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DOCUMENTS "COM"
COM(79)447
Vol.1979/0156

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(79)447 final
Brussels.7September 1979
COMMUNICATION FROMTHECOMMISSION TOTHECOUNCIL
Secondbiennial reportontheeconomic andfinancial situation
oftherailwayundertakings
(Article 14ofDecision 75/327/EEC)
f, 1
ï//
V/--s
X.-.",/
C0MC79)447final

'
CONTENTS
#,-
?> i
\
Page
I. INTRODUCTION 1
PART I
II.APPLICATION ANDEVOLUTION OFREGULATIONS (EEC )
No.1191 /69,No.1192 /69ANDNo.1107 /70 4
A.COUNCIL REGULATION (EEC )No.1191 /69OF26.6.1969 4
B. " " " "1192 /69" " 6
C. " " " "1107 /700F 4.6.1970 9
III .IMPLEMENTATION OFTHE DECISION OF20.5.1975 12
(a)IMPLEMENTATION OFGENERAL PROVISIONS BYMEMBER
STATES 12
(b)BUSINESS PLANS 13
(c)ACTION UNDERTAKEN JOINTLY BYNATIONAL AND
COMMUNITY BODIES 25
(d)ACTION UNDERTAKEN BYCOMMUNITY BODIES 28
IV.CONCLUSIONS 31
PART II
ECONOMIC AND FINANCIAL SITUATION OFTHE RAILWAYS OFTHE
COMMUNITY 36
(a)MARKET EVOLUTION 36
"(b)FINANCIAL TRENDS OFRAILWAY UNDERTAKINGS (1973-1977 ) 37
(c)CONCLUSIONS 39

I.INTRODUCTION
1.Article14oftheCouncilDecisionof20May1975ontheimprovement of
thesituationofrailwayundertakings andtheharmonization ofrules
governingfinancialrelations betweensuchundertakings andStates
(75/327/EEC)(1)provides that:
"Everytwoyears,theCommission shallsubmittotheCouncilareport
ontheimplementation byMemberStatesofthisDecisionandofRegulations
(EEC)No1191/69,(EEC)No1192/69and(EEC)1107/70.Thereportmust
clearlyindicatetheresultsachieved,withparticular regardtoanychange
inthefinancialsituationoftherailwayundertakings .
2.TheCommission presented on27June1977itsfirstreport(2)underthis
provision.Thatreport,intheabsenceofthebasicinformation necessary
foranyanalysisofthechangeinthefinancialsituationoftherailways
described
therailways'situation onthetransport market
~thefinancial trendsoftherailwayundertakings
thetechnical aspectsoftheimplementation byMemberStatesof
Regulations 1191/69,1192/69and1107/70
–themeasurestakenbyMemberStatestoimplement theprovisions
oftheDecision
-theintendedmeasurestobetakenatCommunity andnationallevelson
thebasisoftheDecision .
3.TheCounciltooknoteofthereportbutundertook nofurtheractionon
..itsincethetimelagbetweentheadoptionoftheDecision andthe"pre­
sentation ofthereporthadbeentooshorttopermit"the Commission to
analysetheimpactofitsprovisions onthefinancial^situationof the
railways .
H)0JL15212/6/75p.3
(2)C0H(77)295final

Thesecond report aims again atexanining theapplication oftheregulations
andtheimplementation oftheDecision butattempts todosomore inthe light of
therailway policy developed atCommunity level anditsobjectives .
This brief introduction restates theCommunity approach torailway
policy development .Itistobeseen within the context oftheCommunity 's
overall aoproach totransport policy which aims essentially atthecreation
ofamarket ,particularly forgoods traffic ,organised ontheprinciples
offree and fair competition between the different land based modes of
transport and aco-ordinated infrastructure .The development ofsuch
amarket requires that existing distortions should be
eliminated .
Within this general framework theCommission has,over the last decade ,
develooed aspecific railway policy aimed atthe "improvement ofthesituation of
railway undertakings andtheelimination ofdistortions through' :
-agreater transparency oftheaccounts ofrailway undertakings with a
view tobetter identifying state interventions and isolating
thetrue déficit ,
-compensation ofrailway undertakings forany financial
disadvantages which they must bear asaresult oftheimposition of
burdens upon them bythepublic authorities ,
-greater commercial freedom andfinancial autonomy oftherailway
undertakings ,
-adaptation ofrailway undertakings andservices ,particularly
through improved business planning andfinancial andinvestment programm­
ing,tothecontemporary andfuture needs ofusers with aview to
attainment oftheundertakings' financial balance .
This second report ispresented intwoparts :
Part I,within thecontext oftheabove policy andthechosen instruments
foritsdevelopment :

(a)examinestowhatextentandinwhatmannerthethreeregulations on
publicserviceobligations,thenormalization ofrailwayaccounts
andaidstotransporthaveand/orshouldhavebeenappliedtoattain
greatertransparency ofstateinterventions ;
(b)examinesandexplainsthemotivationandneedfortheirmodification to
meetcontemporary requirements ;
(c)examinestheactionstakenatbothCommunityandnational
levelstoimplementtheprovisionsoftheDecisionof20May1975;
(d)arrivesatconclusions astowhatmattersandissuestheCommission
andMemberStatesshoulddirecttheireffortsintheshortandmedium
termstodevelopthepolicypursuedandensureacorrectimplementation
ofpresentlegislation.
PartIIisexclusively devotedtoadetailedanalysisofthefinancial
andeconomicevolutionoftherailwayundertakings oftheCommunity.

-4-
PARTI
II.APPLICATION ANDEVOLUTION OFREGULATIONS (EEC)No1191/69,(EEC)
No1192/69AND(EEC)No1107/70
7.ThetablesfoundinAnnexeIofPartIItothisreportshowtheamountsofcompensa­
tion/aidsandfinancial assistance grantedtorailways between 1973and
1977.Thesefigures havebeenagreedwithgovernment experts andrepresent
thelatestavailable information .
8.Ti'eseregulations wereadopted onthebasisoftheprovisions ofthe
CouncilDecision ofMay1965whichprovides that
"Whereas measures shouldaccordingly betaken...asregardsStateinter­
ventionintransport :toreducepublicserviceobligations toaminimum;
toprovidefaircompensation forfinancial burdensresulting fromthose
obligations whicharemaintained andfromthoseinvolving reductions on
socialgrounds;tonormalize theaccounts ofrailwayundertakings ;make
suchundertakings financially autonomous ;andtolaydownrulesgoverning
aidsfortransport,takingaccountofthedistinctive features ofthat
sector."
9.SectionIIexaminesthismandate,itsojectives andtheinstruments used
toattainthem.
A.REGULATION 1191/69ONPUBLIC SERVICE OBLIGATIONS
10.Itistoberecalledthatthisregulation embraces 3basicnotions :
-Publicserviceobligations shouldbeterminated wheretheyentail
economic disadvantages fortheundertaking andwheretheyarenotessen­
tialtoensureadequatetransport services .Theprinciple oftermination does
notapplytosocialratesandconditions imposedonpassengertraffic.
-Wherepublicserviceobligations aremaintained toensuretheprovision
ofadequatetransport servicesthecompetentauthority (nationalgovern*'
ment)shallselect,wherethereexistsachoicebetweentechniques of
transport,thewayleastcostlytotheCommunity .

-5-
-Theundertakings shouldreceivefullandfaircompensation forany
.i '>
obligationimposedandwhichresultsinaneconomicdisadvantage
forthem.
11.Theapplication ofthisregulationhasresultedin
-withfewexceptions,nomajorreductionsintheextentofthepublic
serviceobligationimposeduponrailwayundertakings,
-awideinterpretation ofthenotionof"adequatetransportservices"and
of"leastcosttotheCommunity"tojustifythemaintenanceofexisting
publicserviceobligations,
-asubstantialincreaseincompensation paidbyMemberStatestotheir
railwayundertakings .
-I >
1?.Inturn,thisuseoftheregulationasamajorinstrumentforthecompen­
sationpaidtorailwayundertakings forobligations imposed,asopposed
toitsoriginalconceptionasaninstrumentfortheirtermination,raises
problemsofadifferentnature.
-Shouldthecriteriaforthetermination ormaintenanceofanobligation
bespecified?
-.Whatadditionalguaranteescanbeprovidedtothepublicauthoritiesagainst
theuneconomicuseofscarceStateresourcesbyrailway
undertakings ?
-Shouldthescopeoftheregulationbeextendedto,amongstothers,all
transportservicesprovidedbyrailwayundertakings toensurethatthechoiceof
transportmode(bus/train)istheleastcostlytotheCommunityand
toencouragethedevelopment ofintegrated (road/rail)services?
-Shouldthenotionof"publicserviceobligation"becompletedbyincluding
impositions ontransportundertakings (e.g.generaltarifflevels)which
areatpresentexcludedfromcompensation underthisregulation ?

13.TheCommission recognises theneedfoprailways throughcertainoftheir
activities toprovide asocialserviceandtobeadequately andfairly -
compensated forit.Howeveritstillmaintains thattheextent
andscopeofthissocialserviceshouldbeclearlydelimited and
provided atthelowestcostpossiblefortheCommunity .
Tothisend:
-criteriaforthedetermination oftherailways' socialroleatthe
leastcosttotheCommunity andoptimumutilisation ofStateresources
willbethesubjectofaCommission proposalafterconsultation
withallinterested parties onthebasisofArticle 15§2ofthe
CouncilDecision of20May1975.
Theadvisory Committee ontransport gaveitsopinion onthisissue
-extension ofthescopeoftheregulation toincludeotherservices
andespecially transport services provided byrailwayundertakings was
alreadyproposed bytheCommission in1972<1>.TheCommission wouldlikethe
Counciltoreconsider itsposition onthissubject andpursueitsworkonthe
proposal toensureequaltreatment ofundertakings inthetransport market.
-theadaptation oftheprovisions dTregulation 1191/69toinciyde
publicserviceobligations currently exemptfromitsscope,suchastheimpo­
sitionofgeneraltarifflevelsasanelementoftariffobligation ,isthe
subjectofaCommission proposal onthebasisofArticle 9oftheDecision of
20.5.1975 (2)presentlyunderdiscussionintheCounciltransportworkinggroupl
B.REGULATION 1192/69ONTHENORMALIZATION OFTHE3ACCOUNTS
OFRAILWAY UNDERTAKINGS 1
14.Thisregulation comprises twobasicideas:
<1>DocCOM(72)1516finalof7.12.1972
(2)0JC139of14.6.1978

