development strategy and what ity been influenced almost a year since the countries in the region do you target for signing of the shareholding contract on future extension of transport services? the takeover of its logistics division? Christophe De Korver: GEFCO curChristophe De Korver: RZD Russian rently operates in 18 countries on the EurRailways took over at the end of 2012 a asian continent, with over 1,900 emplopackage of 75% of the shares of GEFCO yees based everywhere from Dubai to Riga and global growth of 17% in 2012 for this Group.rail It is still too soon to discuss on theto Asia Main routes from Europe influence on the business – a transaction dynamic and promising region. GEFCO of such proportions needs time for accu- is also actively involved in joint ventures rate planning of a long-term strategy. What with Latvian organisation

Source: Christophe de KORVER - GEFCO Romania - New opportunities for rail freight transport & logistics -presentation at Railway Days 2013


Policies & Strategies

EMMA (Eurasia MultiModal Alliance), which operates rail distribution flows between Europe and Asia, and Algai, a Moscow-based automotive logistics specialist. By joining RZD Group, GEFCO has at its disposal a rail network which greatly increases its opportunities for development not only within the countries in the Community of Independent States (CIS) but also in Asia. Our development in activities to and from Russia, Ukraine and Kazakhstan is our current priority in this region. RailwayPRO: What are the challenges

you are facing?

Christophe De Korver: One of the main challenges is related to customs restrictions, especially for rail freight and multimodal operations. Also, there is the challenge of unbalanced flows, which can create problems for returns of our means (wagons or trucks). RailwayPRO: How would you describe the competitiveness of the railway and logistics transport segment in Europe? What about Asia? What are the main characteristics which make the difference between the two continents? Christophe De Korver: In Europe, railway transport remains competitive on corridors (hub and spokes model) and on long distances. Otherwise, it is harder to be competitive versus road. To make a comparison between the 2 continents, there is a good railway network on both continents, however in Asia, the road infrastructure is worst. Moreover, Europe is industrialized almost everywhere, Asia has huge empty territories, which means less roads, less logistics infrastructures. RailwayPRO: The largest share of freight volumes on the Europe-Asia axis is shipped by sea. How could railways attract a higher freight volume considering the advantages and disadvantages of the two transport modes? Should the two modes

A policy of strategic corridors

• Regular frequencies even for limited volumes corridors • Preferential rates • A relay for the development of indusevenforlimited trial companies in Central Europe and Minor Asia

opmentofindustrial lEuropeandMinor

rs

a

n

kia ey

Source: Christophe de KORVER - GEFCO Romania

Asia

of transport compete against each other or should they complete one another? Christophe De Korver: Railway could win a share by building competitive (from price and transit-time points of view) and reliable (from regularity, quality, backup solutions points of view) products. Rail has to overcome other difficulties such as security of the goods or weather. Today trans-Eurasian products are just at the beginning. Train and sea-shipping should complete each other because they are competitive on two different types of traffics: • Ships from ports to ports (for example Hong-Kong to Rotterdam) • Trains on inland transportation (for example inner China to Central Europe) Moreover, ships have a transport capacity against which trains cannot compete. But for some types of goods trains seem to have a competitive advantage (fashion, white goods, new technology) due to a shorter transit-time. We can notice cooperation between the two modes of transportation in Europe where the train is used to reached the hinterlands of the ports (Hamburg, Antwerp, Rotterdam). RailwayPRO: During the Railway Days 2013 Summit, you said the Eastern market has a huge potential for development of multimodal transport activities and it is possible to expand flows between Europe and the Moscow Region, as well as on the corridors from Russia to Central EuropeChina, Kazakhstan. How do you ensure the competitiveness of railway transport on these routes? Christophe De Korver: In order to ensure a competitiveness, we have to use optimally the infrastructures and equipment and, of course, optimize our network. You have to start with a leading customer that will guaranty a minimum volume of activity and competitiveness will improve through sales development and proposing products to a demanding market. The market research is indeed compulsory to reach these successes. RailwayPRO: From your point of view, how can you attract a higher freight flow to railways, so as to make sure that railway transport is the backbone of the system, while the other transport modes become complementary? Christophe De Korver: By being competitive, by offering a reliable solution. Price is today the most important criteria for the customers. The ecological factor is to be taken into consideration, as well, but we have to focus on what the customer needs. Moreover, today, not all goods can be transported by train or it is not competitive for some types of goods. The price shall be the initiator of a new product and then the reliability shall enable our railway and multimodal solutions to perpetuate.

29

RailwayPRO: What are GEFCO’s solutions for the extension and development of its transport activity in Europe? What are the most competitive regions in Europe that meet the best features for railway development? Christophe De Korver: At the moment, GEFCO offers the best network at the best price. Furthermore, we continue our development and growth in Eastern Europe (the Balkans in particular) and the development of the links between Europe and the rest of the world (Middle-East, Central Asia). The most competitive region in Europe that meets the best features for railway development is Eastern and Central Europe, as there is the infrastructure and the know-how, adding to that the tendency of Europe to look toward East for growth. RailwayPRO: How do you see the Romanian transport market and what is GEFCO’s strategy for development of services in Romania? What about Eastern and Central Europe? Christophe De Korver: Romania remains an attractive destination for logistics and transportation due to its privileged positioning and the balance between expertise and costs, but still with limitations – and these limitations are mainly regarding infrastructure – lack of highways, lack on investments in rail infrastructure or in the infrastructure of Constanta port. For the near future, as we do not see a boost in domestic consumption level, we still focus on international transport. We research intensively new optimizing solutions for Russia zone and Asia.

GEFCO: “Железнодорожный сектор может найти выгоду в транспортной квоте при создании конкурентоспособной и надёжной продукции” Приобретение акций компании GEFCO предоставляет РЖД возможность развития деятельности на евразийской территории. Восточный рынок владеет высоким потенциалом развития бизнеса в области мультимодального транспорта, предоставляя возможность развития транспортного потока между Европой и Московской Областью и вдоль коридоров, связывающих Россию с Центральной Азией и Китаем, Казахстаном. При этом конкурентоспособность железнодорожного транспорта основывается на ценах и на графиках движения. Для более подробных информаций, мы получили возможность провести интервью с Генеральным Директором GEFCO Румыния, господином Кристоф де Корвье. January 2014 | www.railwaypro.com

1


30 Policies & Strategies

UIP: “The freight wagon is a key indicator of rail productivity...” [ by Pamela Luică ]

I

Photo: Club Feroviar

There are transport policies in Europe aimed at boosting and developing railway freight transport, there are many statistical data on economic situations and estimates on transport demands, but we have to consider that rolling stock is the most important asset of railway transport in reaching economic performance and adjusting to logistics chain demands. Freight wagons are major elements in a modern transport system connecting railway transport and related logistics services. In order to adapt to market trends, railway transport has to improve efficiency by innovating design and the use of freight wagons. According to statistics, the share of freight rolling stock procurement will drop and acquisitions will be focused on replacing obsolete wagons. Also, railway companies (former stateowned) are gradually reducing their rolling stock fleet and the market share of the companies that lease cargo wagons (independent owners) records rapid growth.

n this context, the factors that influence procurement strategies are the appropriate economic profitability and availability of financing sources, the additional needs of customers, the improvement of the companies’ productivity, rolling stock renewal, replacement needs and the efficiency acquired through management systems and operational systems. Mr. Gilles Peterhans, Secretary General UIP, explains in the current interview the role of rolling stock in the transport system, the need for investments in the procurement of new units and the current situation of the European railway freight transport. RailwayPRO: Railway transport plays an important role in the EU initiatives on creating a single market. What do you think about the position and role of intermodal transport in the whole system? Gilles Peterhans: The term “intermodal” has been used in many applications that include passenger transportation and the containerization of freight. In the context of creating a single market in Europe, a more descriptive term would be “multimodal”. Although combined traffic is frequently the first thing to come to mind when intermodal transport is discussed, it is important to note that many other www.railwaypro.com | January 2014

commodities are transported as intermodal shipments. If intermodal transport is measured as all multiple-mode single-bill shipments rather than the historical “containerized rail freight”, the tremendous significance of intermodal movements in the logistics and supply chain structure will be more apparent. For example, many bulk like grain, or semi-bulk commodities such as fertilizers and building products move intermodally. Unfortunately, the traditional movements for small packages to less than-truckload (LTL) and truckload (TL) shipments are not spending enough time on rail! Compared to the other modes, railway transport faces significant challenges in being a part of intermodal networks , particularly when it comes to the number and location of rail terminals, rail yards, marshalling yards, shunting yards, type of lines, capacity of lines. As a result it competes intensively with trucking by offering customers timely, flexible, and long-haul transportation services. But to answer to your question, there is no doubt that intermodality plays an important role in moving freight to and from Europe’s ports and for long distance “intercity” freight transportation. For UIP, it’s time for shippers and rail stakeholders to develop common solutions that do not depend only on government’s involvement. This will require the establishment of deeper and more collaborative relationships than has been the norm. Otherwise, twenty years from now we will still be discussing the need for the governments and Europe to develop a comprehensive intermodal freight plan. The way forward is a difficult path but as the old adage says: “You can eat an elephant one bite at a time.” RailwayPRO: On the long-term, the EU wants to increase the share of freight volumes carried by rail to 80%, “longer trains

