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Document 52012DC0459
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Third report on monitoring development of the rail market
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Third report on monitoring development of the rail market
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Third report on monitoring development of the rail market
/* COM/2012/0459 final */
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT Third report on monitoring development of the rail market /* COM/2012/0459 final */
REPORT FROM THE COMMISSION TO THE
COUNCIL AND THE EUROPEAN PARLIAMENT Third report on monitoring development of
the rail market (Text with EEA relevance) I. Introduction 1. The European railways have
experienced major changes over recent years, connected both to a generally
unfavourable economic situation and the development of the regulatory
framework, particularly at European level. 2. The objective of
establishing a single European railway area based on open competition has been
set out on several occasions: the 2011 White Paper 'Roadmap to a Single
European Transport Area – Towards a competitive and resource efficient
transport system', the Communication 'Action for Stability, Growth and Jobs'
adopted on 30 May 2012 (which emphasises the importance of reducing
administrative burdens and barriers to entry), the conclusions of the January
2012 European Council and in the Communication 'Better Governance for the
Single Market'. This process supports the objectives of the Europe 2020
strategy by means of its contribution to economic growth and job creation. 3. In this context, the
Commission proposed a recast of the first railway package, on which political
agreement was reached on 3 July 2012, while the impact of the opening-up to
competition of the international passenger transport market with effect from 1
January 2012 was starting to be felt. 4. These constant changes to
the regulatory framework prompted the legislator to decide to ask the
Commission to monitor developments in the European rail market on a regular
basis, so as to assess the impact of Community policy on the rail market, and
also to make it easier to define the measures which need to be adopted and
implemented in the future with regard to the rail sector. 5. This report therefore
meets the obligation to monitor the European rail market, as required under
Directive 2001/12/EC[1].
6. The Communication on
monitoring development of the rail market[2],
adopted on 18 October 2007, followed by the report[3] of the same name of 18 December
2009, were also prepared to this end. This report does not just update these
documents, but also contains specific new information on subjects not discussed
in the previous ones. II. Rail Market Monitoring Scheme 7. The Commission has set up
a Rail Market Monitoring Scheme (RMMS) in order to meet the requirements as
regards the monitoring of the market. 8. The Commission is assisted
in its monitoring tasks by a working group formed of experts from national
ministries and the rail sector, including social partners. Between 2001 and the
end of 2011, the RMMS working group met on 25 occasions, with three of its
meetings taking place since the adoption of the previous report. 9. The analysis contained in
this report is based on the RMMS group’s work, and in particular on the results
of the questionnaire, but also on recent studies and from statistics from the
European Commission, specifically Eurostat. For the purposes of this analysis,
the concept of Member States includes Norway, which also completed to the
questionnaire. III. Implementation
of the legal and institutional framework 10. All Member States with rail
networks have transposed the Directives contained in the first railway package.
However, incorrect transposition, to varying degrees and with regard to sometimes
different aspects, has resulted in the Commission initiating infringement
proceedings against most Member States since 2008. The proceedings have reached
different stages depending on the country and the type of situation. At the end
of 2011, cases were pending in respect of 12 countries before the Court of
Justice. Recurrent objections relate to the independence of essential
functions, infrastructure charging and the independence of the regulatory body.
