4th March 2002

1. Concluding Report Pragmatic Solutions to improve rail-freight transport along the North-South Corridor 4th March 2002 This report is confidential and only intended for client‘s use

2. On the basis of the results of the initial hearing and interviews, the problems and their causes in the freight corridor were analysed and possible solutions identified... Procedure 1. Hearing in CH und NL with market participants Selected interviews with market participants Interim Report Review though 2nd hearing (CH und NL) and coordination with D and I Overview problem areas Revised final report on improving the north-south freight corridor Understanding causes Proposed solutions October 2001 December 2001 - January 2002 January 2002 February 2002 March 2002 … the most important conclusions are presented here RPMU_849_MM01_10.ppt

3. Today‘s rail-freight transport problems can be summarised into three areas Problem areas of rail-freight transport on the north-south axis 1 2 3 Quality1) Cost and cost structure Capacity2) Problem area Characteristics • Delays • Long transport times • Lack of Track & Trace, inadequate client information • Response times • Disproportiantely high price • Pricing structure too complex • Long-term capacity shortfall in long distance network, local feeder networks and at terminals “too late” “too costly” “too little” Weighting 4 2 1 1) Quality also includes short-term capacity shortfalls, which lead to poor quality 2) Includes the mediam to ,long-term capacity shortfalls Highest priority Lowest priority 4 0 RPMU_849_MM01_10.ppt

4. It was possible to identify 7 main causes on the basis of the causal analysis of the three problem areas Cause) Details • Lack of locomotives • Planning • Access restrictions • Condition of locomotives 1 • Lack of drivers • Planning • Access restrictions 2 • Customs procedure (esp. for private train operators) • Complexity and time needed for customs checks for cross-border freight transport 3 • Inadequate international coor-dination and flow of information • Coordination on introduction of timetables • Coordination and flow of information in daily planning 4 • Prioritisation of shipments in case of delay and unforeseen events • Freight transport vs. Passenger transport • Between various types of freight transport 5 • Capacity shortfall in infrastructure • Bottle-neck on north-south corridor • Bottle-necks at terminals 6 • Differing pricing methods • Variability and transparency of route prices • Variability and transparency of train prices 7 1) Not according to importance RPMU_849_MM01_10.ppt

5. The causes identified relate to the fact that the north-south corridor currently consists of nationally managed transport and networks Interface problems and maximisation of market forces ROs, e.g. Railion, Shortlines, ACTS DB HGK, etc. SBB BLS, etc. FS FNM, etc. Operator Level (Rail Operator, RO) Infrastructure Manager Infrastructure level Holland Germany Switzerland Italy RPMU_849_MM01_10.ppt

6. The causes identified could be addressed by an integrated corri-dor concept for the north-south axis Short to medium term Medium to long term ROs ROs ROs ROs RO1 Operator (Transport) level RO2 RO3 Corridor Control Centre Infra- structure level NL D CH I NL D CH I Infrastructure remains in national hands, only the management of the infra-structure will be internationally integrated RPMU_849_MM01_10.ppt

7. This would require significant changes to current practices... Measures to realise the integrated north-south corridor Measures partly already initiated by market participants • 1. Dedicated Corridor Control Centre • 2. „One stop shop“ for clients using corridor • 3. Transparency in corridor pricing • 4. Integrated timetable planning (cross-border) • 5. Greater flexibility of prioritisation of transports, particularly in case of delays Integrated infrastructure management Improved operation (transport) • 6. Corridor-specific locomotive pool • 7. Cross-border use of locomotives and drivers • 8. Better coordination and information flows in daily planning and disposition of ROs Capacity improvements • 9. Analysis and planning of on north-south corridor • 10. Elimination of bottle-necks and optimisation of capacity of north-south corridor Harmonised basic conditions • 11. Extension of simplified customs procedures for all rail operators • 12. Mutual recognition of training and licensing of train drivers • 13. Mutual recognition of locomotive licensing • 14. Market observation to prevent distortion of competition … the necessary measures are listed as follows... RPMU_849_MM01_10.ppt

8. A joint Corridor Control Centre would enable an integrated management of corridor infrastructure in the medium to long-term and thereby improved coordination and information flows Measure 1: Corridor Control Centre (short to medium-term) • The Corridor Control Centre consists of infrastructure managers from 4 countries, who jointly supervise the corridor infrastructure from one location • As an operations control centre information flow and integrated operations management can therefore be assured • It must be supported by open IT systems in order to enable the rail operators to monitor their trains • The Control Centre should also have Account Managers for important rail operators so as to provide a contact interface(Single-Point-of-Contact) • Furthermore, the ITCs and if necessary important clients should also be able to take a seat in the Control Centre RO1 RO2 RO3 RO4 RO5 Operation … Corridor Control Centre Infra- structure NL D CH I RPMU_849_MM01_10.ppt

