developing the eu transport infrastructure network: strategy, challenges and opportunities
DESCRIPTION
This seminar highlights the main challenges facing European transport authorities when formulating infrastructure policy, in particular concerning growing congestion and poor accessibility.TRANSCRIPT
EU TEN-T Coordinator
Developing the EU Transport Infrastructure Network:
Strategy, Challenges and Opportunities
Carlo Secchi
European TEN-T Coordinator
Asian Development Bank Institute Tokyo, September 11th
2015
EU TEN-T Coordinator
The framework: EU White Paper (WP) on transport
• WP 1992 Opening the transport market
• WP 2001 Rebalancing modes to fight
capacity constraints
• WP 2011 Putting transport in the wider
‘EU 2020’ perspective:
An agenda for promoting growth and jobs
through greater resource efficiency
EU TEN-T Coordinator
Outline
• Challenges ahead
• A vision for the transport system of 2050
• 1 target (-60% of GHG emissions
Energy Union) and 10 indicative
goals/benchmarks to guide policy action
• How to do it 4 “I”s and 40 actions
EU TEN-T Coordinator
Old challenges remain, new ones appear
Increasing competitive pressure in the global economy
(Long Term) Increase in oil price and persistent oil
dependency- A deteriorating climate and local environment
Growing congestion and poorer
accessibility. An infrastructure gap
in the enlarged EU
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Transport for business Transport as a business
• The EU economy is one of the most open in the world. The future prosperity of our continent will depend on the ability of all of its regions to remain part of a fully integrated world economy
• The transport industry is an important part of the economy: in the EU it directly employs around 10 million people and accounts for about 5% of GDP
• Many European companies are world
leaders in infrastructure, logistics, manufacturing of transport equipment and traffic management systems
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Growing congestion, poorer accessibility
• Fuel costs and congestion levels to rise significantly by 2030 further divergences in accessibility
EU TEN-T Coordinator
Increasing oil price & persistent oil dependency
• Transport depends on oil for about 96% of its energy needs. The transport sector accounts for almost 90% of the projected increase in global oil use.
•The depletion of reserves and growing global demand would lead to ever higher oil prices. The number of cars in the world is projected to increase from around 750 million today to more than 2.2 billion by 2050.
0
50
100
150
200
250
300
1980 1990 2000 2010 2020 2030 2040 2050
$/b
bl
Oil price in $ '2008/bbl Oil price in $/bbl (current prices)
Source: IEA World Energy Outlook 2010
Source: Prometheus NTUA (E3MLab)
EU TEN-T Coordinator
A tight carbon budget for transport
• Transport accounts for about one fourth of GHG emissions: 60% comes from passenger transport, one quarter is urban, less than one quarter is inter-continental and over half is medium-distance
. In October 2009, the European Council showed support for the objective of reducing GHG emissions in the EU by 80 to 95% by 2050 compared to 1990 levels
Source: PRIMES-TREMOVE and TREMOVE
Source: PRIMES, NTUA (E3MLab)
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Meeting the challenge
• To meet the challenges, transport has to:
• Use less energy
• Use cleaner energy
• Exploit efficiently a multimodal, integrated and ‘intelligent’ network
EU TEN-T Coordinator
The vision
Freight
• High global maritime standards
• More efficient hinterland connections for ports
• Modern vessels and cleaner fuels for shipping
• Paperless logistics • Multimodal long-distance
freight corridors • No barriers to maritime
transport • Cleaner trucks on shorter
distances
• Better interface between long distance and last-mile
• Freight consolidation centres and delivery points
• ITS for better logistics • Low-noise and low-emission
trucks for deliveries
Passengers • Adequate capacity and
improved overall travel experience (efficient links between airports and rail, minimum hassle for personal security screening…)
• Seamless multimodal travel (online multimodal info and ticketing, multimodal hubs…)
• Quality service and enforced passengers’ rights
• Near-zero casualties for road
• Non-fossil mobility (Clean and efficient cars; Higher share of public transport; Alternative propulsion for urban buses and taxis; better infrastructure for walking and cycling)
Long-distance travel and
intercontinental freight
Intercity travel and transport
Urban transport
and commuting
EU TEN-T Coordinator
Ten Goals for competitive and resource efficient transport (I)
| 11 Roadmap to a Single European Transport Area
1. Halve the use of ‘conventionally-
fuelled’ cars in urban transport by 2030; phase them out in cities by 2050; achieve essentially CO2-free city logistics by 2030
2. 40% of low-carbon sustainable fuels in aviation and 40% (if feasible 50%) less emissions in maritime by 2050
