Modern Railways. A matter of competitiveness

The creation of the Single European Railway Area has been underway for over 12 years. Times are changing, and the creation process continues. What exactly does the Single European Railway Area (SERA) mean, and what role will it play? Generally, this issue can be presented as an EU area in which common market regulation rules, access to infrastructure, and services operate, both in freight and passenger transport. Alongside regulatory issues, common rules determining the level of safety and interoperability will function. Undoubtedly, the free passage of every (or almost every) railway vehicle through each EU country with a railway system can be considered a beautiful vision.

Recently, the creation of SERA has gained further support, i.e., the European Green Deal. I will not delve into the details of this program; however, it is undeniable that railways and environmental protection go hand in hand. On LinkedIn and other platforms, one can repeatedly find images showcasing the advantages of trains over other means of passenger transport. Of course, trains cannot always and everywhere have the advantage, let's not be naive. Beyond a certain distance, trains will lose to planes, even if we consider the time spent unproductively at the airport.

Regulation on Capacity Allocation

There is a proposal for a regulation on the use of railway infrastructure capacity in the SERA. Some provisions of Directive 2012/34/EU will be amended, and Regulation (EU) No 913/2010 will be repealed.

On one hand, some Member States, such as Denmark, are skeptical about this project, with their position being summarized as, "This project is nonsensical." On the other hand, the Belgian presidency in the EU Council wants to complete the project by June 2024. Poland seems to be more in the middle, and the comments submitted during the negotiations are quite neutral.

The regulation proposal envisages changes concerning the management of railway infrastructure capacity and traffic, monitoring of railway transport functioning, coordination between stakeholders, and allocation of capacity for railway traffic within the intermodal transport chain. Two aspects have been combined, i.e., planning and capacity allocation, which until now were covered by two legal acts, namely Directive 2012/34/EU and Regulation 913/2010.

Other changes concern the improvement of railway transport coordination in the EU and ensuring proper regulatory supervision.

Improving Capacity Management

How should the new regulation affect capacity management? The current provisions of Directive 2012/34/EU, and consequently the Railway Transport Act, stipulate that capacity is allocated annually upon request by the applicant. The new regulations will envisage 3 stages of strategic capacity planning management:

• Schedule arrangement,

• Construction of the timetable and allocation of capacity,

• Adjustment and change of capacity.

 Strategic Capacity Planning

What is the goal of strategic planning? Primarily, it aims to improve the use of railway infrastructure by anticipating the demand for railway transport and considering planned development, renewal, and maintenance. Therefore, the role of the infrastructure manager will be to plan the use of railway infrastructure over several years and allocate capacity according to those plans. At the same time, the infrastructure manager should ensure some capacity for those carriers who cannot demonstrate a constant demand for their services. Strategic capacity planning covers at least five years ahead. Infrastructure managers may extend this period to more than five years, especially to support the development of infrastructure as part of the indicative railway infrastructure development strategy mentioned in Article 8(1) of Directive 2012/34/EU. 

The infrastructure manager should develop a ‘capacity model’ which should be developed after consultations with carriers and other applicants. At a minimum, the model should provide the following information:

• The total amount of capacity available on individual network sections: This means that the model shows how much railway traffic can be serviced on different parts of the railway network. It gives insight into how many trains can pass through a given network section at a specific time without causing disruptions.

• Parts of capacity reserved for different railway service segments: The model considers the division of available capacity into different types of transport services, such as passenger trains, freight, etc., showing how much capacity is allocated to each of these segments. This allows for the optimization and planning of railway traffic in a way that meets the various needs of railway infrastructure users.

• Capacity limitations due to infrastructure works: The model considers the impact of planned or ongoing infrastructure works, such as track renovations or new section construction, on the network's capacity. This information is crucial for managing railway traffic, allowing for the anticipation and minimization of potential disruptions caused by infrastructure works.

This regulation aims to introduce tools that will enable better management of infrastructure capacity, especially its utilization, which should result in a greater number of freight and passenger trains. For this purpose, the principle of simultaneous capacity allocation will be introduced, i.e., a process in which infrastructure managers allocate infrastructure capacity in response to a set of capacity allocation applications received before a specified deadline, and through the coordination of these applications, ensure the best possible use of infrastructure and matching of applications.

Furthermore, the capacity allocation process should be more transparent and based on the "first come, first served" principle. Priority in the allocation process is given in chronological order of capacity application submissions. This solution will be used only in the 'ad hoc' procedure, and its guidelines will be adopted by ENIM (i.e., European Network of Infrastructure Managers). This will make them common for every SERA country.

The Digital Railway in this Context

I'm not sure if we should talk about a revolution in the context of railway digitalization. Probably all business activities are gaining a digital form, so this phenomenon can be considered a "natural course of things." Also, the capacity regulation project imposes an obligation on managers to use digital tools. 

Anyway, the regulation states that the use of digital tools in managing capacity and railway traffic is mandatory to ensure the efficient and effective progress of this process.

Applications are supposed to: 

• Improve efficiency and service quality, ensuring full interoperability.

• Increase transparency in managing capacity and railway traffic.

• Reduce administrative burdens for applicants, facilitating access to information processes.

 Infrastructure managers should cooperate with ERJU and other bodies to develop or update TSI, so they include the possibility of using applications if they will affect the interoperability of the railway system in the EU.

What are the benefits of this regulation?

Firstly, it's about greater competitiveness of railway transport compared to other transport means, which should result in increased interest in and choice of railways. New rules should allow flexible capacity management and adapt it to the customer. After all, freight carriers' expectations differ from those of passenger carriers.

Secondly, more effective tools for managing infrastructure will improve the transport offer, and increase interest in freight or passenger transport, which should positively impact the entire railway market condition.

What do you think about the proposed regulation on railway transport functioning? Will it manage to improve the competitiveness of railways, or will the matter fade away without significant impact? What could accelerate the process of creating a more integrated and efficient railway system in Europe?