and 22.5-tonne axle loads”, being the preferred solution. How will this measure impact on the freight transport market? How does UIP answer to this proposal? Gilles Peterhans: To realise the “vision” of moving trucks off the highways onto the railways, longer trains and increased axle loads are only part of the solution. The introduction of a uniform loading gauge profile, P400 or UIC GC, throughout the whole network would also allow enhancing infrastructure capacity. Furthermore, the implementation of Regulation 913/2010 on the Freight Corridors is also an important measure aiming at increasing rail freight’s market share. It will provide the conditions of use for the network which allow freight trains to run reliably and seamlessly across borders. Rail freight transportation is a system service involving a multitude of players. To increase the market share of rail freight, the whole European Rail sector will need to ensure coordinated efforts towards improving the attractiveness and performance of rail services and focus on enhancing efficiency, reliability and productivity. Furthermore, the question remains if we have appropriate funding for this step change all over Europe. Heavier, faster, and longer trains will also create the need for innovative types of track structures and innovative freight wagons. At UIP, with a view towards increasing infrastructure capacity, we see a target system allowing for an even greater payload-tare weight ratio by increasing the maximum axle weight from 22.5 to 25 tons. In the US, the increase of the axle load from 22.5 tons to more than 30 tons yielded in annual net benefits exceeding $600mio in 2010. These benefits were spread among wagon keepers, customers, suppliers, and railway undertakings. Wagon keepers benefit from being able >


Europeanwagonfleet:basedonGCUandkeepers’ headoffice

European wagon fleet: based on GCU and keepers’ head office Total:587‘069wagons 985 9‘077

25

3‘816 11‘113

79‘384 158‘658

3‘936

89‘714

37‘484

25‘142

25‘463

39‘548

3‘350 35‘130

12‘832 13‘608

6‘215 2‘820 471

4‘183 1‘428

3‘355

19‘332

Source: : Gilles Peterhans - “Liberalisation of the railway markets. A challenge to finance railway systems” presentation Railway Days 2013

> to purchase capacity at a lower cost per ton. Railway undertakings save energy because they move less gross tonnage, and operate fewer trains with fewer locomotives and fewer wagon kilometersi. RailwayPRO: It is obvious that we cannot talk about railway freight transport without also talking about rolling stock, the most important resource of railway transport. What is the role of wagons in providing economic performance in delivering railway services? Gilles Peterhans: The freight wagon, as a core element of modern rail freight transportation, is a key indicator of rail productivity. It represents the link between rail transport and related logistics services. To adapt to the market trends in logistics like the demand for product individualisation, or added services, or the so called “goods structure effect” (from heavy bulk commodities, to more lightweight, high-value goods in smaller consignment volumes), rail transportation must improve its efficiency among other things by innovating the design and the use of rail freight wagons. Mercer consultants estimated in 1998 that better utilisation of rolling stock could alone lead to an increase in the wagon load by 30%, a reduction of maintenance costs per wagon by 40%, and an increase in staff productivity by 15%. However, the crucial factor for the future role of wagons is the noise issue. A modern wagon fleet may improve rail transport performance in environmental terms, but the extent to which freight wagons will play a role in providing better economic performance for rail, will also depend on the way the noise issue is resolved at European level. RailwayPRO: What can you tell us about the current situation of the freight rolling stock fleet in Europe? Gilles Peterhans: There are various and more or less publicly accessible sources of information on the European wagon

fleet (Eurostat, UIC, National Vehicle Registers), but even if the exact number of wagons currently operated in Europe is not known, the market trends are well acknowledged. The last available studiesii show that: • Procurement rates are expected to be low in the coming 5 years • New procurements will serve mainly to replace old wagons • Former state railways are still in a fleet downsizing process • The market share of independent freight wagon lessors/keepers is rising If we compare the rail freight volume and the evolution of the number of wagons in Europe, we can state that the wagon productivity (i.e. utilisation) has increased by approx. 30% in the last 10 years! In other words, this means that while transport volumes have been stable, the freight wagon fleet in Europe has been reduced by 30%. RailwayPRO: According to the statistics that you presented during the Railway Days Summit, in the coming years, the rolling stock procurement will fall and future acquisitions will be aimed at replacing old wagons. What caused this situation and what solutions would you propose to recover this market segment? Gilles Peterhans: To assess the development of the European wagon fleet, many factors need consideration: rail freight volumes, wagon productivity, wagon purchase costs, life cycle costs, etc... Independent wagon keepers are highly interested in value for money. Besides the acquisitions aiming at replacing old wagons, procurement of new wagons only makes sense if an adequate economic return can be demonstrated. Railway undertakings, on the other side, are interested in wagons as strategic assets to perform transportation and logistics services. They benefit from the advantages of a higher productivity and lower operational costs. In 2011 UIP assessed the economic impact

Policies & Strategies

31

of new rules and regulations with regards to wagon related issues. The results show that in the past years wagon keepers have been confronted with a high additional cost burden which adds to a significant increase of Railway Undertakings’ production costs linked for example to the implementation of ERTMS. All of this explains why procurement is falling and future acquisitions aim only at replacing old wagons. For the market to recover, we need targeted activities towards increasing rail efficiency, rail competitiveness and rail attractiveness. To this end, we need also further support from the European Institutions in order to define and implement a harmonized and consistent regulatory framework across Europe. RailwayPRO: For the freight car market, including the industry, is it a good thing that the former state railways are reducing their rolling stock fleet, while the market share of the companies that lease freight cars increases rapidly. Is there a reciprocity report in this situation or the increasing car leasing segment is a consequence of the reduction of the fleet pertaining to former state railways? Gilles Peterhans: Taking into account what I mentioned earlier, I wouldn’t say that “it’s a good thing per-se” but it’s a logical evolution that follows the rail freight market opening to competition. Surviving liberalisation often leads to improved efficiency but also to outsourcing as companies have to focus on core competencies. The reduction of the fleet pertaining to former state railways is probably an effect of the liberalisation of railways in Europe. However, with higher wagon productivity and more or less constant rail freight volumes, the increased freight wagon market share of independent wagon keepers is mainly the consequence of the overall reduction of the European wagon fleet from approx. 900’000 in 2000 to around 600’000 in 2013iii . But liberalisation also brings new-comers who need freight wagons. Both effects would allow for the freight wagon lessor businesses to grow further but only if rail freight volumes would grow as well! In this sense, independent wagon keepers have gained market shares but at the expense of profitability. I wouldn’t say that we have an upbeat freight wagon market in Europe, but despite the impact of the European crisis, we are still in a stable, promising environment overall. RailwayPRO: What are the factors which influence the car procurement strategies and how should they work for each company-operator so that the result would be the development of the fleet and of the activity? Gilles Peterhans: I would list five key factors which influence procurement strategies: January 2014 | www.railwaypro.com


32 Policies & Strategies          • Adequate economic returns and availability  of financing sources • Fleet renewal rate and replacement needs (incl. policy driven) • Additional or new customers’ needs • Improvement in the wagon productivity • Efficiency gains through more elaborated wagon management systems or operational systems Taking into account the correlation of the factors and more general issues like rail freight volumes, specific market developments, I think that you would have to develop a complex sensitivity matrix to allow for an assessment of possible business developments. Source: : ERA EcoEv Unit: NSA questionnaire Source:ERAEcoEvUnit:NSAquestionnaire

RailwayPRO: Funds are, of course, necessary in the procurement processes and financing sources are known by those who want to implement such programmes. But in your opinion, how could private investments be attracted considering risks and return? Gilles Peterhans: Appropriate returns are key incentives to private investments. In assets financing, rolling stocks investments are characterised by long disbursement and loan repayment periods (15 – 20 years), relative constant returns with recurring revenue streams, more value than corporate and pledge of assets. Very often the political support for “more” rail is also seen as comparative advantage but the attractiveness for private investments suffers from low margins, low returns, and decreasing volumes. In general, private investments will only be attracted to projects with revenue streams that are isolated from risks over which investors or banks have little control. Therefore we need to consider the following actions: • Independent and strong regulatory authorities are essential to attract large

scale private investments. • Government’s sovereign regulatory functions must be separated from those of management and operation of railways. • Policy makers must provide a stable regulatory framework and avoid overregulation. • Stakeholders have to focus on fields with competitive advantage and to improve productivity and service quality (in particular reliability, price and customer orientation). RailwayPRO: What does the Fourth Railway Package mean for the railway system and for the wagon keepers? What are the expectations about the implementation of this legislative package and how does UIP see the takeover of certification of railway undertakings and authorisation of vehicles by the European Railway Agency (ERA)? Gilles Peterhans: For UIP, reaching a sound agreement on the 4th Railway Package is the fundamental milestone for the establishment of the Single European Railway Area (SERA). As a representative body of wagon keepers, we expect from the 4th Railway Package and especially from the Technical Pillar, more Interoperability, “interoperable” Safety and a stronger role for ERA. We see it as a boost to market access by providing a kind of Schengen agreement for rail vehicles, a boost to innovation by reducing time and costs for the authorization of putting vehicles into service, but most of all as a boost towards enhanced efficiency with a clear framework on roles and responsibilities, ensuring a closer cooperation between all stakeholders as well as a clear framework to limit and reduce the number of national technical and “protective” rules. RailwayPRO: In what context does liberalisation become a challenge for rail-

