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EFRTC Policy & Research Committee Activity Report. Prof. Lothar Fendrich Committee Vice-Chairman. Paris 11June 2010. Current state of art. 2 nd meeting held in Paris on 26 March 2010 with participation of Committee members from France, Germany, Italy, the Netherlands and UK

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EFRTC Policy & Research Committee Activity Report

Prof. Lothar Fendrich

Committee Vice-Chairman


11June 2010


Current state of art

  • 2nd meeting held in Paris on 26 March 2010 with participation of Committee members from France, Germany, Italy, the Netherlands and UK
  • All observers present - EIM represented by Secretary General, CER by Deputy CEO, UNIFE by Senior Infrastructure Manager
  • Work is mainly carried out in joint EIM/CER/EFRTC Working Groups
    • WS A Market Strategy – progress report at this meeting
    • WS E Contracting strategy – remit is a part of this presentation
    • WS B Long term funding and planning – remit completed by EIM, activities will start in 09/10
  • and SG in relation to other EC activities

EFRTC GM, Paris 11.06.2010


Items discussed at the meeting

  • Progress of the work of the joint EIM/EFRTC/CER Market strategy group
  • Preparation of work on WS B – Long term funding and WS E – Contracting strategy
  • ERRAC Roadmaps project
  • Auto-Main part-EC funded project proposal
  • EFRTC Fact Sheets
  • EIM and CER information on the latest policy and strategy issues
  • Review of the Policy and Research Committee remits
  • Exchange of information on current topical issues

EFRTC GM, Paris 11.06.2010


Joint EIM/CER/EFRTC Market Strategy WG (1)

  • Remit WS A, EIM/Network Rail
  • To propose methodology/criteria for IM’s to assess the benefits/disbenefits of contracting in or contracting out
  • Start February 09, very intensive work in the first stage - three meetings held between February and June 2009
  • In the first stage, 1st questionnaire was drafted, circulated to IM and responses evaluated
  • Meeting finalizing first stage was very good
    • strong EFRTC representation
    • Reasonable IM representation
    • Very proactive Network Rail participation
    • Reasonably clear set of actions, objectives and programme

EFRTC GM, Paris 11.06.2010


Joint EIM/CER/EFRTC Market Strategy WG (2)

  • 2nd half 2009 major constraints in resources, work stagnation
  • After a critical period in Autumn 2009 (as reported at GM in Berlin) a significant progress was made at the last meeting in London on 15 April 2010
  • Results of the 2nd questionnaire discussed in detail and agreement reached on their presentation
  • First draft report entitled “Guidelines for –out, in-sourcing of track maintenance and renewal” reviewed
  • Actions agreed to complete final draft report by end June 2010

EFRTC GM, Paris 11.06.2010


1st questionnaire to IM

  • Part A - What criteria/performance measures IM use for decision-making on in- and out-sourcing
  • Technical, financial/cost, market, stakeholders, innovation, risk, legal and others
  • Part B – What criteria IM use for assessing performance of contractors and in-house teams
  • Engineering compliance, costs versus volume, health, safety and environment, timeliness to deliver and others as
    • What infra characteristics increase complexity of network and have major impact on performance
    • Charging for possession time, bonus-malus system, impact on time/capacity of network
    • Measures to include for pan-European IM performance benchmarking

EFRTC GM, Paris 11.06.2010


2nd questionnaire to IM and contractors (1)

  • Part 1 – decision-making criteria
  • Responses of IM and contractors to the list of issues to mark the priorities and relevance to decision-making
  • Part 2 – contractors and IM position to set of questions
  • aimed at identifying the position of both IM and contractors on principles adding value to the process of interaction and principles damaging behaviour between IM and contractors
  • Responses from
  • 10 contractors from 7 countries
  • (France – TSO, Germany – Leonhard Weiss, Heitkamp, BBT-Schreck-Mieves, Italy – ANIAF, The Netherlands – BAM Rail, Volker Rail, Portugal – SOMAFEL, Spain – COMSA-EMTE, UK – Balfour Beatty Rail)
  • 16 infrastructure managers
  • Excellent coverage for evaluation to be representative

EFRTC GM, Paris 11.06.2010


2nd questionnaire to IM and contractors (2)

  • Results well presented marking clearly agreed positions and discrepancies in the opinion between IM and contractors
  • There is a surprising agreement in position of IM and contractors - from about 40 questions the bigger diversity in opinion was found only on following 4 items
    • Development of industry wide training schemes that contractors are able to be get involved in if they wish
    • Openness on the work scheduled to be done over the medium term
    • Long term partnership between client and contractors
    • Switching between in-sourcing and outsourcing
  • Reasons for diversification were discussed and they will be presented in the report

