public budget contributions to the european rail sector filepublic budget contributions to the...
TRANSCRIPT
Public Budget Contributions to the European Rail Sector
Public Budget Contributions to the European Rail
Sector
Jan Thomas Schafer, M.A.
Justus-Liebig-University Giessen
Workshop on Financing and Performance
May 11, 2017
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 1 / 23
Public Budget Contributions to the European Rail Sector
Introduction
Introduction
Public Budget Contributions are one of the main funding
sources of the European railway sector
Detailed information on the level and use of funds is typically
not available in easily accessible, systematic and well
structured form
We have updated and expanded the well-known database of
Nera (2004, 2005) for 8 Countries
Data is used to compare the structure of contributions as well
as to identify differences in the applied financing models that
might be likely to influence the performance of the sector
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 2 / 23
Public Budget Contributions to the European Rail Sector
Public Budget Contributions to Railways: Case Studies on 8 European Countries
1 Introduction
2 Public Budget Contributions to Railways: Case Studies on 8
European Countries
3 Financing of Infrastructure Management and Transport
Operations
4 Financing of Infrastructure Investments
5 Conclusion
6 Appendix
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 3 / 23
Public Budget Contributions to the European Rail Sector
Public Budget Contributions to Railways: Case Studies on 8 European Countries
Development and Breakdown of Public Budget Contributions 2001-2015 in millions
of PPP adjusted Euro
05,
000
10,0
0015
,000
20,0
00
SwitzerlandSwedenSpainNorwayItalyGermanyGBFrance
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Infr
astr
uctu
re r
even
ue c
ontr
ibut
ion
Infr
astr
uctu
re in
vest
men
t con
trib
utio
nP
ublic
ser
vice
com
pens
atio
n (P
SC
)R
ollin
g st
ock
inve
stm
ent c
ontr
ibut
ion
Pen
sion
obl
igat
ions
Deb
t Ser
vice
, deb
t red
uctio
n an
d ca
pita
l inj
ectio
nsO
blig
atio
ns r
elat
ed to
the
rest
ruct
urin
gO
ther
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 3 / 23
Public Budget Contributions to the European Rail Sector
Public Budget Contributions to Railways: Case Studies on 8 European Countries
Public Budget Contributions for infrastructure investments, operation, PSC and
investments in rolling stock in ePPP per ptkm
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
0.22
PP
P a
djus
ted
Eur
o pe
r pt
km
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 4 / 23
Public Budget Contributions to the European Rail Sector
Public Budget Contributions to Railways: Case Studies on 8 European Countries
Public Budget Contributions for infrastructure investments, operation, PSC and
investments in rolling stock in ePPP per inhabitant
0
50
100
150
200
250
300
350
PP
P a
djus
ted
Eur
o pe
r in
habi
tant
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 5 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Introduction
1 Introduction
2 Public Budget Contributions to Railways: Case Studies on 8
European Countries
3 Financing of Infrastructure Management and Transport
Operations
4 Financing of Infrastructure Investments
5 Conclusion
6 Appendix
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 6 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Introduction
Introduction
Main sources of funds: market revenue, revenue from access
charges as well as PSC or revenue contributions
Tendency to mainly three financing models:1 Focus on financing of infrastructure management2 Focus on financing of public services3 ’Hybrid’-like financing approach
Substitution effect
Financing model 1 implies lower network charges and thus a
lower amount of necessary Public Service Compensation
Financing model 2 implies a higher degree of cost coverage of
access charges and thus lower operating contributions that
need to be paid to the infrastructure manager
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 6 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Ratio of PSC and infrastructure revenue contribution in 2014
France
GB
Germany
Italy
Norway
Spain
Sweden
Switzerland
0.00
0.02
0.04
0.06
0.08
Pub
lic S
ervi
ce C
ompe
nsat
ion
in P
PP
adj
uste
d E
uro
per
pkm
0.00 0.02 0.04 0.06 0.08Infrastructure Revenue Contribution
in PPP adjusted Euro per ptkm
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 7 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Share of infrastructure operating cost covered by access charges 2001-2014 in
percent
0
10
20
30
40
50
60
70
80
90
100
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 8 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Rail Usage Intensity in pkm per inhabitant
France
GBGermany
Italy
Norway
Spain
Sweden
Switzerland
500.00
1000.00
1500.00
2000.00
2500.00
Rai
l Usa
ge In
tens
ity in
pkm
per
inha
bita
nt
0.00 0.20 0.40 0.60 0.80 1.00Focus of Public Budget Contributions(0.00 Focus on Transport Operations,
1.00 Focus on Infrastructure Management)
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 9 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Rail Usage Intensity in ptkm per inhabitant
France
GB
Germany
Italy
Norway
Spain
Sweden
Switzerland
1000.00
2000.00
3000.00
4000.00
Rai
l Usa
ge In
tens
ity in
ptk
m p
er in
habi
tant
0.00 0.20 0.40 0.60 0.80 1.00Focus of Public Budget Contributions(0.00 Focus on Transport Operations,
1.00 Focus on Infrastructure Management)
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 10 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Network Utilization in ptkm per kilometer of the network
France
GBGermany
Italy
Norway
Spain
Sweden
Switzerland
2.0e+06
4.0e+06
6.0e+06
8.0e+06
1.0e+07
Net
wor
k U
tiliz
atio
n in
ptk
m/k
m
0.00 0.20 0.40 0.60 0.80 1.00Focus of Public Budget Contributions(0.00 Focus on Transport Operations,
1.00 Focus on Infrastructure Management)