Introduction of Heavy Axle Loads by the North American Rail Industry, Journal of the Transportation Research Forum, Vol. 52, No.2 (Summer2013), pp.103-125 ii SCI Verkehr: Freight Wagons - Global Market Trends 2013 or Boston Consulting Group: World Rail Market Study 2012 iii European Railway Agency: Impact assessment report on the revision of the wagon TSI i

www.railwaypro.com | January 2014

way financing? How would you explain this situation and how does liberalisation influence the financing of companies? Gilles Peterhans: It will take time before a real European Single European Railway Area (SERA) becomes reality. In theory, liberalisation and the creation of SERA are opportunities but in practice, they remain big challenges: some 15 to 20 years will have to pass before the benefits of competition become fully visible, but the costs of replacing/renewing rolling stock before being amortised and reaching the end of its lifecycle will be borne now and mostly by the sector! Even the less critical minds agree that some years will pass until the achievements of competition and single market become really visible. On the medium term, reduced costs for authorisation can reflect some of the benefits but some stakeholders, like the wagon keepers, face high costs, especially relating to the noise issue and low benefits. As such liberalisation and structural changes are not enough to foster performance, efficiency and ensure more private investments, we need also: • Regulatory stability • Sufficient investment in Rail infrastructure • More common standards managed by the European Railway Agency to reduce technical and administrative barriers • Strong regulators with strong coordination between them to ensure that key principles are implemented fairly and consistently • Fair market conditions between transport modes and fair intramodal competition between freight and passenger (i.e. track access charges which reflect the priority and the quality of paths).

UIP: “Грузовой вагон это ключевой показатель производительности” Грузовые вагоны являются основой современной транспортной системы, предоставляя связь между железнодорожным транспортом и соответствующими логистическими услугами; для соответствия тенденциям рынка, сектор железнодорожного транспорта должен оптимизировать свою эффективность путём инновации проектирования и использования грузовых вагонов. Для получения подробностей в связи с ролью подвижного состава в железнодорожной системе, необходимостью предоставления финансирования для закупки новых подвижных средств, а также, в связи с нынешней ситуацией железнодорожного рынка грузоперевозки на европейском уровне, мы провели интервью с господином Джиллес Петерханс, Генеральный Секретарь UIP.


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34 Policies & Strategies

Freight Corridor no. 7, an essential connection between Central Europe and South-East Europe

[ by Elena Ilie ]

The Railway Freight Corridor no. 7 (RFC - 7) became operational in November thus observing the provisions set by Regulation 913/2010, issued by the European Parliament and the Council. The European Union has designated nine international rail freight corridors, the so called “RFC”-corridors in the EU rail network.

F

reight Corridor no. 7 will run through the Prague-Vienna/Bratislava-Budapest-Bucharest-Constanta and – Vidin-Sofia-Thessaloniki-Athens axis. 7 European countries, namely the Czech Republic, Slovakia, Austria, Hungary, Romania, Bulgaria and Greece with their 8 railway Infrastructure Managers and a Capacity Allocation Body (one stop shop) established the corridor in order to build an essential connection between Central Europe and South-East Europe and form a link to Asia through the Black Sea and Aegean Sea ports offering a good, reliable service based on harmonised technical and procedural conditions. As first measure for the corridor opening, the Corridor one stop shop manager designated the first pre-arranged path for Prvá Slovenská Zelezničná railway undertaking between Prague and Curtici. In order to fulfil the requirements and expectations described in the regulation, the participating railway companies of RFC-7 – led by MÁV

Zrt. – implemented a number of measures to be able to run the corridor by the specified deadline. With this first act the corridor started its real operation. The opening ceremony of the RFC-7 Corridor gathered a large number of significant representatives who played an important role in the establishment and realisation of the Corridor: representatives of the Ministry of National Development of Hungary, representatives of respective Ministries of the partners, representative from the National Regulatory Body, members of the Management Board and Executive Board of RFC-7, Czech Republic, (SZDC), Slovakia, (ZSR), Austria, (ÖBB-Infrastruktur), Hungary, (GYSEV, MÁV Zrt., VPE Kft.), Romania, (CFR), Bulgaria, (NRIC), Greece, (OSE); and representatives from significant European rail freight undertakings and terminals of the relevant regions attended the event. “Efforts have been made to implement the provisions of Regulation 913/2010 and to prepare the documents necessary to the op-

eration of RFC-7. Its establishment is one of the steps that lead to the set up of the Single European Railway Area and I hope we will have high railway traffic on this corridor”, pointed out Jean Nicolaos, Strategy Manager & International Affairs Manager - CFR SA. “In the first phase, the one stop shop will operate as representative model for the next two years. The applicants, those who want to run on RFC-7, will be able to receive an answer in maximum five days. According to the provisions of the Regulation, at least 75% of cargo trains have to be punctual at departure. In the future, we consider extending this corridor to the east to Patras (Greece) and to the north to Germany”, declared the representative of the RFC-7 one stop shop manager. “I hope that this cooperation between infrastructure managers and railway freight transport operators will become a daily practice. Also, I hope that this cooperation would provide improved services and that information exchange between partners would improve and we would have a better capacity on lines. Moreover, I think that Turkey is a very interesting market and that the development of rail transport connection to this region should be considered and analysed”, said Gyulla Farkasz, representative of Rail Cargo Hungary.

Железнодорожный Коридор грузоперевозки но. 7 является основной связью между Центральной и ЮгоВосточной Европой

Source: www.unife.org

www.railwaypro.com | January 2014

В ноябре месяце Железнодорожный Коридор грузоперевозки но. 7 был введён в эксплуатацию в соответствии с положениями Регламента 913/2010, издан Европейским Парламентом и Советом. Железнодорожный Коридор грузоперевозки но. 7 пройдёт по маршруту Прага – Вена \Братислава – Будапешт – Бухарест – Констанца и Видин – София – Салоники – Афины.


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18 - 20 February 2014

Karlsruhe Trade Fair Center Germany


36 Policies & Strategies

TEN-T core network, a new stimulus for railway freight transport [ by Elena Ilie ]

Freight transport in the EU is mostly carried by trucks (47.3%), followed by seagoing ships (37.8%), rail (with a share of just 10% today) and inland waterways (3.7%). Trucks dominate inland EU freight transport with a 76.1% share of the tonne-kilometres and about 94% of the CO2 emissions.

O

ne of the great challenges for transport is to reduce the environmental impact of freight transport in the EU without sacrificing its efficiency. The key to efficient transport is the consolidation of large volumes for transfer over long distances, in between the so-called first and last miles. A combination of inland waterway transport and railway transport is a cost-efficient solution for long-distance transport. In the Wider Black Sea Area (WBSA), some of the most functional examples are those of the transport markets in countries such as Russia, Kazakhstan, Turkey or China. While encouraging the use of the most efficient solution in all distances, it is above some 300 km that a significant re-balancing should take place, with 30% of road freight shifting to multimodal solutions by 2030, and more than 50% by 2050. A first step has been taken by defining the international freight transport corridors included in the core network set in the new TEN-T Guidelines. These corridors dedicated to freight transport have to be optimised from the point of view of

energy consumption and emissions and have to attract railway operators through their reliability, lack of congestion and low levels of maintenance and exploitation costs. The new corridors (of which only 1, 2 and 7 are functional) connect the large urban centres and ports and integrate both regular services by sea, on railway freight transport lines and inland waterways, but also road transport assisted by traffic management equipment, alternative fuel capacity and multimodal nodes. By setting a one-stop shop, the administrative task related to multimodal freight transport has consequently been significantly reduced. “In my opinion, in 2050, the railways will be predominantly used for freight transport over distances longer than 300 km. These freight corridors, single ticket offices and increased cooperation stipulated under the new legislation will allow rail freight transport suppliers to attract additional customers towards this eco-friendly mode of transport”, said Siim Kallas, European Commissioner responsible for transport. Removing barriers to market entry and modal integration would strengthen the

role of multinational and multimodal logistic operators. Users would have a wider choice among transport services and their providers. It is estimated that railway freight transport in the European Union could increase by another 360 billion tonne/kilometre by 2050, which would be an 87% increase compared to 2005. Significant investments will be necessary to extend the capacity of the railway network. “The potential for the annual freight transport between Asia and Europe is about USD 75 Billion. Most of that is currently being transported by sea shipping. How can we attract this amount of freight towards the railways? Let’s take at least a part of this amount and move it to the rail. The Black Sea Region should play an important role in this transportation because that is the region that really connects Europe with the rest of Asia”, Libor Lochman, CER Executive Director said while attending the Railway Days Summit in Bucharest. “The poor reliability of international trains and the reduced transport speeds are only few of the problems affecting the international freight traffic. Freight trains run on many international corridors at speeds of 18 km/h, while speed on internal routes is 25 km/h. This is due to the time lost with cross-border operations, but also to the lack of cooperation between transport operators”, believes Martin Erlinger, joint Corridor Manager of RailNetEurope.

