shaping the railway of the 21st century implementation of retrofitting freight fleet analysis of the...

Shaping the railway of the 21st century

Implementation of Retrofitting freight fleetAnalysis of the EU funding possibilities

Rail Freight Noise Abatement in Europe, Consensus building workshop Paris October 2005

Rail Freight Noise Abatement in Europe


Peter Hübner, UIC Consultant (retired SBB Environmental director)





Financing of Retrofitting (1)

Scope: Retrofitting of ~600’000 Wagons Involved financial volume: 1’000 – 3000 Mio € Timescale: ~5 – 7 years from starting retrofitting Noise reduction to be expected: 8 – 10 dB(A)

Funding or financing? To have in mind 2 kinds of competition : Competition in the total freight traffic market:

Additional financial burden to Freight Operators will decline their market share and increase road traffic (and road traffic noise….)

Funding solution preferred Competition between rail freight operators

All rail freight operator should have equal possibility to benefit





Controlling of any funding process will be demanding

Specific Account ‘Railway Noise abatement’; distribution regulation. i.E. EIB

Railway Operator A

Railway Operator B

Railway Operator C

Country/National fund X

Country/National fund Y i.E.use funds for substitution of noise screens

Country/National fund Z

Railway operators seek first national subsidies

Railway Operator or country asks financial means from ‘European Account’ if needed.


Direct EU Funding

Instrument for structural Policies in Pre_Accession ISPA)

Phare Program

European Regional Development Fund

Cohesion Fund

LIFE+ Program for Environment





Investigated principal EU funding possibilities: European Regional Development Fund: if retrofitting done in the New EU member states, parts of Spain, Sweden & Italy Cohesion Fund:

For retrofitting freight fleets of new EU member states, but Distortion in competition!

Instrument for Structural Policies for Pre-Accession’ (ISPA): Only for Bulgaria & Romania; Limited scope + Distortion in competition!

‘Phare Program’ (ISPA): Out of scope for this project. Direct noise reduction dedicated EU funding

No direct fund available yet ! Implementation of noise reduction action plans (framework of END might form

background. ‘FINANCIAL INSTRUMENT FOR THE ENVIRONMENT (LIFE +)

in preparation and discussion could be addressed






Financing (raw ideas) Financing is a well-known business for the railways if business

case is clear Secondary measure, if funding fails Financing could be of interest in case Interest < annual

additional costs of retrofitting See future results of calculation model

To be addressed and put to tender on the financing conditions (on, pay back periods and regulations, interests,..) European Investment Bank (EIB) Loan European Bank for Reconstruction and Development (EBRD) loan EUROFIMA






Results of investigation: 3 funding possibilities to be followed up:

European Regional Development Fund (ERDF) Cohesion fund LIFE+ environmental funding instrument.

ERDF & Cohesion fund is used for funding railway projects:(2000-2006: 2 billion € per year including TEN-T Funds)

Cohesion fund may be used for all MS after 2007. Direct noise related EU Fund for railway retrofitting

not available yet.






EU support possible and needed! Retrofitting most efficient method to be introduced in

action plans for END to reduce Railway noise To be communicated from EC to MS

Railway sector only mode of transport which can offer overarching noise reduction strategy with benefits in all countries.

Retrofitting should include all rolling stock to be used >10 years in future

To initiate, stimulate (and fund!) at least pilots or demonstrators in various countries

Support of EC needed to coordinate the various financing among all involved Parties. i.e. Central Accounting & Controlling






National support possible and needed too! Cohesion fund & ERDF:

MS has to seek funding (together with Railway) MS has to contribute to funding MS could prepare and propose demonstrator or pilot

projects Action plans to implement Environmenal Noise Directive:

Noise related retrofitting of the railways should form first priority action to reduce railway noise

LIFE+ is (October 05) still in parliament discussion, it will include all MS.






Next steps1. Use of Funds to be concretised

Relevant parties within EU Details, how to proceed to get funding

2. Approach of the railways to be coordinated: To limit double work and improve chances of the railways

3. Financing possibilities to be clarified and concretised: Calculation model to be used to get reliable funding and financing

data in varying scenarios General clarification of financing conditions.

4. Information of and to all involved parties and levels important: Retrofitting involves many parties: (EC, national authorities,

environmental agencies, Railway Sector Large communication of effectiveness of retrofitting needed First important step: Today's Conference!






Information of and to all involved parties and levels is important:

Retrofitting involves many parties: (EC, national authorities, environmental agencies, Railway Sector

Large communication of effectiveness of retrofitting needed After today‘s conference similar annual events planned 2006, 2007 Also need to inform on a national level!

Noise action plans are in the MS responsibility!Which are the messages?

1. Railway noise reduction using retrofitting freight wagons is ~10 fold as efficient as other means, i.e. noise screens:

2. Railway noise is far less annoying as the noise of other modes of transport

3. Conclusion: Noise reduction in retrofitting the freight wagons may be for some decades the sufficient mean to maintain the railways environmental lead!

Conclusions





Conclusion

After retrofitting the freight wagons, the almost only ‘noise’ will be the wind whistling in a corn field!

Thanks for listening!

shaping the railway of the 21st century implementation of retrofitting freight fleet analysis of the...

Documents

retrofitting noise reduction

rail freight operators

funding railway projects

direct noise related

direct eu funding instrument

funding process

dba funding

road traffic noise