PowerPoint-Pr

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Concluding Report
Pragmatic Solutions to improve rail-freight
transport along the North-South Corridor
4th March 2002
This report is confidential and only intended for
clients use
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On the basis of the results of the initial
hearing and interviews, the problems and their
causes in the freight corridor were analysed and
possible solutions identified...
Procedure
Interim Report
Selected interviews with market participants
1. Hearing in CH und NL with market participants
Review though 2nd hearing (CH und NL)
and coordination with D and I
Overview problem areas
Revised final report on improving
the north-south freight corridor
Understanding causes
Proposed solutions
January 2002
December 2001 - January 2002
October 2001
February 2002
March 2002
the most important conclusions are presented
here
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Todays rail-freight transport problems can be
summarised into three areas
Problem areas of rail-freight transport on the
north-south axis
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1
3
Cost and cost structure
Quality1)
Capacity2)
Problem area

• Disproportiantely high price
• Pricing structure too complex

• Long-term capacity shortfall in long distance
  network, local feeder networks and at terminals

• Delays
• Long transport times
• Lack of Track Trace, inadequate client
  information
• Response times

Characteristics
too costly
too late
too little
Weighting
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2
1
1) Quality also includes short-term capacity
shortfalls, which lead to poor quality 2)
Includes the mediam to ,long-term capacity
shortfalls
Highest priority Lowest priority
4
0
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It was possible to identify 7 main causes on the
basis of the causal analysis of the three problem
areas
Cause)
Details

• Lack of locomotives

• Planning
• Access restrictions
• Condition of locomotives

1

• Lack of drivers

• Planning
• Access restrictions

2

• Customs procedure (esp. for private train
  operators)

• Complexity and time needed for customs checks for
  cross-border freight transport

3

• Inadequate international coor-dination and flow
  of information

• Coordination on introduction of timetables
• Coordination and flow of information in daily
  planning

4

• Prioritisation of shipments in case of delay and
  unforeseen events

• Freight transport vs. Passenger transport
• Between various types of freight transport

5

• Capacity shortfall in infrastructure

• Bottle-neck on north-south corridor
• Bottle-necks at terminals

6

• Differing pricing methods

• Variability and transparency of route prices
• Variability and transparency of train prices

7
1) Not according to importance
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The causes identified relate to the fact that the
north-south corridor currently consists of
nationally managed transport and networks
Interface problems and maximisation of market
forces
ROs, e.g. Railion, Shortlines, ACTS
DB
SBB
FS
HGK, etc.
FNM, etc.
BLS, etc.
Operator Level (Rail Operator, RO)
Infrastructure Manager
Infrastructure level
Holland
Germany
Switzerland
Italy
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The causes identified could be addressed by an
integrated corri-dor concept for the north-south
axis
Short to medium term
Medium to long term
ROs
RO1
ROs
ROs
ROs
Operator (Transport) level
RO2
RO3
Corridor Control Centre
Infra- structure level
NL
D
CH
I
NL
D
CH
I
Infrastructure remains in national hands, only
the management of the infra-structure will be
internationally integrated
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This would require significant changes to current
practices...
Measures to realise the integrated north-south
corridor
Measures partly already initiated by market
participants

• 1. Dedicated Corridor Control Centre
• 2. One stop shop for clients using corridor
• 3. Transparency in corridor pricing
• 4. Integrated timetable planning (cross-border)
• 5. Greater flexibility of prioritisation of
  transports, particularly in case of delays

Integrated infrastructure management

• 6. Corridor-specific locomotive pool
• 7. Cross-border use of locomotives and drivers
• 8. Better coordination and information flows in
  daily planning and disposition of ROs

Improved operation (transport)

• 9. Analysis and planning of on north-south
  corridor
• 10. Elimination of bottle-necks and optimisation
  of capacity of north-south corridor

Capacity improvements

• 11. Extension of simplified customs procedures
  for all rail operators
• 12. Mutual recognition of training and licensing
  of train drivers
• 13. Mutual recognition of locomotive licensing
• 14. Market observation to prevent distortion of
  competition

Harmonised basic conditions
the necessary measures are listed as follows...
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A joint Corridor Control Centre would enable an
integrated management of corridor infrastructure
in the medium to long-term and thereby improved
coordination and information flows
Measure 1 Corridor Control Centre (short to
medium-term)

• The Corridor Control Centre consists of
  infrastructure managers from 4 countries, who
  jointly supervise the corridor infrastructure
  from one location
• As an operations control centre information flow
  and integrated operations management can
  therefore be assured
• It must be supported by open IT systems in order
  to enable the rail operators to monitor their
  trains
• The Control Centre should also have Account
  Managers for important rail operators so as to
  provide a contact interface(Single-Point-of-Contac
  t)
• Furthermore, the ITCs and if necessary important
  clients should also be able to take a seat in the
  Control Centre