Центральная сеть TEN-T – новый толчок для железнодорожных грузоперевозок

Source: RailNetEurope

www.railwaypro.com | January 2014

В рамках Евросоюза, грузоперевозки осуществляются в основном грузовиками (47.3%), морскими суднами (37.8%), поездами (где процент перевозок снизился, в данный момент, достигая 10 %) и суднами, которые используют внутренние водные пути (3.7%). Грузовики лидируют в секторе внутренних грузоперевозок Евросоюза в пропорции 76.1% квоты тонн \километр, и около 94% с точки зрения выбросов углерода в атмосферу.


38 Market development

For the development of the Port of Bar, public-private partnerships is the most realistic situation

[ by Pamela Luică ]

The Port of Bar (Montenegro) has a high development potential, which, if properly approached, will help increase its importance in the region. In order to meet this objective, the authorities have elaborated a programme for the development of infrastructure and construction of facilities to answer to the traffic flow capacity, especially to and from the Black Sea. Projects include the modernisation of infrastructure and existing terminals and the construction of other transport connections that will ensure the increase of the transport capacity. Among them, the project on the reconstruction of the Bar-Belgrade line, the launch of activities concerning the integration of logistics into the transport system of Montenegro, the development of maritime connections with the Adriatic ports, as well as the construction of intermodal terminals in Bar, Podgorica and Bijelo Polje stations. At present, traffic safety works are carried out on the Bar - Belgrade line. The line has strategic importance for the transport in Montenegro as it provides connection between Vrbnica (north), Bar (south), the economic centres in Bijelo Polje, Mojkovac, Kolašin, Podgorica and Bar, with direct connection to Nikšić.

R

egarding terminals, 4 terminals will Railway PRO: For freight transport in be built among which one dedi- Montenegro, the Port of Bar is the main cated to liquid freight in Bigovica source which ensures international traffic, (capacity of 250 thousand cubic meters), being the gateway to South-Eastern Europe. for dry bulk through the extension of In this context, how could the Port of Bar operational surfaces by another 400 meters, use its development potential to become a the construction of facilities necessary for transport hub in the region and provide a storage and the optimisation of freight han- high freight flow? dling technologies. A terminal for grains Deda Djelovic: Having an excellent with a capacity of 30 thousand tonnes for geographic position and different other which there is partial infrastructure and a strengths, theRailway Port of Bar has huge potential Days 2013 container terminal will also be developed. to became a port of regional importance. The According to the Urban Plan, a surface of process of utilizing the mentioned potential 350 hectares is dedicated to the develop- is very complex, has several components and of the port. Mr. Djelovic, Direc- is under influence of various factors, but, it is AR –ment A NODE OFDeda TRANSPORT FLOWS tor of the Development Department, has obvious that, in the very initial stage, maxi– an general overview OM ROMANIA provided more information on the strategic mal efforts have to be made in the field of inprojects of the Port of Bar in the interview creasing, as much as possible, the utilization below. rate of the existing Port capacities, by inten-

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Source: Dr Deda Djelovic, The Port of Bar, Director of the Development Department

www.railwaypro.com | January 2014

sive promotional activities in order to attract new customers, by permanent increasing the quality of Port services, etc. All these previously mentioned activities have to take into account real values of parameters which determine current Port capacity, including values of current capacities of road and railway connections of the Port with its hinterland. In parallel, the Port has to take all necessary steps and to wait prepared a moment of finalization of crucially important regional infrastructural projects such as rehabilitation and modernization of the railway Bar – Belgrade, building the highway Bar – Belgrade, etc. Realization of these important projects will significantly contribute to the fulfilment of “external” preconditions for achieving regional importance of the Port of Bar. Railway PRO: What are the factors that confirm the existence of the development potential of Port of Bar that ensure the freight flows through the port, from and to Romania, including potential extensions to other countries? Deda Djelovic: The group of these factors is very wide, but I am going to mention just a few of those. The starting point is that Port of Bar has significant capacity, determined by existing port superstructure, port infrastructure and port equipment, and available development area, reserved by the Detail Urban Plan, which enables further increasing of the Port capacity. As well, there are registered concrete interests of different subjects from Italy, Serbia, Romania, Hungary, etc. to establish cargo flows, via the Port of Bar, to and from mentioned countries, based on the important expected time savings, costs reductions, etc. The third important initial factor is expected economic growth in all of the mentioned countries and intensification of related export-import activities, etc.


market development

39

Ports”. As per current plan, CTGC will be formally taken over by the new major shareholder at the beginning of the next Year. As you practically said, through the privatization process the State of Montenegro has sold its 62% stake.

Railway PRO: The infrastructure development strategy includes the modernisation of the Bar-Belgrade line and the construction of new terminals. How are works on the Bar-Belgrade line progressing considering its strategic importance for the transport system in Montenegro? Deda Djelovic: Currently, as per my information, all activities are directed to the elimination of different “black points”, which are threats for the railway traffic safety or have important negative influence on the allowed transport speed and other parameters. Works on complete rehabilitation and modernization of the line Bar – Belgrade have not started yet. Railway PRO: What can you tell us about the implementation of projects for the construction of terminals? What are the projects initiated or to be initiated in the near future? Deda Djelovic: Under the Montenegrin transport system development strategy, development of three intermodal terminals at railway stations in Bar, Podgorica and Bijelo Polja is foreseen. For now, projects are not initiated, but, having in mind their significance for the general intensification of intermodal transport activities in Montenegro, it is expected that in the very near future projects will be concretized. Railway PRO: What can you tell us about the amount of necessary investments and about financing sources? What can you tell us about the implication of the private sector in these projects? Deda Djelovic: It is one of the most important questions, especially having in mind limited financing sources and other related limits determined by the economic crisis. Different financing options are opened, but, most probably, public-private partnership (established through the appropriate procedure conducted by the governmental bodies in charge) seems to be the most realistic variant.

Railway PRO: After developing the projects in plan, what do you think their impact will be in the transport and logistics system of Montenegro and in the region? Deda Djelovic: Results of different relevant analyses show that the share of the intermodal transport in the overall transport activities in Montenegro is very low, so, the first expected positive effect of these projects development is correction of this negative situation (positive effects on increasing the share of intermodal transport in the overall transport activities in Montenegro). Railway PRO: What do you think the methods of railway transport integration into the whole transport and logistics system are? Do you think that railway transport could be the core of the transport system? Deda Djelovic: At this moment, the major part of cargo quantities handled through the Port of Bar are transported by road. It is not the optimal situation from different aspects (technological, …), when transporting large quantities of dry bulk cargoes from/to the Port. It is an obvious necessity to improve model of cooperation between the Port and railway cargo operators in order to try to establish a kind of “common approach to the market”. Railway PRO: What can you tell us about the privatisation process of container operators Container Terminal and General Cargo- CTGC? According to the latest information available on the official website of the Privatization and Capital Projects Council, the state has launched the demand for expressions of interest in the sale of the 62% stake. Deda Djelovic: The privatization process of the Container and General Cargo Terminal (CTGC) is in the very final phase. Privatization contract was signed recently and these days the Parliament of Montenegro should confirm granting of the 30 years concession to the new Terminal major shareholder, a Turkish company “Global

Railway PRO: If privatised, what will be the impact of the process over the port’s development, from the point of view of both infrastructure and attraction of freight through the port? Deda Djelovic: Respecting the fact that the new major shareholder of the CTGC will be obliged to realize a investment plan in the beginning period of the concession period in order to modernize cargo handling technologies and having in mind its expected full engagement in attracting new customers, positive effects of privatization on the functioning of this Terminal operator, as well as, positive effects on the whole port area can be expected. Railway PRO: How can the railway capacity in ports be improved? Deda Djelovic: All the Port of Bar cargo terminals (except the Passenger terminal) are in the optimal way connected with the railway Bar – Belgrade. Current capacity of the Port of Bar railway network is in line with the maximal Port capacity and is, unfortunately, underutilized. Connecting answer to this question with the answers to the pervious questions, I would like to repeat the necessity of making joint efforts of all relevant actors of the Montenegrin transport system to increase the share of the railway transport. Here has to be underlined an important thing – even current condition (capacity) of the railway Bar – Belgrade enables significant increasing of cargo quantities via the Port of Bar (it is not necessary to wait, from now, for the complete rehabilitation and modernization of the Railway Bar – Belgrade).

Государственно-частные партнёрства: наиболее реалистический выбор для развития Порта Бар Порт Бар (Черногория) имеет высокий потенциал развития, который, при соответствующих стратегиях, способен оказать позитивное содействие для расширения роли порта в регионе. Главные проекты относятся к модернизации линии Бар – Белград, строительству многочисленных узловых станций и лёгко доступных связей с портами Адриатического моря. Соответственно Городской Стратегии, площадь длинной 350 гектаров предоставлена для развития порта – интервью с господином Деда Джелович, Директор Департамента Развития в рамках Порта Бар. January 2014 | www.railwaypro.com


nnes)

40 Policies & Strategies

International trends will stimulate the liberalization of Russian railway freight transport [ by Pamela Luică ]

The launch of the joint transport operator of Russia, Belarus and Kazakhstan will have a positive effect in the Russian railway transport market and, although this process is made difficult by several factors, the existing operators and the international situation will stimulate the liberalization of the freight transport market.

