compania naţională de căi ferate national railway company “cfr” s.a. bucharest, october 6 th,...
DESCRIPTION
Institutional separation and open access to the railway infrastructure in accordance with the EU Directives (1998) Infrastructure Manager (CFR S.A.) Infrastructure Manager (CFR S.A.) National Passenger Operator (CFR Calatori) National Passenger Operator (CFR Calatori) National Freight Operator (CFR Marfa) National Freight Operator (CFR Marfa)TRANSCRIPT
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Compania Naţională de Căi FerateNational Railway Company
“CFR” S.A.
Bucharest, October 6th, 2015
Building the new railway economy
Challenges & Opportunities
Dan M. COSTESCU, Chief Executive OfficerDan M. COSTESCU, Chief Executive Officer
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Network length:10 629 km
Double line:2 909 km
Electrified line:4 028 km
Number of stations:930
Network characteristicsNetwork characteristics
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Institutional separation and open access Institutional separation and open access to the railway infrastructure in to the railway infrastructure in
accordance with the EU Directives accordance with the EU Directives (1998)(1998)
Infrastructure Manager (CFR S.A.)Infrastructure Manager (CFR S.A.) National Passenger Operator (CFR Calatori)National Passenger Operator (CFR Calatori) National Freight Operator (CFR Marfa)National Freight Operator (CFR Marfa)
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Institutional separation and open access to the Institutional separation and open access to the railway infrastructure – Railway Undertakings railway infrastructure – Railway Undertakings
that concluded the access contract on the railway that concluded the access contract on the railway infrastructure managed by CFR S.A. in 2015infrastructure managed by CFR S.A. in 2015
Type of license Number of undertakings Owner
Passenger and Freight 3 Private
Freight 21 1 State owned, 20 Private
Passenger 4 1 State owned, 3 Private
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Projects for the modernization of the railway sections
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Modernization of Romanian railway stations
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Rehabilitation works to bridges and tunnels on the TEN-T railway network
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Increase in traffic safety
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Challenges Challenges & &
OpportunitiesOpportunities
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Expensive IT solutionsExpensive IT solutions
vsvs
Low cost rail servicesLow cost rail services
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Innovative Innovative
DigitalisationDigitalisation
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Overregulated Overregulated and change-and change-
resistant resistant workforce workforce
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Railway atomisationRailway atomisation
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Strong Railway Strong Railway AdministratorAdministrator
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IntraIntra-modal competition -modal competition
vsvs
InterInter-modal competition-modal competition
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Sustainable business environment
Assuring a level play field
Recast directive
Amending the national legal frame
Modal Shift
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ImplementingImplementing aa new legal frame & business environmentnew legal frame & business environment
1st Stage: Present situation, introductory steps:- Bring topic in public & political debate- Run market and econometric studies- Design the legal frame- Set the new financial mechanisms
2nd Stage: Implementation according to an appropriate timing :
- Costs internalization for road- Railway access fees reshaping- Improving the KPI of infrastructure
3rd Stage: Including the ignition and progress of modal shift over the break-even point when the
subsidy turn to profit
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Financial mechanismsFinancial mechanisms
Already known, and validated by on-going activity
- Own revenues – access fees- Own revenues – noncore activities- State budget - subsidies
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Financial mechanismsFinancial mechanisms Not yet tested or validated,
existing or new “positivecross-subsidies” from the polluter
- 20-30% of environment tax (from road)- 20-25% of RO-vignette tax (from road)- % of the over excise duty for fuel- 100 % heavy lorries/coaches over tax
Extending the concept “polluters pay” to “polluters pay to… green modes”
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Financial mechanismsFinancial mechanisms
Further different developments:
- to be identified after further internal analysis
- to be identified by consultants- resulting from the experience or best
practices of other railways
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Impact of modal-shift over GDPImpact of modal-shift over GDP
External Costs – Passengers Transport
10% modal shift from road to rail
1% of Romanian GDP
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Modal Shift EffectsModal Shift Effects
Incomes Costs
Traffic Intensity
Inco
mes
& C
osts
Subsidy
ProfitProfit
Railway subsidy turns to profit
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Compania Naţională de Căi FerateNational Railway Company
“CFR” S.A.
Thank Thank youyou ! ! Bucharest, October 6th, 2015