New and sustainable fuels and propulsion systems
EU TEN-T Coordinator
Ten Goals for competitive and resource efficient transport (II)
| 12 Roadmap to a Single European Transport Area
3. 30% of road freight over 300 km should
shift to other modes by 2030, and more than 50% by 2050
4. Triple the length of the existing high-speed rail network. By 2050 the majority of medium-distance passenger transport should go by rail
5. A fully functional and EU-wide multimodal TEN-T ‘core network’ by 2030
6. By 2050, connect all core network airports to the rail network; all seaports to the rail freight and, where possible, inland waterway system
Optimising the performance of multimodal logistic chains,
including by making greater use of more energy-efficient
modes
EU TEN-T Coordinator
Ten Goals for competitive and resource efficient transport (III)
| 13 Roadmap to a Single European Transport Area
7. Deployment of SESAR by 2020 and
completion of the European Common Aviation Area. Deployment of ERTMS, ITS, SSN and LRI, RIS and Galileo
8. By 2020, establish the framework for a European multimodal transport information, management and payment system
9. 2050, move close to zero fatalities in road transport
10.Move towards full application of “user pays” and “polluter pays” principles
Increasing the efficiency of transport and of infrastructure
use with information systems and market-based incentives
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Internal Market:
• Single European Railway Area: domestic passengers market open to competition; competitive tendering for public service contracts; structural separation between infrastructure management and service provision
• E-Maritime initiative for paperless and intelligent shipping
• A social code for mobile road transport workers and less restrictions to road cabotage
• Access to real time travel and traffic information to facilitate multi-modal travel planning and integrated ticketing
• Further consolidation of passengers’ rights legislation
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Innovation:
• An EU Strategic Transport Technology Plan (2011) that brings together infrastructure and regulatory requirements, coordination of multiple actors and research and innovation actions
• A Clean Transport Systems Strategy (2012), with specific measures to facilitate the introduction of Clean Vehicles (e.g. rules on interoperability of charging infrastructure, guidelines and standards for refuelling infrastructure)
• Procedures and financial assistance for urban mobility plans, on a voluntary basis
• Common EU standards for carbon footprint “calculators”
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Infrastructure:
• Revision of TEN-T (2011) based on the creation of a ‘core network’ and on a corridors’ approach. Over € 1.5 trillion investments for 2010-2030
• A single framework to use coherently money in TEN-T, cohesion and structural funds. Conditionality of funding will ensure focus on EU priorities and adoption of new technologies (2011)
• Single management structures for rail freight corridors
• Guidelines for the application of infrastructure costs to passenger cars (2012). In a second stage, a framework for the internalisation of costs to all road vehicles
EU TEN-T Coordinator
International:
• Completion of the European Common Aviation Area of 58 countries and 1 billion inhabitants by 2020
• Extend internal market rules through work in international organisations (ICAO, IMO, OTIF, OSJD, UNECE, the international river commissions etc) and where relevant attain full EU membership
• Extend our transport and infrastructure policy to our immediate neighbours, including in the preparation of mobility continuity plans
• Promote our approach globally: opening up transport markets to free and undistorted competition and environmentally sustainable solutions
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The new TEN-T toward a single EU Transport Area
From patchwork … to network
EU TEN-T Coordinator
Efficient Single EU Transport Area: Internal Market GHG
Connecting Networks: Cross-border & Missing links (CEF Annex I)
Connecting Modes: Multimodal layer Platforms and nodes
Connecting Operations: Homogeneous, Interoperable, ambitious standards Seamless Information flow, Administrative simplification
TEN-T to deliver efficiency in transport
EU TEN-T Coordinator
Key elements of the new TEN-T
• Concentration (e.g.: from 1200 Ports "TEN-T" to 140 Core
Ports)
• Dual layer approach based on an objective methodology: core and comprehensive network
• Ambitious and harmonised standards for all infrastructures (e.g.: Railways: ERTMS, electrification;, train length 740 m; Ports: LNG, rail & road access)
• Horizontal priorities SESAR, ITS, RIS (river info system)
VTMIS for navigation; innovation, maritime connectivity (Motorways of the sea)
• Common deadlines to achieve network (2030/2050)