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he project of the new operator is one of the most important economic seclaunched after in November 2013, tors, but the development of RZD has been the three railway companies from affected by the crisis. Thus, we insist more the participating countries signed the pro- and more on market liberalisation. There gram of the operator’s activity. According is a national pressure insisting on RZD’s to estimations, the project will significantly monopoly, but the economic situation and benefit the owners of the company and of international trends on the repositioning of regional countries. According to the busi- railway transport and activities, including ness plan, the volume of freight carried the process for the privatisation of national by OTLK will exceed 4 million tonnes by companies in many countries, are reasons 2020 and the turnover will reach USD 1.6 enough to determine the liberalisation of Billion. the Russian market”, explained Khodov. “The establishment of the new joint operIn order to increase competition and perator of Russia, Belarus and Kazakhstan will formance, over the last two decades the EU impact on the Russian railway system de- has determined the liberalisation of the termining the market liberalisation. It will railway freight transport market and Rusensure freight transport from Russia, the sia wants to open its market to competicountry’s strategy including the1/9/2014 growth of tion as well. “Even though RZD is trying to Market Watch transport volumes”, declared Ivan Khodov, maintain monopoly in the market, private Deputy CEO, Far East Landbridge. companies will continue to carry out their Apart from this project, with significant transport activities and to modernise serimpact in the sector, international trends vices. The liberalisation process of railway represent a key factor in changing the sys- freight transport in Russia will continue, 2008 2009 2010 2011 2012 11m2013* tem. Thus, the crisis has affected railway 2,126.6 irrespective2,222.0 of RZD’s 11m2012 opinion or will”, said 2,113.2 1,865.3 2,010.6 2,030.3 1,992.5 transport in both -11.7% Russia and the7.8% EU trig- 5.8% Khodov. 4.5% -1.9% gering the downfall of activity and freight The private operators (20) support the volumes. “Europe has experienced a drop of2,126.6necessity2,222.0 of market liberalisation to deve20%2,113.2 in volumes. Also, the companies affect- lop the segment and 2,030.3 to improve the situa2,010.6 1,992.5 ed by crisis have fired part of the employees, tion of the rolling stock fleet which doesn’t 1,865.3 but the positive side of the crisis consists in look too good. Thus, in order to improve the implementation of restructuring pro- the situation of the whole market segment, grammes. For Russia, railway transport is including the vehicle fleet, private opera2008

2009

2010

2011

2012

11m2012

11m2013*

Overall Russian freight rail transportation volumes (million tonnes) 2008 1,303.7

2009 1,108.2 -15.0%

2010 1,205.8 8.8%

2011 1,241.5 3.0%

1,303.7 1,205.8

1,241.5

2012 1,271.9 2.4%

11m2012 1170.5

1,271.9 1170.5

1,108.2

2008

2009

2010

2011

Source: www.globaltrans.com

www.railwaypro.com | January 2014 Coal (incl. coke)

11m2013* 1,133.7 -3.1%

2012

11m2012

1,133.7

11m2013*

tors believe liberalisation is the only solution. Traction services should be liberalized as part of the railway reform because the number of locomotives is every day smaller. Currently, there are 90 coaches to one locomotive, while the average length of a train is of 71 coaches. A 20% deficit is recorded and the system could no longer face this situation without liberalisation. It should be mentioned that the governmental strategy on transport development in Russia stipulates the development of transport competition and the establishment of private carriers. The competitive landscape in the Russian freight rail transportation market has changed significantly since commencement of the Reform in 2001. Private operators have been expanding their fleets through the acquisition of new railcars, increasing their share of all Russian railcars from 31% as at the end of 2005, to approximately 75% as at the end of 2011, according to Russian Railways. Source: www.globaltrans.com

Международные тенденции приведут к либерализации сектора железнодорожных грузоперевозок в России Пуск в эксплуатацию общего транспортного оператора, в состав которого входит Россия, Беларусь и Казахстан, окажет позитивное влияние в рамках железнодорожного рынка России и, несмотря на то, что данный процесс затруднён многими факторами, нынешние операторы и международная ситуация приведут к открытию рынка грузовых перевозок.


lex

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January 2014 | www.railwaypro.com


42 Policies & Strategies

Republic of Moldova External funds for the Transport and Logistics Strategy 2022 [ by Pamela Luică ]

The Transport and Logistics Strategy 2022 approved by the government of the Republic of Moldova focuses on investments in transport infrastructures with funds in the railway sector being directed to the rehabilitation of the railway network, the modernisation of the fleet of cars and locomotives and the increase of freight and passenger traffic flow.

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Moldovan trade partners he implementation of the strategy’s programme of investments will determine the optimisation of accessibility and capacity in order to increase freight volumes and the number of carried passengers. Estimated investments are worth EUR 2.4 Billion and programmes are to be implemented in three phases: shortterm, by 2015, medium-term, by 2018 and long-term, by 2022. The railway and road infrastructure in the Republic of Moldova benefits from external funds for modernisation and rehabilitation and investments will be carried out according to the Transport and Logistics StraSource: MIEPO tegy for 2022, a document approved by the Moldovan Government. The Minister of the rehabilitation of roads and modernisa- construction of the European-gauge segTransport and Road Infrastructure, Vasile tion of railways in Moldova. ment Ungheni-Chisinau, Minister Vasile Botnari, has discussed with the team of for“We want to develop our country, to cre- Botnari has presented the short and medieign investors for Moldova on the develop- ate jobs and therefore, we have to solve the um-term projects. “We plan the development, Parcurile in partnership, ofindustriale several projects on Parcurile infrastructureindustriale problem as soon as possible. ment of a feasibility study for the construcOur objective is to launch infrastructure tion of the European-gauge segment and of Industrial Parks modernisation works as soon as possible”, a multifunctional logistics centre in Chisindeclared Minister Vasile Botnari. au. Based on this study, we will try to access “TheTransmiterea Transport andgratuită Logistics Strategy isTransmiterea European funds because it is an important a activelor gratuită a activelor an important document that will guide ourproprietate investment”, said Botnari. proprietate publică întreprinderii publică întreprinderii transport investors in the next 10 years”, deadministratoare pentru crearea PIadministratoare pentru crearea PI dustriale clared Chaim Poran, head of the joint investors team for Moldova. In order to improve transport and increase Республика Молдова Schimbarea Schimbarea destinației traffic, the Moldovan Ministerdestinației of Transport Transmiterea gratuită a activelor Внешние фонды для and his Romanian counterpart, terenurilorСтратегии agricole gratis proprietate publică întreprinderii terenurilor agricoleRamona gratis проектов Mănescu, have agreed to stimulate bilateral administratoare pentru crearea PI Транспорта и Логистики cooperation to increase the absorption of 2022 European funds for transport infrastrucdin partea Suport din partea Schimbarea destinației ture. During a meetingSuport of December 2013, terenurilor agricole gratis autorităților publice autorităților publice the two ministers decided to set up the groups of experts for allcentrale transportșimodes Стратегия Транспорта Логистики centrale șiи locale localeto 2022, согласована правительством identify priority investment projects. Later Suport din partea Республики Молдовы, намерена on, they will be promoted to get financing autorităților publice предоставить инвестиции в транспортную from the European financial institutions. centrale și locale 13 proiecte privind crearea parcurilor 13 proiecte industriale crearea вparcurilor industriale инфраструктуру; железнодорожном In his talks with the Romanian Minister of privind секторе инвестиции будут направлены на Transport, Vasile Botnari, has highlighted 3 parcuri în construcție 3 parcuri deja în construcție восстановление железнодорожной сети, the needdeja to advance strategic infrastructure 13 proiecte privind crearea parcurilor industrialeprojects whose development require the atмодернизацию вагонного и локомотивного парка для роста потока грузовых и traction of European funds. As regards the 3 parcuri deja în construcție пассажирских перевозок. modernisation of railways, including the > Source: MIEPO www.railwaypro.com | January 2014


market development

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G-Global: the project that brings authorities, organizations and companies face to face [ by Pamela Luică ]

• “New Silk Way” is the G-Global mega-project • Europe and Asia will benefit from efficient transport and logistics connections • The project focuses on the construction of the transport infrastructure, terminals and logistics centres

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he initiative of the Kazakh President Nursultan Nazarbayev of developing the G-Global info-communication platform is considered to have strategic importance for the unification of initiatives within a single mega-project. G-Global is a platform which creates conditions dedicated to the international community for open interactive discussions on the global economic situation. This project is focused on discussions and the elaboration of mechanisms to overcome the global financial crisis and aimed at extending participants to identify anti-crisis solutions. Therefore, the transport system plays a vital role in ensuring a continuous trade flow which needs to develop internationally. G-Global is established as central resource for the online dialogue between governments, authorities, experts and interested public. The initiative relies on 5 principles: evolution and the rejection of revolutionary political changes, equity and consensus, global transparency, constructive multipolarity. As part of this global project, the revival of the New Silk Way is a practical instrument for the integrity of several countries

from Europe and Asia, where Kazakhstan is interested not only in developing the transport and logistics infrastructure, but also in important segments for creating new opportunities in the countries of the two continents regarding the efficiency of trade through the “New Silk Way”. In fact, the “New Silk Way” is the project which creates a complex business environment, an international transit hub and a transport and logistics “bridge” between Europe and Asia. “Kazakhstan should revive its role of important hub for transit in the Central Asia region, the so-called connection bridge between Europe and Asia. This means the establishment of a single system of the international hubs on the key transport corridors of Kazakhstan. The outcome of the mega-project by 2020 is to intensify traffic volumes via Kazakhstan by doubling them and by an additional increase of at least 50 million tonnes”, declared the Kazakh President during the 25th meeting of the Council of Foreign Investors. Also, during an official visit in Kazakhstan (September 2013), the Chinese President Xi Jinping requested the involved parties to