9. In addition a Corridor Infrastructure Sales Office could be set up as a One-stop-shop for Clients Measure 2+3:„One-stop-shop“ and price transparency • The future model of the One-Stop-Shop could be an infrastructure sales office for the track network management • This office should be operated by the various corridor infrastructure managers • The roll would consist of timetable planning, track management and price setting of infrastructure for national rail companies and Open Access Operators • The One-Stop-Shop should also contribute to transparency of corridor pricing and bring about a harmonisation of price setting methods Own client of Open Access Operator (e.g. IKEA) RO 1 Client Infrastructure Manager 1 Open Access Logistics Company Infrastructure Manager 2 Corridor Infrastructure Operations Office RO 2 Client Infrastructure Manager 3 Infrastructure Manager 4 RO 3 Client RPMU_849_MM01_10.ppt

10. The joint planning of timetables and resources should continue to be improved in order to raise the quality of rail-freight transport Measure 4: Integrated timetable planning (cross-border) • It is important that national timetables for rail-freight are altered on the same date each year so as to prevent disruption • Open IT planning systems could contribute to improved coordination of the timetable planning in rail-freight transport • Such systems would enable advance insight into the creation of international timetables • They could also be useful to test the availability of locomotives, drivers and track/network capacity beyond one‘s own border RPMU_849_MM01_10.ppt

11. The prioritisation rules used by the Corridor Control Centre should be well-considered and take into account the volume of various transports Measure 5: Greater flexibility in prioritising shipments • Basically the prioritisation rules should be reconsidered and moreover with regard to • Passenger transport and freight transport as well as • Between various types of freight transport (e.g. UCT versus Truck on Train • The „Value“ concept could be used as a priority determinant • One stretch of track could contribute to the transportation of 1.5 million tonnes of international freight per year • The same stretch of track could also be used to carry just 100 local passengers a day • A decision-support system could be used to weigh up different types of transport and determine corresponding priorities • The reconsideration or flexibleeapproach to priority rules is important particularly in case of delays, in order to raise the quality of rail-freight transport RPMU_849_MM01_10.ppt

12. Furthermore, dedicated locomotives for the north-south corridor would improve the quality of cross-border rail-freight transport Measure 6: Corridor-specific locomotive pool • Dedicated locomotives for freight transport could be used to bring about an optimal service in the corridor. Ideal characteristics include: • Medium to high hauling power • Medium speed, so that it can keep up with quicker passenger trains and also maximise track capacity • Multi-current locomotives enabling cross-border operation in various electricity systems • Equipped for various signal systems (the standardisation in Europe will render this requirement superfluous in future) • Diesel locomotives could be used where conditions permit (e.g. less incline) • Dedication would also prevent the locomotives being used for other transports and mean they were ready when needed • The railway companies could either dedicate their own locomotives for the corridor or set up a transport company with a locomotive pool for the corridor to lease locomotives to ROs in the corridor RPMU_849_MM01_10.ppt

13. Cross-border use of multi-current or diesel locomotives would reduce the number of locomotive changes at critical points in the network Example Measure 7: Cross-border use of locomotives and drivers Diesel I(3kV) CH(15kV) D (15kV) NL(1.5kV) Present Electric Electric Electric Electric Diesel Border Border Border Terminal Gate Terminal Gate Diesel/Multi-current Electric Diesel/Multi-current Future • Advantage: • Fewer Locomotive changes • Avoids locomotive changes at critical points Neither locomotives nor drivers should be changed at the border, but rather at points for optimal efficiency. Optimisation of overall stretch = Locomotive change RPMU_849_MM01_10.ppt

14. Through better coordination and communication between ROs on the corridor in daily planning and disposition, the quality of freight transport can be raised Measure 8: Better coordination and information in daily planning and disposition of ROs • Joint planning and disposition of freight transport companies can be improved through transport concepts such as overlapping transport planning and controls (e.g. SBB/Trenitalia Feeder/Long Haul) and by extraction of specific corridors • Since the introduction of the feeder/long haul project, SBB/Trenitalia have been able to make significant improvements and plan to extend the concept • In addition, the EVUs should be informed more quickly of delays through daily planning and priority setting of shipments better coordinated • By having a seat in the Corridor Control Centre, the communication of information between ROs will be simplified RPMU_849_MM01_10.ppt