-7-
eliminationofdistortions ofcompetitionarisingfromtheimposition
offinancialburdenson,orthegrantofbenefitsto,railwayundertakings
bypublicauthorities,
compensation forburdenswhicharenoteliminated,inaccordance
withcommonprinciples.
15.Generallythisregulationhasbeenappliedinaccordance
withtheprovisionstherein.However,ofthe15classesofnormalization
laiddownintheregulationonlyfourareobligatory (classesI-IV),
threeweretohavebeenterminated bythe1stJanuary1971atthelatest
(classesV-VII),onewastohavebeenterminated byJanuary1973at
thelatest(classVIII)artdtheothersevenareoptional.
TheRegulationprovidesthatafinalsettlementonthepositionofthese
optionalclassesshouldbeadoptedbytheCouncilnotlaterthanthe
timewhenmeasuresareadoptedfortheimplementation ofart.8ofthe
CouncilDecisionof13May1965.AnnexeIIIB4oftheregulation
providesthatbythesamedatetheCouncilshouldalsodecideonwhat
actiontotakeinrespecttothecalculationofcompensation forpension
obligations whichtherailwayundertakings bear.
16.ThefirstproposaltoamendthisRegulation wassubmittedtotheCouncil
on28July1971(1)withafurtherproposalextendingitsscopeon
20December1972(2).TheCounciltooknoactionontheseproposals;
latertheCommissionwithdrewthemandreplacedthemwitha
newproposal(3)whichprovidedfor:
* «
-extensionoftheprovisionsoftheregulationtonon-national railways,
-re-introduction ,underexceptional economicandsocialcircum­
stances,ofthethreeclasseswhichnormallyshouldhavebeenabolished
in1971(classesV-VII-obligationtorecruitsurplusstaff,backdated
salaryincreases,delayswithregardtorenewalsandmaintenance,
(1)0JC106of23.6.1971
(2)Doc.R/2889/72(TRANS167)
(3)COM(77)637finaldu7.12.1977

-8-
-transformation ofoptional classes IXthrough XIVinto categories whose
usage ,ifagreed between railways andpublic authorities ,must becompul­
sorily compensated (retention ofsurplus staff ,benefits tostaff for
services tocountry ,staff allowances ,social benefits tostaff ,main­
tenance ofworkshops ,public tenders ),
-harmonization andsimplification ofthe calculation ofcompensations for
pensions (class III-Annexe III).
This newproposal wasintroduced toensure that theStates should bear the
full financial responsibility forinterventicns which they consider necessary
andwhich entail financial burdens forthe railways .
\
The first point wasnotretained inthe final version of .theproposal submitted
bytheTransport working group totheCouncil inNovember 1977 .Theproposal
was inturn referred back totheTransport Group forfurther revision ofa
technical nature .

-9-
17.Theproposal isstillbeforetheCouncil andtheCommission urges
itsadoption asafurthersteptowards :
-agreatertransparency ofStateinterventions ,inordertoidentify
therealdeficit,
-thecreationofaclearer andsoundercompetitive basisbetweenthe
modesoftransport
C.Regulation 1107/70onaidstotransport
18.Regulation 1107/70onaidsfortransport byrail,roadandinlandwaterway
modifiedby Regulation 1473/75(1)
-confirms thatart.92-94oftheTreatyshallapplytoaidsgrantedfor
transport byrail,roadandinlandwaterways,
-specifies thecasesandcircumstances inwhichMemberStatesmaytake
co-ordination measures orimposeobligations inherent intheconceptof
apublicservicewhichinvolves thegranting ofaidsunderart.77ofthe
TreatyandwhicharenotcoveredbyRegulations 1191/69and1192/69.
Aidswhicharegrantedtonational railwayundertakings underthepro­
visionsofthisregulation fallintothefollowing classes :
(a)Aidsforco-ordination oftransport wherethepurposeoftheaid
is:
(1)unt.iltheintroduction ofacommonsystemofchargingfortheuse
ofinfrastructure tocompensate undertakings forinfrastructure costs
whichtheymustbearando-thercompeting modesdonot
(2)topromoteresearch anddevelopment intotransport systems and
techniques .
(b)Aidstocovertariffobligations notincluded under1191/69andtrans­
portactivities towhichthatregulation doesnotapply.
(c)Aidsfordeficits granted,according toArt.13oftheDecision,andother
financial interventions undertheprovisions ofArt.5§1untilfirian-
cialbalanceisachieved .
(1)0JL152of12.6.75

-10-
19.ThevarietyofaidsgrantedunderthisregulationcanbeseeninAnnexeI
tothisreport.Thetechnicalapplicationofthisregulationisfully
coveredintheminutesoftheadvisoryCommitteeonAidsheldannually
InthepresentreportthereforetheCommissionwilllimititsremarkstothe
problemsarisingfromcertainaidsgrantedandtothemajorquestionof
whethertheRegulationasitstandsmeetscontemporary needs.
20.TodatetheCommissionhasgenerallylookedfavourablyuponaidsgranted
byMemberStatestotheirrailwayundertakings butnevertheless considers
thatcertaintypesofaidcurrentlybeinggrantedmeritcloserattention.
-Aidsgrantedforinfrastructure posetwoproblems:
(a)Needforthemethodusedforcalculationofanydisadvantages which
arailway .mustbearonaccountofhavingtomeetthefullcosts
incurredinprovidingandmaintainingitsinfrastructure in
comparisonwiththeotherlandbasedmodesoftransport,tobe
specifiedinordertopermitobjectiveevaluationoftheaid
awarded.
(b)Howaretransfersofcapitalwithindifferentstatebudgetsforthe
benefitofraiIwayundertakings whoseinfrastructure isownedbythe
StatetobejudgedintheframeworkofexistingCommunityrules,taking
accountofArt.5§2andArt.2oftheDecisionwhichestablishes the
separationofassets?
-Aidsforresearchanddevelopment,particularly concerningthedevelopment
ofcombinedtransporttechniques(road/rail),raisetheneedforcriteria
tobeestablished wherebythepointatwhichnewtechnologies and/or
techniquespassfromanexperimental (ordevelopment )phaseintoafully
operational andcommercial ,activityofthe,railwaybusiness.
-TheCommissionproposestofindsolutionstotheseproblemswiththehelp
ofexperts.

-11-
21.TheCommission,furthermore,isfrequentlyfacedwiththequestionwhether
existingCommunityaidLegislation meetscontemporary needsinthetransport
field.TheprovisionofRegulation 1107/70particularly onthepromotionof
newtransporttechniques (containerisation,ferroutage)orthedevelopment
ofexistingsystems(railwaysidings,highspeedtrains),limitMember
States'scopeforactionswhichsometimeappearpoliticallydesirableand
wouldnotbeinconsistent withArticle77oftheTreaty.
TheAdvisoryCommitteeonTransportwhichwasconsultedbytheCommission
onthesequestions,reachednounanimousconclusions .

-12
III.IMPLEMENTATION OFTHEPROVISIONS OFTHEDECISION
22.TheCouncilDecisionof20May1975notonlylaysdownaframework for
State/railwayrelationships butalsoprovides atimetable forandapro­
grammeofactiontoattackandresolvetheseriousstructural and
commercial problems whichbesetrailwayundertakings andwhichare
reflected intheircurrentposition onthetransport market.
Theobjectives andphilosophy oftheDecision arewellknownandwere
extensively treatedinthefirstbiennial report.Inthisreport,there-
fore,theCommission addresses itselftotheprogress madeinthe
implementation ofthespecificprovisions .Thoseprovisions hadatime­
tableforactionstobetakenatthreelevels :
-byMemberStatesatthenational level
-byCommunity organsattheEuropean level
-byjointnational/Community bodies.
23.Actions undertaken onthebasisoftheDecision byMemberStates
(a)Implementation oftheDecision
Article 16provides that"assoonaspossible andnotlaterthan1Janu­
ary1977,MemberStatesshall,afterconsultation withtheCommission ,
giveeffect,bylaw,regulation oradministrative action,tosuchpro­
visions asmaybenecessary fortheimplementation ofthisDecision".
AllMemberStateswiththeexception ofItalyandLuxemburg havemade
provisions forafullimplementation oftheDecision andhaveduly
received favourable opinions onthem.
InItaly,althoughthelegislative provisions torestructure therail­
waysinlinewiththeprovisions oftheDecision havenotyetbeenadopted,
thegovernmental andrailwayauthorities areactingwithinthespirit
oftheDecision .

13
InLuxemburg implementation hasbeen retarded duetotheneed for re­
vision oftheStatutes oftherailway undertaking byitspartners
but thenecessary provisions have been made andawait finalization
inthe near future .
24.(b)Business Plans
Article 3oftheDecision provides that :...each railway undertaking
shall /inparticular :
-submit itsbusiness plans ,possibly covering anumber ofyears ,includ­
ing itsinvestment andfinancing programmes within theframework ofthe
overall policies laid down bytheState andtaking account ofnational
transport planning ,particularly with regard toinfrastructure ;".
TheCommission hasrepeatedly stressed theimportance which itattaches
tothis provision .Indeed itisthemain instrument forachieving the
objective ofimproving thesituation ofrailway undertakings .The
expectations the Commission hasregarding these plans and itsrole in
evaluating them remain asclearly stated inparagraphs 52-55 ofthe
first report .
Meanwhile theCommission hasreceived andcommented upon theBusiness
Plans ofallrailway undertakings .The essential features ofthese plans
aregiven below .
Analysis ofBusiness Plans received todate " *
25.(A)Belgium -SOCIETE DES CHEMINS DEFERBELGES CSNCB )
TheBelgian government communicated itsactivity programmes ,agreed with
theBelgian .railway undertaking ,totheCommission onthe 5/1/1979 .
This programme wascomplemented byfurther remarks inacommunication of
1/2/1979 .This programme covered thebusiness activities andfinancial
andinvestment programmes envisaged fortheyears 1978 /1979 /1980 .
Over this period theBelgian railway undertaking foresees asmall decline
inthedemand forpassenger andsmall parcel services but aslight increase
infull wagon traffics .Thefinancial implications ofsuch amarket evo-

-14
lution arecalculated tobeanincrease inrevenue from passenger traffic
duetoprice increases implemented inJuly 1978 andanincrease intheave­
rage price perpassenger /kmbecause ofmore full fare paying customers .
Inthegoods sector ofthebusiness ,atleast for1978 ,thesmall
increases indemand will notsubstantially change the revenue earned
because ofthe fall intheaverage price per ton/kmreceived .
Over theperiod covered itisenvisaged (using constant money values )
that receipts from passenger services will remain constant around
7.8milliards francs whilst earnings from goods andmiscellaneous acti­
vities will increase from 14milliards in1977 to14.8 milliards in1980
(anincrease ofsome 5.7 %).State compensations forthepublic services
imposed onthe railways areexpected toincrease by13.9 X(from
18milliard in1977 to20.5 milliard in1980 ).
Expenditures over this period are expected toincrease bysome
4.7milliard offrancs (using normalized figures )or9%■State compensa­
tions forabnormal expenditures (infrastructure andcertain financial
charges )areexpected toincrease some 11X.
Total State compensations towards operational expenditure areexpected
toincrease over this period by4.2milliard francs (10%)but itisex­
pected that by1980 theundertaking will have attained financial equili­
brium fe.g .situation without deficit subsidy ).
Investment expenditure overthethree years under consideration isfore­
cast at16milliard francs in1978,22milliard francs in1979 and
26milliard francs in1980ofwhich approximately 50%will bepaidforby
andiswritten intotheState budget asthenetwork belongs tothe
State .

