Getting rail on track is a long haul

Date: 02/02/06

Europe's rail services are failing to compete with the road as an attractive option for both freight and passenger travel. This is despite the European Commission's 2001 White Paper on transport policy which aimed at revitalising the sector by opening up competition, improving infrastructure and modernising services.

Although the volume of goods transported by rail increased by 3.5% in the EU in 2004, it still only accounts for 17% of total freight haulage and trails far behind the US, where modernisation of the sector has resulted in around 40% of goods being carried by rail.

Making railway networks fully compatible is essential to boost rail's profile in Europe's international transport make-up.

Because railways were traditionally built to national designs, both the technical and legal differences are huge. These range from variations in the voltages on railways, maximum speeds and signalling systems to upper limits on freight volume and the different approaches to the acceptance of international drivers.

Often, locomotives and staff have to be changed at borders, making journeys longer and costlier.

Since 2002, all high-speed networks have had to be in line with EU-wide technical specifications. The European Railway Agency (ERA) is currently drawing up rules for upgrades to existing conventional trans-European networks (TENs) but these are not expected to come into force for at least three or four years.

Although some wealthier European states have put a strong emphasis on investment in high-speed networks, others have not done so.

This has been partly because of a lack of funds available both nationally and at EU level - where spending was limited.

EU funds for 30 priority TENs projects - 22 of which concern rail - will increase in 2007.

But the level has already been cut dramatically from EUR 20 billion to EUR 7bn in the latest budget draft put forward by national governments in December.

The European Parliament has already attacked the decision. "Major projects risk being abandoned not least because effective progress in construction phases from 2010 depends on an adequate commitment to invest from 2007," Paolo Costa, chairman of the Parliament's transport committee, told MEPs on 25 January.

But as the EUR 7bn figure is unlikely to change significantly before approval of the final budget, member states should be as prepared as possible if they want to get their hands on the money.

"Member states should invest in proper planning as only the best-planned projects will be eligible in the future," warns Zoltan Kazatsay, deputy director-general for energy and transport at the European Commission.

Political will also plays a big role in transport development, particularly in rail services owing to the difficulties in investing in the sector. For example only long-distance travel is cost-effective because unloading and reloading is extremely pricey.

Kazatsay says that the best solution is to integrate rail services with other modes of transport such as road or waterways.

But this means that some governments would have to commit themselves to more ambitious investment plans.

"It is often easier to put money into the road sector where the results are more spectacular," notes Kazatsay.

This is also true of private investment, which is a vital part of the expansion of the European network, as it is much more attractive for a company to invest in a sector with visible results.

The biggest hope for the sector now rests on the progressive opening of the market to competition, he adds.

International freight transport has been open to the entire European rail network since 1 January and the market for national freight - or 'cabotage' - will open from January next year.

Under the terms of the third railway package that has just been agreed by national governments, international passenger transport by rail would be opened up to competition by 2010, although this is still subject to approval by the Parliament.

Article takes a look at the EU's plans to liberalise railway markets in the freight and passenger sectors.

Article is part of a European Voice Special Report, 'Europe's Transport Infrastructure'.

European Commission: DG Mobility and Transport: Transport: Rail Transport http://ec.europa.eu/transport/modes/rail/index_en.htm

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