European Railway Trends - UIC

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European Railway Trends - UIC

European Railway Trends

Manuel Pereira

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


Trends

Trends and drivers of change

• Consequences in employment

• Changes in the market for railway

services

• Developments in the sector

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


Present

• EU rail equipment industry – largest exporters

of capital goods

• Current world market – (Vossloh

AG & VSCI)

€57 billion

Expected growth 4% a year

European manufacturers – significant share

of world market

Technology

Project management

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


Great changes

• Concentration on a number of leading

companies

• Players becoming global through

Mergers, takeovers, subsidiaries

• Strengthening of technical & commercial

innovation

• Cost reductions (10-30%)

• Productivity gains (5-8% annually)

• Development of new areas of competencies

previously provided by operators

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


Market share

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


DRIVERS

• Growing demand for transport services

• Passenger transport demand

Geographic separation of accommodation,

work and recreation

• New and varying production processes

increase for freight

• Growth is constrained by infrastructure

Costly and time consuming

Environmentally undesirable

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


DEREGULATION

• First package - 2001

New rules for licensing and allocating

infrastructure capacity

• Second package – 2004

Extension and competition to both

international and domestic freight

• Third package – proposed 2004 -> > 2010

Licensed operators allowed to provide

international services

• Low impact so far

New entrants to take only 3-4% 3

of the

market

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


INDUSTRY REFORMS

• Deregulation and restructuring activities of

operators (autonomy and commercialization)

• Reduction of subsidies for public bids over

€750 000

• Operators concentrating on their core

business – actual running the services

• Design, maintenance and technological

research shifted from operators to suppliers

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


INTEROPERABILITY

• Operation and technical integration of

different national railway systems

• Key to create a single market

• Increase standardisation – reducing costs

• Operators improve their services with larger

and modern fleets – Demand for new RS

• Increase rail attractiveness

• Potential for cost reductions in urban rail

systems (LRV and metros)

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


ENLARGEMENT

• New member states have only recently

restarted a process of restructuring and

modernization

• New members states offer new

prospects worldwide for manufacturers

Upgrading main lines

Increase in the orders of new vehicles

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


FUNDING

• Investments in infra and RS – hugely

expensive

• 1 km of new single track non-electrified

railway line for freight costs 3 M€ M

• New inter-city HS line amount to 20 M€ M

per km

• A double deck passenger car costs

1M€

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


FUNDING

• Investment in Infrastructure largely

dependent from public funding

• 80% of public investment are in road

infrastructure

• Willingness of operators to invest in new RS

to meet customer demands for safety and

comfort levels

• PPP successful in some projects and failure

in others

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


INNOVATION

• Increase attractiveness and performance

• Customers perceive the

Reliability, comfort, safety

• Investments in areas of

New materials, signalling,

telecommunications, ERTMS

New platforms

• Pre-competitive research funded by EU

• Most innovation comes from SMEs

• Cooperation with R&D providers -

Universities

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira


FURTHER REQUIREMENTS

• Proceed with future liberalisation of

national railways

• Support the interoperability of HS,

conventional and freight sectors

• Harmonise acceptance and testing and

safety rules

Global View Project WP2 - Networking International Rail Research Berlin 22-09-2008 Manuel Pereira

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