At the beginning of the 90s, when the shift to market economy occurred in Central and East-European countries (CEE), public transport began to gain ground against individual motorized transport. Today, one of the main problems of the countries in Central and Eastern Europe is funds for upgrading their rolling stock and for aligning their infrastructure to European standards. These projects have been financed by the public sector, but there are limited funds in Europe, especially because of the poor economic conditions in these countries. However, the fact that both authorities and citizens have become aware of the importance of public transport in developing local, as well as national economy, has been the reason why projects in this area have been launched and the segment improved.
“I think that in Central and Eastern Europe it is extremely important to strengthen the economic case for public transport and show how it contri-butes to jobs and growth policies, how it makes the local economy more attractive and competitive. Another issue of substantial importance for the CEEC region is to secure a resilient funding mix for public transport, based on a stronger revenue strategy as well as on the contributions from indirect beneficiaries – in addition to traditional sources of funding”, explained Alain Flausch, Secretary General UITP, in an interview in March 2014.
Operators and authorities must rethink two major aspects related to financing and the business model for the public transport of today and tomorrow and the quality of services, including customer-orientation which implies a different management style, less oriented to the company and more to the customer.
In 2014-2020, the EU budget means over EUR 181 Billion directly transferred to the CEEC. 5 to 8% of the amount will be invested in projects related to integrated public transport development. This is a true challenge for operators, decision-makers and the industry, a challenge which consists in investing in and using available resources to make urban transport sustainable, efficient and performing and to help it increase its market share compared to the other modes of transport. To debate on all these issues, the International Association of Public Transport (UITP) and the Association for Metropolitan Mobility – Club Metropolitan (AMM) organized the workshop “Financing and modernising light rail in Central and Eastern Europe 2014-2020”, at the end of March.
“I fully support the conditions under the Structural Funds for the programming period 2014-2020, which oblige all those who wish to apply for EU funds not only to combine vehicles or rolling stock purchases with necessary infrastructure modernization, but also that require from authorities to create SUMPs and showcase in detail their urban mobility vision and philosophy behind each and every project, each and every euro to-be-spent”, said Flausch in his interview for Railway Pro.
Sofia launches projects, but financing issues linger
In Bulgaria’s capital, Sofia, public transport projects are delayed by financing problems, but despite these problems, the city has important mobility projects in plan. In 2013, the authorities announced the launch of metro development projects, the strategy including the construction of a system that would cover 70% of the capital’s surface. The system would include three networks with a total length of 57 km and 54 stations. The implementation of the strategy would see the number of daily passengers rise to 550 million (over 45% of the public transport share). The lines would meet in the city centre and allow one exchange per direction. On the long term, the plan includes extensions of these lines to the suburbs. The latest announcement for the development of the underground transport system is the launch of the tender for the design and construction of a 7.2km line section that will cross the central points of the city connecting Botevgradsko Bou-levard to OvchaKupel 1, in the south-west of the capital. The construction of the line section will be part of the project for the construction of line 3 of the metro network with a length of 16.5 km and 19 sections, 10 of which built in the underground. The project is co-financed by the EU through the operational programme Transport and would be completed in 45 months after signing the contract. Regarding surface public transport (tram), the authorities are focusing more on rolling stock acquisitions, but they still face financing problems.
“Public transport companies are facing financial problems for infrastructure projects and rolling stock acquisition which delays projects. An efficient option for the implementation of projects is to contract credits from the international financial institutions. Within the operational programme 2007-2013, the modernisation of Sofia urban transport includes the implementation of air quality improvement activities by purchasing new trams. The EU financing (100%) helps implement the procurement of 20 low-floor trams worth EUR 33.9 Million, an amount covered by the Operational Programme Environment”, declared Tsvetan Tsolov, Transport Project Manager – Sofia Municipality, during the conference.
The authorities launch the project for the modernisation of the tram line along Bulgaria Boulevard, 8th component of Sofia-Integrated Public Transport Project, using the same SOP-Environment Programme. The objective of the project is to replace the line, to increase travel speed and reduce maintenance costs. The project development contract was signed in July 2013 and is worth EUR 4.3 Million.
“Sofia Urban Transport Integration Project has a total cost of EUR 62.6 Million, of which the EU co-financing amounts to EUR 42.5 Million, the national budget allocated EUR 7.5 Million and the local budget, EUR 12.6 Million”, said Tsolov. Local financing includes reimbursable VAT worth EUR 5.9 Million, EBRD credit, EUR 6.8 Million and EUR 122 Thousand for design, financed by the municipality.
“For the programming period 2014-2020, local authorities have identified public transport development projects, but “there are financing problems, since the situation of financing is not clear and the plan has to be elaborated and submitted to approval and financing”, pointed out Tsolov.
Projects include the modernisation of several tram lines with a total length of over 19 km, as well as the implementation of the project “Modernisation of Sofia’s Trams” which includes the acquisition of 28 second-hand tramways from Basel carried out from May 2014 to December 2018. The total budget is of CHF 3 Million (EUR 2,45 Million), with CHF 2.55 Million (EUR 2 Million) Swiss contribution, CHF 390 Thousand (EUR 319 Thousand) from Stolichen Electro Transport EAD, the local transport company, and CHF 60 Thousand (EUR 49 Thousand) from the municipality.