RO1
RO2
RO3
RO4
RO5
Operation

Corridor Control Centre
Infra- structure
NL
D
CH
I
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In addition a Corridor Infrastructure Sales
Office could be set up as a One-stop-shop for
Clients
Measure 23One-stop-shop and price transparency
Own client of Open Access Operator (e.g. IKEA)

• The future model of the One-Stop-Shop could be an
  infrastructure sales office for the track network
  management
• This office should be operated by the various
  corridor infrastructure managers
• The roll would consist of timetable planning,
  track management and price setting of
  infrastructure for national rail companies and
  Open Access Operators
• The One-Stop-Shop should also contribute to
  transparency of corridor pricing and bring about
  a harmonisation of price setting methods

RO 1
Client
Infrastructure Manager 1
Open Access Logistics Company
Infrastructure Manager 2
Corridor Infrastructure Operations Office
RO 2
Client
Infrastructure Manager 3
Infrastructure Manager 4
RO 3
Client
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The joint planning of timetables and resources
should continue to be improved in order to raise
the quality of rail-freight transport
Measure 4 Integrated timetable planning
(cross-border)

• It is important that national timetables for
  rail-freight are altered on the same date each
  year so as to prevent disruption
• Open IT planning systems could contribute to
  improved coordination of the timetable planning
  in rail-freight transport
• Such systems would enable advance insight into
  the creation of international timetables
• They could also be useful to test the
  availability of locomotives, drivers and
  track/network capacity beyond ones own border

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The prioritisation rules used by the Corridor
Control Centre should be well-considered and take
into account the volume of various transports
Measure 5 Greater flexibility in prioritising
shipments

• Basically the prioritisation rules should be
  reconsidered and moreover with regard to
• Passenger transport and freight transport as well
  as
• Between various types of freight transport (e.g.
  UCT versus Truck on Train
• The Value concept could be used as a priority
  determinant
• One stretch of track could contribute to the
  transportation of 1.5 million tonnes of
  international freight per year
• The same stretch of track could also be used to
  carry just 100 local passengers a day
• A decision-support system could be used to weigh
  up different types of transport and determine
  corresponding priorities
• The reconsideration or flexiblee approach to
  priority rules is important particularly in case
  of delays, in order to raise the quality of
  rail-freight transport

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Furthermore, dedicated locomotives for the
north-south corridor would improve the quality
of cross-border rail-freight transport
Measure 6 Corridor-specific locomotive pool

• Dedicated locomotives for freight transport could
  be used to bring about an optimal service in the
  corridor. Ideal characteristics include
• Medium to high hauling power
• Medium speed, so that it can keep up with quicker
  passenger trains and also maximise track capacity
• Multi-current locomotives enabling cross-border
  operation in various electricity systems
• Equipped for various signal systems (the
  standardisation in Europe will render this
  requirement superfluous in future)
• Diesel locomotives could be used where conditions
  permit (e.g. less incline)
• Dedication would also prevent the locomotives
  being used for other transports and mean they
  were ready when needed
• The railway companies could either dedicate their
  own locomotives for the corridor or set up a
  transport company with a locomotive pool for the
  corridor to lease locomotives to ROs in the
  corridor

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Cross-border use of multi-current or diesel
locomotives would reduce the number of locomotive
changes at critical points in the network
Example
Measure 7 Cross-border use of locomotives and
drivers
Diesel
I(3kV)
CH(15kV)
D (15kV)
NL(1.5kV)
Present
Electric
Electric
Electric
Electric
Diesel
Border
Border
Border
Terminal Gate
Terminal Gate
Diesel/Multi-current
Diesel/Multi-current
Electric
Future

• Advantage
• Fewer Locomotive changes
• Avoids locomotive changes at critical points

Neither locomotives nor drivers should be changed
at the border, but rather at points for optimal
efficiency.
Optimisation of overall stretch
Locomotive change
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Through better coordination and communication
between ROs on the corridor in daily planning and
disposition, the quality of freight transport can
be raised
Measure 8 Better coordination and information in
daily planning and disposition of ROs

• Joint planning and disposition of freight
  transport companies can be improved through
  transport concepts such as overlapping transport
  planning and controls (e.g. SBB/Trenitalia
  Feeder/Long Haul) and by extraction of specific
  corridors
• Since the introduction of the feeder/long haul
  project, SBB/Trenitalia have been able to make
  significant improvements and plan to extend the
  concept
• In addition, the EVUs should be informed more
  quickly of delays through daily planning and
  priority setting of shipments better coordinated
• By having a seat in the Corridor Control Centre,
  the communication of information between ROs
  will be simplified

