transport in europe the search for mobility. transport supports all other economic activity an...
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Importance of transport and transport services in Europe Over 1 million transport-related enterprises 10.5million jobs Value-added of over €458 bn 32% of energy consumption 40% of public sector investmentTRANSCRIPT
Transport in Europe
The search for mobility
Transport
• Supports all other economic activity• An important factor in costs and competitiveness• Facilitates trade – important to European
integration and SEM• Important for other policies
o e.g. energy, environment, social and economic cohesion, etc.
• One of only two sectors explicitly in Rome Treaty
Importance of transport and transport services in Europe
• Over 1 million transport-related enterprises • 10.5million jobs• Value-added of over €458 bn• 32% of energy consumption• 40% of public sector investment
Transport trends
• 1970: Personal mobility 17 km per day → 38 km per day by late 1990s some stabilisation
• 1975 – 2000: European car ownership levels doubled but 2004 enlargements kept car ownership levels down – range from 224 per 1,000 of the population in Romania to 621 in Italy
• Congestion and resulting costs are a problem
Transport modes
• Road = dominant passenger transport mode – door-to-door flexibility
• Rail transport long term decline in transport share – freight and passenger
• Rail relatively more important in 2004 accession states
• Renewed emphasis given to transport – TENs
EU-28 passenger transport by mode, % bn passenger km
2%
1%
9%
7%
8%
73%
Car Bus, coach, trolleybus Rail Tram & metro Waterborne Air
Note: Air and sea refer to domestic and intra-EU journeys onlySource: Eurostat, EU Transport Policy in Figures: Statistical Pocketbook, 2014
EU-28 freight transport by mode,% bn tonne km
45%
11%4%
3%
37%
Road Rail Inland waterway Oil pipeline Sea
Road transport thedominant sector infreight transport but less so than in passenger transport
Note: Sea refers to domestic and intra-EU journeys onlySource: Eurostat, EU Transport Policy in Figures: Statistical Pocketbook, 2014
Evolution of the Common Transport Policy
• Pre-SEM – one of most heavily regulated sectors
• Despite Treaty of Rome, transport policy dormant
• 1982: EP took Council of Ministers to ECJ for failure to fulfil Treaty obligations and won
• SEM also highlighted need for CTP
2011 Transport White Paper sets out long term priorities
• Pre-SEM – one of most heavily regulated sectors
• Despite Treaty of Rome, transport policy dormant
→• 1982 EP took Council of Ministers to ECJ for
failure to fulfil Treaty obligations and won• SEM also highlighted need for CTP
Developing the CTP
The case of road haulage
Wide range of transformative measures
• Market access, e.g.oMutual recognition of qualificationso Admission to the profession oRemoval of quotaso Lifting of cabotage restrictions
• Tax measures• Safety measures
o e.g. driving hours
• Customs controls and regulationsoReduction of formalities
• Environmental regulations• Technical harmonisation
oDimensions, weights, technical characteristics• Infrastructure charging?
Review of road haulage changes
• Relatively little third country involvement in cross-border trade
• Cabotage movements remain low – mostly in France and Germany
• Current policy – simplify cabotage rules to remove differences in interpretation and implementations that restrict cabotage movements
Freeing up of road haulage
• Facilitates emergence of holistic approach to logisticso across borderso across modes
• Emergence of pan-European distribution strategies and logistics companies
• Transformational effect on the spatial distribution of economic activity?
Developing the CTP
The case of airlines
Pre-SEM airline sector
• Large state monopolies• Fares subject to state approval• Access to routes tightly controlled• Cabotage restrictions• No competition and airlines operating at a
loss and highly subsidised
• By 1997, after 3 airline packages: o freedom to set fareso full cabotage rightso any carrier with community licence could
serve any international route in Europe• State aids less of a problem
Problems remain
• Airport capacity not keeping pace with demando Slot allocation issues. Long term solution = more
capacity. Short term – greater transparency and higher utilisation
o Air traffic management (ATM) issues from fragmented systems → Single European Skies (SES, SES II and SES II+). Gives EU competence in ATM and a series of measures resulting in greater co-ordination of ATM in Europe
Problems remain
• Civil aviation is an international business – many flights cross EU-borders
• International airline agreementso Since 2002, Commission has right to negotiate airline
deals on behalf of EUo Agreements with US (restrictions remain on
ownership of US airlines and cabotage in US) o Deals with Brazil, Canada, Australia, New Zealando 2012 policy to sign agreements with all EU
neighbours by 2015 – some successes
Changes in airline sector
• Market determines commercial decisions • Decline of idea of national flag carrier as strategic
necessity• Restructuring and rationalisation via M&A:
o Air France and KLM; British Airways and Air Iberia; Lufthansa buys Belgian, Swiss and Austrian airlines; etc.
o Purchase of small airlines as feeders• New business models – emergence of low cost
carriers
Low cost carriers – a new business model
• Not possible without EU liberalisation• Originally developed Southwest Airlines
following US deregulation• Based on driving all cost components down• Vulnerable to energy prices, security, etc.• Some low cost practices spreading to traditional
airlines
Contrasting models
• Low costo Direct sales – Interneto No frillso High plane turnaround:
simpler boarding, etc.o Regional and secondary
airports o Standardised fleeto Higher seating densityo Direct flights, short haul,
no transferso Staff incentives
• Traditionalo Multiple sales channelso Full serviceo Slower turnaroundo International airportso Several aircraft typeso Lower seating densityo Long and short haul, transfers,
greater complexityo High basic costs, fewer staff
incentives
Developing the CTP
The case of rail
Rail
• Long term decline in traffic share• Mostly heavily subsidised state
monopolies• Commission sees role for rail to relieve
congestion → modal shift as policy objective
• Prospects for modal shift – low
EU rail policies
• Last mode to experience EU liberalisationo First rail package in force 2003 – opened international
freight to competitiono Second rail package in force 2004 – safety,
interoperability, domestic freight, cabotage, European Rail Agency
o Third rail package – agreed 2007 Opening of international passenger markets European driving licences, allowing qualified drivers to
operate across whole European network Enhancement of passenger rights
Fourth Rail Package
• Proposed 2013 – still under negotiation in 2015o EU-wide approval, via European Rail Agency, for
safety certification and vehicle authorisationo Separation of network managers and train operators
reinforcedo Liberalisation of domestic passenger markets
CTP priorities
• Completion of SEM – rail and short sea shipping• Continuing development of trans-European
transport networks• Environment