The conference entitled “Projects and solutions for building an interoperable railway network in Central and Eastern Europe” focused on major investments in rail infrastructure development in the Wider Black Sea Area, freight traffic analysis, the need to increase transport system interoperability and sustainability, as well as markets with a high infrastructure investment potential. In regards to the Romanian railway infrastructure, the conference brought into discussion the matter of financing its development and modernisation. Under financing represents the main cause for the slow pace at which the electrification projects in Romania are carried out.
Railway traffic increase in Eurasia imposes the elimination of infrastructure-related problems
“Railway traffic between Europe and Asia is growing. Out of all the modes of transport, railway transport is the fastest. Russia is very interested in the railway transport sector in this area. During 2007 – 2020, railway transport in the Balkan Region and Turkey will increase by 65%, while in Ukraine, Belarus and Moldova the increase will be of 20%. In 2020, the market share will vary between 59% (Baltic Rim) and 9% (Balkan Region and Turkey). Eurasia Land Bridge offers an increased potential, and the current problems should be overcome”, said Johannes Ludewig, Executive Director CER, in the opening of his speech, during the conference organised by Club Feroviar and the Romanian Railway Association (AIF) on February 25 -26, 2010. Johannes Ludewig explained that, in the current context, all the countries involved in railway activity in this area should find viable solutions and provide real offers, which contribute to railway traffic increase between Europe and Asia.
“The best solution is to make investments in rail infrastructure development, but this system has to be improved in order to generate competition”, added Ludewig. The development of a single railway market for EU member states and the neighbouring countries requires the elaboration of certain measures for the elimination of the barriers that still exist between the two areas: between EU-27 and the Baltic Rim there are problems in terms of interoperability because of the gauge systems; between EU-27 and Ukraine-Belarus-Moldova there are differences in terms of gauge and cross-border traffic procedures and they also institute monopole. Another area in which railway traffic is going to increase, the Balkan Region and Turkey, imposes restrictions because here the railway networks are divided and the legal reform process is barely at the beginning. The presentation of the CER official was based on three major pillars: there is a significant growth potential for the national and international railway transport sectors, national Romanian operator CFR is regressing and is not part of this growth and the implementation of the principles stipulated in the White Paper on Transport. “A major problem is the insufficient implementation of the White Paper principles. A proper infrastructure financing, the adequate compensation of public service obligations, the fairness and transparency of the tariffs that compete with those applied by the railway sector and the diminution of the historical debts accumulated by railway companies, these are the principles that ensure the good operation of the railway system.” Referring to Romania, Johannes Ludewig mentioned that “the situation of the Romanian railways is very difficult. I’ve noticed a constant growth in the market share of road transport, but railway transport continues to drop”. Practically, railway transport is not supported, nor financed by the authorities. According to the White Paper on Transport, the no. 1 priority of the governments should be railway transport, and not road transport.
Infrastructure projects should become a priority for CFR SA
This was one of the conclusions outlined by those who attended the Conference entitled “Projects and solutions for building an interoperable railway network in Central and Eastern Europe”, organised by Club Feroviar, together with the Romanian Railway Industry Association (AIF), during February 25 – 26, 2010, at Poiana Braşov, Romania. We have to eliminate the difficulty of the national infrastructure manager in handling on-going projects. The participants called on the Romanian political sector to obtain support for a faster railway infrastructure development, an interoperable infrastructure, which can equally compete with the road infrastructure. “In my opinion, the division of the state budget funds between railway and road transport should be changed. The message I would like to pass on concerns the political decision-makers, those who should understand that we need to improve the railway infrastructure”, said Theodor Grădinariu, Senior Technical Adviser – Infrastructure (UIC). The second panel session of the conference focused on the financial deficiency of the national infrastructure manager CFR SA, as well as its inability to access non-reimbursable European funds, which complicates even further the management of the railway infrastructure modernisation projects. “We are waiting to finalize several projects or to receive financing. I believe that all those who activate in the railway sector should consider the advice given by the international organisations and associations and then join efforts in order to support the development of the Romanian infrastructure”, said Ion Garoseanu, former general manager CFR SA. The current situation of the Romanian railway infrastructure can be changed for the best by allocating more funds from the state budget, by prioritizing infrastructure projects, such as Pan-European Corridor IV, because we have the necessary technical and managerial capacities, and they should work together. “Ever since the beginning of my mandate I noticed that most of the discussions focused on identifying the main problems related to CFR SA’ s financing ability. I also noticed that there are several flaws at managerial and administrative level when it comes to accessing European funds. I believe that we should urge the Romanian government, the Romanian state, to better divide its budget”, said Emil Sabo, recently they appointed General Manager of CFR SA. Sabo also called on the representatives of the railway industry present at the conference, who are involved in infrastructure rehabilitation projects, to support the Romanian railways. “The railway industry as well has a say when it comes to financing the railways. Maybe there should be more lobby. To that end, CFR SA has to be an active partner in joint debates and actions”, added Sabo.