Iron silk road

eliminate the barriers hindering trade and investments. Moreover, “China and Kazakhstan should create an economical corridor of the New Silk Way”, said Xi Jinping. On the occasion, the Kazakh President said that “groups are working on reviving the new Silk Road and the main transport corridor on the Western Europe-Western China axis is to be launched, as Kazakhstan implements construction projects of road and railway infrastructure, as well as terminals and logistics centres”. In order to develop these projects, in 2013 Kazakhstan central authorities adopted “the action plan for the implementation of the New Silk Way”. Kazlogistics has identified methods for bringing together all transport modes in order to develop the transport and logistics system in Kazakhstan. Consequently, there are instruments of interaction between executive and legislative institutions, as well as organizations and companies. Thus, the parties have agreed on constructive cooperation to implement and promote joint actions, including the strategic project G-Global: “New Silk Way”. In the spring of 2014, the 8th edition of Astana Economic Forum will dedicate special sessions to setting measures for the integration of trans-Kazakhstan corridors within the global transport system.

G-Global: проект, который ставит лицом к лицу власти, организации и компании

Source: td-architects.eu

«Новый Шелковый Путь» это мегапроект G-Global - Европа и Азия воспользуются эффективными связями транспорта и логистики - Имеются в виду строительные проекты транспортной инфраструктуры, терминалов и логистических центров January 2014 | www.railwaypro.com


44 Market development

Kazakhstan plans to become a logistics hub between Asia and Europe [ by Elena Ilie ]

Towards the end of last year, Kazakhstan approved an infrastructure development plan to be developed in the period 2014-2020. In fact, this is the first large-scale plan adopted by Kazakhstan and aimed at developing the transport infrastructure and its integration in the global transport system. The plan is partially developed with the help of World Bank being previously approved by all agencies and local and state associations in Kazakhstan.

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prehensive measures to improve the quality of transportation, as well as the removal of physical and non-physical barriers, are expected to provide Kazakhstan the opportunity to rise to the 40th place of the same Logistics Performance Index of the World Bank. The investment programme plans to develop all transport modes by 2020. Special attention will be paid to railway transport by building 8.202 kilometres of railways and upgrading all the 302 rail stations of the national railway network. Also, the programme includes a series of measures aimed at increasing the development of transport infrastructure.

Freight terminals operated by a single integrated structure The changes expected in the railway transport sector are most probably focused on completing a logistics hub statute in the Eurasian Platform. Thus, the Zhezkazgan – Beineu and Arkalyk – Shubarkol lines are currently under construction. In addition, the line between the Zhetygen station and Kazybek station, which bypasses Almaty, will be built from 2015 to 2017 through a public-private partnership. Overall, it is expected that by 2020, 81%

Photo: wikimedia.org

he project will increase transit twofold and will integrate the Kazakh State into the international transport system. The project is aimed to develop the regional and national transport infrastructure, declared the Kazakh Minister of Transport and Communications, Askar Zhumagaliyev, during the official presentation of the project. Overall, the sum granted to this investment programme will be of KZT 5,000 Billion, which is around EUR 24 Billion. At the end of 2012, Kazakhstan was ranked 86th in World Bank’s Logistics Performance Index. However, planned com-

www.railwaypro.com | January 2014


45

Photo: calink.kz

market development

of state railways will be assessed as “good” and 19 percent – as “satisfactory”. In addition, in light of the rolling stock fleet shortage, more than 650 locomotives, over 20,000 freight cars and 1,138 passenger coaches will be upgraded. The transport development programme stipulates the improvement of maritime transport infrastructure at the same time with railway transport infrastructure. Thus, the project includes the extension of Aktau Port’s capacity by adding three terminals for bulk handling. Thus, the logistics capacity of the port will increase from 16.8 million tonnes per year to 20.5 million tonnes per year. “Kazakhstan, with its location at the crossroads of several international transport corridors, meets all prerequisites for becoming a major logistics hub connecting Europe and Asia,” Prime Minister Serik Akhmetov declared. Moreover, Akhmetov stressed that President Nursultan Nazarbayev pays special attention to the development of transit potential, the implementation of major infrastructure projects and the integration of the region into international transport corridors. Due to its full range of assets and skills, Kazakhstan Railways (KTZ) will become the main multimodal logistics operator behind the plan. The company will also operate the Aktau Seaport, SEZ Khorgos – East Gates, the country’s airports and domestic terminal network. According to Minister Zhumagaliyev, the integration of transport assets into a single structure will provide the necessary level of coordination and management for multi-

modal integrated services. President of KTZ Askar Mamin talked about the development of the transport and logistics system. According to him, to improve competitiveness and increase transit capacity, the company is implementing a business strategy to promote its services and improve its quality and efficiency. At present, 14 freight train routes run between Asia and Europe. Moreover, the key project of the Common Economic Space is the creation of an integrated transport and logistics company. The railway administration of Kazakhstan, Russia and Belarus will provide integrated services based on the principles of the “single window”. This project will ensure integrated transport services. In the shortest time possible, a feasibility study on the construction of transport and logistics centres in Kazakhstan will be completed leading to a growth of national economy. Added value from improvement of transport and logistics system will amount to USD 15 Billion, expressed in a 1% growth of Kazakhstan’s GDP. Agreement to consolidate container transport The heads of railway and maritime administrations and the representatives of business organisations in Kazakhstan, Azerbaijan and Georgia adopted a joint action plan at the end of October last year on the organisation of freight transport in 2013-2014. Kazakhstan Railways, Azerbaijan Railways and Georgian Railways participated in the reunion held in Aktau together with the

International Commercial Port of Aktau, Azerbaijan State Caspian Shipping Company and Kazakh companies KazMunaiGas, Kazmortransflot, KrosKaspianOil & GazLogistiks, companies involved in the transport of freight and oil products to and from the Caspian Sea. The participants also talked about traffic growth conditions in 2013-2014 and about the possibility of increasing container transport while considering that important projects have been launched, such as the construction of two dry terminals and of a container switchyard in the Kazakh port of Aktau, the construction of a port in Alat (Azerbaijan), the construction of the railway lines Zhezkazgan – Beineu (Kazakhstan) and Akhalkalaki – Kars (Georgia, Turkey). Also, the signatory parts of the agreement said they will analyse the possibility of organising a transport to and from Turkey, thus involving the basins of the Black Sea and of the Mediterranean Sea in the transport process.

Казахстан намерен стать узловым центром логистики между Азией и Европой К концу прошлого года Казахстан принял план развития инфраструктуры на протяжении периода 2014 -2020. Это первый крупномасштабный план принят казахским государством с целью развития транспортной инфраструктуры и её интеграции в глобальную транспортную систему. January 2014 | www.railwaypro.com


46

Engineer

Railway infrastructure financing – an aspect with vast implications in railway transport system operation (part III)

[ by Viorel LUCACI – Expert, Romanian Railway Safety Authority – ASFR Marian CIOFALCĂ – Head of Service, Romanian Railway Safety Authority – ASFR ]

3.The influence of railway infrastructure stress on its quality Considering the parameters presented in figure 18, we can note that: Ci3<Ci2<Ci1 , Cf3<Cf2<Cf1 and Pr3=Pr2=Pr1. The decrease of both quality limits due to underfinancing has negative effects on the essential requirements and especially on railway safety – as a result of the deterioration of exploitation conditions. In order to modernize a railway system, the investment process can be completed cumulatively by applying a consecutive cumulative strategy of specific parameters increases (maximum speeds and/or maximum tonnage). By redrawing and building energy efficient routes or developing modern structures (tunnels, viaducts and bridges) long-term beneficial effects related to energy consumption, mobility and transport capacity are obtained. In most cases, the value of the savings due to these advantages pays off the initially invested funds, and then exceeds them. Such a phenomenon takes place only in conditions of intense and efficient exploitation of the infrastructure, without exceeding the projected limits. The development strategy of the railway infrastructure presented above is schematically presented in figures 19 and 20. Figure 19 corresponds to the decision of keeping a fixed value of the inferior quality level (Cf). After the first repair (Tr1), the superior level (Ci1) reaches the value Ci2 ,

