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SWOT analysis: some comments to be made (e.g. RFI carries out tests for rolling stock acceptance in co-operation with Trenitalia; authorities have not yet


    DIRECTORATE-GENERAL FOR ENERGY AND TRANSPORT DIRECTORATE E - Inland Transport Rail Transport and Interoperability

    Brussels, 29 April 2005


Minutes of the Ninth meeting of the Developing European Railways Committee

    (DERC) set up by Directive 2001/12/EC amending Directive 91/440/EC and

    Directive 2001/14/EC, held in Brussels 28 January 2005

    Participation: All Member States with a railway network except EE, IE, EL and SI.

    NO attended as observer.

    1. Adoption of the agenda of the meeting

    Mr J. Vinois, Head of Unit for Rail Transport and Interoperability, chaired the meeting.

    The agenda was adopted without modifications.

    2. Adoption of the minutes of the eighth meeting on 7 July 2004

    The minutes of the eighth meeting were adopted taking account of modifications

    proposed by DK.

    3. Tour de table on the status of the implementation of the Infrastructure Package


    The Commission requested comments on the country monographs compiled in the

    framework of the ERAIL study on the implementation of EC Directives in the railway

    sector, pending national legislation and a SWOT analysis on the practice of main

    actors and institutions within the regulatory framework of each country. Member

    States were asked to provide information on where they stand in the implementation stndprocess for the 1 and 2 railway package. Belgium; The first railway package has been implemented in Belgium at the end of

    December 2004. Some more work is needed on the adaptation of the safety certificate

    and there will be a consolidation of the legal texts. SNCB will be structured into three

    legally independent entities; a holding, the operator SNCB (freight and passenger) and

    Infrabel as infrastructure manager. The holding will determine personnel policy and

    co-ordinate investment. There will be a specific service within Infrabel dealing with

    essential functions for network access. Board members of the holding will not be

    represented in the board of Infrabel.. Market; 5 licences have been issued and safety

    certificates have been requested. SNCB and DLC run freight services. ERAIL study

    needs to be modified in light of the changes brought about.

    Czech Republic; There has been a decrease in rail freight transport due to abolished customs routines for road. 12 licences have been issued. Discussions are taking place

    on possible introduction of holding model; decision to be taken by 31.12.2005.

Commission européenne, B-1049 Bruxelles / Europese Commissie, B-1049 Brussel - Belgium. Telephone: (32-2) 299 11 11. Internet:

Allocation of capacity is carried out by the Railway Administration, daily management

    and maintenance within CD. Minor corrections to be made of ERAIL study.

    Denmark; First railway package was fully implemented beginning of 2004. ndImplementation of 2 rail package is expected to be completed within set limits. Ministry will look into ways of creating better conditions for rail freight. Terminals for

    combined transport are still owned by DSB, ownership to be changed to the

    infrastructure manager, Banedanmark. For passenger services there is regulated

    competition through tendering. Regional cross border services will be tendered with

    Sweden. There will be co-operation between authorities - the Danish Rail Authority

    and Skånetrafiken, the regional transport authority in Sweden, on how to purchase

    transport services together. Market; rail freight transit services under financial

    pressure - Railion is threatening to stop services Comments (minor) on ERAIL study

    will be sent by email.

    Germany; Full transposition of the first railway package is expected by end March

    2005. The Regulator and its organisation is now under discussion; either as a separate

    entity for ex ante control or as part of a inter-sector regulatory body responsible for

    Post, Telecom, Gas and Railways. Privatisation process of Deutsch Bahn AG: study

    on financial concepts for stock market floating under various options of corporate

    structure launched; to be completed by summer 2005. Market; there is a slight

    increase in the rail freight market share (also due to introduction of road Maut) and

    prices are significantly down. ERAIL study OK but not SWOT analysis (distinction

    between description of facts and assessment required).

    Norway; The implementation process for the second railway package has started; only changes to secondary legislation are foreseen. The railway inspectorate will have

    more personnel; an increase from 20 to 30 employees is foreseen. Market; two safety

    certificates have been issued. Freight services: two Norwegian and two foreign

    operators are active. Passenger services: one line will be tendered with start from 2006.

    ERAIL study: some minor changes to be made.

    Spain; Implementation of the first railway package: Royal decree issued to make rail

    law enter into force by 31.12.2004; a Ministerial Order on rail infrastructure charges is

    still missing, will possibly be published in February 2005. There are discussions with

    the trade unions on the Ministerial Order on Staff and certification of rolling stock, ndorders to be issued in 2 half of 2005. A report will be prepared for March 2005 on tendering for capacity (for the whole network). There will be two public companies;

    one for infrastructure and one for rail service operations. Licences are issued by

    infrastructure manager for the time being; in the future, by transport ministry. A

    Committee for Railway Regulation (a regulatory body) has been set up consisting of a

    president and four assistants. Market; slight drop in freight market share. SWOT

    analysis was made before 2005; needs to be updated completely.

