Post on 20-Dec-2015
Connex Verkehr GmbH27. Agustu 2005
1 Connex passenger rail activities
Private Rail in Germany:The Example of Connex
Connex Verkehr GmbH27. Agustu 2005
2 Connex passenger rail activities
Overview:
Rail reform as the legal background:• Open access• “Regionalisation” as a new way of financing
regional rail
Connex as the biggest independent rail operator:
• Concept and philosophy
Connex Verkehr GmbH27. Agustu 2005
3 Connex passenger rail activities
Rail reform:The situation in 1991/92
• Bundesbahn and Reichsbahn (former GDR) in desolate economic situation
• Dwindling market share compared to road transport in spite of high state subsidies
• Urgent need of investment
Connex Verkehr GmbH27. Agustu 2005
4 Connex passenger rail activities
Recommendations of the “Pällmann-Committee”:
More Competition!• By intramodal competition service quality
and efficiency will be improved • By better service quality and efficiency the
trend towards road transport will be stopped, maybe even reverted
• New market participants will bring new know-how and fresh money
Connex Verkehr GmbH27. Agustu 2005
5 Connex passenger rail activities
Recommendations of the “Pällmann-Committee”:
Instruments to achieve competition:• Opening of rail infrastructure for independent
operator• Financing of the deficit of regional rail through the
federal states (“Länder”).• “Customer-client principle”: States are allowed to
order regional rail services from other operators than DB
• Complete opening of the market for (non-subsidised) long-distance passenger rail
Connex Verkehr GmbH27. Agustu 2005
6 Connex passenger rail activities
Opening of rail infrastructureDeutsche Bahn was divided into• Transport subsidiaries (regional rail, long-
distance rail, railfreight) DB Regio, DB Reise & Touristik, DB Cargo (=Railion)
• Infrastructure companies (tracks, stations) DB Netz AG, DB Station & Service
• Both divisions have separate accounting. In the long term both divisions would have been completely separated.
Connex Verkehr GmbH27. Agustu 2005
7 Connex passenger rail activities
Opening of rail infrastructure
• Independent train operators is given discrimination-free access to infrastructure (tracks, stations) – for a fair user fee, of course
• Similar EU legislation was implemented by directive 91/440
Connex Verkehr GmbH27. Agustu 2005
8 Connex passenger rail activities
“Regionalisation”
Financing of the deficit in regional rail until 1994:
/Federalgovernment
Bundesbahn/Reichsbahn
Simple balancing of the whole deficit
Connex Verkehr GmbH27. Agustu 2005
9 Connex passenger rail activities
“Regionalisation” Financing of regional
rail from 1995:
FederalGovernment
Regionalisation funds(ca. 7 Mrd. Euros/year)
Federal states=„orderer“
Train operators:... and ca. 30 others
Connex Verkehr GmbH27. Agustu 2005
10 Connex passenger rail activities
“Regionalisation”:
Goals:• Integration of regional know-how of the
passengers’ needs• Clear responsibility• More transparency of the costs of regional
rail • More efficient use of state subsidies
Connex Verkehr GmbH27. Agustu 2005
11 Connex passenger rail activities
Results ofRegionalisation (1)
• Increase of offered transport capacity (train kilometres) by 20 to 30 percent
• On average slowly growing passenger number –against the overall trend in public transport
• Spectacular passenger increases at some projects
• Market share of independent train operators grew to 9-10 % (Connex 3 %)
Connex Verkehr GmbH27. Agustu 2005
12 Connex passenger rail activities
Results of Regionalisation (2)
• When tendering regional rail, the states/PTAs have realised savings of 15-25% - at the same or even better service level.
• Some lines could be saved from closure and successfully revitalised
Connex Verkehr GmbH27. Agustu 2005
13 Connex passenger rail activities
Connex in the regional rail
market• Ca. 700 employees• 7 subsidiaries• 2 long distance trains• 1612 km line length• 19,2 Mio. train-km 2004• 153 Diesel railcars• 3 conventional trains with loco• 248 Mio. Euro turnover 2003
(excl. rail cargo, incl. bus)• Turnover 2004: 336 Mio. Euro
Connex Verkehr GmbH27. Agustu 2005
14 Connex passenger rail activities
Connex in theregional rail market
Market share in regional rail:• By train-km ca. 3 %• By turnover ca. 2 %• Main focus is - due to tendering practices -
on secondary lines
Connex Verkehr GmbH27. Agustu 2005
15 Connex passenger rail activities
The Connex Way
Regional approach:• All Connex operations show a “regional face” to
the customer. Goal: Passenger and PTA should call it “our railway”. “Global players” are unpopular with the German passenger (situation is different in railfreight)
• Basically regional brandswith Connex co-branding
• Joint ventures with municipally owned transport companies are possible:
Connex Verkehr GmbH27. Agustu 2005
16 Connex passenger rail activities
The Connex Way
Decentralised company structure:• Powerful medium-sized regional subsidiaries with
powerful managing directors • Headquarter is mainly “service provider”: Legal
affairs, taxation, partially finances and communications – it is not an all-powerful headquarter in a traditional way
Self-sufficiency of the subsidiaries allows quick decision-making in most cases
Connex Verkehr GmbH27. Agustu 2005
17 Connex passenger rail activities
The rolling stock of Connex Mainly three types of DMU with similar
characteristics• 120 km/h• 2 x 275 or 2 x 315 kW with mechanic power
transmission• 120-150 seats
Alstom LINT (38)
Siemens Desiro (18)Bombardier Talent (53)
Connex Verkehr GmbH27. Agustu 2005
18 Connex passenger rail activities
The rolling stock of ConnexThree conventional trainsets, consisting of
electric loco (class 185) and 4-6 refurbished express train cars (140 km/h)
Connex Verkehr GmbH27. Agustu 2005
19 Connex passenger rail activities
The rolling stock of ConnexFrom Dec. 2005 on the Hamburg-Island of Sylt
route: Diesel-hauled push-pull trains with 6-12 cars,140 km/h (Cars can run 160 km/h)
Connex Verkehr GmbH27. Agustu 2005
20 Connex passenger rail activities
Outlook for the future
• Municipally owned operator enter the market with dumping bids
• Legal situation concerning contracting procedures and tendering unclear – contradictory laws and court decisions
• Connex has to confirm its position as a reliable partner and high quality operator