the value (Ci2) being reached through the second repair. Thus, a cumulative increase of the value of infrastructure parameters (Ci3>Ci2>Ci1) takes place. The increase is directly proportional with the volume of additional investments. As an indirect effect, increasingly higher values of the lifecycles (P1r3>P1r2>P1r1 are) registered. The situation presented in this case is disadvantageous from the financial and economic point of view.. Despite the fact that the lifecycles are longer, the costs necessary for the modernization operations are correspondingly higher as the quality level resulted through repairs increases. In fact, the necessary investments increase from one stage to another. There are situations in which the cumulated increase of the financial effort supported by the infrastructure manager is not paid off by the positive effects of the increase of the quality level or lifecycles. In this case, the adequate measure is the consecutive increase of the inferior value of quality (Cf). The graphical presentation of such a strategy is shown in figure 20. The financial effort necessary for a strategy similar to the one in figure 20 remains constant and the relations between the presented parameters are: Ci3>Ci2>Ci1 , Cf3>Cf2>Cf1 , and Pr3=Pr2=Pr1. Through cumulated additional investments that increase the quality level of railway infrastructure, the possibility of occurrence of speed or tonnage restrictions and limitations is considerably avoided. Thus,

the negative effects generated by speed restrictions and limitations are eliminated. A particular case that demands separate approaches is the rehabilitation of Bucharest- Constanta railway section (part of the Pan-European Corridor IV). These works have encountered financial and technical difficulties. Thus, delays in the completion of the works appeared. Due to the lack of efficient strategies and tactics for a staged completion of works, taking into account the fact that works have been carried out under traffic during the entire period of the project, passenger trains on Bucharest - Constanta route have registered travel times of approximately 5 or 6 hours. The impact on passengers (especially during the summer periods) is hard to quantify. Most of the passengers have shifted to other transport systems or have chosen different seasonal destinations (more accessible). One of the particularities of the transport demand is the fact that the “shift” of passengers and freight belonging to the client (for freight transportation) from a system to another can be asymmetrical and irreversible. In particular situations, even after the completion of ample rehabilitation works, the transport system no longer recovers loss and the attractiveness registered during works. Moreover, things are complicating progressively when problems or functional deficiencies (railway infrastructure thefts or inappropriate maintenance) occur immediately after the rehabilitation process. In case of intensive exploitation of the infrastructure sections, the dynamics of transport demand can be partially irreversible, while

Figure 18. The recurrence of the underfinancing phenomenon for repairs on a track section by decreasing the superior and inferior values of running track quality

www.railwaypro.com | January 2014


engineer 47 Figure 19. . The increase of the superior quality level and lifecycles of a railway infrastructure by adopting consecutively cumulated additional investments

Figure 20. The increase of the superior and inferior values of running track quality and the constant preservation of railway infrastructure lifecycles by adopting consecutively cumulated additional investments

the attractiveness is difficult to restore – this aspect depends on modal competition. The importance of the aspects mentioned above results from the fact that the railway main line 800 provides direct connection between the capital and the Port of Constanta (the largest Black Sea port and the eighteenth in Europe) together with the Port of Mangalia. For a more complex observation, this railway line connects all the states from Western Europe with the mentioned ports, and further with the freight transportation lines to and from Middle East, the Caucasus and Central Asia. We refer to the socalled Wider Black Sea Area, whose stability and security also depend on the efficient operation of the freight transport network for basic products (oil, fuel and other raw materials). Moreover, direct connections between the capital and certain industrial and military facilities located in the area of the Black Sea coast (energy hubs located on the coast, freight terminals, Constanta and Mangalia shipyards, installations for the extraction and processing of petroleum/natural gas from the coast’s northern area, the military facilities located in Babadag and Mihail Kogălniceanu, fuel and oil deposits, refineries, etc.) are provided. Measuring 310 km, Constanța – Bucharest – Ploiești railway provides an efficient connection (mostly in alignment and without gradients) between the loading/unloading/storage facilities located on the Black Sea coast and the complex of oil refineries located in Ploieşti area. 1. Strategy elements on railway infrastructure modernization The technical condition of the railway lines represents an important factor for the functioning of the entire conventional railway system. As presented above, there are complex relations between the decisions concerning the financing level of certain categories of works and the medium and long-term social\economic effects. For such a transport system, the revenue\

financing sources can be focused on various development directions. The adopted options generate specific effects that depend on several factors. Whether we refer to infrastructure operation or management, the structure responsible with the strategy and planning within a railway system managing authority has the role to distribute funds as efficiently as possible. Hereinafter, the financing algorithms for investments in the railway sector will be analyzed, classified in different types of management and decision structures. 1.1. Holding railway management The holding management is an efficient solution adopted in some highly developed states, with efficient policies and strategies in the railway sector. The main characteristic of these organisation structures is that both the infrastructure managers as well as the operators (passengers and freight) are carrying out their activity in a single centralized system of logistics\operation financing and coordination. The available funds derived from different sources (specific to that state) are distributed through the strategy and planning department to the main investment sectors. Observation: References are made only to the investment policies and vectors that aim to modernize the system or to increase the value of specific technical parameters. The funds necessary for the current technological processes and other additional activities are not subject to this analysis. Such a system of funds distribution is presented in figure 21. The main financing sources shown in the left side of figure 21 are: • State subsidies. Assigned through the policies and strategies of the transport authority or Government, according to the executive\administrative regulations of

that state. They represent amounts allocated from the state budget to the railway system, the value being calculated according to the technical-economic factors of the holding (train-km, passenger-train-km indicators, etc.). Generally, subsidies are strictly dedicated to the current maintenance of the system (infrastructure and rolling stock). There are situations when after the implementation of certain development programmes, subsidies can be allocated including in the sector of investments. An efficient solution for preventing the introduction of restrictions/limitations as a result of railway infrastructure degradation is to assign part of the subsidies to modernization works; • EU funds. This source of financing is practiced predominantly in the EU Member States. The railway system can access funds by participating in investment projects or including particular railway sections in the strategies for the development of panEuropean transport corridors. For example the pan-European Corridor IV (the section on Romanian territory) Curtici - Arad – Brașov – Predeal – Ploiești – Bucharest – Constanța and Corridor IX: Giurgiu – Bucharest– Ploiești – Bacău – Pașcani – Iași section; • Incomes. They result from the amounts obtained from the sale of tickets and the tariffs for freight transportation; • Budgetary funds. They represent sources allocated from the state budget, other than subsidies; • Own funds and assets recovery. We refer to the incomes originating from the sale of assets and fixed\mobile overflow or unused assets. Another variant of effective recovery of assets is the rental or lease on determined periods; • Rent. The amounts originating from rental payments for the use of various spaces of the buildings belonging to the patrimony of the holding; • Track access charge. Represents an income specific to the railway infrastructure manager, being a charge paid by railway transport operators; • Loans. Represent actions that take place while financing ample projects with a necessary budget that exceeds the capacity of financing from other incomes at that time. Banks or various financing bodies (national or international) can be the creditors. There are also other financing sources. The amounts are received cumulatively through the economic-management system. Depending on the decisions made, the January 2014 | www.railwaypro.com


48

Engineer

funds are distributed for investments in the three major areas of activity. We are referring to infrastructure, rolling stock or other investments in associated domains. In order to achieve an efficient correlation of the priorities for investments, special attention must be paid to the distribution of funds. The overfinancing of infrastructure at the expense of rolling stock creates problems of technological progress in the field of vehicles, with medium-term negative effects. An unfavourable situation for the railway transport system in general, occurs when an outworn or technologically inadequate rolling stock is used on ultramodern railway lines. Such a scenario creates the premises for a possibly inefficient (reduced) use of the infrastructure. In other words, by directing the funds for investments to the opposite direction, railway infrastructure can be left without investment processes (its general quality decreasing in time), while the rolling stock reaches a high technological level. Due to multiple speed and\or tonnage restrictions and limitations, a technically advanced rolling stock operating on a low quality infrastructure would not be efficiently used. In such a situation, the operational regime is deficient in terms of energy. A similar case is registered in the Romanian railway network. The decrease of financing and investments in railway infrastructure has led to the significant decrease of traffic speeds and the occurrence of danger points that generate speed restrictions (approximately 650 in 2011, with a cumulated length of over 1.500 km). Meanwhile, modern locomotives and wagons were provided to the transport operators. We refer to investments in modernization works or procurements of new vehicles (approx. 8000 kW power locomotives, wagons and locomotives with maximum speeds of 200 km/h). Unfortunately, as a result of reduced speeds allowed by the network, all these are inefficiently used. The maximum speeds on mainlines and secondary lines have decreased significantly due to lack of funds and delays in current maintenance. Returning to the theory of distribution of funds, we must mention that scientific research, advertising or lobbying activities (figure 22) represent an important investment sector. The main railway infrastructure managers pay special attention to the three areas mentioned above. 1.2 Independent railway companies (undertakings) Regarding independent railway undertakings or railway infrastructure managers, financing is similar to that of the holding companies. The differences are registered in the area of the financial distribution process. The options for allocating the funds depend on the specificity of the companyâ&#x20AC;&#x2122;s activity. For the railway transport operators, inwww.railwaypro.com | January 2014

Figure 21. The algorithm of distribution of funds dedicated to investments corresponding to a holding railway system

vestments can be preferentially directed in the areas of traction, wagons, electric\diesel trains, or efficiently distributed towards all the areas of activity (figure 22). Railway infrastructure managers have the possibility of allocating the investments in different constituent elements (lines, installations, structures etc.) or

completing a multidirectional optimal allocation based on technical-economic studies (figure 23). The algorithms of the distribution of funds dedicated to investments for a railway transport operator, respectively a railway infrastructure manager are shown in figures 22 and 23.