EFRTC GM, Paris 11.06.2010


Final report

  • Foreword by the Presidents of EIM, EFRTC and CER
  • Background
    • I - INNOTRACK report
    • II - Initiative from EIM, EFRTC and CER to establish joint working groups
    • III - Remit of the Market Strategy group
    • IV - Group composition and working method
    • V – Understanding the European landscape
  • Part 1 - Decision making criteria used by Infrastructure Managers
    • I - Identifying types/categories of relevant criteria (questionnaire 1)
    • II - Measuring performance of maintenance and renewal works
    • III - Refining and weighing range of criteria identified
  • Part 2 - Understanding the importance of behaviour
    • I – Methodology
    • II - List of value-adding vs. value-destroying behaviours
    • III - Response from IMs and contractors and analysis
    • IV - Summary/conclusion
  • Part 3 – Catalogue of best practice examples
    • I – Introduction
    • II - Individual case studies
  • General conclusions and recommendations
          • Annexes

Case studies

  • PRORAIL on process of outsourcing track maintenance in the Netherlands
  • RFF – examples from performance contract which may affect outsourcing in France
  • Network Rail system of performance assessment of contractors offers and works
  • Finland on collaborative process of product life cycle and performance assessment by outsourcing
  • Switzerland (contractor contribution) – positive experience from collaborative way of working in all supply chain with client (from long term planning to performing the work)
  • Other contractors are free to enhance the report by their contribution/experience working with clients
  • Case studies linked to the findings of questionnaire

EFRTC GM, Paris 11.06.2010


WS B – Long term funding and planning

  • Remit and Chairmanship – EIM
  • To deliver proposals on how to empirically measure the benefits of Long Term Funding and Strategic Planning in the railway industry in respect of track M & R
  • The ability to measure the benefits will enable more effective lobbying for long term funding
  • Most of the work to be done by IM but contractors will be asked for examples supporting multi-annual contracts in terms of costs charging through length of contracts
  • More in the letter of Committee Chairman to Board and Delegates
  • Work will start in September 2010 and will last about 8 months with 3 to max 4 meetings
  • EFRTC members are requested to make appointments

EFRTC GM, Paris 11.06.2010


WS E – Contracting Strategy (1)

  • Remit and Chairmanship – EFRTC
  • Purpose:
    • To develop and propose strategic guideline for railway track work contractors which
    • Reflect the specific conditions for railway track work services, e.g. heavy and expensive track machinery designed for special scope of works, well skilled operators;
    • Aim at transparency in competition and at equality of opportunity in tenders;
    • Bring about a shift from outdated culture of mistrust to one of confidence and partnership;
    • Could be acceptable for small, medium-sized and large companies as well
  • For more details concerning scope and deliverables see draft circulated for GM

EFRTC GM, Paris 11.06.2010


WS E – Contracting Strategy (2)

  • Work shall be carried out in two phases
  • In the 1st phase, IM and contractors shall jointly
    • analyse existing contracting practices
    • identify the main strategic elements of contracts
    • to find an agreement on the implementation of the identified elements of the best practices as resulted from INNOTRACK
  • In the 2nd phase, based on agreed positions of IM and contractors, deliverables shall be drafted jointly with IM aimed at producing
    • Guideline for Contracting and/or
    • Concept of a Code of Practise and if possible also
    • Models for Partnership contracts, Compliance regulations and Conflict resolutions;
  • Work shall be completed in 12 months.

EFRTC GM, Paris 11.06.2010


EC Research relevant to EFRTC

  • EFRTC is partner in ERRAC – European Rail Research Advisory Council
  • SG is member of Steering Committee and Working Group on Infrastructure
  • Low workload, costs covered by EC, participation focused at maximizing benefit for EFRTC
  • Auto-Main project proposal for EC funding
  • Similar initiative as INNOTRACK project but with far low EC funding and limited scope to track maintenance only
  • EFRTC involvement is limited to commenting on findings (control that nothing adverse to contractors will result from project), dissemination and organisation of joint workshops with IM
  • No funding from EFRTC members required, cost of SG covered by EC funding, low workload not affecting his duties

EFRTC GM, Paris 11.06.2010


EIM and CER information/presentations

  • EIM reported on
    • Increasing role of regulators to set up performance regimes for infrastructure managers
    • Role of ERA in safety regulations and in acting as future auditor of safety authorities for the railway sector
    • Qualification of staff and certification of training schemes, extension beyond current practice applicable for drivers and driving licence
    • Cross acceptance – common standards/requirementsfor works
  • CER reported on
    • financing of infrastructure in general
    • multi-annual contracts
    • stable financial architecture as a precondition for sustainable railways

EFRTC GM, Paris 11.06.2010


Other issues

Fact sheets – reported by Secretary General

Review of the Policy and Research Committee remit and

Exchange of information on current topical issues and all other issues – see minutes of P & R Committee

All supporting documents are on CD ROM including the minutes of the P & R Committee

All appendices to the minutes, presentations and all other documents at EFRTC Member Area website

EFRTC GM, Paris 11.06.2010


Thank you

for your attention!!!