Krakow focuses on procuring new vehicles
Krakow is one of the largest cities of Poland (758,000 citizens) and one of the most popular cities for tourists. In crowded periods, the citizens and tourists make 1 million journeys by public transport means per day. The 25 tram lines (335 km of network) ensure the transport of 172 million per year. For Krakow it is essential to increase the quality of public transport ser-vices. Over the next years, the city will focus on upgrading rolling stock and replacing obsolete trams. “In 5 years, we have invested EUR 80 Million in our rolling stock fleet and we want to invest EUR 160 Million in acquisitions and in the modernisation of the fleet over the next 5 years. The project has two phases. The first phase will be completed in 2015 and includes the procurement of 36 trams. The second phase will be carried out from 2016 to 2019 when another 36 trams will be purchased”, declared Rafał Świerczyński, Vice-President and CFO – MPK Kraków, during the conference. Apart from renewing the fleet, the company also wants to upgrade 10 trams. MPK’s objective by 2020 is to replace 55% of its rolling stock with new vehicles.
Budapest: projects in progress
By 2020, the entire fleet of trams and trolleybuses could be replaced by low-floor vehicles to increase the quality of services and to ensure accessibility. The project includes the acquisition of 25 trams of 32-36 m and 12 units with a length of 52-56 m, as well as 24 trolleybuses. Together with the infrastructure development project, which also includes the construction of platforms and of 3 tram depots, the project is worth EUR 140 Million”, declared Gergely Horn, Head of Strategy, Investments and Projects – BKK Budapest.
In March 2014, BKK announced having signed the contract with CAF manufacturer on the delivery of 37 low-floor trams with an option of supplying another 87 vehicles. The contract is worth EUR 90 Million and it is financed by EU as part of the country’s investment and development plans.
The company is currently developing several infrastructure projects: the modernisation of line 1 and 3, for which funds worth EUR 132 Million are necessary, of which the EU co-financing is 93.92%. The project includes grass lines, the modernisation of platforms, the installation of elevators and passenger information systems. “The company also has a project on interconnecting the tram network in Buda on the north-south direction and the reconstruction of the line on the entire Buda area, consisting in the construction of a traffic connection on two separate street sections, the construction and reconstruction of intermodal hubs and the reconstruction of the existing lines and platforms. The project is worth EUR 48 Million and the EU co-financing represents 83.4%. The project is now in the tender initiation phase”, declared Horn.
Another project of the company is the reconstruction of the SzéllKálmán area, the largest intermodal junction in Buda. There is a metro line, 5 tram lines, 15 bus lines and suburban lines and the project includes the total reconstruction of the infrastructure, including the construction of pedestrian areas with access to the elevators.
Currently, BKK is preparing several projects which include the reconstruction and the extension of metro line 1, the procurement of rolling stock, the extension to Zugló area and the development of a link to tram lines, the development of the park & ride system, and the development of other road connection projects. The project ela-boration is worth EUR 2.6 Million and the project is estimated at EUR 170 Million. Another project focuses on the interope-rability of the metro line M2 and Gödöllői HÉV suburban railway, requiring funds of EUR 1.7 Million for design and EUR 57 Million for execution. The interconnection of the railways on the north-south axis, including the procurement of rolling stock, the connection to metro lines M2, M3 and M4, requires grants worth EUR 1.9 Million for design. The project could be implemented by 2020. The company also wants to develop a complex which incorporates Budapest’s network of trams and trolleybuses which requires investments of EUR 275 Million and to reconstruct the M3 line, a project worth EUR 500 Million.
As of March, Budapest has an automated metro line (on the new Line 4), the first automated metro line in Central and Eastern Europe.
Novi Sad reintroduces trams
With a population of around 300,000 ci-tizens, Novi Sad (Serbia) wants to develop sustainable transport by choosing tram networks. In 2011, local authorities publicly announced their intention of reintroducing the tram and there is now a study on this project.
“For Novi Sad, the introduction of tram lines is important to ensure urban mobility. The first phase of the project requires investments of EUR 80 Million, including the acquisition of 25 trams for which EUR 65 Million are necessary and the construction of tram infrastructure which requires EUR 15 Million. These values don’t include the reconstruction of the road infrastructure and the relocation of the underground or overground space”, declared AleksandarJevdjenic, Head of Traffic Department – Urban Planning, Development and Research Centre, Novi Sad Municipality.
The introduction of tram lines will increase the attractiveness of public transport, while trams will have priority and independent routes, the lines will be introduced in the pedestrian areas as well and will be connected to the other public transport terminals. To encourage the use of this transport system, local authorities want to introduce a parking fee in the central area whose cost will be higher than tram tickets. For 2030, the authorities plan the construction of 5 tram lines with a total length of 92.4 km, with 47 stations and 5 terminals. The lines will provide connections with the other transport modes. Also, a depot will be constructed. By 2030, the network will be operated by 50 vehicles with a minimum capacity of 160 seats.
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