Rail investments: status quo and future perspectives. Philippe Citroën Director General, UNIFE Strasbourg 22 October, 2014

Transcription

1 Rail investments: status quo and future perspectives Philippe Citroën Director General, UNIFE Strasbourg 22 October, 2014

2 Overview of the Rail Sector

3 Rail is the leader in eco-friendly transport

4 The World Rail Market future perspectives Based on trends and future orders, the market is expected to grow by 2.7% Expected growth by region (CAGR 1) ), total market) 2% 1% 1% 2.7% 3.5% Western Europe Eastern Europe CIS World rail supply market NAFTA 6% 0% 4% Africa/ Middle East Asia Pacific Latin America 1) Compounded annual growth rate of total market vs Source: Steering Board UNIFE WRMS 2014

5 A level playing field? In terms of accessible market volume Western Europe shall remain the largest rail supply market. Some markets such as Japan are still to a large extent not accessible to European suppliers.

6 Expected trends Focus on Western Europe Western Europe, the world's largest market, is forecast to develop driven by growth in the British and French markets Other focus countries: Austria, Belgium, Denmark, Finland, Greece, Netherlands, Norway, Portugal, Sweden, Switzerland

7 Expected trends Focus on Eastern Europe Unfortunately, there has been very low growth in Eastern Europe (and only 1% expected CAGR until 2019, despite significant EU structural funds set aside for transport! Other focus country: Hungary

8 Market outlook for the rail supply industry remains positive for the upcoming years Steady growth of rail supply market will continue based on expected high order volumes from operators and infrastructure managers through , despite the current economic situation Urbanisation, energy scarcity and environmental concerns, deregulation and liberalisation, innovative technologies such as ERTMS and other trends drive growth Alternative financing such as PPPs will gain importance in some markets because of scarce public financing for railway projects Latin America, NAFTA and Asia Pacific are growth regions. Africa/Middle East will maintain its exceptionally high volumes Large and mature markets in Western Europe will keep their investment volumes Source: Roland Berger Analysis

9 How can rail unleash its full potential in Europe?

10 The Technical Pillar of the 4 th Railway Package The Technical Pillar of the Fourth Railway Package addresses the complex and expensive authorisation procedures in Europe. Together with further initiatives, this pillar will contribute to create interoperability within a single European railway area and facilitate international competition by making ERA the one-stop-shop for crossborder authorisation. The Technical Pillar will positively affect passenger and freight transport and will increase the efficiency of operators and infrastructure managers.

11 Growing the investment in R&D Shift2Rail Governments of Asian countries are making massive investments in rail research to fill the technological gap with the European rail industry that is still a world leader The Shift2Rail Joint Undertaking for Rail Research and Innovation A sector-wide initiative (manufacturers, operators (passenger and freight), inframanagers, academia, research centres ) Adopted by the Council in June, provides for 920 million for research in rail technology over the next 6 years, also thanks to decisive support of EP TRAN-ITRE Committees. Shift2Rail aims to improve the competitiveness of rail as a transport mode and the industry globally all while improving mobility for European passengers JU is currently being set up Call for Associated Members announced on 6 October

12 ERTMS the key step towards rail interoperability A constant and stable rate of increase in ERTMS investments in Europe and elsewhere drives the growth of the rail control market and the total overall market. Many European countries (Denmark, Austria, Belgium ) are continuously introducing, extending and implementing ERTMS in their network. Other countries, like France and Germany, are somewhat slow in deploying ERTMS but will hopefully form the base for growth in future years.

13 Better use of EU Funds for Rail The EU provides very attractive funding packages for investment all over Europe The Transport White Paper guides Commission policy for Structural Funds 85% of investments will be funded by the EU Funds from the Connecting Europe Facility to finance TEN-T with EUR 26 billion (11.3 billion for Cohesion countries). First call was just announced last month Essential investments and creation of strategic corridors. However, in some countries EU funds have not been properly absorbed in the past.

14 Conclusions The rail industry is resilient to economic ups and downs and knows how to cope with tough times However, a number of issues need to be solved in order to unleash the full potential of our sector and make our business even more successful at European level The European rail sector and the EU should not miss the opportunity to use existing tools to address these issues: The technical pillar of the 4 th Railway Package will simplify authorisation processes for cross border routes Shift2Rail will increase capacity and reliability and reduce life-cycle costs ERTMS deployment will make the rail sector fully interoperable at EU level EU funds for rail projects should be properly used and absorbed for rail projects in line with the objectives of the EU Transport White Paper. UNIFE looks forward to working with the new Parliament and the new Commission

15 UNIFE Promoting rail market growth for sustainable mobility.