• Corridors and coordinators for implementation
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Dual layer
Core Network Comprehensive Network
a. accessibility to EU
Regions
b. access to the
core network
foster internal cohesion
smooth operation of the internal market
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Freight Transport (Core Network) . Railways
(Green - Conventional, Purple = mix high-speed)
. Inland Ports
. Maritime Ports
. Rail-road terminals
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Core Network Corridors as development tools
• 9 Core Network Corridors
• MoS & ERTMS as horizontal priorities
• Support the implementation of the core network
• Synchronise investments to optimise network benefits
• Multimodal, involving at least 3 Member States
• Flexible governance structures, involving stakeholders
• Core Network Corridors aligned and partly overlapping with Rail Freight Corridors
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The 9 Core Network Corridors
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Corridors' governance
• Coordinators for each of the 9 corridors
• Coordinators for ERTMS and Motorways of the Sea
• Corridor Forum
o chaired by European Coordinator
o Consultative body
o gradual involvement of stakeholders (with the agreement of Member States involved)
• Work Plan revised every 2 years, endorsed by MS
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TEN-T Corridors – the Italian case
• Baltic - Adriatic • Mediterranean • Scandinavian -
Mediterranean • Rhine-Alpin
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What happened so far?
● 4 Corridor Forum meetings held in Brussels in 2014 with gradual involvement of Member States, infrastructure managers of all corridor transport modes (rail, road, ports, airports) and Regions
● 2 Working Group sessions (Ports / Regions)
● Final corridor study with detailed analysis of corridor presented in December 2014
● Corridor work plan, based on results of corridor study, elaborated by European Coordinator and presented to Member States on 22 December 2014 for their approval
● May 2015: Approval of corridor work plan by all Member States concerned
● Hearing in the European Parliament
● Presentation of the work plan to the wider public (TEN-T DAYS & after)
EU TEN-T Coordinator
What's next?
Further development of the corridor study
● Selection of consultant for further development of the corridor study and support to the European Coordinator currently ongoing
● Aim: to deepen and consolidate the analysis of 2014
● Update and deepening of the project list for all modes with the aim to prioritize investments (detailed description of individual projects and their timing and costs; analysis of projects' feasibility and maturity; identification of their added value for the corridor; …)
● Enhancing coherence between the core network corridors and horizontal priorities ERTMS and MoS; consolidating the exchange with the RFC
● Covering issues that were only marginally touched upon so far, notably innovation, ITS, sustainability and interoperability
● Dealing with environmental impacts, noise, greenhouse gas emissions and climate change
EU TEN-T Coordinator
Resources & Enablers
Funding Support
Financing Support
Projects implementation
Non Financial instruments
National Resources
Cohesion Pol.: ESIF
PPP framework
EFSI / CEF IFI
Projects design & maturity Capacity Building
TEN-T Policy
Infrastructure Programme Accompanying Measures
Projects Definition
Transport Policy
Increase Revenues from Transport: Cross Financing…
TEN-T: CEF grants
Private Capital
EU TEN-T Coordinator
The Connecting Europe Facility New multisectoral infrastructure fund
Connecting Europe Facility
Transport guidelines
Energy guidelines
Telecom guidelines
2014-2020 MFF
Sectoral policy frameworks
(priority setting for 2020, 2030, 2050)
EU TEN-T Coordinator
The CEF budget
€33.2 billion in current prices
€26.250 B transport (- 2.2 B€ EFSI tbc) • €14.945 billion for all 28 MS, up to 2.1 billion for IFIs
• €11.305 billion for the MS eligible to the Cohesion Fund
€1.141 billion for broadband and digital
services (- 0.1 B € EFSI tbc) €5.850 billion for energy infrastructure (-0.5
B€ EFSI tbc)
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EFSI – the "Junker Plan"
EU TEN-T Coordinator
Leveraging with EU Financial instruments - example
European Investment Bank
Senior Debt in
forms of
loans or
bonds
Project Company,
- paying
investment costs,
interests,
operational
costs…
- Receiving
revenues (from
users,
authorities…)
- Reimbursing
debt
Equity
Sub-debt
(funded or
unfunded)
provided by
financial partner
Funds from project sponsors
or infrastructure owners
Funds from CEF
Financial partner (EIB or national
investment banks)
Banks providing
loans or Bonds
bought by Pension
Funds and insurance
company)
Total cost:
€700m €100m
€600m
€100m
€30m
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How to make it work?