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A corridor capacity plan could be a basis for a
capacity improvement along the north-south axis
Measure 9 Capacity plan
Identification of existing bottle-necks
Overstretched network hubs
Terminal capacity
Single-track stretches
Identification of possible solutions (Return to
national plans and information from 1st hearing
where available)

• Capacity increase of exisitng terminals
• Planning of new terminals
• Use of closed facilities

• Study feasibility of track widening

• Examine alternative routes, so as to avoid over
  loading certain stretches
• Identify other measures to increase capacity

Development and adoption of capacity development
plan with measures and cost estimates
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Capacity improvement must based on the capacity
plan be tackled on 3 levels
Measure 10 Removal of bottle-necks and
optimisation of capacity on north-south corridor
Strategic/Long-term Pre-defined projects (e.g.
NRLA) requiring large investments and long
implementation periods
S. Europe
N. Europe
Local feeder/terminal Bottle-necks Possibility
of using disused or not fully used routes and
terminals/sidings
Local bottle-necks in long-distance network
bottlenecks can sometimes be lifted with
short-term measures, e.g. Signal changes to
increase capacity
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The harmonisation of basic conditions is required
to create and integrated north-south corridor
Measures 11-14 Harmonisation of basic conditions
Simplified customs procedures

• Without simplified customs procedures
  cross-border freight transport is rendered highly
  difficult
• The simplified customs procedures should be
  extended to all rail operators
• Private rail operators
• National rail companies, operating abroad under
  Open Access
• Consequently, the outsourcing of the accounting
  point into an independent service company capable
  of taking over the billing of rail operators
  should be assessed

Training and licensing of drivers and locomotives

• Variation in individual countries of rules
  regarding training and licensing of train drivers
  and differences in approval of locomotives
  restrict the cross-border use of resources
• The mutual recognition of training and licensing
  rules would enable more efficient operations on
  the north-south corridor

Market observation

• Coordinated market observation to avoid
  distortions to competition

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The implemenation of the concept of an integrated
north-south corridor has significant advantages
for all market participants
Expected effects
Reduced rail operating costs
Advantages for rail companies
Improved punctuality
Higher volume Higher product-profitability
Higher attractivity
Improved quality
Reduced circulation time
Advantages for clients
Reduced costs for carriage owners
Reduced prices Reduced, internal transport
costs Better planning of arrival times
Better real time service information
Lower crisis management costs
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The realisation of the corridor concept requires
the implementation of numerous short, medium and
long-term measures
Masterplan
Short-term (2002-2003)
Medium-term (2004-2007)
Long-term (2008-2015)
Implemenation periods

• Creation of Corridor Control Centre
• Improvement of planning integration for freight
  transport
• Revision of priority setting rules
• Creation of price transparency

• Creation of corridor infrastructure, coordination
  and sales officeas One-stop-shop
• Development of more open IT sys-tems (e.g. Train
  Position Tracking) for all corridor users

Integrated infrastructure management

• Corridor specific locomotive pool
• Acquisition of multi-current loco-motives
• Improvement of coordination and information flows
  in daily freight transport planning

• Cross-border use of locomotives and drivers

Improved Operation
Capacity improvements

• Drafting of capacity plan for north-south corridor

• Capacity improvement Lifting of bottle-necks
  (e.g. Terminals, local feeder networks etc)

• Extension of main network according to needs

• Extension of simplified customs procedure to all
  rail operators
• Coordinated market observation to prvent
  distortion of competition

• Outsourcing of accounting point for simplified
  customs procedure
• Mutual recognition of training and licensing of
  locomotives and drivers

Harmonised basic conditions
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Clearly defined areas of responsibility were set
for each field of tasks
Responsibilities
Person/Agency responsible
Participant/Support

• Infrastructure Managers in the individual
  countries

• State
• Forcing and support with international
  cooperation
• Common revision of rules on prioritisation with
  infrastructure managers
• Promotion of a priority pilot project within the
  exisiting working group on North-South freight
  freeway
• ROs Cooperation on Corridor Control Centre

Integrated infrastructure management

• ROs of the North-South Corridor

• State
• Enabling of cross-border use of train drivers and
  locomotives through mutual recognition
• Transport companies and terminal operators
• Close cooperation with ROs in improvement measures

Improved operation

• State with strong participation of infrastructure
  managers and terminal operators
• Initiator
• Financing
• Implementation

• Infrastructure manager, ROs, terminal operators
  and transport companies
• Joint compilation of capacity plan for the
  corridor
• Upgrading of infrastructure according to
  requirements

Capacity improvements

• State

• ROs and transport companies
• Specialist support, elaboration of proposals
• Assessment of outsourcing of costing point for
  the simplified customs procedure into an
  independent service company

Harmonised basic conditions