11. In addition, the Commission
has proposed[4]
a recast of the first railway package; in terms of form, this involves
simplifying the regulatory framework in the rail sector by merging,
harmonising, clarifying and updating the three Directives mentioned above in
one text. In terms of content, three objectives are pursued: ensuring adequate
financing and charging for railway infrastructure, guaranteeing fair
competitive conditions for operators and reinforcing the effectiveness of
supervisory bodies. 12. With regard to the second
railway package, the national institutions required have been set up. The
Commission is currently assessing the transposition of the Safety Directive[5], with its work due to be
completed by mid-2013. 13. With regard to the third
railway package, the deadline for transposition of Directives 2008/57/EC[6] and 2009/131/EC[7] was 19 July 2010, while the
deadline for Directive 2011/18/EU[8]
was set at 31 December 2011. For Directive 2007/58/EC[9], the deadline for transposition
was 4 June 2009 and the deadline for full implementation 1 January 2010. 14. In addition, the Commission
announced several new rail transport initiatives in its White Paper in March
2011:[10]
it intends to propose a 'fourth railway package' with the objective of opening
up domestic passenger transport to competition, improving access to
infrastructure and associated services, as well as extending the European
Railway Agency's tasks in the area of certification. 15. The regulation on freight
corridors[11]
provides for the establishment of six corridors by 10 November 2013 and three others
by 10 November 2015. Member States must set up an Executive Board for each
corridor responsible for supervising the extensive implementation work by the
Management Board, composed of the relevant infrastructure managers. Most
corridors have already set up their Executive Boards. These freight corridors
will constitute the backbone of the TEN-T multimodal corridors. 16. Lastly, the recast of the
directives of the first railway package has enabled developments in the areas
of regulatory supervision, infrastructure financing and charging and market
access conditions. A formal network of regulatory bodies will be created for
coordination and exchange of best practice, together with a clause stipulating
a review in 2014. IV. Opening-up
of the rail market 17. At the end of 2010, there
were almost 700 European rail operating licences in the freight sector,
including 340 in Germany and 72 in Poland. The number of licences in the
passenger sector now exceeds 500, including 320 in Germany and 44 in the United
Kingdom. At EU level, the number of licences has therefore increased by nearly
16% for the freight sector and 11% for the passenger sector in two years. It
should be noted that these figures do not include national licences,
significant numbers of which are still issued by some Member States
(undertakings which provide exclusively regional rail freight services may hold
national licences only). 18. With regard to freight
services, in tonne-kilometre terms, undertakings other than the largest
operator hold the largest market shares in Romania (55%), the United Kingdom
(51%) and Estonia (43%), as shown in figure 1. Over two years during the
crisis, the market share of non-incumbent operators increased significantly in
several Member States (from 10% to 23% in Latvia, from 14 to 27% in Belgium and
from 10 to 20% in France), while it remained zero or close to zero in Finland,
Ireland, Lithuania and Luxembourg. Figure 1: Total market shares
(expressed as a percentage of traffic in tonne-kilometres) of rail freight operators
other than the main operator at the end of 2010 Source: RMMS
questionnaire completed by Member States in May-June 2011 19. In the case of passenger
transport, new entrants have particularly high market shares in the United
Kingdom (90%), Estonia (50%) and Poland (48%), while countries where the
incumbent operator still controls the whole of the market are now in a minority
(Belgium, Greece, Spain, Finland, Ireland, Lithuania, Slovenia and Slovakia).
However, in some Member States such as Poland, new operators are the result of
the partial break-up of the incumbent operator and hold de facto monopolies in
their respective regions. Figure 2: Total market shares (expressed as
a percentage of traffic in passenger-kilometres) of operators of rail passenger
transport services other than the main operator at the end of 2010 Source: RMMS
questionnaire completed by Member States in May-June 2011 20. This situation is largely
due to the fact that the opening up of the domestic rail passenger transport market
occurred at a more or less early stage in the different Member States: from
1992 in Sweden, in 1994 in Germany, in 1995 in the United Kingdom, then in
Denmark and in Italy, and subsequently in a further ten EU countries. 21. As regards international
passenger transport, which was opened up to competition by European legislation
on 1 January 2010, alliances between incumbent operators remains the most
common operating mode. However, services are gradually appearing on several
routes which are in competition with the services provided by the incumbent
operator of one of the countries served. This is the case, for example, of
Deutsche Bahn and ÖBB which are working with the Italian company FNM on the
Munich-Bologna route. Similarly, Trenitalia and Veolia Transdev are now
operating services on the Paris-Venice route. Westbahn GmbH has opened a line
from Vienna to Salzburg and Freilassing. Deutsche Bahn could also be operating
independent services from Germany to London or Paris in the relatively near future.