15-
26.(B)Denmark-DEDANSKE STATSBANER (DSB)
TheDanishgovernment communicated thesanskeStatsbaner 'sbusiness
plansfor1977-1982 totheCommission inSeptember 1977.Thiswas
subsequently updatedinOctober 1978bytheplansforyears1978-1984 .
Theseplansareconceived withintheframework oftheDanishState
railway's"plan1990"whichattempts toforecast thelongtermevolution
ofDSB.Onthebasisofobjectives aimedatin"plan1990"the
DSBhasestablished firmandconcrete programmes ofactionfor
fiveyearperiods.
TheseactionplansarebasedonthedivisionofDSB'sactivities into
5distinct business sectors :
-passenger transport (excluding Strains)
-the"S"trains (services inthemetropolitan areaofCopenhagen )
-goodstransport
-ferryservices
-otheractivities .
Overtheperiod1978-1984itisplannedtomakethenecessary preparations
forareorganized passenger service basedonhighspeedhourlyservices
betweenmajorregional centresfedbyintegrated road/railservices from
outlying areas.Toattainthisobjectiveitisproposed toinvest
1155mioDkr(77)overtheperiod.
The"S"trainservice/whichitisenvisagedwillcarry25%moretraf­
ficby1990,isthebackboneofthepublictransport systemofthe
Metropolitan areaofCopenhagen .Inordertoofferanattractive alter­
nativeservicetoindividual transport withinthismarketandintegrate
transport services morefullyintotheurbanplanningfunctions theDSB.
inconjunction withthemetropolitan CouncilofCopenhagen (asfrom
1/4/78)proposestoextendtheserviceintonewsuburbs,increaseits
frequency andinvestinnewtypesofrollingstock.Underthenewarrange­
mentsDSBactsasacontractor oftransport servicestotheMetropolitan

16-
Council.FutureplanningwillbeajointventurebetweenDS8andthe
Metropolitan CouncilandDSBwillreceivetheeconomicpriceforthe
servicesprovidedwithshortfallsinrevenuebeingmetdirectlyfrom
thebudgetoftheMetropolitan Council.Thefinancialimplications for
DSBofsuchanarrangementarequiteconsiderable anditisexpected
thatinthefirstyeartheincreasesinselfgeneratedrevenuetoDSB
throughthisnewarrangementwillamountto6
. ι
Investmentoverthefiveyears1978-1984isexpectedtoamountto
311mioDkr.
Inthegoodstransportsectoritisassumedforplanningpurposesthat
Danishsocietywishestomaintaintwooverlandtransportsystems-a
purelyprivateroadhaulagesystemandacombinedpublicsystemof
road/rail-therefore DSBbasesitsplansontheprovisionofacom­
binedroad/railsystemcoveringthewholecountryandofferingadoor
todoorservice.Toestablishsuchasystemitisproposedtosetup
anetworkofregionalmarshalling andtranshipment yards,highly
mechanizedandwithgreaterutilizationofpalletisation andcontainer­
isation.
TheDSBenvisagesanincreaseinfreighttrafficof100%by1990
andoverthefiveyears1978-1984planstoinvest498millionDkrto
establishthefoundationsoftheproposedsystem.
Ferryserviceswillbeadaptedtotheneedsoftheproposedrailwaysys­
temaswellasimprovingitsfacilitiesforcartransportation inline
withitsprivatecompetitors .Overtheyears1978-1984itisenvisaged
that840millionDkrwillbeinvestedinthissectortoincreasegeneral
■^^s^ryjicelevelsandcapacitiestomeetananticipated 100%increasein
demandby1990,including^headoptionof2newbroadferryboatservices
ontheKosdr/Nyborgline.
r

•s.17-
InDSBsotheractivities concerning theirrestaurant andkiosksinterests
nochangesinthecurrentpolicyofcontracting themoutareenvisaged
whilsttheundertaking 'sadministration itishopedwillbeimproved bythe
introduction ofanewmanagement structure asfromMarch1978andthe
development ofnewcomputerized administrative procedures .
Generalfinancial consequences arisingfromthe5yearplan1978-1984
arethattotalinvestment isenvisaged tobearound4550mioDkrwith
operating expenditures of2018mioDkrin1978risingto2730mioDkr
in1984,incomeincreasing from1805mioDkrto2571overthesame
periodandacorresponding decrease ofStatepayments from213to
15?millionDkr.
27.COGernsny-DEUTSCHE BUNDESBAHN (t>3)
TheGermangovernment communicated theGermanRailways business plan
fortheyear1978totheCommission on4/8/1978.'Theprogramme covers
onlyoneyearbecausethemultiannualplansoftheDBareatpresent
havingtobore-formulated onthebasisofalessoptimistic economic
growthratethanpreviously envisaged .
Inthepassenger sectorofitsbusiness,theDBenvisaged nochangein
thelevelofservices throughout 1978buthopedthatanoveralI
inc-oase oftariffsof5.8%(9.5%forshortdistance,4.7%forlong
distance )wouldyieldanextra185mioDMinreceipts .
Inthegoodssrctordemand^was staticandcompetition fiercebutslight
improvements couldbeseenfromconcentrating effortsonthedevelopment of
-.cabinedtransport operations ,parcelsandfullwagonloads.Inparcel
••'..raffle,increases involumefrom3.5to3.58milliontonnes -wereexpec­
tedwhichwouldincreasethereceipts from907to959million DM.
Fortransoort infullwagonloadsanincreaseinvolumefrom
276rillionto284miUiontonneswasexpected whichwouldincrease
,thereceipts from5846to6.060million DM.

-18-
TheOBreaffirmed itsobjectives tobeanincrease ofselfgenerated in­
come,increased investment andproductivity andtherationalisation and
improvement oftheadministrative structure .Inpursuitoftheseobject­
ivesitwasexpected toreducethenumbersemployed bysome16,000
persons (1977374,510to1978358,100),investment shouldhavebeenoftheorder
5.5milliards ofDMofwhich5?milliards wasforfixedassets.
Overthe-yeartotalexpenditure wasenvisaged toriseto26,558mllion
DMandincometoincreaseto22,039million DMleaving atotalState
contribution onoperations of7,553million DMcompared with7,267million DM
in1977tocoverpayments madeonthebasisofCommunity legislation .
(D)France-SOCIETE NATIONALE DESCHEMINS DEFERFRANÇAIS (SNCF)
TheFrenchgovernment communicated its"Contratd'Entreprise Etat-SNCF"
on28April1979eThis"contrat"coverstheperiod1978-1982
andonthebasisoftheobjectives laiddowntheSNCFwillhave
toprepareitsbusinessplans.This"contrat"doesnotcoverrailservices
withinthe_PaHs_regionforwhichspecialprovisions apply.Theessential
Contrat are:
•a)areductionoftherailwayundertaking 'sdeficit/afterduecompensation
bytheSfcateforobligations imposed,by50X.Thecurrentdeficit,
197.S,issome4milliards FFandthisshouldbereducedto2milliard
by1982.
(b)toattainthisfinancial improvement "lecontrat"providesforthe
grantingofagreatermanagement autonomytotheundertaking ,parti­
cularlyregardingthedetermination ofpricesandtariffs.The.under- jj
takingwillbegivencompletefreedom ,tofixitsgoodstariffsand [
thepossibility toadjustpassengertariffsinlinewithinflation .
t
I
I

-19
(c)theSNCF,undertheprovisionsofthe"Contrat),'wi11havetheright
todetermineits-Levelofservicesandorganizethenetworktomeet
currentneeds.Itisprovidedhoweverthatthetermination oflines
andthetransferofservicestoroadonwhichregularstoppingtrain
servicesarecurrentlyprovidedshouldnotexceed5%ofthe1977
levelinanyyear.Programmesforanysuchactionwillbecommunicated
totheMinisterofTransport.
The"contrat"envisagesthatoverthefiveyearperiodpassengertraffic
(excludingParis-SouthEast)willincreaseon(average2.7%peryear.In
thissectoroftheSNCF'sactivityitisenvisagedthatexpressservices
willmakeapositivecontribution tocommoncostsby1980andthiscon­
tributionshouldreach350millionFFby1982(1977values).
»
Inthegoodssectortrafficisexpectedtogrowby1.4Xperyearand
from1980onwardsitisenvisagedthatapositivecontribution
tocommoncostswillbemade.Thiswillreachsome500millionFFin1982
(1977values).ItisfurtherenvisagedthatSERNAMwillbeinbalanceby1980
The"contrat"alsoprovidesthatproductivity shouldincreaseovertheperiod
andunitcostbecontainedinrealterms.Tohelptheattainmentofthis
'objectivethe"contrat"providesforinvestment (ofsome20milliardFF)
innewrollingstock,electrification oftrack,automaticsecurityequipment,
andnewtelecommunication systems.
Inaddition,toensuretheharmonization oftheconditionsofcompetition
betweenthemodesoftransporttheStatewillgranttheSNCFasumof
2,850milliardFFannually,nottobeexceededinrealtermsovertheperiod,
forinfrastructure expenses.
29.(E)Ireland-CORASIOMPAIREIREANN(CIE) ^
TheIrishgovernmenttransmittedthebusinessplanofCorasIompair
EireanntotheCommissionon10.6.77.Thisplancoveredtheperiod1977-
1980although,becauseoftheIrishgovernment'spolicyofnotcommitting
resourcesbeyondoneyear,thedefinitivefinancialfiguresrelateto
1977only.

