Transport in Europe
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Transcript of Transport in Europe
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Transport in Europe
The search for mobility
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Importance of transport in Europe
• 1 million transport-related enterprises
• Over 7million jobs
• Value-added of over €300 bn
• Almost 30% of energy consumption
• About 40% of public sector investment
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Transport
• Supports all other economic activity• An important part of business costs• Facilitates trade – important to European
integration and SEM• Important for other policies
– e.g. energy, environment, social and economic cohesion, etc
• One of only two sectors explicitly in Rome Treaty
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Transport trends
• 1970 – personal mobility 17 km per day
• Late 1990s – 38 km per day
• 1975-2000 European car ownership levels doubled
• Result = congestion
• Congestion costs = 0.5% GDP – will double if present trends continue
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• Road = dominant transport mode– Door-to-door flexibility
• Rail transport long term decline in transport share – freight and passenger
• Rail more important in 2004 accession states
• 2004 enlargement – reinforces need for better transport
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bn passenger km
1970 1980 1991 2002
Cars Bus and coach Rail Trams & metro Air
Modal performance – passengers, EU-15
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bn - tonne km
1970 1980 1991 2002
Road Rail Inland waterways Pipeline
Modal performance – freight, EU-15
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Road Rail Inland waterway Pipeline
Freight modal split, 2002
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Evolution of the Common Transport Policy
• Pre-SEM – one of most heavily regulated sectors
• Despite Treaty, transport policy dormant
→
• 1982EP took Council of Ministers to ECJ for failure to fulfil Treaty obligations and won
• SEM also highlighted need for CTP
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Developing the CTP
The case of road haulage
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Wide range of transformative measures
• Market access, e.g,– Mutual recognition of qualifications– Admission to the profession – Removal of quotas– Lifting of cabotage restrictions
• Tax measures
• Safety measures– E.g. driving hours
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• Customs controls and regulations– Reduction of formalities
• Environmental regulations
• Technical harmonisation– Dimensions, weights, technical characteristics
• Infrastructure charging?
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Freeing up of road haulage
• Facilitates emergence of holistic approach to logistics– Across borders– Across modes
• Emergence of pan-European distribution strategies and logistics companies
• Transformational effect on the spatial distribution of economic activity?
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Developing the CTP
The case of airlines
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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
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• By 1997, after 3 airline packages: – Freedom to set fares– Full cabotage rights– Any carrier with community licence could
serve any international route in Europe
• State aids less of a problem
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Problems remain
• Airport capacity not keeping pace with demand – slot allocation issues
• Air Traffic control
• International airline agreements– Since 2002, Commission has right to
negotiate airline deals on behalf of EU– Many deals concluded, US proving more
difficult nut to crack
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Changes in airline sector
• National flag carrier idea declining:– E.g Air France and KLM– End of Sabena
• Purchase of small airlines as feeders
• Strategic alliances – international rather than European
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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
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Contrasting models
• Low cost– Direct sales – Internet– No frills– High plane turnaround:
simpler boarding, etc– Regional & secondary
airports – Standardised fleet– Higher seating density– Direct flights, short haul, no
transfers– Staff incentives
• Traditional– Multiple sales channels– Full service– Slower turnaround– International airports– Several aircraft types– Lower seating density– Long and short haul, transfers,
greater complexity– High basic costs, fewer staff
incentives
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Developing the CTP
The case of rail
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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
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Rail
• Last mode to experience EU liberalisation– First rail package in force 2003 – opened
international freight to competition– Second rail package in force 2004 – safety,
interoperability, domestic freight, cabotage, European Rail Agency
– Third rail package – proposed 2004 – to open passenger markets and measures re qualifications of drivers