Lastly, with regard to cross-border regional services, a multiplication of new
services can be observed, some of which are operated by incumbent operators and
others by new entrants, as demonstrated by a Commission study[12]. V. operation of the EU rail transport market[13] V.1 The
position of rail transport compared to other modes 22. While the rail sector's
share of overall freight transport had experienced a steep decline over
previous decades, its market share has remained slightly above 11% for a
decade, nevertheless with only 10.2% in 2010 in a crisis context. 23. The rail sector's share in
land freight transport, which had stabilised since 2002 at 17.1 %, whereas
in 1995 it still had a 20.2 % share, fell in 2010 to 16.2%. Figure 3: Rail share in freight
transport (EU-27, 1995-2010) Source: EU
transport in figures, Statistical Pocketbook 2012 24. In the case of passenger
transport, the rail sector's share of the passenger transport market in the
EU-27 has increased slightly over recent years, rising from 5.9% in 2004 to
6.3% in 2010. However, considerable differences remain between the Member
States with railway networks, as this share accounted for some 10% or more in
Hungary and in Austria, but scarcely 2% in Estonia and a little more than 1% in
Greece. Figure 4: Rail share in passenger
transport (EU-27, 1995-2010) Source: EU
transport in figures, Statistical Pocketbook 2012 V.2 Trends in rail transport volumes and performance[14] a) Freight transport 25. The crisis resulted in an
18.3% drop in freight transport in tonne-kilometres in the EU-27 in 2009. The
rebound in the sectors which had been most affected, in particular the steel,
chemical and car industries, resulted in a marked inverse trend in 2010, as no
fewer than 15 Member States recorded increases of more than 10%, though without
returning to 2008 levels at this stage. According to figures provided by the
CER (Community of European Railways), the performance of rail freight in the
third quarter of 2011 remained 9.2% lower than that of the third quarter of
2008 across the whole of Europe. Figure 5: Development of rail freight traffic 2009-2010 in
tonne-kilometres Source: RMMS questionnaire completed by
Member States in May-June 2011 b) Passenger transport 26. Passenger transport was
relatively unaffected by the crisis, as the decrease in traffic levels in
passenger-kilometres was 1.4% for the EU-27 in 2009, where the increase of 3.6%
in the EU-15 was not sufficient to offset the decrease of 8.3% in the EU-12
countries. Developments in 2010 were mixed, with a less
favourable situation again in the EU-12 (-11.3% in Romania) than in the EU-15,
with the highest increase in the United Kingdom (+5.8%). Figure 6: Development of rail passenger transport in 2009/2010 in
passenger-kilometres Source: RMMS
questionnaire completed by Member States in May-June 2011 VI. Performance
of railway undertakings a) Employment 27. At the end of 2010, the
number of staff employed by undertakings responsible for the commercial
operation of rail transport services and the management of infrastructure was
110 000 in France, 80 000 in Germany and 64 000 in Poland (Annex
6). However, since the scope of activity of these undertakings varies from one
State to another, comparison remains difficult. Similarly, the decrease in the
sector's workforce over the last decade is difficult to quantify precisely. 28. The proportion of people
over 50 among the active population employed in land transport accounted for
31% in 2010 compared to an average of 27% across all sectors. The sector is
also characterised by an early average retirement age (55 years) and a low
proportion of women in the overall workforce (14%). b) Railway supply industry 29. According to a study by
UNIFE (Association of the European Rail Industry)[15], the railway market worldwide
was estimated at more than EUR 120 billion in 2007 and is forecast to reach EUR
154 billion by 2016. The highest growth rates are expected in the Asia-Pacific
region and in the countries of the Community of Independent States. 30. In addition, the CER
(Community of European Railways) reports that a major renewal of railway
rolling stock for passenger transport is in progress in the Czech Republic,
Slovakia and Slovenia. c) Quality of service and passenger
satisfaction 31. The quality of rail freight
services in the European Union remains difficult to measure as a result of a
general lack of indicators. Nevertheless, the gradual implementation of
performance monitoring of rail freight services on the different freight
corridors should provide some information on service punctuality. 32. Pursuant to Regulation
1371/2007[16],
rail operators subject to that Regulation are required to publish an annual
report on the quality of services provided and punctuality of passenger
services in particular. 33. In addition, a study
carried out for the Commission (Annex 15) found that passengers are generally
satisfied with security on board trains, journey times forecast and comfort
levels in passenger coaches; however, they tend to consider that improvements
could be made to train cleanliness and maintenance, punctuality and the quality
of information provided, particularly when services are delayed. Punctuality
appears satisfactory in a significant number of Member States, but is
considered insufficient by more than 40% of those surveyed in Poland, Germany,
Sweden, Romania and France. 34. Passengers also consider
that particular attention should be paid in stations to car parks, the quality