20-
Inthisprogramme theIrishrailways arecommitted toanimprovement
ofservices tothepublicandindustry byconcentrating theirefforts
onthoseactivities forwhichitisconsidered railwaytechnology has
arelative advantage overitscompetitors ,through improvements inproduc­
tivity/byincreased capitalinvestment /,reducedstaffnumbers arid
organizational changes andthecreationofprofitcentrestopinpoint more
readilyresponsibility andincrease motivation .
Inpursuitoftheseaimsitisproposed thatinthepassenger sectorof
theirbusiness CIEshallattempttoachieve 6millionpassenger journeys
peryearby1980(5.7millionin1975)byimprovements intrainfrequency,
higherspeeds,theintroduction ofnewrollingstockandtheseparation
ofmailandparcelservices frompassenger services .Infinancial terms
itisenvisaged thatcapitalexpenditure ofdirectbenefittopassenger
services overtheperiod 1975/80willbeoftheorderof£15million
andthefinancial resultsforthissectorwillshowareduction inState
supportofsome£2million (£13millionin1976to£10.9millionin
1980).
InthegoodssectortheIrishrailways dividetheirbusiness intofour
easilyidentifiable marketsegments :
-Sundries
-Unitloadtraffic
-Palletised traffics
-Bulktraffics
InallsectorstheIrishrailways planforincreases involumeoftraf­
ficsCoverafiveyearperiod1975-1980,sundriestraffics areexpected
toincrease from184,000tonsto204,000tons,unitloadtraffics from
833,000tonsto915,000tons,palletised traffics from700,000tonsto
1,194,000 tonsandbulktraffics from1.*6millionto2.0milliontons).
ToimprovetheservicetheIrishrailways envisage anincreased useof
mechanical handling andcontainer !sation,arationalized distribution

21-
networkandtheintroduction ofa"realtime"freightdocumentation
systemtostreamline theadministrative function.Overthefiveyears
1975-1980capitalexpenditure ofdirectbenefittothesesectorsofthe
businessisenvisagedtobeoftheorderof£22.5million(atNovember
1975prices)withareduction inthedeficitofsome£4.0millionfrom
£11.0millionin1976to£7.0millionin1980.
Overtheperiodoftheplancapitalexpenditure ofsome£30millionat
1975pricesisenvisaged withaconsequent reduction "inthegovernment 's~~~
financialcontribution from£24.0millionin1976to£17.5millionin
1980(at1976prices).
30.(F)Italy-FERROVIE DELLOSTATO(FS)
TheItalian Government communicated itsBusiness PlansfortheFStothe
Commission on9April1979.Theseplanscomprise threedistinct investment
programmes .Thefirstprogramme/covering thethreeyears1978-80,provides
fortheinvestment of1665milliard lirafor:
-increase andmodernisation ofrollingstock
-completion ofthreenewworkshops inthe'Mezzogiorno 1to
improvethestandardofmaintenance andadaptation ofrollingstock
-improvement ofsecurity andsignalling facilities .
Itishopedthatthisprogramme willresultinareduction ofoperating
costsandacorresponding increaseintrafficandreceipts byoffering
abetterrailserviceinthehighdensity population areas,byamajor
development ofcombined transport andanimprovement insafetyand
speedonthemainlines.
■
Thesecondprogramme providesforcommittment ofsome2000milliard
ofliraoveraperiod1975-80foramodernisation programme ofthenetwork-
track,androllingstock-andtheadoption ofadvanced technology toprovide
abetterserviceinallsectorsoftherailway'sbusiness .
i
Athirdprogramme provides forinvestment ofsome400milliardlira
forquadrupling theRome-Florence linewithaviewtoincreasing its
capacity andspeed.

-22-
31.(G)Luxemburq -CHEMINS DEFERLUXEMBOURGEOIS (CFL)
TheLuxemburg governement communicated totheCommission onthe9/10/78
itsprovisional investment planscovering theperiod1978-1982 andthe
relatedprogramme andbudgetfortheyear1978together withthe
1978operational budget(financial programme ).Theseprogrammes pro­
videforacapitalinvestment of3,544millionfrancsoverthefiveyear
period1978-1982 with1,060millionfrancsapproved fortheyear1978.
Itwasbudgeted tospend571millionfrancson!Travauxetacquisitions
depremierétablissement "and489millionfrancson"Travauxetacquisitions
derenouvellement ".
Theoperational budgetofCFLfor1978envisaged thattheexpensesof
theundertaking wouldincrease by4.9%comparedwith1977(anincrease
from5,286millionfrancsto5,544millionfrancs).Ontherevenueside
howeveritwasenvisaged thatthedirectrevenuefromtrafficwouldfall
bysome2.9%tobecompensated forbyanincreaseofsome32%inother
receipts anda6%increaseincompensation fromtheState(3,557
millionin1977to3,766millionin1978).Theoveralldeficit wasfore­
casttoincrease from116millionin1977to188millionin1978,an
increase ofsome72millionfrancsor62%.
32.(H)Netherlands-NEDERLANDSE SPOORWEGEN (NS)
TheDutchGovernment communicated theprogrammes andplansofthe
Nederlandse Spoorwegen (NS)byitsletterof2.11.1978 .
Theinformation intheoriginal Business PlansofFebruary 1977hasbeen
updated byacommunication oftheDutchGovernment of22.5.1979 .
TheN.S.dividetheirbusiness activities intotwodistinct sectors :
passenger traffic andgoodstraffic.Inthepassenger sectortheNS
intendtomaintain thepresentlevelsofpassenger services (currently
8,150millionpassenger kilometres peryear)whilstmakingthe

-23-
necessaryadjustmentstoservicesandnewinvestments inlinestomeet
changingdemandpatterns.TopromotepassengerservicestheNSis
currentlypursuingarigorouscommercialpolicy,concentratingits
effortsonspecificmarketsectorssuchasgovernmentestablishments ,
specificagegroups(theyoungandtheelderly)andrecreational
traffic.Specialattentionisbeinggiventothepromotionof'combined
passengertransport' (parkandrideplan)andeffortsarebeingmade
toextendparkingfacilitiesatstations.Plansalsoexistforthe
construction ofnewstationsonexistinglinesaswellasforthe
modernization ofexistingfacilities.
Selfgeneratedrevenues(atcurrentprices)areanticipatedtoincrease
fromFl711millionin1978toFl853millionin1982whilstcompensation
paymentsforpublicserviceobligations imposedupontherailwaysare
expectedtofallfromFl767milliontoFl711millionoverthesame
period.TheGovernment andtheNShaveagreedonamultiannual
investmentframeworkforthepassengernetworkwithinwhichitisenvisaged
toinvestsomeFl1,900million(at1976prices)between1979-85.
Inthegoodssectorofitsbusinessactivities NS'soverallpolicy
objectivehasbeentoensurethatgoodstrafficcoversitsspecific
costsby1980.Itisnowunlikelythatthisobjectivewillbeattained
andthereforeacomprehensive studyintothisbusinesssectorhasbeen^
launched.ThemostrecentGovernmentforecastsforeseeadeclinein
thetotalvolumeofgoodstransported from18.2milliontonnesin1978
to17.7milliontonnesin1981.TheDutchGovernmentbelievesthatthis
sectorshouldbeadaptedmoretomarketrequirements andinthisrespect
fullysupportsallmeasuresforclosercommercialco-operation between
therailwaysoftheCommunity.
The1978RailwayGoodsprogrammeenvisagedthatdeficitsongoods
traffic(calculatedonthebasisofspecificcosts)wouldfallfrom
Fl33millionin1977toFl,18millionin1980butthesefiguresare
nowunderreviewgiventheslowrateofeconomicrecoveryanda
studybeingundertakeninto,thissectoroftheNS'sbusinessactivities.

-24-
33.CI)UnitedKingdom-BRITISH RAILWAYS BOARD(BRB)•
TheUnitedKingdomGovernment communicated thebusinessplansofBritish
RailwaystotheCommission on21March1979.Theplanscoveraperiod
1978-1983 duringwhichtimenomajorreductions innetworksizeareplanned.
OverthisperiodBritishRailwayswillcontinue toprovide longdistance
passenger services linkingallmajorcentresofpopulation ,commuter
servicesvithintheS.E.region(including London)andmaintain,under
thePublicServiceObligations imposed,localandregional passenger
services whererailisjudgedtobethemostappropriate modeoftrans­
porttomeettheseneeds.Itisanticipated thatpassenger miles(000million),
willincrease from18.2in1978to20.5in1983.Itisexpected that
Statecompensations willfallfrom£560millionin1978/1979to
£549millionin1981/1982andcapitalinvestment inpassenger services
(1978prices)willtotal£593miIlion.Significantimprovements will
bemadebytheextension ofhighspeedtrainroutes,theintroduction of
theadvanced passenger trainontheLondontoGlasgowlineandtheuse
ofnewrollingstockforcommuter andprovincial services .
Inthenon-passenger sectoritisenvisaged thatthetrendtotrain
loadtrafficswillcontinueoverthisperiodwithanincreaseinthe
volumeoftrainloadtrafficfrom84%to87%ofgoodscarried.
Capitalinvestment inthefreightsectorwillbesome£230millionover
thefiveyearperiod.
Improvement inproductivity andefficiency isanimportantobjective
ofthebusinessreview,indeeditisessentialtosecuringthefutureof
therailways.InthisrespectBritishRailwaysislookingforimprovements
intheloadedtrainmilesPerunitofrollingstockandareductionof
some30,000inpersonnel .Further,itisenvisagedthatoverandabovethe
capitalinvestment programmeoutlinedabove(rolling-stock ,locomotives,
newinfrastructure whichisfinancedfromdepreciation ,otherinternal
sourcesandfromborrowing )itisplannedtoinvestdirectlyfromrevenue
asumof£846millionovertheperiodfortheextensionofcolour-light
signalling,automaticwarningsystems,continuous weldedrailandimproved
telecommunications .

-25-
GeneralremarksontheBusinessPlans
34.Insummarizingtheessentialfeaturesoftheplansandprogrammesreceived
todatetheCommissionisattemptingnotonlytogiveanoverall
resumeofthecurrentsituationandfutureplansoftherailwaysofthe
Communitybutalsotoestablishabasisforcomparisonbetweentheresults
expectedandattained.TheCommissionrecognizestheeffortsofthose
MemberStatesandtheirrailwayswhohavecompiledtheseprogrammesinthe
verydifficultcontemporarypolitical,socialandeconomicconditions.
35.Todrawgeneralconclusions andtrendsfromsuchdiversesourcesand
differentapproaches (someplanscommunicated coveronlyenvisaged
investmentprogrammesandarenotactivityprogrammes,someplans
aremulti-annual whilstotherscoveronlyaoneyearperiod)isalways
adifficulttask.Howeverthefollowing commonfeaturesareinevidence:
-Itisrelativelyclearthatallrailwaysarefacedwithsimilar
problemsofstaticordecliningmarkets,risingoperatingexpenses
and/jptonow/increasingdependance ontheStateforfinancialsupport.
-Theresponsetotheseproblemsappearstobeinallcases,fromanana­
lysisofthebusinessplans,amorecommercialapproachtothemarket
throughimprovedservicesandproductivity,especiallythrough
Investmentinmechanizedsystemsofoperation.Howeverdifferencesare
apparentinthedegreeofmarketorientation inpolicydevelopment
andtheextenttowhichtherailwayundertaking willitselfberes­
ponsibleforgeneratingitsown-revenue bothforoperational and
investmentpurposesandtherebyimprovingitsfinancialsituation.
(c)ActionundertakenjointlybynationalandCommunitybodies
36.Article11§1providesthatMemberStatesshall,inconjunction with
theCommission,investigate measureslikelytopromoteco-operation
amongrailwayundertakings".

