Implementing Transport Pricing Reform in Germany Wolfgang Hahn Director Transport Policy, International Relations

1. Implementing Transport Pricing Reform in Germany Wolfgang HahnDirector Transport Policy, International Relations IMPRINT-EUROPE Seminar ThreeBrussels, October 2002

2. Current situation Traffic volumes are continuing to rise as a consequence of the Single European Market, the enlargement of the EU to the east and globalization Forecasts for the Federal Transport Infrastructure Plan predict the following trends between now and 2015: passenger traffic will grow by 20 % and freight traffic will grow by 64 %

3. Scenarios and traffic forecasts Ich will das Ergebnis in entscheidenden Punkten erläutern: Wenn eine modale Veränderung zugunsten der Schieneum gerade einmal 5 Prozentpunkte erreicht werden kann, muss 2015 die Güterverkehrsleistung doppelt so groß sein wie 1997: 73 ? 148 Mrd. tkm; dabei wurde Engpassfreiheit unterstellt; werden die Engpässe berücksichtigt, sind es anstelle von 148 ? 116 Mrd. tkm. Dabei ist unterstellt. Dass es keine Finanzierungs-probleme gibt (dazu später A 21) Herr Mehdorn äußerte sich jüngst wie folgt: „DBCargo im Jahr 2020 120 Mrd. tkm.“ Für NE-Bahnenwerden nach Angaben DB AG für 2020 17 Mrd. tkmprognostiziert.Ich will das Ergebnis in entscheidenden Punkten erläutern: Wenn eine modale Veränderung zugunsten der Schieneum gerade einmal 5 Prozentpunkte erreicht werden kann, muss 2015 die Güterverkehrsleistung doppelt so groß sein wie 1997: 73 ? 148 Mrd. tkm; dabei wurde Engpassfreiheit unterstellt; werden die Engpässe berücksichtigt, sind es anstelle von 148 ? 116 Mrd. tkm. Dabei ist unterstellt. Dass es keine Finanzierungs-probleme gibt (dazu später A 21) Herr Mehdorn äußerte sich jüngst wie folgt: „DBCargo im Jahr 2020 120 Mrd. tkm.“ Für NE-Bahnenwerden nach Angaben DB AG für 2020 17 Mrd. tkmprognostiziert.

4. Changes in the cost burdens on users as afunction of the scenarios

5. Transport policy challenges Create an efficient transport infrastructure to cope with the forecast growth in traffic volumes Double railfreight mileage by 2015 compared with 1997 and increase inland navigation by 40 % over the same period

6. The approach Create fair conditions of competition to exploit the advantages inherent in each mode of transport by changing the price ratios

7. Modal priorities Change price ratios through: introduction of HGV tolls competition on the railways emission-related landing charges

8. Advantages of the distance-related user charge for heavy goods vehicles More rigorous application of the "user pays" principle to domestic and foreign road users (toll rate based on infrastructure costs) Additional relief for public budgets by switching from tax-funded to user-funded infrastructure Fairer competition between roads and railways Additional revenue for the funding of transport infrastructure More efficient use of transport capacities Toll is emission-related and thus contributes to the protection of the environment

9. Legislation

10. Main features of the Act HGVs with a maximum permissible weight of at least 12 t Charging based on the exact number of kilometres driven Charges for the use of federal motorways Tolled road network can be extended to cover sections of federal highways, where there are safety reasons for doing so Differentiation by: number of axles, pollutant emission categories; possibly, at a later date, by place and time of use Toll rate to be set by regulations Relief of the financial burden on hauliers for reasons of harmonization Revenue to be ring-fenced for infrastructure projects

11. Toll rate Rate in line with EU Directive 1999/62/EC: “The weighted average tolls shall be related to the costs of constructing, operating and developing the infrastructure network concerned.” The infrastructure costs caused by heavy vehicles on federal motorways, projected to 2003, will amount to around 3.4 billion euros The average toll rate resulting from these infrastructure costs is 15 cents per kilometre Toll rates staggered in accordance with the number of axles and emission categories will probably be between 10 cents and 17 cents

12. Infrastructure costs(Prognos expert opinion)

14. Indispensable requirements for Germany No system-inherent interference with the traffic flow: no system-inherent stopping no compulsory toll lanes no speed limits as a result of toll collection Non-discriminatory access for foreigners (EU law)

15. System structure

16. Booking system

17. Receipt of booking operation

19. Enforcement concept

20. Four types of check

21. Contents of the call for tender Overall system Single operator Pre-financing by operator (project financing) All revenue from charges to be transferred to the Federal Government (to be used partly for anti- congestion scheme) Performance-based remuneration of the operator

22. Project status Contract awarded to ETC.de bidding consortium on 20 September 2002 Toll collection to commence in August 2003

23. Motorway widening (A model) Widening with A model only possible with HGV toll: Provision of additional lanes, maintenance and operation of all lanes and financing by private-sector operator HGV tolls from the section to be widened to be given to private operator (30-year concession agreement) Infrastructure costs caused by cars/LGVs to be raised in the form of initial funding from the road construction budget, amounting to approx. 50 % of construction costs Advantages: Motorway sections can be widened earlier Budget relieved of approx. 50% of funds required Public sector relieved of operation and maintenance

24. Harmonization efforts Any other transport-specific levies paid within the scope of the HGV Toll Act are to be taken into account Consideration is currently being given to an EU-compatible model for offsetting some of the fuel duty paid by HGVs subject to tolls against the future toll

25. Reform of the railways Enhance productivity by converting the railways into a private enterprise - Deutsche Bahn AG (1993) Other objectives: Introduce customer-focused competition on the network, including within the existing holding structure Benchmark paper currently being prepared The First Regulations amending the Public Procurement Regulations, which are designed to enhance the federal states‘ discretionary powers for the development of appropriate competition strategies, have been passed to the Bundesrat Non-discriminatory access to railway infrastructure Draft of a Third Railway Regulations Act to transpose three EU directives (infrastructure package) and implement the findings of the “Future of the Railways” Task Force is currently being coordinated

26. Outline of DB AG’s rail infrastructure charging system (1 April 2001) Advantages: Same prices for all customers, regardless of the capacity purchased Major structural features: Basic price based on line categories, as an incentive to use lines with a lower level of capacity utilization Product factor takes speed of routes into account Special factor takes out-of-gauge loads, for instance, into account

27. Emission-related landing charges Landing charges are charges for the use of central infrastructure; as such, they are one of the airport charges Airport charges must comply with ICAO policy, i.e. they must be cost-related, non-discriminatory and transparent An emission-related charging system is currently being developed to reduce gaseous emissions at German airports This will create financial incentives to operate lower-emission aircraft