Interview with Mr. Ştefan Roşeanu – CEO of CFR Călători
The development of an integrated and performing railway passenger transport system is an objective which implies the adoption of coherent policies and the supply of important volumes of funds to deliver a competitive transport service that would rank among the first transport choices of citizens. Before supplying a service capable to meet mobility demands and fierce competitiveness between transport modes, there are important steps which have to be considered: the implication of authorities in adopting and implementing correct policies, in launching projects aimed to increase the passengers’ comfort as vital criteria for those who choose to travel by train. Last but not least, the allocation of railway infrastructure investments is very important because, no matter how performing railway vehicles are, they cannot reach quality performance in the lack of proper infrastructure. If at national and European level the players in the railway sector will collaborate to supply an integrated railway transport system, all the above -mentioned characteristics and objectives could be implemented and, in the future, this will reflect in the formation of a sustainable economy, of a society with new standards on the adoption of a mobility culture that will have a positive influence on lifestyle.
These are some of the topics debated with the new CEO of CFR Călători, Ştefan Roşeanu, in the interview below which focuses on learning more about the new strategies and projects to be implemented by the national railway passenger transport operator in Romania.
Railway PRO: What are the methods to be implemented for increasing the attractiveness of railway passenger transport?
Ştefan Roşeanu: It is necessary to deve-lop a national railway strategy to increase the attractiveness of railway passenger transport and to emphasize the role of this transport mode in the development of economy and society.
Given the current European context, it is essential for Romania to ensure quality railway passenger transport services with a commitment to the society so that all citizens could have access to this transport mode. The White Paper on Transport 2011, on the set up of a single European railway area, establishes the objectives to achieve a competitive transport system, resource-friendly and aimed to reduce carbon dioxide emissions by 60%. Referring particularly to railways, the White Paper stipulates that the density of the conventional railway network will have to be maintained in the European Union’s member states so that, by 2050, most medium-distance journeys will be made on railways. As railway transport is more environmentally friendly than other modes of transport, increasing the attractiveness and the market share, respectively, is vital both nationally and internationally. Considering the fact that safety is our main advantage, this desideratum could mainly be achieved by increasing the quality of services, which means improving speed, comfort and varying on-board services, rethinking our offer so as to meet mobility needs and market demands, implicitly. Since all services offered by CFR Călători are carried out under a public ser-vice contract signed with the state’s authority in charge, the Romanian Ministry of Transport and Infrastructure, on developing more attractive services, the state’s support in allocating investments is absolutely necessary.
Railway PRO: How is CFR Călători’s activity affected by the liberalization of railway passenger transport?
Ştefan Roşeanu: In the activity of any railway operator and, obviously for CFR Călători too, competition can only motivate the implementation of programmes aimed to provide customers with better railway transport services.
The European Commission’s legislative initiative on the liberalisation of the domestic railway passenger transport market has to be put in practice transparently and efficiently but without affecting the financial stability of the forwarders who carry out their activity as public service obligation. For this purpose, the European Commission plans to amend Regulation 1370/EC/2007 on public services to be granted by tendering the assignment of the public service obligations.
For CFR Călători the liberalization of the transport market is a true challenge placing us in the context of a strong intermodal competitive market.
Therefore, we want the liberalisation of the domestic market to help us stay performing and not to put us in the situation where we are unable to observe our commitments on transport volumes. This is why we have to implement programmes that would improve our transport offer, optimise the quality of services and safety conditions, as these are defining features for competitiveness on the national and international market.
Railway PRO: A political liberalisation will not have a real and full impact until all barriers are removed. What methods will passenger transport operators (CFR Călători included) and concerned authorities use to remove these barriers?
Ştefan Roşeanu: Currently, railway passenger transport, not just in Romania, but all over Europe, is facing major challenges from the point of view of both project financing and competition with the other transport modes. What we must do to eliminate these obstacles is to approach problems by developing collaborations between railway companies and competing authorities to solve the problems derived from the contractual relationships with consumers, with the infrastructure manager concerning the railway infrastructure and with the State as regards the public service obligation. Collaboration needs an approach to identify modal specificities focused on the challenges imposed by society and considering competitiveness challenges. The known purpose of “liberalisation” is to increase the quality of transport, the market share and to create a European railway area where the “train” would be the preferred transport mode for its “greenness and safety”.
Opening the domestic markets will increase the quality of railway transport ser-
vices and their value compared to the price, will ensure the continuity of services, as well as social and territorial cohesion.
Railway PRO: As member of the Working Group “Rail Strategy Platform” led by EC Vice President Siim Kallas, what can you tell us about the real development of a barrier-free transport for increasing railway traffic in the EU area?
Ştefan Roşeanu: To fully meet the mobility needs of the citizens in the EU area, the European railway transport has to be accessible to all market segments and to a wider geographical area. Interoperability is a key word! The standardisation of interoperability will facilitate cross-border railway transport and will make the “train” a real competitor of the “plane” on medium and even long distances. The quality of railway transport is also given by the real duration of the journey which can be improved by increasing speeds, eliminating useless stops, reducing the standing time at frontiers and better connections between trains. As CEO of CFR Călători, I will do my best both in the country and abroad to make progress in achieving these objectives.
