developing the eu transport infrastructure network: strategy, challenges and opportunities

EU TEN-T Coordinator

Developing the EU Transport Infrastructure Network:

Strategy, Challenges and Opportunities

Carlo Secchi

European TEN-T Coordinator

Asian Development Bank Institute Tokyo, September 11th

2015


The framework: EU White Paper (WP) on transport

• WP 1992 Opening the transport market

• WP 2001 Rebalancing modes to fight

capacity constraints

• WP 2011 Putting transport in the wider

‘EU 2020’ perspective:

An agenda for promoting growth and jobs

through greater resource efficiency


Outline

• Challenges ahead

• A vision for the transport system of 2050

• 1 target (-60% of GHG emissions

Energy Union) and 10 indicative

goals/benchmarks to guide policy action

• How to do it 4 “I”s and 40 actions


Old challenges remain, new ones appear

Increasing competitive pressure in the global economy

(Long Term) Increase in oil price and persistent oil

dependency- A deteriorating climate and local environment

Growing congestion and poorer

accessibility. An infrastructure gap

in the enlarged EU


Transport for business Transport as a business

• The EU economy is one of the most open in the world. The future prosperity of our continent will depend on the ability of all of its regions to remain part of a fully integrated world economy

• The transport industry is an important part of the economy: in the EU it directly employs around 10 million people and accounts for about 5% of GDP

• Many European companies are world

leaders in infrastructure, logistics, manufacturing of transport equipment and traffic management systems


Growing congestion, poorer accessibility

• Fuel costs and congestion levels to rise significantly by 2030 further divergences in accessibility


Increasing oil price & persistent oil dependency

• Transport depends on oil for about 96% of its energy needs. The transport sector accounts for almost 90% of the projected increase in global oil use.

•The depletion of reserves and growing global demand would lead to ever higher oil prices. The number of cars in the world is projected to increase from around 750 million today to more than 2.2 billion by 2050.

0

50

100

150

200

250

300

1980 1990 2000 2010 2020 2030 2040 2050

$/b

bl

Oil price in $ '2008/bbl Oil price in $/bbl (current prices)

Source: IEA World Energy Outlook 2010

Source: Prometheus NTUA (E3MLab)


A tight carbon budget for transport

• Transport accounts for about one fourth of GHG emissions: 60% comes from passenger transport, one quarter is urban, less than one quarter is inter-continental and over half is medium-distance

. In October 2009, the European Council showed support for the objective of reducing GHG emissions in the EU by 80 to 95% by 2050 compared to 1990 levels

Source: PRIMES-TREMOVE and TREMOVE

Source: PRIMES, NTUA (E3MLab)


Meeting the challenge

• To meet the challenges, transport has to:

• Use less energy

• Use cleaner energy

• Exploit efficiently a multimodal, integrated and ‘intelligent’ network


The vision

Freight

• High global maritime standards

• More efficient hinterland connections for ports

• Modern vessels and cleaner fuels for shipping

• Paperless logistics • Multimodal long-distance

freight corridors • No barriers to maritime

transport • Cleaner trucks on shorter

distances

• Better interface between long distance and last-mile

• Freight consolidation centres and delivery points

• ITS for better logistics • Low-noise and low-emission

trucks for deliveries

Passengers • Adequate capacity and

improved overall travel experience (efficient links between airports and rail, minimum hassle for personal security screening…)

• Seamless multimodal travel (online multimodal info and ticketing, multimodal hubs…)

• Quality service and enforced passengers’ rights

• Near-zero casualties for road

• Non-fossil mobility (Clean and efficient cars; Higher share of public transport; Alternative propulsion for urban buses and taxis; better infrastructure for walking and cycling)

Long-distance travel and

intercontinental freight

Intercity travel and transport

Urban transport

and commuting


Ten Goals for competitive and resource efficient transport (I)

| 11 Roadmap to a Single European Transport Area

1. Halve the use of ‘conventionally-

fuelled’ cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics by 2030

2. 40% of low-carbon sustainable fuels in aviation and 40% (if feasible 50%) less emissions in maritime by 2050