-26-
Onthebasisofthisprovision theCommission ,afterdueconsultation
andconsideration withrailway andnational government experts,presented
1)totheCouncilofJune1978areport "ontheprogress madeintheprepa­
rationofaprogramme ofco-operation amongrailwayundertakings ".This
report,itwiIthecalled,comprisedthethencurrentshorttermprogramme
ofco-operation beingundertaken bytheninerailwaysoftheCommunity
together withcertainsupplementary measures on
-thecrossing offrontiers
-infrastructure investment
-thestudyoftheconceptofcommoncommercial interests
-technical standardization andnormalization
-supplypolicy
*
whoserealization itwasconsidered wouldrequire morepositive andactive
assistance fromnational andCommunity authorities .Thereporttherefore
suggested thedivision ofresponsibility betweentherailways,governments
andCommunity bodiesiftheattainment ofcloserco-operation inthese
areasistobecome areality.
37.TheCounciltooknotewithinterest ofthisreport,expressing its
approval ofthegeneralpatternofmeasures anditshopesforconcrete
■results beforetheendof1979.TheCouncil considered thatmoreattention
shouldbedevotedtocommercial co-operation betweentheninerailways and
thattheirefforts shouldnotnecessarily belinkedtoactipnsundertaken
« •»
withinthegeneral framework oftheIUR.TheCouncilalsorequested the^
Commission ,incollaboration withtheMemberStatesandtherailwayunder­
takings;totakesupplementary measures aimedatsimplifying frontier
crossing,strengthening measures inthecommercial field,facilitating
thefurtherance ofcommonrailinterests,promoting co-operation in
combinedtransport (rail/road,containers etc.)andeliminating infra­
structure bottlenecks .TheCommission 'sintention tomonitorprogress
wasnotedanditwasrequested tosubmitanewreportonthissubject
assoonasanynoteworthy progress hadbeenmade.
<1)COM(77)694final

-27-
38.IncompliancewiththeCouncil'swishestheservicesoftheCommission
havepursuedthesematterswiththerailwayundertakings andtheMember
States.Atameetingwithrepresentatives ofthegroupofNineon20-
21September1978theCommission wasinformedthattheshorttermaction
programmedrawnupbythegroupofNineinSeptember1977wasbeing
fullyimplemented andanewprogrammewasunderpreparation forthe
period1979-82.
39.TheCommissionisnowinreceiptofthismediumtermprogrammeofco­
operationandwhilstfulldiscussionswithalI'interestedpartieshave
notyetbeencompleteditisworthwhile inthisreportto"outline
brieflytheactionsenvisaged.
40.Theprogrammeofactionconcernsmainlythegoodssectorofrailway
activities,particularlyitscommercialandoperationalaspects.
Todevelopcloserco-operation intheseareasthefollowingactionsare
planned:
-Closercollaboration 'inmarketingandsalesefforts
-Greaterftowofrelevantcostingandstatistical informationtoaid
commercialdecisiontaking
»
-Improvedproductqualitybythepromotionoffasterserviceson
mainrouteswheretrafficvolumesmightbeincreasedand
agreaterchoiceofservicesofferedtotheuser
-Simplification offrontiercrossingbyharmonization ofthere­
quirementsconcerningthecomposition andbrakingsystemsoftrains
andreductionofdelaysduetodocumentation formalitiesandmarshalling
Thequestionofsimplifying customsrequirements willalsobestudied.
•-Development ofdirectinternational tarifsandharmonization ofthe
calculationofinternaltarifstofacilitatethecomputation ofnon-
directinternational tarifs

28-
-Introduction of"revenuepools"consequent onthedevelopment ofdirect
international tariffs .
-Introduction ofothercategories ofwagonsinthe"PoolEurop".
41.Discussion ofthisnewprogramme withallinterested partiesisstilltaking
place andtherefore finalpositions havenotbeentaken.Howeverthe
servicesoftheCommission consider theactionsenvisaged tobeinline
withthewishesoftheCouncil .
(d)Actionundertaken byCommunity bodies
42.Article 8oftheCouncilDecision provides "before 1January 1978,theCouncil,
actingonaproposal fromtheCommission ,shalladoptthenecessary measures
toachievecomparability betweentheaccounting systemandannualaccounts of
allrailwayundertakings andshalllaydownuniformcostingprinciples ".
43.Onthebasisofthisprovision theCounciladopted on12December 1977
1)Regulation (EEC)No2830/77onthemeasures necessary toachieve compara­
bilitybetweentheaccounting systems andannualaccounts ofrailway under­
takings.Theregulation laysdownthatrailwayundertakings shouldtranspose
theirannualaccounts (thebalancesheetandprofitandlossaccount),establish
edinaccordance withnational regulations ,intoa.commonschemeofpresentation
(1)0J20/L334of24/12/77

29-
TheCommission considers theregulation tobeafirststepinthedirection of
truecomparability ofrailwayaccounts andaccounting systems.Theproblems to
besolvedbeforefullcomparability canbeobtained aremanifold-differing
national requirements asregards Companylaw,different accounting practices and
procedures andevendiffering notionsoftheobjectives ofaccounting itself.
Thefirsttransposed accountsofthevariousrailwaycompanies relatingtothe
year1977,havenowbeenreceived,insomecasesratherlaterthanforeseen .
TheyarebeinganalysedtoenabletheCommission todrawupitsannualreporton
thissubject andsubmitittotheCouncil,inthesecondhalfof1979.
TheCommission 'sservices arehopefulthatwiththeaidoftheadvisory committee
established toassisttheCommission intheimplementation ofthisregulation
manyoftheproblems referred toabovecanberesolved andfullcomparability
ofthetransposed accounts attained induecourse.
44.On19September 1978theCouncil,underthesameprovisions ofArt.8ofthe
1)Decision of20May1975,adoptedRegulation (EEC)2183/78onlayingdownsome
uniformcostingprinciples forrailwayundertakings .Theregulation provides
thatasfrom1January 1979uniformcostingprinciples shouldapplytointerna­
tionalfreighttransport infulltrainloads.Themainprinciple adoptedis
that"costs"shouldbedefined asthechangeinthetotalcostsoftherailway
undertakinas resultina fromtheintroduction ofnewtraffic,fromanincrease
orareduction inexistinqtrafficorfromthetermination ofsuchtraffic..
Inaddition tothesecostswhicharetobecommunicated toeachotherby
railwaysparticipatinq inthetraffic,provision isalsomadeundercertain condi
/tionsforthecalculation ofandexchangeofinformation on"totalcosts".
TheCommission considers thatthisfirststeptowardstheadoption ofmore
commoncostingprinciples bytherailwayundertakings oftheCommunity should
helptobrinqcloserco-operation between them.Withthehelpofthe
Advisory Committee established toassistintheapplication ofthisregulation
theCommission willwatchitsimplementation and,onthebasisofexperience
gained,examinepossible improvements andextensions .
(1)OJVolume 21.L258of21/9/78

-30
45.Article11§2providesthat"before1January1979,theCommissionwill
submittotheCouncilareportontheobjectivestobepursuedinthe
longtermandthemeasurestobetakentopromotepartialortotalin­
tegrationofrailwayundertakings atCommunitylevel".Intheexecution
ofthismandatetheCommissionhaspresenteditsreporttotheCouncil
on26April1979anditiscurrentlyunderdiscussionintheTransport
WorkingGroupoftheCouncil.
46.Toconcludethissectionofthereport,itmaybementioned
thattheservicesoftheCommissionareactivelyengagedinthe^pre-
parationofproposalsinexecutionoftheprovisionsofarticle15,
paragraphs 1and2.Itishopedthattheseproposalswillbepresentedto
theCouncilbeforetheendofthisyear.

31-
IV.CONCLUSIONS
47.InthisreporttheCommission has,incompliance withArt.14ofthe
CouncilDecision of20May1975,reported on:
-theapplication ofRegulation (EEC)1191/69onpublicserviceobliga­
tions,Regulation 1192/69onthenormalization ofrailwayaccounts and
1107/70onaids
-theimplementation byCommunity andnational authorities ofthe
provisions oftheDecision .
48.Anattempt hasbeenmadetoexaminetheapplication ofthislegislation in
theframework oftheparticular railwaypolicydeveloped atCommunity
levelandtheobjectives pursuedthroughthatpolicy.
Thepolicyaimsattheimprovement ofthesituation ofrailwayunder­
takingsthroughtheinstruments of:
-improved transparency ofStateinterventions intotherailway under­
takings,
-improved business andfinancial planning oftheactivities of
railwayundertakings ,withaviewadaptingtheirservices and
structures tothechangingpatternofthemarket,
closerco-operation ofraiIway^undertakings ,particularly inthecom­
mercialandoperational aspectsoftheiractivities .
49.Fromexamination ofcurrentprovisions andtheirapplication inthe
lightofcurrentpolicydevelopment thefollowing conclusions canbedrawn.
(s)Thesearchforgreatertransparency
Itisclearfromthefiguresin'PartIIandthecommentsinthisreportthat
muchprogress hasbeenmadeinthisfield.Thereremain

I-32-
howeverareasforimprovement andasindicated inthemainbodyofthe
reporttheCommission hasmadeorisatpresentpreparing proposals to:
-modifytheprovisions ofregulation 1191/69toincludepublicservice
obligations currently exemptfromitsscopeandwhichareatpresent
settledunderthepermissive provisions ofArticle3ofRegulation
1107/70.ThisactionhasbeentakenonthebasisofArticle9ofthe
Décision,
-specifythecriteriaforthedetermination ofthepublicserviceobli­
gationsimposedonrailwayundertakings providedinRegulation 1191/69
withaviewtoassuring optimalutilisation ofStateresources
andtheleastcosttotheCommunity .Thisactionisundertaken onthe
basisofArticle 15§2oftheDecision,
-modifytheprovisions ofRegulation 1192/69onnormalization of
railwayaccountswithaviewtotransforming theoptionalclassesfor
normalization intocompulsory itemsforcompensation withthetwin
objectives ofimproving thetransparency ofStateinterests and
makingMemberStatesawareofthefinancial consequences oftheiraction,
-examinetherelevance ofexisting aidregulations andprovisions to
presentdayconditions ,withaviewtopossible improvements intheir
operation .
(b)Improving thebusiness andfinancial planning ofrailwayundertakings ^
50.TheCommission considers thatprogress hasbeenachieved inthisfield
buttherestillremains alongwaytogobeforeallrailways inthe
Community usebusiness andfinancial planning asaneffective and
dynamicbusiness management tool.
TheCommission outlineditsmainideasonbusiness planninginthe
firstbiennialreport(paragraph 54)andwhilsttheseremainvalid,
inthelightofexperience,;itcanaddthefollowing observations .It
isconsidered that:

-33-
plansshouldbeintegratedintotheoveralltransportpolicy
pursuedatnationalandcommunitylevels
-planningofthefinancialandinvestmentprogrammesshouldaim
moreatanexaminationoftheneedforcapitalreconstitution
oftheundertakings withaviewtoestablishing acapitalstructure
morereadilyservicedfromself-generated revenues
plansshouldexaminecurrentandfuturemarketpotentialityin
moredetailthanhasbeencurrentpracticetodate
plansshouldexaminemoredeeplytheneedforandthemethods
ofadaptingtheproductive,marketingandtechnicalcapacitiesofthe
undertakingstoidentifiedmarketswithaviewtoincreasingresponsi­
bilityatalllevelsoftheorganization
–commonstatepracticesof"annualcommitment"ofresourcesto
railways,particularly forinvestmentprogrammeswhichcancover
severalyears,shouldbereviewed,ifthefinancialbalanceofthe
railwaysistobeachieved.
51«InpursuitofimprovedfinancialandinvestmentplanningtheCommission
willpresent,beforetheendofthisyear,proposalstotheCouncil,on
thebasisofArticle15§1oftheDecision,takingaccountofthepar­
ticularconditionsaffectingtheroleandimportanceoftherailwaysin
eachState,"...tofixthetimelimitandconditionsforachievingthe
financialbalanceoftherailwayundertakings".Discussions onthissub­
jectareunderwaywithinterestedparties. ^
52-(c)Closerco-operation betweenrailwayundertakings
Actionundertaken onthebasisoftheDecisionof20May1975hasbeen
fullyoutlinedinsectionIIIofthisreportwhereitcanbeseenthat
currentactivityinthisfieldisfullyinlinewiththewishesexpressed
bytheCouncil.TheCommissionforitspartispursuingthisaspectof
railwayactivitywithhighprioritybecauseitconsidersthatthrough
co-operation therailwayscanberelievedofsomeofthedisadvan­
tagesoftheirstrictnationalstructureandcharacterandsoplay
afullerandmoreprofitablerole,asdotheircompetitors,inthe
widerEuropeanmarket.
i

-34-
53.Particular emphasisisplacedonthedevelopment ofcloserco-operation
inthefollowing fields:-
1
_Commercial Policy.TheCommission hasproposed ,andlater.amended,
asystemfortheformationofthepricesofinternational goodstransport .
Thissystemisbasedontwomainprinciples :-
(1)railwayundertakings shouldenjoyfarreachingautonomyinthe
determination oftheseprices
(2)financial balanceshouldbeattainedinthissectoroftheir
activities
-Promotion ofcombined transport techniques .InthisfieldtheCommission
iscurrently preparing measures aimedatthedevelopment ofcombined
transport ,especially byrailandroad.Themeasures shouldimprovein
particular thecommercial promotion ofthistransport onallmarkets
wheretheconditions arefavourable forthesetechniques .Thisapproach
whichpreserves thefreedomofchoiceofuserswhilsttakingaccount
ofthewiderneedsofenergyconservation ,regional development and
environmental protection enjoysawidemeasureofsupport bythe
MemberStates.
-Facilitation offrontier crossing.Progress hasalreadybeenachieved
inthisfieldbuttherestillremains muchtobedonethroughthefurther
simplification oftherailways' ownadministrative andtechnical procedures
aswellasbypolitical andlegislative actionatCommunity andNational
levels.
-Planning andimplementation ofjointinfrastructure improvements .
\Community efforts andactioninthisrespectareaimedatboththe
ielimination ofbottlenecks ,particularly atfrontiers,andmodernisation
iofthemainrailaxesofEurope.Itisclearthattheadoptionofthe
Commission 'sproposal onfinancial supportforinfrastructure projects
• 2ofCommunity interest wouldconstitute amajorprogress inthisfield.
Railways,becauseoftheirtechnical suitability forthecarriageof
longandmediumdistancetraffic,couldbeexpectedtobewellplaced
inputtingforwardprojectsforsupportwithahighdegreeofcommunity
interest . "
1OJC1/37of5.1.1976
20J2.9.1976

-35-
54.TheCommissionintendstomaintainitsclosecollaboration withtheGroup
ofNineRailwaysandMemberStatestohelppromotecloserrailwayco­
operation.Further/theCommissionwillpresentareportin1980tothe
Councilonprogressmadeinimplementing theshorttermactionprogramme
onrailwayco-operation andtheobjectivespursuedundertheMedium
TermCo-operation programme (1979-1982).
55.Improvedco-operation isalsoseenasanimportantstepintheevolutionary
processoftheintegration oftherailways.Initsreportonintegration
theCommissionhaslaiddownaprogrammeofactionbothtocomplementstudies
currentlybeingmadewithintherailwaysandtheCommissionandtointensify
effortstoidentifypossibilities forpartialintegrationofsomeofthe
railways'activities.

-36-
i
PARTII
ECONOMIC ANDFINANCIAL SITUATION OFTHERAILWAYS OFTHECOMMUNITY
(a)MarketEvolution
56.Complete figures ontheevolution oftheCommunity transport marketand
relative sharesofthethreelandbasedmodesoftransport areunavailable .
AnnexeIIofthereportgivesthemostrecentfiguresavailable for
goodstraffic(*)andshowthatrailways' shareoflandbasedtransport
continues todeclinerelative tothetwoothermodes,particularly road.
Theeconomic crisisof1974hashadanoticeable affectonrailways,
resulting inconsiderable lossesoftraffic whichtodatehavenotbeen
regained .
57.Wherecompletestatistical dataexist,forexampletheFederalRepublic
ofGermany,examination ofmarketdevelopments showsthatovertheperiod
1970-1978 thetotalgoodsmarketforlandbasedmodesoftransport grew
by11Increases inroadtransport accounted forthetotalgrowth
whilstrailways andinlandwaterways lostrespectively 10%and1%
oftheirshare.Ofthe11'/.increase inroadtransport ,growthin
international traffic accounted for7%.
58.Fromthelimitedevidence availableitappears asimilarpatternof
marketdevelopment istobefoundthroughout theCommunity .
InPartIofthereporttheCommission comments ontheneedforrailway
undertakings toadapttheirservices tochanging patterns ofdemandin
thetransport market,particularly ininternational markets bycloser
cooperation .Thestatistical evidence available supports suchan
observation .
(1)Source-EECStatistical Office-Luxemburg

«
59.TheCommission isatpresentsetting upamarketobservation system
which,itishoped,willnotonlyassisttheCommunity institutions
withtheirpolicydevelopment butwillalsobeofuseto,andindeed
utilized by,railwayundertakings intheirownfutureplanning .
• ■
(b)Financial TrendsofRailway Undertakings (1973-1977 )
!
60.Annexes I(a)and(b)andIIIrecord :
-compensations ,aidsandotherfinancial assistance granted byMember
Statestorailwayundertakings ,
i-profilesofnationalrailwayundertakings whichshowthescaleofeach
i
|undertaking 'snetwork,operations andstaff;financialdata,inparti-'
|cularreceiptsclassified according totheirmaintransportactivities
!andrunningcosts,
-indications ofsomeofthemaintrendsinthefinancial resultsof
theninerailwayundertakings .
r
61.Afewpreliminary comments ondatausedintheannexesareapposite :
j-Sourcedatausedforthecompilation ofAnnexeI(a)arereturns
submitted byMemberStatesundertheprovisions ofRegulation (EEC)
I1191/69onPublicServiceObligations ,Regulation (EEC)1192/69on
\Normalization ofRailwayAccounts andRegulation (EEC)1107/70on
iAidstoTransport .Inallcasesthefigures usedarethosewhichhad
t
!beenreceived by30May1979. 1
S -, i
;-FiguresusedinAnnexeI(b)aretakendirectly orcalculated from
information anddatapresented intheAnnualReportsofNational
jRailways.FigureshavebeenagreedwithMemberStates.
-Differences instatepayments showninAnnexesI(a)and(b)arisefromthe
inclusion ofcapitalgrantsunderRegulation 1107/70inAnnexeI(a)
I
whilstAnnexeI(b)onlyincludesprofitandlossaccountfigures.
!)
Π

-38-
-Itisnottheintention intheseannexestomakedirectcomparisons
betweenrailwayundertakings ,butratherprovide adatabasisfrom
whichcommonproblems andsimilartrandscanbeidentified .
Fromthefinancial resultsofrailwayundertakings thefollowing trends
arediscernable :
-Growthofexpenditure isrisingfasterthantherateofinflation in
MemberStates.Individual figuresforeachMemberStatearegivenin
TableIofAnnexeIII.
-Personnel costsstillrepresent ahighpercentage ofoperating expendi­
ture(totalexpenditure lessdepreciation andinterest).Figuresfor
individual railways aregiveninTableIIofAnnexeIII.Directcompari­
sonsbetweenrailwayundertakings cannotbemadesinceforDB^CFLand
SNCBpersonnel expenditure includes directpension payments madebythe
undertakings forwhichcompensation isgranted underRegulation 1192/69.
M
-Littleimprovement istobeseenintherelationship betweenself-
generated revenue andtotalincome.Statesupportstillexceedsself^
generated revenueinItaly,:Luxemburg andBelgium and,withtheexception
ofIreland,Denmark andtheUnitedKingdom,self-generated revenue as
apercentage oftotalincomehasfalleninallcasesbetween 1975-1977 .
Figuresforindividual undertakings aregiveninTableVofAnnexeIII.
-Increasing expenditure andfailure byrailwayundertakings toimprove
.theirself-generated revenues hasledtogreater dependance onfinancial
assistance fromtheState(seeTableIVofAnnexeIII).
Whilsttheabovetrendismanifestdirectcomparisons ofperformance should
beavoided.Thesubstantial differences infigureshavetobeappreciated
inthelightofundertakings' 1structure,organization andactivities :

-39-
(a)CFL(Luxemburg)isasinglerailactivityundertaking whilstBRB(UK)
andCIEaremulti-activity organizations withseveralhighlyprofitable
nonrailsectors.Thisimpairsdirectcomparisonofperformance.
(b)Differences instructure (reState/Railwayrelationship )androle
determinethenatureandextentofStateintervention .Financialobli­
gationsandburdensareimposeduponsomerailways(e.g.direct
paymentofpensions,provisionofsocialservices)whichothersdo
nothavetobear.Largesumsarethereforepaidincompensation for
activitieswhichhavelittleornothingtodowithoperatingrailways
efficiently .Figuresbecomedistortedanddirectcomparisonis
impossible.Itishopedthatthisproblemwillberesolvedby
Regulation (EEC)No.2830/77oncomparability ofrailwayaccounting.
Completefiguresforallnetworksarenotyet'availableanditwill"
needdueexamination by'theCommission'sservicesandtheCommitteeset
upbytheRegulation todeterminehowandtowhatextentdirect
comparisons betweenrailwayundertakings canbemadeonthebasisof
thoseaccounts.
-Interestpayments,withtwoexceptions (BRBandNS),continuetogrow
andincreasethefinancialburdensofrailwayundertakings (see
TableVIofAnnexeIII).TheCommissionthereforeurgesMemberStates
toaddressthemselvestothetaskofprovidingtheirrailwayunder­
takingswithacapitalstructuremoreinlinewiththeirearning
capacities. :'
» ' *
( • ;■
(c)Conclusions
64.Examination ofseveralkeyfinancialindicators shows:
I 1
-totalexpenditure onaverageisrisingfasterthantheconsumerprice
index(TableIofAnnexeIII).
-staffexpenditure remainsatahighlevelofoperational expenditure
(TableIIofAnnexeIII).

