The proposed strategic investment in rail infrastructure in the recently announced Connecting Europe Facility (CEF) grants will only be optimised if there are modern, interoperable trains that can use it, says The Alliance of Passenger Rail New Entrants (ALLRAIL).
Such trains are crucial for the future of Europe’s rail network. They will ensure seamless cross-border operations, enhance the overall efficiency of the rail system, and reduce the wear and tear on the tracks.
However, modern, interoperable trains come with very high acquisition and upgrading costs. Therefore, it is crucial that the EU enables sufficient non-discriminatory funding to support the implementation of the latest interoperability technologies, such as the European Rail Traffic Management System (ERTMS) and the Future Rail Mobile Communication System (FRMCS) across all interested investors, especially private operators and leasing companies dedicated to investing in new and existing rolling stock.
Indeed, they have much to contribute through competition, which can lower ticket prices, improve service quality, and reduce the burden on the taxpayer.
Together with the recent EU Commission’s proposals for State Aid authorising the financing of guarantees of up to 80% of loans for the acquisition of rolling stock exclusively for new entrants and SMEs, this could be a crucial step towards increasing the availability and affordability of modern, interoperable trains.
Leasing companies and independent passenger rail operators are preparing comprehensive feedback for the European Commission’s public consultation, with the goal of better addressing their needs and challenges.
“We urge the EU Commission and Member States to recognise the importance of the investment in rail interoperability and there are the resources necessary to drive the modernisation of Europe’s rail infrastructure and trains. These must be allocated in a non-discriminatory manner so that all rail operators, especially the independent ones with fewer financial resources and financing options, can benefit,” says ALLRAIL Secretary General Nick Brooks.
“Aid for ERTMS upgrades and retrofits is crucial to the development of rail’s market share. Perhaps some thought should also be given to how this aid should be granted. Could subsidies not be applied at source (i.e. directly to the supply base) at a level that ensures that the cost to the end user is not unnecessarily high,“ adds AERRL Secretary general, Carole Coune.
The European Commission has selected 134 projects to receive over EUR 7 billion grants under a 2023 CEF Transport call for proposals, of which 80% representing around EUR 5.7 billion is the investment for rail projects.
The Alliance of Passenger Rail New Entrants is the European non-profit association of independent passenger rail companies, such as rail operators and ticket vendors.
Established in May 2017 in Brussels, ALLRAIL has the status of an official representative body for the EU rail sector since 2019.
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