New and sustainable fuels and propulsion systems


Ten Goals for competitive and resource efficient transport (II)


3. 30% of road freight over 300 km should

shift to other modes by 2030, and more than 50% by 2050

4. Triple the length of the existing high-speed rail network. By 2050 the majority of medium-distance passenger transport should go by rail

5. A fully functional and EU-wide multimodal TEN-T ‘core network’ by 2030

6. By 2050, connect all core network airports to the rail network; all seaports to the rail freight and, where possible, inland waterway system

Optimising the performance of multimodal logistic chains,

including by making greater use of more energy-efficient

modes


Ten Goals for competitive and resource efficient transport (III)


7. Deployment of SESAR by 2020 and

completion of the European Common Aviation Area. Deployment of ERTMS, ITS, SSN and LRI, RIS and Galileo

8. By 2020, establish the framework for a European multimodal transport information, management and payment system

9. 2050, move close to zero fatalities in road transport

10.Move towards full application of “user pays” and “polluter pays” principles

Increasing the efficiency of transport and of infrastructure

use with information systems and market-based incentives


Internal Market:

• Single European Railway Area: domestic passengers market open to competition; competitive tendering for public service contracts; structural separation between infrastructure management and service provision

• E-Maritime initiative for paperless and intelligent shipping

• A social code for mobile road transport workers and less restrictions to road cabotage

• Access to real time travel and traffic information to facilitate multi-modal travel planning and integrated ticketing

• Further consolidation of passengers’ rights legislation


Innovation:

• An EU Strategic Transport Technology Plan (2011) that brings together infrastructure and regulatory requirements, coordination of multiple actors and research and innovation actions

• A Clean Transport Systems Strategy (2012), with specific measures to facilitate the introduction of Clean Vehicles (e.g. rules on interoperability of charging infrastructure, guidelines and standards for refuelling infrastructure)

• Procedures and financial assistance for urban mobility plans, on a voluntary basis

• Common EU standards for carbon footprint “calculators”


Infrastructure:

• Revision of TEN-T (2011) based on the creation of a ‘core network’ and on a corridors’ approach. Over € 1.5 trillion investments for 2010-2030

• A single framework to use coherently money in TEN-T, cohesion and structural funds. Conditionality of funding will ensure focus on EU priorities and adoption of new technologies (2011)

• Single management structures for rail freight corridors

• Guidelines for the application of infrastructure costs to passenger cars (2012). In a second stage, a framework for the internalisation of costs to all road vehicles


International:

• Completion of the European Common Aviation Area of 58 countries and 1 billion inhabitants by 2020

• Extend internal market rules through work in international organisations (ICAO, IMO, OTIF, OSJD, UNECE, the international river commissions etc) and where relevant attain full EU membership

• Extend our transport and infrastructure policy to our immediate neighbours, including in the preparation of mobility continuity plans

• Promote our approach globally: opening up transport markets to free and undistorted competition and environmentally sustainable solutions


The new TEN-T toward a single EU Transport Area

From patchwork … to network


Efficient Single EU Transport Area: Internal Market GHG

Connecting Networks: Cross-border & Missing links (CEF Annex I)

Connecting Modes: Multimodal layer Platforms and nodes

Connecting Operations: Homogeneous, Interoperable, ambitious standards Seamless Information flow, Administrative simplification

TEN-T to deliver efficiency in transport


Key elements of the new TEN-T

• Concentration (e.g.: from 1200 Ports "TEN-T" to 140 Core

Ports)

• Dual layer approach based on an objective methodology: core and comprehensive network

• Ambitious and harmonised standards for all infrastructures (e.g.: Railways: ERTMS, electrification;, train length 740 m; Ports: LNG, rail & road access)

• Horizontal priorities SESAR, ITS, RIS (river info system)

VTMIS for navigation; innovation, maritime connectivity (Motorways of the sea)

• Common deadlines to achieve network (2030/2050)

• Corridors and coordinators for implementation


Dual layer

Core Network Comprehensive Network

a. accessibility to EU

Regions

b. access to the

core network

foster internal cohesion

smooth operation of the internal market


Freight Transport (Core Network) . Railways

(Green - Conventional, Purple = mix high-speed)