Electrificare CFR hopes to unify the railway electrification systems in Romania
This year doesn’t seem to bring any new changes in railway electrification in Romania. This was the conclusion reached during the last day of the conference “Projects and solutions for building an interoperable railway network in Central and Eastern Europe”, held at Poiana Braşov.
On this occasion, Gabriel Băduţ, General Manager Electrificare CFR, presented the situation of the company and the main problems it has to face. One of the main problems is the insufficient budget and the many electrification systems implemented (the technical indications proposed by the company are not respected during the elaboration of the task books for the acquisition and installation of new equipment).
Gabriel Băduţ said that the company’s revenue budget amounts to approximately EUR 20 Million, while the expense budget is of around EUR 40 Million. 2009 was the first year in which the company reported a negative balance-sheet. Băduţ explained that the lack of funds is the main problem causing delays in the implementation of electrification projects on the Romanian railways. According to him, the future doesn’t seem to bring new progress and this is determined by the huge lack of resources recorded ever since the creation of the company, which accumulated a large amount of debts at infrastructure manager CFR SA. In time, these debts were partially covered, but they continued to grow because of the investment budget stagnation; thus, the difference between the company revenues and expenses will remain for years an years to come. Băduţ complained about the poor technical state of the equipment used. He brought as argument the many electrification systems installed on several sections, which hinder the maintenance process and thus generate additional costs. Băduţ said that, in Feteşti area, there are at least 3 different electrification systems, based on the company that supplied the necessary equipment. Here, the equipment used was supplied by Siemens and Balfour Beatty and the co-exist with the old systems from the ‘70s-’80s, manufactured by ISAF and which have to be replaced. The elimination of the old equipment requires funds. Take, for instance, the aluminium consoles, which have become a standard equipment in Europe cost around EUR 320/piece, compared to the old steel consoles which cost around EUR 140-150/piece.
Private infrastructure managers demand electrification on non-interoperable sections
In regards to the problems encountered during the electrification process, Gabriel Băduţ brought into discussion the high level of expenses made for obtaining the necessary personnel authorizations, as well as the fact that multi-annual contracts for energy distribution cannot be signed because they force the company to buy energy almost at market price. Băduţ proposed several solutions such as externalising the energy cost from the global cost of the infrastructure access charge (TUI), separating the maintenance and project development activities and, implicitly, the operating budget. Gabriel Băduţ said that many new projects have been developed, but their implementation hasn’t begun because of the lack of financing. The company hopes to attract the private initiative, based on the technical documentation elaborated by Electrificare CFR, in order to unify the various electrification systems used on the Romanian railways. In the near future, the company plans to finalize the electrification of Tecuci-Barboşi railway line (only 20 km of track left), as well as the bridge at Grădiştea.
Secretary of State Gheorghe Popa said during the panel session that the Romanian Ministry of Transport, Electrificare CFR, CFR SA and the railway industry should join forces in order to finalize all the projects. Many major lines, such as Cluj Napoca-Oradea or Constanţa-Mangalia haven’t been electrified yet. Private railway companies as well have expressed their hope that the electrification process will continue to develop. Freight operators believe that electric traction is the main advantage in the competition with road transport, due to the low environmental impact and the reduced costs. Speaking in the name of private operators, Amedeo Neculcea, Commercial Manager GFR, said that electric traction ensures lower final costs and allows the transport of freight 50% heavier compared to diesel traction. He also said that the infrastructure access charge on a electrified section is of around RON 18/train/km compared to approximately RON 10/train/km on a non-electrified section. Therefore, choosing an electrified railway line proves to be more financially viable. Neculcea suggested to increase the infrastructure access charge on the sections under electrification, if this helps speed up the works. According to him, railway operators are willing to collaborate with the authorities in order to develop a railway system completely electrified, and thus more efficient and eco-friendly. In conclusion, Gabriel Băduţ said that the company has received offers for electrification from the private infrastructure managers that operate on non-interoperable sections and that they are currently analysing the profitability of such initiatives.
by Pamela Luică, Elena Ilie, Alin Lupulescu
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