Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015

Technical support for the Deployment of ERTMS along the core network corridors

The financial aspect of the ERTMS deployment

Brussels, 22nd June 2015

Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015 2

Haz click sobre el icono para cambiar la imagen. Medida 14x12cm.Agenda

1. Methodology of the business case

2. Interoperability impact

3. Larger scope

Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015 3

1. Methodology of the business case

• Business Case

The objective of the business case is to analyze the impacts of ERTMS on the railway sector. All the upstream factors and downstream impacts linked with ERTMS deployment and included in the business case methodology are presented in the figure below:

We have started with the OPEX-CAPEX model, detailing the operating costs of Infrastructure Managers and Railway Undertakings, as well as the required investment costs. This quantitative approach is one of the key part of the business case.

Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015 4

2. Interoperability impact

• The key principle of the business case is to understand the impact of ERTMS on interoperability

Which impact?

- Costs / Benefit of ERTMS on the cost functions for RUs and IMs

- Impact on the price of the railway sector

- Possible modal shift from the road transport

- Separate analysis for passengers & freight

Which timing?

- What can we expect before the full deployment on the Core Network Corridor (2030)?

- How much time after the deployment on the Core Network Corridor shall we get the full benefits of interoperability?

Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015 5

• OPEX-CAPEX model

The following charts present the calculator methodology, for RUs and IMs.

- Train Operating Company (TOC) & Freight Operating Company (FOC)

- Infrastructure Managers

RU cost inputs

• Cost inputs

• ERTMS impact

RU KPI inputs

• RS KPI (km/y, h/y)

• Staff KPI (driving hours / day)

RU cost function

• Cost calculation

• Cost inflation

• €/train-km

• €/ton-km

Summary

• RU costs

• RU revenue

• Fleet costs

IM cost inputs

• Cost inputs (Operation, maintenance, renewal)

• ERTMS impact

IM KPI inputs

• Rail traffic KPI (train.km /year)

• Access Charges KPI

IM cost function

• Cost calculation

• Cost inflation

• €/train-km

• €/ton-km

Summary

• IM costs

• IM revenue

1. Methodology of the business case

Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015 6

• Template for the results

2. Interoperability impact – expected outputs

- Impact of interoperability: savings on operating costs in € / train x km

- Multiplied by traffic volume: total savings expected from ERTMS / year

- To be compared with the costs of deployment (on-board & trackside)

- Outputs:- Are the expecting savings higher than

deployment costs?- If yes how many years does it take to

cover those costs?- Next question: how can we transfer those

future benefits to today?

DRAFT

0,7

Locomotive possession

€ / train x km

Locomotive maintenance

Track access charge costs

Energy

Structure fees

Staff (driver, controller)

Wagons possession

16

1,0

1,7

2,0

2,5

2,5

2,7

In red: cost potentially impacted by ERTMS

Services of technical support for the deployment of ERTMS along the core network corridors

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• Business Case : next steps

The business cases will interact with external elements: studies, deployment plan…

3. Larger scope

September 2015: ERA conference2 business cases for Rhine Alpine & North Sea Mediterranean corridors

2016: Business cases for other corridors and European level

Business cases

Study to develop tailor-made solutions for use of innovative financing to support

deployment of ERTMS, in particular along nine core network corridors

Identify adequate financial instruments

and tools

Guidelines & dissemination

Services of technical support for the deployment of ERTMS along the core network corridors

Riga – TEN-T days –2015 8

Haz click sobre el icono para cambiar la imagen. Medida óptima 30x14 cm.