Railtransport:In2004

ThecurrentsituationandtheCommission'sinitiatives
Thestatusquo:aworryingdecline

RailtransportinEuropehasseenaworryingdeclineformorethanthirtyyearsnow,especiallyin
theareaoffreighttransport.In1970,freighttransportinthefifteenMemberStatesoftheEU
(including the former German Democratic Republic) amounted to 282 bln. tonnekilometers
(tkm).Thisfiguredroppedto254blntkmin2004.Theshareoffreighttransportbyrailfortheall
landtransportmodes(road,inlandwaterways,railandpipelines)droppedfrom30%in1970to
13.2%in2004.Ifseatransportisincluded,thisfiguredroppedfrom20%in1970toalmost7.
7%in2002.FortheenlargedEuropeanUnion,themodalshareofrailfreightdeclinedfrom19.5
%in1995to16.4%in2004.
Inabsoluteterms,thenumberoftonnekilometresdroppedfrom494.3blnin1970to363.9
blnin2004intheEU25,whichrepresentsadecreaseofmorethan26%.Freighttransportbyroad
hastripledinthesameperiod.Passengertransportbyrailalsodeclined,thoughlessdramatically:
passengertransport,10,2%oftotalrailtransportin1970,fellto6,3%in2003intheEU15.The
modalshareofpassengertransportbyrailintheEU25(excludingairandseatransport)dropped
from6.8%in1995to6.4%in2003.Inabsoluteterms,thenumberofpassengerskilometers
(pkm)rosefrom300.6bln.pkmin1970intheEU25to346.3blnpkmin2003and349.9blnpkm
in2004.Transportcarriedoutbyhighspeedtrainsaccountedfor4.2%ofallrailtransportin
1990.In2004,thisshareroseto21.6%.AnuncompetitiveserviceThemainreasonforthisstate
ofaffairsisthattherailwaysarenotascompetitiveasroadhaulage.
Railwaytransportislessreliablethanroadhaulageasregardsdeliverytimes,whicharefar
lesspredictableinthecaseofrail.Onsomeinternationalroutes,deliverytimeshaveevendoubled
ortrebledinrecentyears.Thisisduemainlytoverylongstoppingtimesenroute,becauseother
trains (passenger services especially) have priority, and because procedures at borders are
complicated(traincrewsandlocomotiveshavetobechangedbecauseofdifferencesinsignalling
systemsfromonecountrytoanother,etc.).

Formalitiesarelongerandmorecomplicatedatallstagesoftheprocedure.Ittakesbarelya
fewhourstosetupacontractwitharoadhaulageoperator.
Both road and rail, provide doortodoor services, though the significant decrease of
privatesidingsforrailtransporthasgivenroadtransportacompetitiveadvantageoverrail.

Allthesefactorsarecriticalforindustrieswhichworktotightschedulesandapplythe
"justintime"principle.Andyet,therailwayshaveuniqueadvantages:theyareasafeandclean
modeoftransportandonetraincancontainupto5060truckloads.Theirinfrastructurecoversa
lotofterritoryandisgenerallyinagoodstate.Buttheynolongermatchmoderndaycustomer
requirements.
Revitalisingtherailwaysisthusanimperative.ItisatoppriorityintheEuropeanUnion's
commontransportpolicyFarfromwishingto"fragment"therailwaystheEuropeanUnionis
anxious,inlinewithitstransportpolicy,tocreateconditionsinwhichrailtransportcanonceagain
beefficientandcompetitive,particularlyforfreight.
Lest there be any misunderstanding here, the EU is in no way trying to privatise the
railways:noEuropeaninstitutioncandothat,quitesimplybecausetheTreatyforbidsit(Article
295oftheTreatyonthesystemofpropertyownership).However,theEuropeanCommission
believesinthevirtuesofcompetition,whichencouragesundertakingstoinnovateandreturnto
efficiency.
Railtransport:thecurrentsituationandtheCommission'sinitiatives
Thestatusquo:aworryingdecline

Rail transport in Europe has seen a worrying decline for more than thirty years now,
especiallyintheareaoffreighttransport.In1970,freighttransportinthefifteenMemberStatesof
the EU (including the former German Democratic Republic) amounted to 282 bln. tonne
kilometers(tkm).Thisfiguredroppedto254blntkmin2004.Theshareoffreighttransportbyrail
forthealllandtransportmodes(road,inlandwaterways,railandpipelines)droppedfrom30%in
1970to13.2%in2004.Ifseatransportisincluded,thisfiguredroppedfrom20%in1970to
almost7.7%in2002.
FortheenlargedEuropeanUnion,themodalshareofrailfreightdeclinedfrom19.5%in
1995to16.4%in2004.Inabsoluteterms,thenumberoftonnekilometresdroppedfrom494.3
blnin1970to363.9blnin2004intheEU25,whichrepresentsadecreaseofmorethan26%.
Freighttransportbyroadhastripledinthesameperiod.
Passengertransportbyrailalsodeclined,thoughlessdramatically:passengertransport,
10,2%oftotalrailtransportin1970,fellto6,3%in2003intheEU15.Themodalshareof
passengertransportbyrailintheEU25(excludingairandseatransport)droppedfrom6.8%in
1995to6.4%in2003.Inabsoluteterms,thenumberofpassengerskilometers(pkm)rosefrom
300.6bln.pkmin1970intheEU25to346.3blnpkmin2003and349.9blnpkmin2004.
Transportcarriedoutbyhighspeedtrainsaccountedfor4.2%ofallrailtransportin1990.In
2004,thisshareroseto21.6%.

Anuncompetitiveservice

Themainreasonforthisstateofaffairsisthattherailwaysarenotascompetitiveasroadhaulage.
Railwaytransportislessreliablethanroadhaulageasregardsdeliverytimes,whicharefarless
predictableinthecaseofrail.Onsomeinternationalroutes,deliverytimeshaveevendoubledor
trebledinrecentyears.Thisisduemainlytoverylongstoppingtimesenroute,becauseother
trains (passenger services especially) have priority, and because procedures at borders are
complicated(traincrewsandlocomotiveshavetobechangedbecauseofdifferencesinsignalling
systemsfromonecountrytoanother,etc.).
Formalitiesarelongerandmorecomplicatedatallstagesoftheprocedure.Ittakesbarelyafew
hourstosetupacontractwitharoadhaulageoperator.
Both road and rail, provide doortodoor services, though the significant decrease of private
sidingsforrailtransporthasgivenroadtransportacompetitiveadvantageoverrail.
Allthesefactorsarecriticalforindustrieswhichworktotightschedulesandapplythe"justin
time"principle.Andyet,therailwayshaveuniqueadvantages:theyareasafeandcleanmodeof
transportandonetraincancontainupto5060truckloads.Theirinfrastructurecoversalotof
territory and is generally in a good state. But they no longer match modernday customer
requirements.
Revitalising the railways is thus an imperative. It is a top priority in the European Union's
commontransportpolicyFarfromwishingto"fragment"therailwaystheEuropeanUnionis
anxious,inlinewithitstransportpolicy,tocreateconditionsinwhichrailtransportcanonceagain
beefficientandcompetitive,particularlyforfreight.
Lesttherebeanymisunderstandinghere,theEUisinnowaytryingtoprivatisetherailways:no
Europeaninstitutioncandothat,quitesimplybecausetheTreatyforbidsit(Article295ofthe
Treatyonthesystemofpropertyownership).
However,theEuropeanCommissionbelieves inthevirtuesofcompetition,whichencourages
undertakingstoinnovateandreturntoefficiency.