    France; Directive 2001/16/EC was implemented during summer 2004. Regarding the

    second railway package there are some problems related to the setting up of a safety

    authority. An operator requesting a license in France needs to get a safety certificate

    within a certain time limit otherwise the license will loose its validity. For railway

    undertakings (except SNCF) validity of licence is limited to 1 year, if no safety

    certificate is obtained. Market; three licenses have been issued (SNCF, Europort 2 and CFTA Cargo) as well as three safety certificates.


Italy; Secondary legislation still needs to be put in place in order to achieve the full

    implementation of the first railway package. RFIs new network statement gives the

    conditions for use of the rail network in accordance with the new legislation. Regional

    infrastructure is not managed by RFI which raises some legal questions. A Regulatory

    Body has been set up. Regarding the transposition of the second railway package a

    Safety authority will soon be put in place. Market; there is a slight increase in rail

    transport. ERAIL study comments will be forwarded. SWOT analysis: some

    comments to be made (e.g. RFI carries out tests for rolling stock acceptance in co-

    operation with Trenitalia; authorities have not yet sufficient expertise for safety


    Latvia; Discussions on creating a separate infrastructure manager or holding are

    ongoing. The State Railway Administration under the MoT supervision is the

    Regulator, issues freight RU licences and allocates capacity when the infrastructure

    manager also is an operator. The Public Utilities Commission is responsible for issuing

    licences for passenger RU and for developing methodology for infrastructure charges.

    Safety certificates and licenses for train drivers are issued by the State Railway

    Technical Inspectorate. A Network Statement exists on the homepage of the railway ndoperator LDZ (also in English). Implementation of 2 rail package is being prepared.

    ERAIL- and SWOT-analysis; some changes are to be made. Market: Modal share of

    rail freight up from 3% to 10%. Russian company established in EE has bought rail

    repair business.

    Lithuania; All legal Acts are in place for the implementation of the first railway package. Minor amendments will be made to the rules for licensing and insurance. The

    Network Statement has been published on the website of the Lithuanian railways. The

    Railway Inspectorate issues licences, safety certificates, sets rail charges and allocates

    capacity. Rail charges will be published soon. Market; freight services are increasing,

    up 8%, whereas passenger services are decreasing. A license and a safety certificate to

    a new railway undertaking have been issued. ERAIL: minor corrections to be made.

    Luxemburg; Late in transposing the first railway package. The social dialogue will be re-launched in October 2005 and no further legislation is foreseen until this tripartite

    discussion has come to an end. The same is the case for the second railway package.

    Market; a license (September 2004) and a safety certificate (December 2004) have

    been awarded to CFL. ERAIL; some changes should be made. Rail market share

    remains stable.

    Hungary; The implementation of the first railway package was completed last year. A new Act on railways is being prepared and expected to be adopted by end 2005. The

    structuring of the railways is under discussion with possibly a decision by the summer.

    Allocation of train paths is carried out by a body with 10 staff. Market; Hungary has a

    derogation until 31 December 2006, now 20% of capacity open for international rail

    freight services. Five licenses have been issued so far; only MAV is operating. ERAIL

    minor changes to be made.

    The Netherlands; The new Railway Act entered into force 1 January 2005. Preparation of transposition of the second railway package is underway. Market;

    increase in container traffic, passenger traffic picking up. The high-speed line HSL

    Zuid has been tendered (concession for passenger traffic given for 10 years). ERAIL

    and SWOT; some changes to be made in both.


Austria; ÖBB has been structured into a holding with effect from 1 January 2005.

    New rail regulator has been nominated (Mr Fürnkranz). Second railway package

    implementation is being prepared, AT wants to transpose train driver licence Directive

    at the same time. ERAIL minor changes will be communicated.

    Poland; Some secondary legislation for implementing the first railway package is still

    to be issued (approximately ten Ordinances by March 2005). Second railway package

    implementation is being prepared; to be completed by end 2005. Office for Rail

    Transport (UTK) has now 138 staff; 90 licences (18 freight services, 47 passenger

    services, 25 traction) and 45 safety certificates have been issued. ERAIL study: some

    minor changes to be made, proposals be sent by e-mail. SWOT is OK. Strategy for rail

    sector and structure of PKP group will be discussed by government in February 2005.

    Portugal; Second railway package is being worked on with the aim to transpose it by end of 2005. Rules regarding licenses and insurances are to be revised. ERAIL: some

    changes to be made. Market: no new entrant yet.

    Slovakia; First railway package has been fully implemented. The legal acts transposing the second railway package are currently discussed in Parliament and will

    most likely be adopted by end of March 2005. The independent infrastructure manager

    is State owned. There is an independent Regulatory Body issuing safety certificates.

    Market; there are 3 rail passenger operators and 8 rail freight operators. The national

    RU has been split into freight and passenger transport undertaking on 1.1. 2005.

