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SEE rail infrastructure investment – the prerequisite for sustainable economic growth

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SEE rail infrastructure investment – the prerequisite for sustainable economic growth 28 May 2014, Zagreb Dr. Libor Lochman CER Executive Director. CER membership’s diversity and interlocutors. Weighing the CER membership.

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slide1

SEE rail infrastructure investment – the prerequisite for sustainable economic growth

28 May 2014, Zagreb

Dr. Libor Lochman

CER Executive Director

slide5

EC forecast in 2025 for freight East-West transport

The traffic will be ever more intense on the routes that come from Turkey, Lebanon, Israel, Egypt. Maritime traffic seems to be the main competitor for the infrastructures of Greece and the Balkans (in particular the Adriatic-Ionian transport area).

slide6

Opportunities are present:

Low saturation of lines

ACROSSEE data 2014

slide7

However:

Strong need of rail for regional integration!

  • Rail is vital for ensuring proper regional integration and trigger the potential for regional traffic. This is true for both passenger and freight
  • Most of the SEE area is a potentially single job market: commuter traffic can and will grow
      • E.g. Ljubljana-Zagreb link to be revitalized!
      • The could work for Zagreb-Osijek/Vinkovci/Split axes!
      • And there are plans already for Belgrade-Budapest
  • Coordination of national economies and the interplay of the comparative advantages should and eventually will restructure subregional economies along acoherent value chain
      • Sea-rail links at ports will be key for economic development!
      • Rail links to industrial manufacturing sites will be a must!
slide8

Current situation rather negative: Freight market development in the Western Balkans 1970 - 2011

slide10

What’s wrong?

Hugedemand

for good

East-West

logistic

Positive rail

Pass & Freight

development

Low congested

infrastructure

slide13

Shares of rail vs. road investment in Croatia, Serbia and Slovenia 1992-2011 (ITF data).

Road investments dominate over rail investments in Croatia, Serbia and Slovenia.

(Percentages are calculated as ration of total rail+road infrastructure budget for investments and maintenance)

Source: ITF.

slide16

Time spent at BCPs

(ACROSSEE data 2014)

Total (waiting and procedural) transit times for crossing each pair of Road and Rail BCPs (reported as average, in both directions, in minutes, on a given list of border crossing points)

slide18

Focus: Availability of regional funds in Croatia

Croatiawillbeentirelytagged as lessdevelopedregion by the new regulations. This opens the possibility for large and more flexible funding.

Data in Billion-euro fromec.europa.eu

slide19

ERDF spending in Croatia

  • At least 50 % of the total ERDF resources at national level shall be allocated to subset of thematic objectives: 1, 2, 3 and 4
  • One of the rail-friendly objective is then among the ERDF spending priorities: “(4) supporting the shift towards a low-carbon economy in all sectors by: […] (e) promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multimodal urban mobility and mitigation-relevant adaptation measures;”. It must be stressed that the concept of “urban areas” covers the cities’ functional areas, so that in some cases it may be stretched to cover commuters’ traffic under PSO.
  • The most rail-friendly objective is however n°7: “(7) promoting sustainable transport […] by […] supporting […] the TEN-T; […] by connecting secondary and tertiary nodes to TEN-T infrastructure […] in order to promote sustainable regional and local mobility; developing and rehabilitating comprehensive, high quality and interoperable railway systems, and promoting noise-reduction measures; […];”
slide20

Focus: Availability of regional funds in Slovenia

Sloveniawillinclude a lessdevelopedregion and a more developedregion, whichwillbesubject to differentspendingflexibilities.

Data in Billion-euro fromec.europa.eu

slide21

ERDF spending in Slovenia

  • In more developed regions, at least 80 % (instead of 50% for less developed regions!) of the total ERDF resources at national level shall be allocated to subset of thematic objectives: 1, 2, 3 and 4. This constrains a lot more the spending flexibility for each public authority.
  • The rest of the ERDF can be spent as for HR also on objective number 7, which is the one of most interest for rail transport.

All Member States have submitted all their Partnership Agreements before the 22 April 2014, and will submit before the autumn all Operational Programs: the time to lobby your governments is NOW!

see is crossed by ten t corridors of both the core and comprehensive network
SEE iscrossed by TEN-T corridors – of both the core and comprehensive network

Mediterranean Corridor (Ravenna/Trieste/Koper - Ljubljana – Budapest)

Rhine-Danube Corridor

(Budapest – Vukovar)

Baltic-Adriatic Corridor

(Graz– Maribor –Ljubljana – Koper/Trieste)

slide23

Whatcanbefinancedthrough CEF if on the core network

  • Actions implementing the core network in accordance with Chapter III of Regulation (EU) No 1315/2013, including the deployment of new technologies and innovation in accordance with Article 33 of that Regulation, and projects and horizontal priorities identified in Part I of Annex I to this Regulation;
  • Actions implementing transport infrastructure in nodes of the core network, including urban nodes, as defined in Article 41 of Regulation (EU) No 1315/2013;
slide24

Whatcanbefinancedthrough CEF on the core and comprehensive network

  • Actions implementing the comprehensive network in accordance with Chapter II of Regulation 1315/2013 (“The comprehensive network”), when such actions contribute to
    • bridging missing links,
    • facilitating cross-border traffic flows or removing bottlenecks and
    • when those actions also contribute to the development of the core network or interconnect core network corridors
  • Studies for cross-border priority projects as defined in Annex III to Decision No 661/2010/EU of the European Parliament and of the Council (2)
  • Actions supporting ERTMS
  • Actions supporting sustainable freight transport services
  • Actions to reduce rail freight noise, including by retrofitting existing rolling stock
  • Actions implementing safe and secure infrastructure
strong transport sector for strong economies
Strong transport sector for strong economies
  • Between 1995 and 2011 transport (of freight in particular) and EU27 GDP grew almost in parallel
  • Strong economies need strong logistic chains as much as strong logistic chains need strong economies
  • Rail transport is key for this growth to be safe, environmentally sustainable and creating no additional congestion

Source: EU Transport in figures 2013

slide27

South East Europe: need for “regional” thinking

  • Problems seem to regard more the qualityof the network rather than its extension
  • Problems seem to regard more issues of administrative nature and allocating the funds
    • There is huge margin for improvement in regional coordination on infrastructure development & maintenance, as well as in streamlining administrative procedure
    • Regional coordination is urgent and possible both on the infrastructure management side, and on the operations side
      • The idea of a Rail Freight Corridor on Corridor X is supported
      • The idea of a One-Stop-Shop as well as joint operations for rail freight logistic is good and compatible with EU competition law
all three key elements of the sustainable rail development must always be promoted
All three key elements of the sustainable rail development must always be promoted!

Infrastructure

Intermodal level playing field

Intramodal competition

thank you for your attention

Dr. Libor Lochman

CER Executive Director

Tel: +32 2 213 08 71Email: libor.lochman@cer.be

For further information,

visit our website: www.cer.be

Thank you for your attention!
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