of facilities and cleanliness and maintenance. On the other hand, passengers
are generally satisfied with ticket distribution, information and security. The
level of satisfaction with regard to stations varies considerably from one
country to the next; it is very high in Spain and Luxembourg, but remains low
in Poland and Hungary. d) Public service obligations 35. It is considered that 90%
of the domestic rail passenger market is covered by public service obligations[17]. In the EU-15 countries, most
public service contracts are signed for a minimum duration of between two and
ten years; in the EU-12, whereas the duration of most contracts was not more
than one year in 2005, the proportion of long term contracts has increased,
with a beneficial impact on investment. 36. Compensation expressed as a
percentage of the difference between expenditure and revenue from ticket sales
did not exceed 71% in the EU-12 countries in 2009, compared to 94% in the
EU-15; these figures represent a 4 point decrease in relation to 2007 in a
context of extensive budgetary restrictions (Annex 11). e) Safety 37. According to the European
Railway Agency's report (Annex 16), 188 train passengers were victims of fatal
accidents between 2008 and 2010, out of a total of 4 120 victims over the
same period. 60% of the fatalities involved people who were on tracks in
prohibited areas. 38. The overall level of safety
in Europe, measured in terms of the number of fatal accidents per billion
train-kilometres, has continued to improve since 1990, albeit at a slower rate
since 2004, as shown in figure 7. Figure 7: Fatal train collisions and derailments per billion
train-kilometres Source: European Railway Agency 2012 Safety
Performance Report VII. Rail transport infrastructure a) Network lengths 39. The EU has a total of
approximately 212 000 km of railway lines, a level which has been
relatively stable for a number of years. In some Member States which are
experiencing particularly difficult budgetary situations, closures are
affecting not lines but tracks, especially in Greece, Romania and Portugal,
primarily because the networks are oversized. 40. The European high speed
network, however, has continued to grow, reaching 6 600 kilometres in
2010, corresponding to a two-fold increase in eight years. Spain now has the
biggest network ahead of France (Annex 8). b) Trends in infrastructure
investment 41. According to ITF
(International Transport Forum), the share of investment in land transport
infrastructure has remained stable at 0.8% in western Europe over the last
decade, while it increased in central and eastern European countries, reaching
2% in 2009. The rail sector's share of that investment varies extensively,
however, from one country to the next: in 2009 it stood at 65% in Austria, 55%
in the United Kingdom, 52% in Luxembourg, 45% in Sweden and 41% in Belgium, and
32% on average in western Europe; in central and eastern European countries,
however, the rail sector's share dropped sharply from 22% in 2000 to 13% in
2009 (Annex 9). c) Charges and multi-annual
contracts 42. The level of network access
charges varies very significantly from one infrastructure manager to the next;
for a 1 000 tonne freight train, the price in euros per train-kilometre
ranged from 0.1 in Spain and 0.5 in Sweden to 10.2 in Slovakia and 9.8 in
Ireland (Annex 10). Nevertheless, it would appear that these differences are
set to decrease, as several EU-12 countries where charges are usually high have
announced or even embarked on a reduction of their tariffs. It should be noted
that charges may also vary significantly within one national network depending
on the lines or time slots involved. 43. The Commission considers
that multi-annual contracts between infrastructure managers and railway
undertakings are conducive to ensuring a good level of service and the
requisite financial balance. Multi-annual contracts have been signed in some
fifteen Member States (Annex 12). d) Deployment of ERTMS 44. The introduction of ERTMS
(European Railway Traffic Management System) is a significant step towards
ensuring greater interoperability. At the end of 2011, more than 4 000
kilometres of lines were in service with ERTMS in the EU, an increase of more
than 20% compared to the previous year. Moreover, more than 4 000
kilometres of lines are currently being fitted and are scheduled to enter into service
by the end of 2013. 45. The European Deployment
Plan adopted on 22 July 2009 sets out the requirement for key axes to be
equipped by 2015. Before the end of 2012, Member States must notify a detailed
timetable setting out the dates of calls for tenders and the main steps in the
completion of the project to enable installation of ERTMS by 2015. The
Commission will be monitoring compliance with this obligation closely. VIII. Conclusions 46. The 2009 economic crisis
has had a significant impact on rail freight traffic. Despite a significant
rebound, 2010 levels have remained some 15% below those recorded in 2008 in
most Member States; the decline has even continued in France and Italy. At EU
level, it nevertheless appears that the rail sector's modal share is now comparable
with pre-crisis levels. 47. The effects of the crisis
have been much less pronounced for rail passenger transport. The increase in
traffic observed in most EU-15 countries has continued; the decline which
started in the 1990s in the EU-12 countries has nevertheless continued in 2010.