. Inland Ports

. Maritime Ports

. Rail-road terminals


Core Network Corridors as development tools

• 9 Core Network Corridors

• MoS & ERTMS as horizontal priorities

• Support the implementation of the core network

• Synchronise investments to optimise network benefits

• Multimodal, involving at least 3 Member States

• Flexible governance structures, involving stakeholders

• Core Network Corridors aligned and partly overlapping with Rail Freight Corridors


The 9 Core Network Corridors


Corridors' governance

• Coordinators for each of the 9 corridors

• Coordinators for ERTMS and Motorways of the Sea

• Corridor Forum

o chaired by European Coordinator

o Consultative body

o gradual involvement of stakeholders (with the agreement of Member States involved)

• Work Plan revised every 2 years, endorsed by MS


TEN-T Corridors – the Italian case

• Baltic - Adriatic • Mediterranean • Scandinavian -

Mediterranean • Rhine-Alpin


What happened so far?

● 4 Corridor Forum meetings held in Brussels in 2014 with gradual involvement of Member States, infrastructure managers of all corridor transport modes (rail, road, ports, airports) and Regions

● 2 Working Group sessions (Ports / Regions)

● Final corridor study with detailed analysis of corridor presented in December 2014

● Corridor work plan, based on results of corridor study, elaborated by European Coordinator and presented to Member States on 22 December 2014 for their approval

● May 2015: Approval of corridor work plan by all Member States concerned

● Hearing in the European Parliament

● Presentation of the work plan to the wider public (TEN-T DAYS & after)


What's next?

Further development of the corridor study

● Selection of consultant for further development of the corridor study and support to the European Coordinator currently ongoing

● Aim: to deepen and consolidate the analysis of 2014

● Update and deepening of the project list for all modes with the aim to prioritize investments (detailed description of individual projects and their timing and costs; analysis of projects' feasibility and maturity; identification of their added value for the corridor; …)

● Enhancing coherence between the core network corridors and horizontal priorities ERTMS and MoS; consolidating the exchange with the RFC

● Covering issues that were only marginally touched upon so far, notably innovation, ITS, sustainability and interoperability

● Dealing with environmental impacts, noise, greenhouse gas emissions and climate change


Resources & Enablers

Funding Support

Financing Support

Projects implementation

Non Financial instruments

National Resources

Cohesion Pol.: ESIF

PPP framework

EFSI / CEF IFI

Projects design & maturity Capacity Building

TEN-T Policy

Infrastructure Programme Accompanying Measures

Projects Definition

Transport Policy

Increase Revenues from Transport: Cross Financing…

TEN-T: CEF grants

Private Capital


The Connecting Europe Facility New multisectoral infrastructure fund

Connecting Europe Facility

Transport guidelines

Energy guidelines

Telecom guidelines

2014-2020 MFF

Sectoral policy frameworks

(priority setting for 2020, 2030, 2050)


The CEF budget

€33.2 billion in current prices

€26.250 B transport (- 2.2 B€ EFSI tbc) • €14.945 billion for all 28 MS, up to 2.1 billion for IFIs

• €11.305 billion for the MS eligible to the Cohesion Fund

€1.141 billion for broadband and digital

services (- 0.1 B € EFSI tbc) €5.850 billion for energy infrastructure (-0.5

B€ EFSI tbc)


EFSI – the "Junker Plan"


Leveraging with EU Financial instruments - example

European Investment Bank

Senior Debt in

forms of

loans or

bonds

Project Company,

- paying

investment costs,

interests,

operational

costs…

- Receiving

revenues (from

users,

authorities…)

- Reimbursing

debt

Equity

Sub-debt

(funded or

unfunded)

provided by

financial partner

Funds from project sponsors

or infrastructure owners

Funds from CEF

Financial partner (EIB or national

investment banks)

Banks providing

loans or Bonds

bought by Pension

Funds and insurance

company)

Total cost:

€700m €100m

€600m

€100m

€30m


How to make it work?

