BTJ 5/2011 - Baltic Press

Focusof economics, environment, and in terms ofnational security. The countries of the regionoften worry about their dependence on foreignoil and gas. Supporting rail, in particularelectrified rail, is a step towards greater security.What is missing almost everywhere in theregion is a balanced approach to infrastructurefinancing and charging between roadand rail. Yet, some very interesting reformshave occurred in the Slovak Republic whichis evolving towards an alignment between railinfrastructure charges and road user chargesin order to have fair competition between thetwo modes. This type of reform should be generalisedto the whole of Europe. Almost every EU Member State is cuttingcosts. Is this also the scenario for the railwayindustry? If this is the case, can it bean opportunity to lower the oversized expensesand make this mode of transportmore competitive compared to others?Member States are indeed cutting budgetsacross the board and rail is no exception.However, downsizing has already occurredto a very large degree in the rail sector overthe last decades, with massive reductions instaff numbers, not least in Central and EasternEurope. Public perceptions are slow toevolve in such cases. But a more fundamentalpoint is that cutting funding can never makean industry more competitive if its competitorscontinue to get funding. For some reasonthe public (and even many politicians) thinkof rail companies as a drag on the budget andas uncompetitive – but the same individualsoverlook the fact that rail’s main competitor,the road sector, receives massive amountsof state funding. A simple question for yourreaders: if you drive a car, did you pay a feeto get onto the road this morning? In the railsector our operating companies (and, as aconsequence, their customers) pay for everysingle kilometre they drive! What expenses are to be cut in the firstplace with no harm to the quality of railservices?Let me give you an example. The process forthe authorisation of rail vehicles is time-consumingand costly in many Member States.That process, which is handled by publicauthorities, can sometimes last more thantwo years! And during that time, of course,no operations can be run. We are thereforeworking on this issue at the political level andwe hope to make progress. Another example:energy bills. We do not complain aboutPhoto: Green Cargotheir absolute level: electricity is covered bythe EU’s Emissions Trading System and wethink it’s fair that everyone covers the costsdue to climate change. But other transportmodes do not face this type of burden andthis is not helpful for fair competition. How do you see the importance of railto the society? Can you say more aboutthe social returns of rail projects?They are partly similar to those of other transportprojects: when you create a new transportconnection, or a faster transport connection,you allow the economy to function better.People can move around, consume, work.Goods move around faster and more cheaply.This is why states have financed transportprojects in the past and must continueEXPERIENCETHE DIFFERENCETailor-making tomorrow’s railAt Tata Steel, our team is committed to work as onewith 48 you | Baltic to define Transport your optimum Journal rail | 5/2011 solution.Our people touch every aspect of track systems withworld-leading expertise and draw on over a centuryof experience in track product design, productionand performance. We listen, consider, advise, createand deliver much more than just rail – sustainablesolutions that work better, last longer and provideoutstanding value. Experience the differenceand let’s build tomorrow’s rail together.For more information contact:Tata Steel RailPO Box 1 Brigg Road Scunthorpe DN16 1BP UKT: +44 (0) 1724 403398 F: +44 (0) 1724 403442E: rail@tatasteel.com www.tatasteelrail.com