In this context, there is a clear correlation between the recent development of
traffic observed in each of the Member States and passenger satisfaction levels
as expressed in the survey carried out for the Commission, as borne out, for
example, by the positive results in the United Kingdom and Lithuania. 48. The opening-up of the
market gathered pace in the rail freight sector during the crisis, albeit at a
varying speed from one Member State to the next. In addition, some incumbent
operators now have significant market shares in other European countries as a
result of subsidiary undertakings operating locally. The crisis has not
generally slowed down the progress of new entrants on different national
markets. It is important to note in this context that increasing the number of
competitor operators has not had a detrimental impact on the high level of
safety of this transport mode. 49. The effective opening up to
competition of the passenger market is taking place gradually, but now involves
a majority of Member States. The railway market monitoring process will be
complemented in the short term by the publication of a Eurobarometer study on
the opening-up of the domestic rail passenger market, currently being carried
out for the Commission. The results of the study will be taken into account in
the preparation of the future legislative proposal on the opening-up of the
domestic rail passenger market. [1] Section Va of Directive 2001/12/EC of the European
Parliament and of the Council of 26 February 2001 (OJ L 75,
15.3.2001) amending Council Directive 91/440/EEC on the development of the
Community's railways. [2] Communication from the Commission to the Council and
the European Parliament on monitoring development of the rail market of 18
October 2007 (COM(2007) 609). [3] Report from the Commission to the Council and the
European Parliament on monitoring development of the rail market COM(2009)676
as amended by the corrigendum of 8 December 2010. [4] Communication from the Commission concerning the
development of a Single European Railway Area COM(2010) 474 final of 17
September 2010. [5] Directive 2004/49/EC of the European Parliament and
of the Council of 29 April 2004 on safety on the Community's railways and
amending Council Directive 95/18/EC on the licensing of railway undertakings
and Directive 2001/14/EC on the allocation of railway infrastructure capacity
and the levying of charges for the use of railway infrastructure and safety
certification. [6] Directive 2008/57/EC of the European Parliament and
of the Council of 17 June 2008 on the interoperability of the rail system
within the Community. [7] Commission Directive 2009/131/EC of 16 October 2009
amending Annex VII to Directive 2008/57/EC of the European Parliament and of
the Council on the interoperability of the rail system within the Community. [8] Commission Directive 2011/18/EU of 1 March 2011
amending Annexes II, V and VI to Directive 2008/57/EC of the European
Parliament and of the Council on the interoperability of the rail system within
the Community. [9] Directive 2007/58/EC of the European Parliament and
of the Council of 23 October 2007 amending Council Directive 91/440/EEC on
the development of the Community’s railways and Directive 2001/14/EC on the
allocation of railway infrastructure capacity and the levying of charges for
the use of railway infrastructure. [10] White Paper of 28 March 2011: 'Roadmap to a Single
European Transport Area – Towards a competitive and resource efficient
transport system' COM(2011) 144 final. [11] Regulation (EU) No 913/2010 of the European Parliament
and of the Council of 22 September 2010 concerning a European rail network for
competitive freight. [12] Situation and perspectives of the rail market, March
2010. [13] As Cyprus and Malta do not have railway networks, all
references to EU-12 or EU-27 countries should be understood as not including
these two countries. [14] Rail transport performance means rail transport
expressed in tonne-kilometres or passenger-kilometres. [15] Worldwide
Rail Market Study – Status Quo & Outlook 2016 [16] Regulation (EC) No 1371/2007 of the European Parliament
and of the Council of 23 October 2007 on rail passengers’ rights and
obligations. [17] Public service rail transport in the European Union: an
overview (November 2011)