Brussels, 03/03/2004 (Agence Europe) - On Wednesday the European Commission adopted its third railway package is proposing the opening up of the market for international passenger services on January 1 2010 and undertakings for improving the rights of passengers using international services, establishing a certification system for locomotive drivers and stepping up the quality of freight services. Commissioner for transport, Loyola de Palacio, said that this was the last part of the approach to obtain integration of the European railway market begun with the last two railway packages. The Commissioner underlined that railways in Europe has systematically lost market share over recent years. She said that Europe needed a modern, dynamic and competitive railway system. The railways share this opinion However, the European Federation of Transport Workers said that it was too early to liberalised the passenger railway system. The European Rail Community thinks that the proposals on passenger rights and quality of international freight constituted "excessive regulation". Only the proposal on train driver licences received unanimity. The results of the package are as follows:
1) Draft directive amending directive 91/440/ECC on the development of Community railways: the Commission is proposing to open up the international railway transport system for passengers and cabotage to competition as from 1 January 2010. This will mean that any railway company that has a licence and safety certificate could provide international services in the Community. In order to create realistic economic conditions to develop the services, it is proposed that operators be permitted to pick up and set down passengers at any station on an international route, including stations located in the same Member State. The Commission considers that cabotage is crucial for creating the economic conditions for developing these services. Nevertheless, a Member State could limit the right of access for rail services between two localities that are part of a public service contract. De Palacio said that it was too earl y to envisage the opening up to competition of internal passenger lines. The Commissioner said that this would be looked at by the next Transport Commissioner.
Liberalisation of passenger transport has been demanded for a long time by the European Parliament, which proposed in negotiations on the second railway package (conciliation: EUROPE 5 February p 11 and 29 January p 13) to open up passenger transport to competition by 2008. This proposal was rejected by the Council, particularly by three Member States Belgium, France and Luxembourg. The European Federation of Transport Workers thinks that the Commission is going too quickly. The association thinks that it is first of all necessary to implement the first rail way package. Sabine Trieir responsible for railways said that many states had still not done this (15 March 2003 date of transposition of the first railway package, Germany, Austria, Greece, the United Kingdom and Sweden had still not transposed it into national law. Trieir said that this goal would be more than necessary given the results of a study on the impact of liberalisation of railway transport, carried out by an independent consultant at the request of the Commission, which "are not brilliant". The Commission thinks that these results are, on the contrary, encouraging.
2) Draft regulation on rights and obligations for international rail travellers: the Commission sees the situation for travellers as "often precarious" and "railway companies sometimes tend to place responsibility elsewhere". To enable rail passengers to benefit from the same rights as airline passengers, the Commission is proposing a Community framework guaranteeing minimum duties (such as access to information on travel and tariffs), as well as a system of corporate liability for railway companies in accidents, incidents, delays or cancellations. It is also setting out the thresholds for compensation.
a) in case of death of physical harm, if the railway is responsible, there will be no financial limit to its liability. If the rail company is not liable for an accident, it will still have strict responsibility for sums up to 220,000 EUR per passenger, and will thus have to discharge compensation. Beyond this sum, the company is not liable for damage if it can prove that it did not commit negligence or serious errors; b) in case of damage caused to hand luggage and luggage, compensation may vary between 1,300 and 1,800 EUR per passenger; c) in case of delay, passengers can claim compensation from 50 to 100% of the transport price, depending on the type of journey and the duration of the delay. They will also benefit from free assistance (refreshments, telephone, accommodation). The proposal also makes provisions for persons with reduced mobility (such as the obligation of assistance with getting in and out of trains) and for rights of appeal and handling of complaints. Lastly, it provides obligations for passengers.
3) Proposed regulation on compensation in case of non-respect of contractual quality obligations for rail freight services: the Commission feels that rail freight services are suffering from a decline in quality. Rail's share in goods transport has fallen in Europe from 21% in 1970 to 7.7% in 2001, compared to 40% for the US in 1998, explained Ms de Palacio. We must, therefore, guarantee a kind of "minimum quality of service" for national and international rail freight services in the Community. For this, the proposal provides for obligatory minimum clauses in transport contracts, on which both parties must agree on quality criteria (a time for the goods to be delivered, information in case of delay), compensation amounts in case of damage, loss of goods, delay or cancellation of a train (by the rail company or the client), and a system for checks. If these obligations are not respected, contracts will be considered null and void (exemptions to the liability of the contracting parties are envisaged, for example in cases of force majeure). Whilst leaving it up to the parties to decide for themselves on sums for compensation, the proposal sets ceilings: compensation may not exceed 75 EUR per kilogram in gross tonnage in case of loss of or damage to goods. In case of delay, compensation must be between 5% and 25% of the price of transportation.
Both of these proposals are fundamental, the Commissioner believes. "One in every two trains is more than two hours late, and one train in ten is over 24 hours late. Why? Because there is no clear liability" on the part of railways. These delays cost money: 41 million EUR per year is lost to the sector, said Ms de Palacio. For this reason, the Commission is proposing a lightweight framework, which leaves the parties "full liberty" to agree on the details of the contracts. The CCFE, however, fears that these proposals will entail an administrative surcharge which will impact upon rail's competitiveness. Furthermore, railways have already adopted voluntary agreements guaranteeing these rights, including a passengers' charter and a quality charter for freight, explained director Johannes Ludwig. "It is not normal for a public body to intervene in the relations between the client and the service-provider", he said. The CCFE is more specifically concerned about the consequences of these proposals on railways in the future Member States. These do not yet have the level of quality required by the EU and will therefore be forced to pay compensation, which will harm their competitiveness, added Mr Ludwig, who said that the CCFE was determined to fight, because "these proposals should not be adopted".
The Commission is surprised at these arguments. These voluntary agreements came late in the day (they were signed in January 2004), do not represent the acceding countries and offer the passengers no legal value, it stresses. "Voluntary agreements are all very well", but "experience in the air sector has shown that minimum rules are needed if these agreements are to enter into force", explained Ms de Palacio. Furthermore, during the consultations which preceded the drafting of these proposals, "the acceding countries asked for neither a transitional period nor exemptions", she added.
4) Proposed directive on certification of train-driving staff on the Community rail network: to improve rail safety and the mobility of train drivers in the Community, the proposed directive introduces a "general" licence for all drivers who fulfil certain criteria (age, medical condition, professional experience, language skills) and recognised throughout the Community, and "specific" certificates awarded by the railway employing the driver, depending on his or her specific skills (stock used, infrastructure or journey). A period check system (every 3 years until the age of 60 and then every year) and penalties will be brought in. The Commission is planning a gradual entry into force of the directive: from 2006 to 2008, Member States will transpose it into national law; from 2008 to 2010, the proposal will apply only to cross-border drivers (which covers 10,000 of the 200,000 drivers in the EU25, according to the Commission). The European Rail Agency will report on this first stage of certification; in 2010-2015, the directive will apply to all other drivers and operatives. Thanks to this proposal, "a German driver will have a licence which is valid in Italy and Austria", said Ms de Palacio. The EFT and the CCFE have welcomed this proposal, which brings together elements in the agreements they concluded on this in January.