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 11 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Modal Share of Passenger Transport
FranceGBGermany
Italy
Norway
Spain
Sweden
Switzerland
5.00
10.00
15.00
20.00
Mod
al s
plit
of p
asse
nger
tran
spor
t
0.00 0.20 0.40 0.60 0.80 1.00Focus of Public Budget Contributions(0.00 Focus on Transport Operations,
1.00 Focus on Infrastructure Management)
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 12 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Modal Share of Freight Transport
FranceGB
Germany
Italy Norway
Spain
Sweden
Switzerland
0.00
10.00
20.00
30.00
40.00
50.00
Mod
al s
plit
of fr
eigh
t tra
nspo
rt
0.00 0.20 0.40 0.60 0.80 1.00Focus of Public Budget Contributions(0.00 Focus on Transport Operations,
1.00 Focus on Infrastructure Management)
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 13 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Management and Transport Operations
Ratio Analysis
Breakdown of Public Budget Contributions 2001-2015 in percent of Total
Contributions for infrastructure investments, operation, PSC and investments in
rolling stock
050
100
perc
ent
SwitzerlandSwedenSpainNorwayItalyGermanyGBFrance
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Infr
astr
uctu
re r
even
ue c
ontr
ibut
ion
Infr
astr
uctu
re in
vest
men
t con
trib
utio
nP
ublic
ser
vice
com
pens
atio
n (P
SC
)R
ollin
g st
ock
inve
stm
ent c
ontr
ibut
ion
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 14 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Investments
1 Introduction
2 Public Budget Contributions to Railways: Case Studies on 8
European Countries
3 Financing of Infrastructure Management and Transport
Operations
4 Financing of Infrastructure Investments
5 Conclusion
6 Appendix
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 15 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Investments
Introduction
Main sources of funds: Investment contributions, debt
instruments (Bonds, loans), equity, project finance (PPPs)
Tendency to two approaches1 Government Contributions2 Funds of the infrastructure manager (involves issuing debt)
Some infrastructure managers are compensated for the
additional burden of financing debt while other IM need to
cover expenses from network charges and public contributions
Degree of government funding is observable in the amount of
debt issued by infrastructure managers
Infrastructure managers that carry a large amount of debt
must bear higher interest burdens
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 15 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Investments
Infrastructure investment contribution 2001-2015 in ePPP per inhabitant
0.00
50.00
100.00
150.00
200.00
250.00
PP
P a
djus
ted
Eur
o pe
r in
habi
tant
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 16 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Investments
Non-Current liabilities of main infrastructure managers 2001-2015 in million PPP
adjusted Euro
0
20,000
40,000
60,000
80,000
PP
P a
djus
ted
Eur
o
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 17 / 23
Public Budget Contributions to the European Rail Sector
Financing of Infrastructure Investments
Debt service, debt reduction and capital injections 2001-2015 in million PPP
adjusted Euro
0
2,000
4,000
6,000
8,000
10,000
12,000
PP
P a
djus
ted
Eur
o
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 18 / 23
Public Budget Contributions to the European Rail Sector
Conclusion
Conclusion
All countries support their national railway sector by means of
different types of contributions
Large differences in the level of government contributionsThe focus of government contributions for infrastructuremanagement and transport operations differs
Tendency towards three financing models
Cost recovery ratios differ accordingly
Which financing model is advantageous, remains unclear
Different approaches for infrastructure financing that might
influence the IMs performance
When setting access charges it is crucial to review the general
level of public contributions to the whole rail sector
It seems important to ensure future-proof financing of sector
expenditures (sustainable debt levels of IMs, etc.)
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 19 / 23
Public Budget Contributions to the European Rail Sector
Appendix
Public Services
1 Introduction
2 Public Budget Contributions to Railways: Case Studies on 8
European Countries
3 Financing of Infrastructure Management and Transport
Operations
4 Financing of Infrastructure Investments
5 Conclusion
6 Appendix
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 20 / 23
Public Budget Contributions to the European Rail Sector
Appendix
Public Services
Public Service Compensation 2001-2015 in ePPP per pkm
−0.01
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
PP
P a
djus
ted
Eur
o pe
r pk
m
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 20 / 23
Public Budget Contributions to the European Rail Sector
Appendix
Public Services
Public Service Compensation 2001-2015 in ePPP per inhabitant
−0.01
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
PP
P a
djus
ted
Eur
o pe
r pk
m
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 21 / 23
Public Budget Contributions to the European Rail Sector
Appendix
Infrastructure Management
Infrastructure revenue contribution 2001-2015 in ePPP per ptkm
0.00
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
PP
P a
djus
ted
Eur
o pe
r pt
km
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 22 / 23
Public Budget Contributions to the European Rail Sector
Appendix
Infrastructure Management
Infrastructure revenue contribution 2001-2015 in ePPP per inhabitant
0
20
40
60
80
100
120
PP
P a
djus
ted
Eur
o pe
r in
habi
tant
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
France GB Germany ItalyNorway Spain Sweden Switzerland
Jan Thomas Schafer, M.A. Workshop on Financing and Performance, May 11, 2017 23 / 23