Transcript Dan Costescu - Railway PRO Investment Summit

Compania Naţională de Căi Ferate
National Railway Company
“CFR” S.A.
Building the new railway economy
Challenges & Opportunities
Dan M. COSTESCU, Chief Executive Officer
Bucharest, October 6th, 2015
Network characteristics
Network length:
10 629 km
Double line:
2 909 km
Electrified line:
4 028 km
Number of stations:
930
Institutional separation and open access
to the railway infrastructure in
accordance with the EU Directives
(1998)

Infrastructure Manager (CFR S.A.)
 National Passenger Operator (CFR Calatori)
 National Freight Operator (CFR Marfa)
Institutional separation and open access to the
railway infrastructure – Railway Undertakings
that concluded the access contract on the railway
infrastructure managed by CFR S.A. in 2015
Number of
Type of license
undertakings
Owner
Passenger and
Freight
3
Private
21
1 State owned,
20 Private
4
1 State owned,
3 Private
Freight
Passenger
Projects for the modernization
of the railway sections
Modernization of Romanian railway
stations
Rehabilitation works to bridges and tunnels
on the TEN-T railway network
Increase in traffic safety
Challenges
&
Opportunities
Expensive IT solutions
vs
Low cost rail services
Innovative
Digitalisation
vs
Overregulated
and changeresistant
workforce
Railway atomisation
vs
Strong Railway
Administrator
Intra-modal competition
vs
Inter-modal competition
Assuring a level play field
Recast directive
Amending the national legal frame
Modal Shift
Sustainable business environment
Implementing
a new legal frame & business environment
1st Stage: Present situation, introductory steps:
-
Bring topic in public & political debate
Run market and econometric studies
Design the legal frame
Set the new financial mechanisms
2nd Stage: Implementation according to an
appropriate timing :
-
Costs internalization for road
Railway access fees reshaping
Improving the KPI of infrastructure
3rd Stage: Including the ignition and progress of modal
shift over the break-even point when the
subsidy turn to profit
Financial mechanisms
Already known, and validated by
on-going activity
- Own revenues – access fees
- Own revenues – noncore activities
- State budget - subsidies
Financial mechanisms
Not yet tested or validated,
existing or new “positive
cross-subsidies” from the polluter
-
20-30% of environment tax (from road)
20-25% of RO-vignette tax (from road)
% of the over excise duty for fuel
100 % heavy lorries/coaches over tax
Extending the concept “polluters pay”
to “polluters pay to… green modes”
Financial mechanisms
Further different developments:
-
to be identified after further internal
analysis
to be identified by consultants
resulting from the experience or best
practices of other railways
Impact of modal-shift over GDP
External Costs – Passengers Transport
10% modal shift from road to rail
1% of Romanian GDP
Incomes & Costs
Modal Shift Effects
Profit
Subsidy
Railway subsidy
turns to profit
Traffic Intensity
Incomes
Costs
Compania Naţională de Căi Ferate
National Railway Company
“CFR” S.A.
Thank you !
Bucharest, October 6th, 2015