    Finland; The transposition of the second railway packaged will entail some changes

    and amendments to rail legislation (opening of domestic rail freight market by

    1.1.2007). A Rail authority will be set up in September 2006 at the latest and act as

    the rail regulator and issue safety certificates. Market: stable rail freight and passenger


    Sweden; The secondary legislation still missing will be issued by the Rail Agency and will enter into force before the summer 2005. Regarding the second railway package,

    most of the legislative work has already been carried out; only minor changes and

    amendments are foreseen in order to comply with the package. ERAIL some

    corrections to be made. SWOT is OK.

    United Kingdom; A new Railway Bill has been presented revising the institutional and procedural set up of rail sector in UK. SRA will be abolished. Economic and

    safety related rail regulation is to be merged. There has been a delay in the

    transposition of the first railway package. The transposition is now foreseen for the

    end of 2005. Market; railway market has grown by 43% since 1995. ERAIL study:

    some remarks to be given. SWOT to be amended.

    The Commission informed that a detailed analysis will be made of the holding models in order to assess their compliance with the requirements of Community legislation.

    4. Reports from the working groups

    The Commission reported on the progress made and on ongoing activities in the

    working groups:

    ? Market access


    - Safety certificates/rolling stock certification: Information by the Commission

    about progress with a study commissioned in December 2003 on safety certificate stacceptance criteria and procedures. Report from the 1 meeting of the working

    group of safety certification bodies on 13 December 2004 and presentation of the

    work plan of the group. Documents will be made available to DERC on CIRCA.

    - Task force Licensing and insurance: The Commission informed about the

    progress of work and the meetings of the task force held on 28 September 2004,

    26 November 2004 and 21 January 2005, concerning the experience with the

    common European license format and the state of the insurance market. The

    Commission also informed delegations about the future practice of publicising

    notifications of railway licences. The next meeting of this group will be held the 5

    April 2005. A report on the findings will be available by second half of 2005.

    UK raised the question on when the practicalities around licenses would be

    discussed e.g. the link to the safety certificate. They wished to have discussions on

    the process as well as sharing best practices. DK proposed that the

    recommendations of the former working group dealing with licenses should be

    looked into (length of procedure, paperwork that needs to be shown, mutual

    confidence in the process). The Commission stated that it sees no need for

    publishing the licenses in the Official journal and that it would be sufficient to have

    the licenses published on internet site of the Commission and asked the Member

    States if they could agree to this procedure. The Committee agreed to this.

? Rail market monitoring scheme (RMMS)

    - The Commission reported on the last meeting of the RMMS WG on 3 December

    2004 focussing on market developments in particular in rail freight.

? Regulatory bodies

    a) The Commission informed about the up-coming meeting of this group that will

    take place the 9-10 March 2005 in Brussels and partly be a joint meeting with the

    National Competition Authorities to allow for a discussion on rail issues where

    competence is shared.

    b) The Commission (DG COMP) reported on the market survey carried out within

    the co-operation network of National Competition Authorities on rail matters.

? Rail infrastructure charging

    Report was given by the Commission on the results of the meetings of the task force rail

    infrastructure charging on 8 October 2004 and 16 December 2004. Next meeting of the

    group will be held 1 March 2005. The Commission informed about a first draft of the

    report of the group and the future work to be completed before second half of 2005.

5. Study on agreements about rail border traffic

    The Commission commissioned a study in January 2004 to establish a survey of such

    agreements at state, company and local level and to assess the compliance of their


provisions with EC legislation. The draft final report was presented and followed by a

    discussion of the draft findings and recommendations. Access to essential facilities at

    borders and OSJD rules for international rail traffic were identified as posing significant


    The report will be finalised and sent to Member States for comments and suggestions for

    follow-up action.

6. COTIF 1999 protocol coming into force in 2005

    The Council has circulated the last version of the proposal for a Council Decision on

    Community accession to COTIF.

    The approach to take in view of clarifying the legal relationship between EC rail

    legislation and the CUI annex of COTIF was discussed. UK expressed their concerns

    regarding the CUI appendix that they have found very prescriptive and more favourable to

    the infrastructure manager than to the railway undertaking. Existing track access

    agreements in UK would have to be amended. DE proposed that CUI should be changed. DK agreed with this, if the problems could not be solved by a dynamic interpretation of rdthe CUI. ES suggested waiting until all relevant rail legislation (e.g. 3 rail package) will

    be in place. UK asked about required approach to new COTIF in the short term.

    The Commission pointed out that the Community will not be able to declare against the

    appendix until it has become a member of COTIF and that it will take time to have

    changes made to the CUI. The Legal Service will be contacted to find out which way

    would be the best to act on this.

    It was decided to delay a COREPER decision on Community accession to COTIF and to

    re-launch a reflection on the Community’s position towards CUI in the coming weeks. A workshop on the standardisation of contracts will be held in the first half of this year.

    7. Miscellaneous

    - Information by the Commission about the launch of DG TREN studies


    - The next meeting of the Committee should take place in July 2005.


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