Rio+20 Side Event, 14 June 2012

Financing Sustainable Transportation – Railway Examples

Alexander Veitch Head of Unit – Sustainable Development International Union of Railways (UIC)

Alexander Veitch, Rio, 13th June 20122

Members Active Associate Affiliate

UIC: The International Union of Railways200 members worldwide

The global rail sector today

> The rail sector directly employs over 7 million people worldwide, and many millions more indirectly

Some examples of direct employment:2 million in China.1.4 million in India 1.1million in the EU

>Rail investment in 2009EU railways invested a total of 44 672 million euros

Turkey invested 606 million eurosKorea invested 725 million eurosKazakhstan invested 503 million euros

>Between 2000-2005, global rail freight grew by around 25% and land passenger traffic grew by about 19%

Alexander Veitch, Rio, 13th June 2012

Road and rail investment in the OECD

Alexander Veitch, Rio, 13th June 2012

> The share of rail investment has increased from 15% to 23% from from 1995 to 2010 in OECD countries.

> This trend is mainly determined by the development in Japan and Europe.

The rail share of investment versus road has declined in Central and Eastern European countries

World Bank Lending to Rail Sector> The World Bank's assistance to the railway sector has increased from

$2.5 billion in 2006 to over $5.5 billion in 2011 – about 12% of the overall transport portfolio.

> Examples

Alexander Veitch, Rio, 13th June 2012

- China: $3.65 billion for 14 programs in support of rail development.

- India: $900 million, for 1/3 of the cost of a segment of the Delhi-Kolkata line

- Egypt: $600 million to support Egyptian railways

- Azerbaijan: $510 million project to support reforms to the railway sector.

Ethiopia: Light Rail Addis Adeba

> Major project to restore Ethiopia's 100-year-old imperial railway, and there are even plans to build a new national network.

> In March 2011 Transport minister Deriba Kuma announced that engineering and design activity has commenced on the 2,516km railway construction project, which is expected to take five years to build.

> A MoU has been signed with China Railways Group Limited to build a 36.5km light rail line in Addis Abeba.

Alexander Veitch, Rio, 13th June 2012

Cambodia: Rail network reconstruction

> Cambodia’s rail network is due to be reconstructed by 2013

> Financing (dollars)Asian Development Bank – 42 millionAustralian government - 21.5 million OPEC Fund for International Development – 13 million Malaysia - contributed towards the building of 106 km of rail track.

> The total cost of reconstructing 600 km of track is expected to reach 141.6 million dollars.

> The Cambodian authorities hope the reconstruction will boost economic growth and facilitate trade with neighbouring countries.

Alexander Veitch, Rio, 13th June 2012

United Arab Emirates: Etihad Rail

> Total investment is estimated at AED 40 billion (around 11 billion USD).

> The project will be phased over a number of years, with the first phase scheduled for completion by 2014.

> The network is estimated to extend up to 1,200 km.

> The railway will initially operate diesel trains but will be designed and constructed to accommodate electrification in the future.

> Freight trains will run at speeds of up to 120 kilometers per hour, while passenger trains will reach speeds of up to 200 kilometers per hour.

Alexander Veitch, Rio, 13th June 2012

More railway and public transport events

Side Event - Sustainable Transport in the Cities of the FutureDate/Time : Friday 15th June, 1330 – 1500Venue : RioCentro, Room T-5

Workshop - Sustainable Transport in the Cities of the FutureDate/Time : Tuesday 19th June 0900 – 1400.Venue : FeTranspor, Rua da Assembléia, 10, Centro – Rio de Janeiro

Evening Reception : Sustainable Transport in the Cities of the FutureDate / Time : Tuesday 19th June, 1900 - 2200Venue : Pestana Rio Atlântica Hotel. Av. Atlântica, 2964 Copacabana, Rio de Janeiro

Email: veitch@uic.org

Website: www.uic.org

Alexander Veitch, Rio, 13th June 2012