At the end of February, the Community of European Railway and Infrastructure Companies (CER) submitted to the European Commission its suggestions on the framework conditions necessary to the Commission’s plan of “reviewing” the First Railway Package. In 2007, the European Commission has launched the concept of amending the First Railway Package. CER believes that this amendment could be adopted by the Commission in 2010 and could take the shape of the project for a new Code of Transport by integrating the three directives of the First Railway Package.
The amendments should mostly refer to aspects such as infrastructure financing in general and multiannual contracts, particularly the Clarification of the present charging norms for the additional noise-differentiated track access
charges (NDTAC), access to auxiliary railway services, the transparency of framework declarations and the role of Regulatory Bodies. To reach these objectives, it is necessary to find the appropriate levers to improve the still poor financial architecture and to establish a planning level in the field, which must be directed as part of a wider regulatory framework at the right time and according to the particularities of the national level. In the last years, CER has asked EU institutions to level the balance of the framework conditions which represent the foundation of the financial architecture necessary to the development of the railway sector in the new competitive context. The financial architecture mainly refers to three action directions. The first refers to the appropriate financing of the railway infrastructure which requires the settlement of multiannual contracts or of the agreements between the infrastructure manager and the state. “Currently, many infrastructure managers experience an activity decline, mainly due to insufficient financing which threatens the sustainability of the entire railway system and, therefore, the Commission’s objectives of developing sustainable means of transport as much as possible”, CER representatives believe.
The second direction aims at the adequate compensation of the public service obligations, in compliance with the foundation principles of Regulation 1370/2001. At the moment, it is certain that more than half of the EU Member States (especially Central and East European countries) don’t provide appropriate compensation for public service obligations. Consequently, this “lack” of funds is compensated, in the end, through the extremely high infrastructure access charge, especially for freight transport. This aspect is inevitably affecting the productivity of the sector in general. The third direction refers to the huge debts which have been accumulated. The accumulation of historic debts weighs on railway companies and, consequently, they cannot align to an adequate competitive level as compared to the other operators and transport modes on the market.
Encouraging competition development
The recovery of financial architecture must stimulate competition for and within the market, as well as encourage a better integration on railway markets. Under the circumstances, CER believes that the amendment should also refer to other framework conditions, such as encouraging competition on railway service market, the transparency of framework declarations, the role of Regulatory Bodies and ensuring a fair legal environment for railway transport companies. CER firmly supports the implementation of the “important facilities” within the access legislation to railway services as an instrument capable to eliminate market accession obstacles and to promote innovations and entrepreneurship. This principle represents an important guarantee for the service market investors, without which, newcomers on the market of railway transport service operators are not ready to assume the risk of creating alternatives. Any overregulation can become dangerous by reducing potential new business initiatives and discouraging investments in transport services. CER declares that the amendment of the First Railway Package can represent a growth opportunity in the transparency of framework declarations and can ensure the development of railway transport services simultaneously with market development.
CER is also firmly supporting the establishment of the Regulatory Bodies in compliance with the EU legislation in all EU Member States in order to ensure the adequate and harmonious development of the railway transport market. In the end, the European Commission must provide the legislatively necessary framework conditions for the operators to activate on the market, which will enable railway companies to enter new markets without being confronted with undesired legislative and financial risks: to this effect, precise rules on clear responsibilities can play a significant role in preventing the unfair discrimination of one agent to the detriment of another, with all economic and legislative consequences that may derive, CER points out. The Community of European Railway and Infrastructure Companies supports the non-discriminatory access to railway transport services as an “essential” element in the process.
by Elena Ilie
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