"CBS Report"
Action Plan: 12 Recommendations to make Project financing a large scale success in the EU
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Report structure
III – 12 Recommendations rationale and detailed
measures
II - Executive Summary: 12 recommendations
explained
I 12 recommendations:
strategic outline
IV - Pilot projects
and sectors for innovative financial schemes
V Additional remarks
and follow-up
• 12 recommendations regrouped in 4 building blocks
EU TEN-T Coordinator
Action plan recommendations Building block 1: Support project pipeline
A stable
project
pipeline
• Technical assistance & capacity building
• Advisory hub and beyond (EUROSTAT…)
Full
life-cycle
approach
• Embedding life-cycle
• Including revenues and maintenance
Enhance
quality of
projects
• Supporting projects from conception…
• …financing, risk sharing
EU TEN-T Coordinator
Action plan recommendations Building block 2: Administrative key topics
Improve procure-
ment
• Streamline procedures (across borders)
• Exploit PPP/ concessions/ transport funds
Simplify
permitting
• Fine-tune and anticipate permitting (across borders)
• Mainstream environment
State aid • Provide certainty on EFSI
/ EU funds
• "One-Stop-Shop" fast-track for key EU projects
EU TEN-T Coordinator
Action plan recommendations Building block 3: Broadening Funding & Financing
Find additional resources
• Widen polluter-/ user-pays principle
• Cross-financing, transport funds
Internalise benefits
• Internalise external costs & benefits
• Exploit ETS, Eurovignette, energy taxation
Blending and
pooling
• Facilitate blending grants & loans/ innovative financial instruments (IFIs)
• Ad hoc IFIs & sectoral tools pools of projects
EU TEN-T Coordinator
Action plan recommendations Building block 4: Financial Markets, PPPs, Stakeholders
Encourage long-term
private financing
• Friendly environment for long-term infrastrastructure
• Investment new asset class
Enhance public
financing in PPPs
• Use EU guarantee off-balance sheet
• Provide PPP models
• Ex-ante assessment
Involve stakeholders
• Structured stakeholders consultation
• Communication to the wider public
EU TEN-T Coordinator
• The list of projects is indicative, no guarantee that the projects will be financed by EIB/EC.
• The list as a basis for future work, can be revised if MS have other projects.
• Financing structure is a decision of the MS and project promoters, the pipeline depends upon the political choices.
Identification of pilot projects
EU TEN-T Coordinator
• Wide internal consultation (EUROSTAT, COMP, FISMA,… EIB, Commissioners incl. VP Sefkovik, Georgeva, ESIF gr.)
• Action plan presented to the TTE Council on June 11th, following a Discussion in the EP currently being planned
• European Commission urged to establish a work plan
• Need to act quickly in order to ensure the success of the Juncker Plan and the CEF financial instruments – blending will be key.
State of Play and Follow-up
EU TEN-T Coordinator
Core Network Corridors: What impact on Growth and Jobs?
Year 2030 and cumulative impact 2015-2030
Pilot study by Fraunhofer Institute (M-FIVE)
EU TEN-T Coordinator
Useful links
European Commission, Directorate General for Mobility and Transport (DG MOVE) website: http://ec.europa.eu/transport/index_en.htm
White Paper on Transport + key facts and figures: http://ec.europa.eu/transport/themes/strategies/index_en.htm
http://ec.europa.eu/transport/infrastructure/tentec/tentec-portal/site/en/facts_and_figures.html
Clean Transport (& Urban Transport): http://ec.europa.eu/transport/themes/urban/index_en.htm
Regulation 1315/2013 (TEN-T)
Core Network Corridors
Regulation 1316/2013 (CEF)
Impact on Growth and Jobs (http://ec.europa.eu/transport/themes/infrastructure/studies/doc/2015-06-fraunhofer-cost-of-non-completion-of-the-ten-t.pdf)
EU TEN-T Coordinator
Thank you for your attention