SURVEY ON HEAVY RAIL CONTRACTSSURVEY ON HEAVY RAIL CONTRACTS

A comparison between the different public services contracts for heavy rail administered by the EMTA Authorities

EMTA Budapest Meeting 15 -16 April 2010

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FOREWORD

Heavy rail is one of the most relevant public transport services in metropolitan areas. It involves huge investments in infrastructure building and maintenance and higher cost of operation if compared to the other PT modes (metro, tramway, buses).

The aim of this document is to highlight the different contract structures and the average level of public subsidy where financial data is not a confidential information.

The information received from the Members can be useful for all the other EMTA members to add more strength to the contract management.

Our objective is to verify how the unit cost of our rail service is aligned with the average cost in the other European metropolitan areas, in order to quantify the right amount for the tender offers.

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AUTHORITIES THAT FILLED OUR QUESTIONNAIRE

Our initiative was launched in September 2009 with a 2 pages questionnaire that was circulated among the EMTA Members.As of now we have received contributions from:- Stuttgart Region- RMV Frankfurt- ATM Barcelona- SYPTE Sheffield- ZTM Warsaw- AMT MontréalIn addition to this we examined the Contract 2008 – 2011 between STIF and SNCF for the rail service in Ile-de-France (available on paper).

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THE RAIL SERVICES OFFER

The table shows the offer in Train*Km per year.The amount of service offered varies between the 57 million train*km of Région Ile-de-France to the 2,8 M Km of Barcelona. However it must be underlined that in the case of Barcelona only the service surveyed is light rail and not heavy rail. Financial data concerning the AMT contracts are not available due to pending negotiations.

Authority Offer (in train km per year)

AMMT Torino 2,5 M train Km (Trenitalia)1,0 M train Km (GTT)

Stuttgart Region 9,8 M train km

RVM Frankfurt 38 M train Km

ATM Barcelona 2,8 M train Km

SYPTE Sheffield 3,4 M train Km

ZTM Warsaw 2010 about 5 M vehicle Km2011 about 11 M vehicle Km2012 about 16 M vehicle Km (start of 2 new airport lines), trains with different number of cars

STIF Ile-de-France 57,5 M

AMT Montréal Canadien National : 613138 Train kmChemin de fer Canadien Pacifique : 705474 Train km

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OPERATORS AND TYPE OF CONTRACT

The table shows the type of contract adopted by each authority.

The Net cost contract is more frequently used (5 cases out of 7).

Authority Name of the heavy rail operator

Type of Contract

AMMT Torino Trenitalia S.p.A.GTT S.p.A.

Net cost

Stuttgart Region DB Regio AG (S-Bahn) Net cost

RVM Frankfurt Deutsche Bahn AG, Hessische Landesbahn GmbH, VIAS and more (8)

Gross cost

ATM Barcelona Light rail: Tramvia Metropolità

Net cost

SYPTE Sheffield Northern Rail Net cost

ZTM Warsaw Szybka Kolej Miejska Sp. z o.o. (Urban Rapid Rail Ltd.)

Gross cost

STIF Ile-de-France SNCF Net cost

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THE AMOUNT OF SUBSIDIES

The table shows the amount of subsidy for each contract. Some contracts include also a subsidy for the infrastructure charge. In some cases data were confidential and not publicly available. None of the Authorities’ contracts calculated the unit amount on a different basis (i.e. per train hour instead of train km)

2. AMOUNT OF PUBLIC SUBSIDIES / YEAR

for operations for infrastructure access

Unit price in € per train km

AMMT Torino Rail Operator “Trenitalia” 22,9 M€ (+ VAT)Rail operator “GTT” 20,0 M€ (+ VAT)* *: GTT subsidy includes the infrastructure maintenance charge

9,16 € (Trenitalia)6,80 € (GTT)

Stuttgart Region 58,7 M€, (for operation and infrastructure access for rail, stations and transmission of electricity), no VAT to pay for these services 

6,01€ (= 58,7 m€ / 9,8 m train km)

RVM Frankfurt No specifications No specifications No specifications

ATM Barcelona 26,14 M€ (+VAT), total cost of operation16,50M€ (+VAT), total subsidy for operation

28,3 M€ (+VAT) 9,31 €

SYPTE Sheffield 34,015 M€ (at April 2010 conversion rates) for total cost of the operation

The contract is for the agreed level of service (capacity, timetable, rolling stock class).

ZTM Warsaw operator has not enabled ZTM to fill in the exact financial data

STIF Ile-de-France 1.211 M€ for operations, investments and other specific arrangements

21,09 €

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INVESTMENTSThis table show the different investment policies set up by the Authorities. In some cases investments are included in the contract subsidies.

Are investments included in the contract?

New rolling stock

Building of new infrastructure

Other....

AMMT Torino No No No

Stuttgart Region Yes, operator buys 83 new trains, worth 450 m€; no extra costs for the region, they are included in 6,01€/train-km

No No

RVM Frankfurt Yes No Yes

ATM Barcelona No No No

SYPTE Sheffield No No No

ZTM Warsaw Yes (17 new trains till 30.06.2011)

No No

STIF Ile-de-France Yes (Quadrennial investments plan) PQI

? (Confidential information)

Renewal of stations, accessibility for people with reduced mobility, information to travellers

AMT Montréal No No No

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ADDITIONAL SERVICES4. ADDITIONAL SERVICES

Train announcements with loudspeaker in stations/stops

Ticket office availability

Customer service counter (timetable info, disabled passengers assistance, groups)

Is there an additional charge in case a newer or higher quality rolling stock is used?

AMMT Torino No No No No

Stuttgart Region Real time information at each platform in the S-Bahn network, loudspeaker information is not necessary.

Ticket offices only at larger stations, included

  No

RVM Frankfurt Yes Yes Yes No

ATM Barcelona No No No No

SYPTE Sheffield Yes (automated with manual over-ride)

7 stations (out of 27) TimetablesDisabled assistanceCycles carried

No

ZTM Warsaw No No No average unit price and max total payment per year put into the contract – prices may vary depending on vehicle type

STIF Ile-de-France

AMT Montréal Provide directly by AMT Provide directly by AMT

Provide directly by AMT

No

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ADDITIONAL SERVICES

4. ADDITIONAL SERVICES

Is there an additional charge for off-peak or Sundays / holidays service?

Is there an additional charge for low demand services

Other, specify....

AMMT Torino No No No

Stuttgart Region No No  

RVM Frankfurt No Yes No

ATM Barcelona No No No

SYPTE Sheffield No No SYPTE are able to buy-in enhancements. Northern Rail funded separately for station upgrade works, above maintenance of the station asset which is part of the contract.

ZTM Warsaw No No (it’s a gross contract) No

STIF Ile-de-France

AMT Montréal No No No

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CONCLUSIONS

The European regulations impose specific Public Service Obligations to the operators

The Service contract is a strategic tool for the Authorities to promote improvements in the quality of service

Our proposal is to set up an Observatory of the Public Services Contracts inside EMTA with the following tasks:

• Compare the main indicators that influence the cost of operation and therefore the amount of subsidy needed to run the service (i.e. cost of personnel, infrastructure access charge, traction charge)

• All the results of this activity can be included in a periodic report to be circulated among Members.