Figure 22. The algorithm of the distribution of funds dedicated to investments for a railway transport operator

Figure 23. The algorithm of the distribution of funds dedicated to investments for a railway infrastructure manager


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50

StatisticS

Region

EU

EFTA EUROPE

WORLD

Region

EU

EFTA EUROPE

WORLD

Country BG BG CZ DE ES ES FI HR HU LT LV PL RO SI SK CH BA BA BY TR CD GA

Country BG BG CZ DE ES ES FI FR HR HU IE LT LV PL RO SI SK CH BA BA BY TR CD GA

www.railwaypro.com | January 2014

RailwayUndertakingPassengerTraffic WagonloadfreighttrafficͲGlobal Wagonload freight traffic - Global Tonnesx1000 Tonnes x 1000 Company Year2012 Year2013 BDZCARGO 6250 BRC 548 777 CD 55135 52736 DBAG 300024 293704 FGC 534 558 RENFE 12925 14151 VR 25814 26684 HZCargo 7775 GySEV/RÖEE 2529 3304 LG 36669 35462 LDZ 47257 41641 PKP 93740 89968 CFRMarfa 23359 19740 SZ 9949 10168 ZSSKCARGO 26764 26411 BLSCargo 3160 3080 ZFBH 6192 6197 ZRS 2622 BC 117397 103288 TCDD 18673 18551 SNCC 395 351 SETRAG 3377 RailwayUndertakingPassengerTraffic WagonloadfreighttrafficͲTraficInternationnal Wagonload freight traffic - Trafic Internationnal Tonnecarriedx1000 Tonne carried x 1000 Company Year2012 Year2013 BDZCARGO 1281 BRC 194 253 CD 9879 9238 DBAG 79934 78034 FGC 34 35 RENFE 5377 5652 VR 6856 6901 SNCF 16156 15599 HZCargo 1531 GySEV/RÖEE 1321 363 CIE 57 LG 10657 9892 LDZ 13158 11033 PKP 24376 24414 CFRMarfa 4468 4005 SZ 2181 2230 ZSSKCARGO 5194 4916 BLSCARGO 806 793 ZFBH 554 612 ZRS 233 BC 36995 32233 7823 TCDD 8457 SNCC 146 147 SETRAG 1913

M 9 4 9 9 9 9 9 9 9 9 9 9 9 8 9 9 9 6 9 9 9 9

M 9 4 9 9 9 9 9 6 9 9 7 9 9 9 9 8 9 9 9 6 9 9 9 9

% 41.91 Ͳ4.35 Ͳ2.1 4.49 9.48 3.36 30.64 Ͳ3.29 Ͳ11.88 Ͳ4.02 Ͳ15.49 2.19 Ͳ1.31 Ͳ2.53 0.08 Ͳ12.01 Ͳ0.65 Ͳ11.07

% 30.07 Ͳ6.48 Ͳ2.37 3.3 5.11 0.66 Ͳ3.44 Ͳ72.52 Ͳ7.17 Ͳ16.14 0.15 Ͳ10.35 2.25 Ͳ5.34 Ͳ1.61 10.52 Ͳ12.87 Ͳ7.49 0.5


StatisticS

Country BG BG CZ DE ES FI HR HU LT LV PL RO SI SK BA BA EUROPE BY TR WORLD CD Region

RailwayUndertaking WagonloadfreighttrafficͲGlobal Wagonload freight traffic - Global Tonne - kilometres x 1 000 000 TonneͲkilometresx1000000 Company Year2012 Year2013 BDZCARGO 1913 BRC 102 115 CD 34991 34277 DBAG 65421 61716 RENFE 2164 2527 VR 8347 9811 HZCargo 5313 GySEV/RÖEE 1815 2246 LG 26378 23971 LDZ 46314 40797 PKP 32397 29397 CFRMarfa 2994 3413 SZ 7789 8070 ZSSKCARGO 23560 23138 ZFBH 2033 2199 ZRS 1388 BC 84253 70460 TCDD 1026 936 SNCC 57 72

M 9 4 9 9 9 9 9 9 9 9 9 9 8 9 9 6 9 6 9

51

% 13.3 Ͳ2.04 Ͳ5.66 16.77 17.53 23.72 Ͳ9.12 Ͳ11.91 Ͳ9.26 13.99 3.61 Ͳ1.79 8.16 Ͳ16.37 Ͳ8.77 26.87

RailwayUndertaking Wagonload freight traffic - Trafic Internationnal WagonloadfreighttrafficͲTraficInternationnal Tonne - kilometres x 1 000 000 TonneͲkilometresx1000000 Region

EUROPE WORLD

Country BG BG CZ DE ES FI HR HU LT LV PL RO SI SK BA BA BY TR CD

Company Year2012 Year2013 BDZCARGO 518 BRC 27 26 CD 5958 5637 DBAG 30705 28679 RENFE 1173 1336 VR 1783 2056 HZCargo 852 GYSEV/RÖEE 323 341 LG 8155 7122 LDZ 12908 10831 PKP 9183 8421 CFRMarfa 698 603 SZ 1749 1811 ZSSKCARGO 4676 4353 ZFBH 350 417 ZRS 85 BC 26764 22445 TCDD 205 136 SNCC 25 35

M 9 4 9 9 9 9 9 9 9 9 9 9 8 9 9 6 9 3 9

% Ͳ4.76 Ͳ5.38 Ͳ6.59 13.89 15.32 5.57 Ͳ12.66 Ͳ16.09 Ͳ8.29 Ͳ13.61 3.55 Ͳ6.91 19.08 0.2375 Ͳ16.13 Ͳ33.65 39.9

SOURCE: UIC

January 2014 | www.railwaypro.com


52 Policies & Strategies

Railway tunnel under the Bearing Strait is a technical challenge [ by Elena Ilie ]

R

ussian officials have backed the idea of building a rail tunnel linking Russia and the US. The tunnel could run under the Bering Strait for 105 km, twice the length of the UK-France Channel Tunnel. The tunnel itself has been estimated to cost USD 20 Billion and to take 10-15 years to build. But an additional 4,000 km of new track would be needed to link it to Russia’s rail network, plus another 2,000 km to connect to existing services on the US side. According to the declarations of Russian Railways President, Vladimir Yakunin, there is a project for the construction of a tunnel under the Bearing Strait to develop a railway link between Russia and North America. The decision for the initiation of

Source: blogs.voanews.com

www.railwaypro.com | January 2014

such a project could be made before 2017. The construction of the tunnel has been estimated at over USD 100 Billion. Compared to the interwar period, when the idea of building a tunnel under the Bering Strait was mentioned for the first time, now we have the technology. Based on reliable examples, such as the Tunnel Channel and the recently inaugurated Marmaray railway tunnel, under the Bosporus Strait, why wouldn’t be possible to have a rail connection in the freezing north as well? If completed, the tunnel would connect Russia’s Far East with Alaska, linking Russia and America for the first time ever. Aside from the technological issue, costs have also been a serious obstacle so far. However, the continuous development of the Russian economy in the past years has once again brought to the attention of Kremlin the tunnel under the Bering Strait. Russian President Vladimir Putin has expressed his support towards the project and has also promised to spend an annual USD 17 Billion on infrastructure modernisation and construction works. The development of a line to Kamceatka and of a railway connection under the Bering Strait to Alaska would be useful in the organisation of transport between North America and Asian countries via Russia, suggested RZD President, Vladimir Yakunin. The schedule of such a project will depend on the “general condition of the economy” and on the transport policies of the US, Canada and Russia. In 2013, the Russian side will make a significant step towards the Bering Strait by launching a 809-km railway line to Yakutsk, the capital of Sakha Republic (part of the Russian Federation), a region extremely rich in minerals and which exceeds the surface of Argentina. Construction of the Berkakit-TommotYakutsk section of the Amur-Yakutsk Mainline (AYAM) is nearing an end following the completion of the line’s eastern terminus station, Nizhny Bestyakh.

Source: blogs.voanews.com

Now that the Marmaray Tunnel was inaugurated and various other major railway projects, such as Baku – Tbilisi – Kars or the North-South Corridor, have postponed their inauguration, while others, such as Rail Baltica, have not even been initiated, it seems interesting to focus on other broad interest projects. The potential connection between Russia and the US, through a railway tunnel under the Bering Strait, is extremely interesting for the railway sector thanks to highly technological challenges that the construction of such a project implies.

Optimistic forecasts predict that the route would pay for itself within ten years. The possible payoff for this project is great. With a rail connection between the two continents, goods could be transported more efficiently than by air. Freight from China (also interested in the project) could easily be routed by train rather than sea shipments and Russia could ship its gas and oil to North America much easier.

Железнодорожный тоннель под Беринговым проливом является технологической провокацией Имея в виду, что тоннель Мармарай был официально открыт, в то время как ряд других крупных железнодорожных проектов как Баку - Тбилиси – Карс или Северо-Южный Коридор отсрочили официальное открытие, а другие, как например Rail Baltica ещё небыли разграничены, есть желание направить своё внимание к иным масштабным проектам. Возможность обеспечить связь между Россией и США через железнодорожный тоннель под Беринговым проливом вызывает интерес в железнодорожном секторе с точки зрения провокаций современной технологии, необходимой для строительства такого проекта.


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