Competition Report 2006 - Deutsche Bahn AG

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Fair competition remains a central issue On transposition of the liberalisation provisions of the Second Railway Package, the entire European cross-border rail freight market was opened up to competi tion in January 2006. As from 2007, the domestic rail freight sector will also be open to competition. As the market in Germany has long since been open to other players, this is a milestone on the way to creating equal access conditions throughout the whole of Europe. However, for the future development of rail freight transport, it is also vital to abolish the administrative barriers – such as vehicle homologation – that still exist, so that genuine free market access actually becomes possible in practice. Discussion of the Third Railway Package makes progress Not all the proposals currently under discussion by the Council and the European Parliament are geared to strengthening the competitive position of rail. The Commission and Council plan to open up the market for cross-border rail passenger transport as from 1 January 2010. Railway undertakings would then also be permitted to pick up and set down passengers along international routes. This is a crucial factor for the economic viability of international rail passenger transport services. At the same time, however, the plans envisage far-reaching options for restricting access to the rail network in order to protect the interests of public passenger transport. These provisions lag behind the market opening status in Germany. The current European legislative procedure has already led to decisive improvements to the proposal on passenger rights, which is of immense importance from the economic viewpoint. For instance, the cost-driving proposals for unlimited liability for consequential damage for delays have been abandoned. This is a key issue, as it would have led to unacceptable fi nancial burdens for the railways. Even so, the compensation provisions for delays which apply to rail are still discriminatory compared with air and road transport. The proposal to introduce a European train driver’s licence has met with general approval and should facilitate cross-border deployment of personnel. A further positive development is that both the Parliament and the Council have rejected the ill-advised proposal for a regulation governing the quality of rail freight transport. The amendment of the Eurovignette Directive adopted in December 2005 provides a framework under European Community law which governs the levying of road haulage tolls on the principal European corridors. However, the provisions do not go nearly far enough where the scope and the inclusion of external costs are concerned. The Commission is therefore still being called upon to present a model for the calculation of external costs and a strategy to implement them for all transport modes. Regulatory Policies While the volume of rail legislation continues to grow, the European Union failed to use the opportunity to create fair conditions for intermodal competition between the diff erent transport carriers when amending the Eurovignette Directive. According to information from the International Rail Transport Committee, the volume of European legislation in the transport sector has more than doubled within just fi ve years. Source: CIT Info, December 2005 33
34 The unequal treatment of the diff erent transport modes distorts competition at the expense of rail. Equal conditions for all modes are vital The pace of liberalisation in Europe still varies widely. In Germany, competition has long since been well established. This is also refl ected in various proceedings pending before the Commission. At the same time, however, opportunities to harmonise competition between the transport modes are neglected. The direct eff ects of the distortion of competition on the railway undertakings are severe. It is the Commission’s task to ensure fair competitive conditions in the European Single Market. To do so, it uses the instruments of regulation of state aids and of competition. The following proceedings took place during the period under review: Aid approved for SNCF freight transport In its ruling of 2 March 2005, the Commission approved state aid amounting to EUR 1.5 billion for Fret SNCF. The SNCF rail freight company, which has been in fi nancial diffi culties for some years, is to undergo comprehensive restructuring aimed at restoring its economic viability. The approved fi nancial aid is to be used to modernise the company’s rolling stock and overhaul its fi nancial structure. Approval of the fi nancial aid is linked to certain obligations which will ensure that the aid does not constitute a barrier to the development of other operators. Fret SNCF will be obliged, for example, to reduce its traffi c volume during the restructuring phase and an earlier date has been set for opening the French rail freight market. Court ruling on tax exemption for kerosene is imminent In April 2006, the European Court of First Instance will decide on an action fi led by Deutsche Bahn on tax exemption for kerosene. In contrast to many other European Union countries, railways in Germany are obliged to pay mineral oil tax on diesel and electricity tax on electric traction energy. Kerosene, on the other hand, is exempt from mineral oil tax, a factor which distorts competition at the expense of rail. A direct consequence of this has been a decline in passenger numbers and loss of revenues by rail on long-distance routes. Deutsche Bahn has fi led a lawsuit contesting the inaction on the part of the Commission, which is responsible for ensuring fair competition.
Page 1 and 2: Deutsche Bahn AG Communications Pot
Page 3 and 4: 2 Impressum Published by Deutsche B
Page 5 and 6: 4 Dynamic Developments in an Attrac
Page 7 and 8: 6 Keen competition and the trend to
Page 9 and 10: 8 who have the power to make decisi
Page 11 and 12: 10 The attractiveness of the German
Page 13 and 14: 12 Del dit loreet ametum etum quipi
Page 15 and 16: 14 More and more passengers use Deu
Page 17 and 18: 16 The high number of operators ind
Page 19 and 20: 18 Market share of other railways i
Page 21 and 22: 20 Unresolved legal issues and a di
Page 23 and 24: 22 Fair framework conditions are vi
Page 25 and 26: 24 performance, while the fi gure f
Page 27 and 28: 26 By using all the diff erent tran
Page 29 and 30: 28 In Dialogue with a Scientifi c E
Page 31 and 32: 30 Joachim Fried, born 1948, is a f
Page 33: 32 Equal Rules for Opening the Tran
Page 37 and 38: 36 New national regulatory framewor
Page 39 and 40: 38 The position of the infrastructu
Page 41 and 42: 40 EBA proceedings in the year 2005
Page 43 and 44: 42 Cartel Offi ce has its sights on
Page 45 and 46: 44 Movement in the Euro pean Rail M
Page 47 and 48: 46 The excellent economic developme
Page 49 and 50: 48 Train path pricing in the EU Mem
Page 51 and 52: 50 Important new-build lines will b
Page 53 and 54: 52 EU initiative for public transpo
Page 55 and 56: 54 Company L R F M Shareholder Comp
Page 57 and 58: 56 Company L R F M Shareholder VTG
Page 59 and 60: 58 Company L R F M Shareholder Muni
Page 61: 60 Company L R F M Shareholder Rint

Competition Report 2006 - Deutsche Bahn AG

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