"CBS Report"

Action Plan: 12 Recommendations to make Project financing a large scale success in the EU


Report structure

III – 12 Recommendations rationale and detailed

measures

II - Executive Summary: 12 recommendations

explained

I 12 recommendations:

strategic outline

IV - Pilot projects

and sectors for innovative financial schemes

V Additional remarks

and follow-up

• 12 recommendations regrouped in 4 building blocks


Action plan recommendations Building block 1: Support project pipeline

A stable

project

pipeline

• Technical assistance & capacity building

• Advisory hub and beyond (EUROSTAT…)

Full

life-cycle

approach

• Embedding life-cycle

• Including revenues and maintenance

Enhance

quality of

projects

• Supporting projects from conception…

• …financing, risk sharing


Action plan recommendations Building block 2: Administrative key topics

Improve procure-

ment

• Streamline procedures (across borders)

• Exploit PPP/ concessions/ transport funds

Simplify

permitting

• Fine-tune and anticipate permitting (across borders)

• Mainstream environment

State aid • Provide certainty on EFSI

/ EU funds

• "One-Stop-Shop" fast-track for key EU projects


Action plan recommendations Building block 3: Broadening Funding & Financing

Find additional resources

• Widen polluter-/ user-pays principle

• Cross-financing, transport funds

Internalise benefits

• Internalise external costs & benefits

• Exploit ETS, Eurovignette, energy taxation

Blending and

pooling

• Facilitate blending grants & loans/ innovative financial instruments (IFIs)

• Ad hoc IFIs & sectoral tools pools of projects


Action plan recommendations Building block 4: Financial Markets, PPPs, Stakeholders

Encourage long-term

private financing

• Friendly environment for long-term infrastrastructure

• Investment new asset class

Enhance public

financing in PPPs

• Use EU guarantee off-balance sheet

• Provide PPP models

• Ex-ante assessment

Involve stakeholders

• Structured stakeholders consultation

• Communication to the wider public


• The list of projects is indicative, no guarantee that the projects will be financed by EIB/EC.

• The list as a basis for future work, can be revised if MS have other projects.

• Financing structure is a decision of the MS and project promoters, the pipeline depends upon the political choices.

Identification of pilot projects


• Wide internal consultation (EUROSTAT, COMP, FISMA,… EIB, Commissioners incl. VP Sefkovik, Georgeva, ESIF gr.)

• Action plan presented to the TTE Council on June 11th, following a Discussion in the EP currently being planned

• European Commission urged to establish a work plan

• Need to act quickly in order to ensure the success of the Juncker Plan and the CEF financial instruments – blending will be key.

State of Play and Follow-up


Core Network Corridors: What impact on Growth and Jobs?

Year 2030 and cumulative impact 2015-2030

Pilot study by Fraunhofer Institute (M-FIVE)


Useful links

European Commission, Directorate General for Mobility and Transport (DG MOVE) website: http://ec.europa.eu/transport/index_en.htm

White Paper on Transport + key facts and figures: http://ec.europa.eu/transport/themes/strategies/index_en.htm

http://ec.europa.eu/transport/infrastructure/tentec/tentec-portal/site/en/facts_and_figures.html

Clean Transport (& Urban Transport): http://ec.europa.eu/transport/themes/urban/index_en.htm

Regulation 1315/2013 (TEN-T)

Core Network Corridors

Regulation 1316/2013 (CEF)

Impact on Growth and Jobs (http://ec.europa.eu/transport/themes/infrastructure/studies/doc/2015-06-fraunhofer-cost-of-non-completion-of-the-ten-t.pdf)

http://ec.europa.eu/transport/themes/strategies/index_en.htm

http://ec.europa.eu/transport/themes/strategies/index_en.htm





http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32013R1315










http://ec.europa.eu/transport/themes/infrastructure/ten-t-guidelines/corridors/index_en.htm





http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32013R1316:EN:NOT








http://ec.europa.eu/transport/themes/infrastructure/studies/doc/2015-06-fraunhofer-cost-of-non-completion-of-the-ten-t.pdf










































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