The Working Group which forms the “Rail Strategy Platform” assists the Vice President of the European Commission, Siim Kallas, on the reform of the railway sector for the next years setting objectives for the development of the railway passenger and freight transport and for increasing the market share of this transport mode in Europe. Also, the Platform represents the interests of railway operators, infrastructure managers, unions and those of the railway industry. As part of the European railway strategy, we continue the promotion of developing an efficient railway infrastructure, the need to implement projects which rely on the liberalisation of the railway market and of removing technical and administrative barriers in order to develop a single European railway area.
Railway PRO: In EU countries, railway transport gains ground and massive investments are expected in the acquisition of efficient and comfortable rolling stock as method of promoting this transport mode. What is CFR Călători’s strategy and how can the operator access European funds for these projects?
Ştefan Roşeanu: Rolling stock acquisition projects can be included in the SOP-T programme with financing from regional funds and co-financing from various sources available: state budget, international institutions, own sources or credits. The European Commission has no objections related to subscribing such projects to SOP-T if they are well motivated, if they have a strong foundation and if they present a real benefit for increasing the market share of railway passenger transport.
Considering the fact that in the currently underway SOP-T, the rolling stock acquisition project has been eliminated from the Priority axis 2 – major intervention area 2.2 – CFR Călători will have to take all necessary steps for this project to be included in the next Sop-T 2014-2020. To this end, we have to start preparing programmes on the necessity of this project, including to submit a demand to the Romanian Ministry of Transport and Infrastructure for including the Action Plan to be signed with JASPERS for 2013 in order to ensure the technical assistance and also, to set up a department within CFR Călători to prepare the initiation and, then, development of this project.
Railway PRO: To what extent do the roles of local, national and European authorities overlap to create a successful collaboration for building an efficient and integrated railway transport platform?
Ştefan Roşeanu: The existing European legislation and the legislative proposals have the obvious purpose of promoting railway transport, as a safe and sustainable transport. Over 20 years ago, the implementation of the European strategy on restructuring the railway sector by separating main activities has been initiated, followed by the legal regulatory/standardisation/certification/authorisation framework and continued by the legal framework which enabled the liberalisation of railway freight and passenger transport.
As EU Member State, Romania has immediately implemented the European railway and railway-related legislation, so that the railway transport in our country transposes the community legislative proposals. However, the Romanian railway transport also needs national support to be attractive and to recover the market share it has lost over the past years.
Railway PRO: Last year, EU approved the White Paper on Transport which stipulates the development of a single market in an integrated network and competitive and developed transport services. In this context, how can CFR Călători keep up with the other operators?
Ştefan Roşeanu: To create a good competition position in the railway passenger transport in Romania, to ensure an important role in economic growth and to preserve and create new jobs, the Romanian State has to support the development of a performing transport through significant investments in infrastructure and rolling stock, aimed to provide a wide range of maximum quality services.
From the point of view of the rolling stock, CFR Călători’s priorities include the extension of electric traction and the partial replacement of diesel locomotives with multiple-units. The achievement of these objectives has the advantage of reduced consumptions and a better adjustment to regional services, meeting EU’s eco-friendly and financial requirements in reducing exploitation costs.
At the same time, for ensuring mobility and for developing a competitive passenger transport, it is necessary to develop a fully integrated transport network to connect the different transport modes. To this end, CFR Călători plans to develop partnerships with road forwarders to deliver road transport services on the routes where railway transport was interrupted from financial reasons, on the sections where there are speed restrictions or where the conditions of the railway infrastructure don’t permit the provision of quality services.
Railway PRO: What is the role of public transport in developing the economies of emerging countries in Central and Eastern Europe and Central Asia?
Ştefan Roşeanu: Every day more, the political factors in these regions emphasize the importance of public transport as regards its contribution to boosting economy and creating the premises for sustainable development. In this context, modal shift from individual motorised transport to public transport is essential to efficiently meet mobility needs. These objectives are reflected in the policies launched by decision-makers and in the investments allocated to infrastructure development and acquisition of necessary vehicles.
Therefore, in the future, the prosperity of our continent will depend on the capacity of all its regions to remain fully integrated into the world’s economy and competitive. More than just the European transport is at a crossroads. Investments in transport infrastructures stimulate economic growth, create welfare and jobs and favour geographical accessibility, trade and people’s mobility. It has to be thus planned so as to maximise the positive impact on economic growth, while minimising the negative environment impact.
Railway PRO: In European countries and worldwide, the authorities become aware of the importance of high-speed transport from the point of view of both mobility and economic development. In this context, is high-speed transport achievable in Romania? What are the factors that the authorities have to consider to develop high-speed transport projects?
Ştefan Roşeanu: The European high-speed network is constantly developing due to mobility needs and since the introduction of high-speed services the number of passengers has increased. For example, in West European countries, passenger transport increased from 15.2 billion passenger/km (in 1990) to 92.33 billion passenger/km (in 2008).
In Europe, the construction of high-speed network is also encouraged by the investments granted to this type of transport, but also by the policies launched. Also, through the White Paper on Transport, EU conveys the importance of high-speed lines on the entire European territory setting ambitious objectives: if by 2030, the EU wishes to triple the length of the existing high-speed network, the European high-speed network will be finalized by 2050. Although there are still European countries which don’t have high-speed lines, they will have to implement such projects to benefit from a complete integration into the European railway network. And here we are also talking about Romania whose situation is similar to that of many East-European countries. Following the example of high-speed transport implemented in the other European countries, it is recommended that the decision makers involved in the construction of high-speed lines in Romania would collaborate to the development of the feasibility study of such a project by taking into account a route through the south of the country, other than the pan-European Corridor IV. This project would also involve railway undertakings from neighbouring countries.
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