15. A corridor capacity plan could be a basis for a capacity improvement along the north-south axis Measure 9: Capacity plan Identification of existing bottle-necks Overstretched network hubs Terminal capacity Single-track stretches Identification of possible solutions (Return to national plans and information from 1st hearing where available) • Capacity increase of exisitng terminals • Planning of new terminals • Use of closed facilities • Study feasibility of track widening • Examine alternative routes, so as to avoid over loading certain stretches • Identify other measures to increase capacity Development and adoption of capacity development plan with measures and cost estimates RPMU_849_MM01_10.ppt

16. Capacity improvement must – based on the capacity plan – be tackled on 3 levels Measure 10: Removal of bottle-necks and optimisation of capacity on north-south corridor Strategic/Long-term Pre-defined projects (e.g. NRLA) requiring large investments and long implementation periods S. Europe N. Europe Local feeder/terminal Bottle-necks– Possibility of using disused or not fully used routes and terminals/sidings Local bottle-necks in long-distance network– bottlenecks can sometimes be lifted with short-term measures, e.g. Signal changes to increase capacity RPMU_849_MM01_10.ppt

17. The harmonisation of basic conditions is required to create and integrated north-south corridor Measures 11-14: Harmonisation of basic conditions Simplified customs procedures • Without „simplified customs procedures“ cross-border freight transport is rendered highly difficult • The „simplified customs procedures “ should be extended to all rail operators • Private rail operators • National rail companies, operating abroad under Open Access • Consequently, the outsourcing of the accounting point into an independent service company capable of taking over the billing of rail operators should be assessed Training and licensing of drivers and locomotives • Variation in individual countries of rules regarding training and licensing of train drivers and differences in approval of locomotives restrict the cross-border use of resources • The mutual recognition of training and licensing rules would enable more efficient operations on the north-south corridor Market observation • Coordinated market observation to avoid distortions to competition RPMU_849_MM01_10.ppt

18. The implemenation of the concept of an integrated north-south corridor has significant advantages for all market participants Expected effects Reduced rail operating costs Advantages for rail companies Improved punctuality Higher volume Higher product-profitability Higher attractivity Reduced circulation time Improved quality Advantages for clients Reduced costs for carriage owners Reduced prices Reduced, internal transport costs Better planning of arrival times Better real time service information Lower “crisis management” costs RPMU_849_MM01_10.ppt

19. The realisation of the corridor concept requires the implementation of numerous short, medium and long-term measures Masterplan Implemenation periods Short-term (2002-2003) Medium-term (2004-2007) Long-term (2008-2015) • Creation of Corridor Control Centre • Improvement of planning integration for freight transport • Revision of priority setting rules • Creation of price transparency • Creation of corridor infrastructure, coordination and sales officeas “One-stop-shop” • Development of more open IT sys-tems (e.g. Train Position Tracking) for all corridor users Integrated infrastructure management • Corridor specific locomotive pool • Acquisition of multi-current loco-motives • Improvement of coordination and information flows in daily freight transport planning • Cross-border use of locomotives and drivers Improved Operation • Drafting of capacity plan for north-south corridor • Capacity improvement: Lifting of bottle-necks (e.g. Terminals, local feeder networks etc) • Extension of main network according to needs Capacity improvements • Extension of simplified customs procedure to all rail operators • Coordinated market observation to prvent distortion of competition • Outsourcing of accounting point for simplified customs procedure • Mutual recognition of training and licensing of locomotives and drivers Harmonised basic conditions RPMU_849_MM01_10.ppt

20. Clearly defined areas of responsibility were set for each field of tasks Responsibilities Person/Agency responsible Participant/Support • Infrastructure Managers in the individual countries • State • Forcing and support with international cooperation • Common revision of rules on prioritisation with infrastructure managers • Promotion of a priority pilot project within the exisiting working group on North-South freight freeway • ROs: Cooperation on Corridor Control Centre Integrated infrastructure management • ROs of the North-South Corridor • State • Enabling of cross-border use of train drivers and locomotives through mutual recognition • Transport companies and terminal operators • Close cooperation with ROs in improvement measures Improved operation • State with strong participation of infrastructure managers and terminal operators • Initiator • Financing • Implementation • Infrastructure manager, ROs, terminal operators and transport companies • Joint compilation of capacity plan for the corridor • Upgrading of infrastructure according to requirements Capacity improvements • State • ROs and transport companies • Specialist support, elaboration of proposals • Assessment of outsourcing of costing point for the simplified customs procedure into an independent service company Harmonised basic conditions RPMU_849_MM01_10.ppt