-40-
-selfgeneratingrevenueisfallingrelativetototalincomeandisnot
keepingpacewithincreasesinexpenditure (TableVofAnnexeIII).
-Stateassistanceisstillgrowingalarmingly.
-interestpayments,withtheirrepercussions onthefinancialsituation
oftherailways,continuetoincrease(TableVIofAnnexeIII).
64.Withoneortwoexceptionsthefinancialsituationofrailwayundertakings
hascontinuedtoworsen.TheCommissionisawareofthepoliticaland
economicdifficulties railwayundertakings andMemberStatesmustovercome
tohaltthesetrendsbutconsidersthatthemeasuresoutlinedinthe
conclusions ofPartIofthereportshouldbeurgentlypursued.
65.TheCommissionproposesthattheCounciltakenoteanddiscusstheoverall
actionoutlinedinthereport.
66.TheCommissionwillcontinuetodevelopandimplementitsrailwaypolicy
withaviewtoassuringthatrailwayundertakings playafullroleinthe
futureCommunitytransportsystem.Contemporary needstoconserveenergy
andprotecttheenvironment suggestthatthismightbeamajorrole.

ANNEXIa)
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS
GRANTED BYTHESTATES TOTHERAILWAY UNDERTAKINGS

COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATETOTHE
SOCIETE NTIONALE DESCHEMINS DEFERBELGES (SNC8)
(Source:communication fromtheBelgian governement
(inmillion national currency )
– : : i1973 1974 1975 1976 1977
A.-MAINTENANCE OFPUBLIC SERVICE OBLIGATIONS: i
Regulation (£EC)No1191/69 I
Studentseasontickets I889 1043 I1399 1582 1273
Seasontickets,certainsocialcategories 2890 .3370 4593 5143 5765
Ordinary seasontickets I1022 I1216 !1657 1856 2106
Individual reductions 513 681 1233 1635 1956
Fullfaretickets (refusal oftariff
..
increase 1653 2504 3716 4279 5384
8elgium-Luxemburg tariffs 26 •26 24 26 25
Flanders-(Zeland )tariffs 1 i 1 1 1
Continued operation oflines
I|,47|329881 ]
I1126
6994 8888 129521
15403 |17636
8.NORMALIZATION OFTHEACCOUNTS 0*THE
RAILWAYS ~Reg.(EEC)No1192/69 !"
ClassIII-retirement &otherpensions 6764 ]7853 900910422.11333
ClassIV-crossingfacilities .171 182 241 257 298
ClassVIII-wardamage 16 16 16 16 16
ClassX-recognition services tocountry '*0 41 !40 42 39
ClassXI-additional familyallowances •102 .21 9 8 9
ClassXII-a)medical treatment 786 926 1247 1647 1919
b)occupational iniuries 49 64 i94 77 80
ClassXV-a)'financial charges 160 177 288 364 160
b)shortfall inprovisions for 477 I550 672 944 263
renewal !_
■ I8562 93301116167113777 I14124
C.AIDSTOTRANSPORTI
Regulation (EEC)No1107/70
.
Raitways I■ ■
Infrastructure costs(ArticLe 31b) I2735 3343 5398 4877 6180
Financial burdenforworksandsupplies
asregardsinitialinstallation (art.4)1288 1371 1574 1508 1817
Certaintaxexemptions (ArticLe 4) -15-15-15-17.-16
Transporting passengers bybusseslaidon.
bytherailways (Article 3(2)) 184 273 396 428 226
ECSCtariffs (tokenentry) 489 >1Z .456 490 517
Balancing subsidies - '-1234 -
Loansforcovering accumulated deficits
anadelayed renewal
_j891
I4681I5484I9043 7286 !9615
TOTAL E0340 24202 33611 36466 41375
1========== !==========: fc========= ;fc========== k==.========:

I
--3-
i. * ■
CC-V.PENSATIONS,AIDSANDOTHERFINANCIALINTERVENTIONS GRANTEDBYTHESTATE
TOTHEDANSKESTATSBANER (DSB) ..
(Source:-communication fromtheDanishgovernment)
.<1r»millionnationalcurrency)
1973/741974/751975/761976/77|1977/78J
i
IMAINTENANCEOfPUBLICSERVICEOBLIGATIONS(!
!
Reg'-Hation(EEC)flo1191/69 '... .
Copenhagensuburbantraffic I86
J:
266
f93113134;,126•139"•j
otherpassengertraffic
carriageofgoodsandmall371f
123'382
133'428•-
•/
88.471–I
i*445'607649642i
706j
-•t
!\OiHAlIZATIONOFTHEACCOUNTSOfTHE
jP.'!.«AY
ISeiuUtion(EEC)No1192/69»«.•*4
•Î
'!
i
I-
jClassXX-staffsurplusto
Irequlrements
115 18'■211
^25I29
!•I
jClassX-recognitionofservicesto
Jthecountry1 1
£100!
!
iClassXI-allowancestostaff
I•6*.7.:81011I
!
i .
I •-
i22'2630MIi40'j
I
.|AT33TO'-^SPORT
~3e-:.Uj:..-.n"(S;:?No1107/70I
j
3idsfor1nfrestructure Investment 120 127145161 |180.:i
corcensitlcn fortariffobligations '
notcoveredbyRegulation (EEC)
No1191/69 .846' *7■-!
1"V:
'si
I
128 •173
#145208180 ;
TOTAL 595806824885.I
926.|
\isssssssss ; ;bssssbbs ........
i
1
1

_L-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHEDEUTSCHE BUNDESBAHN (08)
(Source :communication fromtheGermanFederal Government )
(inmillionnational currency )
I I1973 1974 19751976 j1977
A.MAINTENANCE OFPUBLIC SERVICE OBLIGATIONS ; I I
IRegulation (EEC)No1191/69I
-Compensation forthecontinuation ofshort-dis-1542.0 2332.02'389.0 2343.0 2603.0
tancepassenger transport operations
-Continued operation oflinesforwhichclosure 0.7 2.9 2.3 '2.5 1.3
Ihasbeenproposed !
-Compensation forlossofreceipts duetothe Î16.0 26.2 19.0 35.5 20.0
Saartariffsforthecarriage ofECSC I
products •■
-Maintenance oftariffreductions ,forcertain
..100.0 94.0 94.0
categories ofpersons■
-Compensation forlossofreceipts dueto 2.6"
drought1.4 -Freetransport ofItalians duetoelection
imi?r :
1558.7 2361.1 2510.3 2477.6 :2719.7
8.NORMALIZATION OFTHEACCOUNTS OFTHERAILWAYS' * •
• I
IRegulation (EEC)No1192/69
.■"■
-ClassI-compensation forchildren'sallow- 107.0 115.0 -
|ancespaidtoemployees'
■:
-ClassIII-retirement &otherpensions 1850.0 2102.0 2053.0 2258.0 2635.5
supplementary retirement pensionfor 233.0 248.0 328.0
workers.
-ClassIV-crossingfacilities 335.0 380.0 425.0 400.0 390.0
-ClassXII-medical treatment ?|2.5||3.0|[4.0||.4.0|[5.0
2294.5 2600.0 2715.0 2910.0 3358.5
C.AIDSTQTRANSPORT
(Regulation (EEC)No1107/70 '
■
-Contribution totheinvestments constituting .525.0 626.4 1055.6 1504.6 2236.3
anincreaseincapital
-Contribution toinvestments forshort-distance 251.3 344.4 341.3 266.5 343.0
passenger transport I
-Allowances forthemaintenance ofliquidity 3150.1 1911.4 1361.2 1139.1 949.2 -.
-Interest andamortization onloanstoincrease 194.4 475.5 511.3 192.3 411.3 .
theowncapital IL
]•Statecompensation tothe08fortaxesonmi-I110.7 205.8 420.7 285.5 279.4
Ineraloilusedbyrailwayengines I
-Repayment ofinterest onloanscontracted in !837.0 837.0 837.0 1012.0 994.0
thepastforfinancing purposes (allowances ,
asowners) n i
-Compensation forrefusing requesttoincrease 78.6
generaltarifflevelsforpassenger transport
.-Compensation oftariffsforbusservices_!: |20.0
iwoiiicooutoyrailways
5068.5 4479.1 4527.5 4400.0 5233.2
■TOTAL 8921.7 9440.2 9752.8 9787.6 11311.4
I ;I– !======= I========

COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHESOCIETE NATIONALE PESCHEMINS DEFERFRANCAIS (SNCF)
(Source:communication fromtheFrenchgovernment )(inmillionnational currency )
1973 1974 1975 1976 1977
A.MAINTENANCE OFPUBLIC SERVICE OBLIGATIONS
REGULATION (EEC)NR.1191/69
-Compulsory tariffreductions orrefusalto
agreetoincrease
(a)Parissuburbs 164.6 349.7 '590.8 611.7 756.4
(b)reductions forpassengers
.membersofthearmedforces 349.2 409.8566.0 657.0 684.5
.prisonners underescort 3.2 3.5 |3.9 4.6 5.0
.spouseandchildrenofretiredpersons 8.5 8.9 9.9 10.6 11.7
.localandParisCitytraffic I330.9 364.6 382.2 595.0 717.4
.othertariffreductions
I474.2 -■542.8 570.6 605.2 654.3
(c)transport ofgoodsandnewspapers
.3!.° |31.3 32.6 36.2 47.0
I-Continued operation ofunprofitable -lines Ii
(a)localservices 653.0 842.2 1038.0 1240.3 1442.4
(b)national defence purposes|3.0 ||2.9 ||3.8|.3.8|:4.1
2017.6 2555.7 3197.8 3764.4 4322.8
8.NORMALIZATION OFTHEACCOUNTS
REGULATION (EEC)NR.1192/69
. . ■'
-ClassIII-retirement &otherpensions 2890.0 3255.2 '3856.9 4213.5 4914.5
-ClassIV-crossingfacilities|329.0 |[341.S|[359.0 |[379.5 |[399.5 .
3219.0 3596.7 4215.9 4593.0 5314.0
C.AIDSTOTRANSPORT
REGULATION (EEC)NR.1107/70 j•-■
-Aidsforinfrastructure investment 1358.0 1499.0 1760.0 1906.7 2136.3
•Unforeseen items(Art.4) 100.0 100.0 100.0 80.6
-Balancing subsidies 186.0- "
*Compensation fortariffobligations not
covered byRegulation (EEC)1191/69 296.0 805.0 1040.0 1405.0 3500.0
-Granttowards research-■I-I-I5-0
1940.0 2404.0 2900.0 3382.3 5641.3
TOTAL 7176.6I8"556.4I10313.7I11739.7I15278.1

ν
-6-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATE
TOTHECORASIOMPAIR EIREANN CCIE)
(Source:communication fromtheIrishgovernment )
(inmillionnational currency }
1973*
year1974"
'_ÉOmnnthc'1975 19761977
(
ended
31.3.74 !
A.MAINTENANCE OFPU3LIC SERVICE OBLIGATIONS
Regulation (EEC)No1191/69
-lossesonrailpassenger servicesI
5.9•i
10.4 j12.9 13.8
5.9.10.4 12.9 13.8
IB.NORMALIZATION OFTHEACCOUNTSOrTHERAILWAYI
S
jRegulation (££C)No1192/69 II
I■
I-ClassIII-retirement andotherpensions- 0.4 0.7 1.5 "2.Ï-
I-Class-Z.V-crossingfacilities -^- s0.1 0-2 '0.3'
-ClassXII-medical treatment 0.1
0.6
i
I0.9
I1.8"2.4
C.AIDSTOTRANSPORT
Regulation (ESC)No1107/70I
I
I-50Xinfrastructure grant- 1.0 1.6 .•1.7 2.0
-GrantsinrespectofCIE'sroadpassenger
services i.3.6 6.0 :7.2 '5.3
-Balancing subsidy
rs2.9 7.6 .8.3 9.6
TT
7.5 15.2 17.2 16.9
C*)from1.4.1974 to31.12.1974 -
TOTAL '10.7'13.9 26.5 31.9 •33.1

COMPENSATIONS ,AIDSANOOTHERFINANCIAL INTERVENTIONS 6RANTEOBVTHESTATE
TOTHEAZIENDA AUTONOMA DELLEFERROVIE DELLOSTATO(FS>
Source:communication fromtheItaliangovernment (inmillionnat.currency )
11973 1974 1975 1976 1977
A.MAINTENANCE OFPUBLIC SERVICE OBLIGATIC INS r
REGULATION (EEC)NR.1191/69r
-Operation oflineswithlowdensity 72981 81534 108768117651 164523
traffic volumes
-Operation ofnonprofitable facilities 376 1874 6623 9895 7842
-Operation ofservices betweentheCon- 1653 2620 4966 6492 7816tinent andSardinia
-Othertariffobligations 78204 86911 89164 88T145 •102086-Carriage ofmail 13964.17896 '20432 26934 27650-Roadtransport toreplacerailtransp. 214 174 358 420 427
-Passenger tariffsforcertainsocial • -
•categories I50919f65957!81350I143021I171328
B.NORMALIZATION OFTHEACCOUNTS OFTHE21§=311„Ll5ô=2éô=s=|«311=661== L_é§l_éZlM
RAILWAYS
REGULATION (EEC)NR.1192/69
.
-ClassIIExpenditure ofasocial 6018 5523 5904 4416 6217
nature
-ClassIIIRetirement andother 16160 27084 56466 35542 47720
pensions
■-ClassIVCrossingfacilities 8132 12074 25234 21438 25578
-ClassVIIIWardamage 3423 .2313 968 ;-
ClassXRécognition ofservices 1862415,8-19 17105
tothecountry' '
• !-ClassXIVImposedconditions 8421
'-ClassXVBurdensresulting from■■ 268688 I268490276561
lackofnormalization in■
thepast j
C.AIDSTOTRANSPORT LjzÏJÏÏI .«3âi.£9L*»2§2aâS2»
REGULATION (EEC)NR.1107/70'
■
•Compensation forfinancial burden ,'851 898■ .
ofcovering management deficits in.
1963/1964andthesecondhalfof
.■ -
1964- •'-■'
*Compensation foramortization of'~6933477257 149751117049 135416
investment loans
■•.
-Extraordinary subsidies forrunning 74250276820 18393 231946 !222750
costsnotforeseeable whenbudget
wasdrawnup(staffcostsandcosts­ .
■ofrepairsfollowing floods,earth­
quakesetc.)
-Capital -grant 2000 5500 2500
-Exemption from,fueltax(petrol 60721
7546 7655 7412 4376
andgasoil) I
-Covering ofthedeficit 6929911774211I812713I875782I986059
–ass-wsll_22é_Z22__l994012!1234689[1348601_
TOTAL l,l=Q2Z=5£lI2=^9=6f2=j,1_631_55Ζ _.1_2Z2_252_[:2=210JZ|==

COMPENSATIONS /AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHESTATETOTHE
SOCIETE NATIONALE DESCHEMINS DEFERLUXEMBOURGEOIS (CFL)
(Source scommunication fromthegovernment ofLuxemburg )
(inmillionnational -currency )
1973 1974 1975 1976 1977 .
A.MAINTENANCE OFPUBLIC SERVICE OBLIGA--
TIONS~Reg.(EEC)No1191/69I
!
-Continued operation ofpassenger transH""■
port 320.4.[404.1|480.2[696.5 |!930.1
i
320.4 404.1 480.2 696.5 930.1
8.NORMALIZATION OFTHEACCOUNTS OFTHEI
RAILWAYS ~Req.(EEC)No119Z/69
-ClassII-expenditure ofasocial 28.4 17.0 18.2 .19.3 !33.5
nature'
t'
-ClassIII-retirement andother 826.0 845.9 919.2 1179.6 1577.4
pensions
-ClassIV-crossingfacilities 17.2 16.2 25.6I24.9 37.0
-ClassX-récognition ofservices 0.2 0.2 0.1 0.2 0.1 .
tothecountry
•ClassXV-burdensresulting from 10.4 4.8 4.8 4.8 4.8
lackofnormalization in
thepast
882.2 884.1 967.9 1228.8 1652.8
C.AIDSTOTRANSPORT
Regulation (EEC)N°11Q7/7Q
-Stateaidforpensions-ALnetwork 1!
<-Stateaidforvariousmeasures on Ji IM"17.4 |4.3 6.1 |
salaries Swages 3I
"Balancing subsidies 147.3 468.3 1175.8 1161.6 1036.5
164.7 472.6 1181.9 1161.6 1036.5
TOTAL 1367.3 1760.8 2630.0 3086.9 3619.4

-9-
.^t-NSATIONS,AIDSANDOTHERFINANCIALINTERVENTIONS GRANTEDBYTHESTATETOTHE
.j<*LQ2EVENNOOTSCHAP NEDERLANOSE SPOORWEGEN(NS)
(Source:comiaunication'fromtheDutchgovernment)
^.maintenanceofpublicserviceobligations
Rcoulaticn (EEC.'f;°1191/69
Compensationgrantedforthecont'
ofpassengertransportoperations
?.NORMAL12ATIONOFTHEACCOUNTSOFT^E
RAILWAYS-(EEC)M°119>/6'v..
ClassIII-Pensions(*)
•ClassIV-Crossingfacilities
C.AICSTOTr:A?;2P03T
(EEC)N«1107/70
-Star*<nterestchargesconcerninglossesWtil1972including
-Aflscrf.zationofthesedebts
■-Vrcnsaciorforactiviti.esnotcovered
cypublicserviceobligation
0o>atir.glosses-InterestandAmortiza-
t>\nnactivitiesnotcoveredbypublic
sericecoligationsdurinotheperiodof
<•).TOTAL.
amountg1Ventoaseoaratera^u»y
pensionfund{inc.ilMonnationalcurrency)
1973 •1974197S1976 1V/7
SIr~~
1
326.0415.5553.7t *
646.2710.6
•326.0415.5553.7646.2710.6
127.2135.3168.5179.2201.0
j23.6|26.3I29.334.4 •33.6
150.3161.6197.8
I213.623">.6
70.069.0'68.0
i68.0 <à4.-
13.017.0
; ι.29.0I
40.02:.-
154.0
42.1[
t
!150.-
42.1
63.0 •86.0 97.C304.1343.1
I559.8663.1 848.5-1163.9|1291.3
snsssszsssscssais

a
-10-
COMPENSATIONS ,AIDSANDOTHERFINANCIAL INTERVENTIONS GRANTED BYTHE
STATETOTHEBRITISH RAILWAYS BOARD(BRB)
'(Source:communicationfromtheBritishgovernment )
(inmillionnational currency )
1973 1974 1975 1976 1977
A.MAINTENANCE OFPUBLICOBLIGA­
TIONS~Req.(EEC)No1191/69
-Centralgovèrnment grantforunremuner-
ativerailpassenger services
!137.
-localpassenger transport authorities
paymentstowardsthecostsoflocal
railpassenger services*
15
-Compensatory paymentsforobligations
imposedbythecentralgovernment in
railwaypassenger transport operations 315 329 362
j
152r
r■■315 !
•i329 362
B.NORMALIZATION OFTHEACCOUNTS OFTHE
RAILWAYS ~Rea.(EEC)No1192/69 •
-ClassIV-installations ofcrossings II' 1I'•1L9!" I10r^i i6i9'\To jI.10
C.AIDSTOTRANSPORT
Régulation (EEC)No1107/70
-Grantstowards research anddevelopment- * 2 2 2
-Capitalgrantstowards passenger transportimprovement shemes
Cashflowshortfall grants24 !
209 I
■11. 96
-Transitional deficitgrant ; 66I
28I
6
-Historic pensionfundobligation j*
97 108 107
235.."j176 ||147121
■
TOTAL 393„"500 486-433 •

STATISTICAL ANDFINANCIAL INFORMATION
ONTHENINERAILWAY UNDERTAKINGS

INFORMATION CONCERNING THESOCIETEKATIOJ^LE DESCHEXirJS OEfERBELCES(StiCB)
(Source:AnnualreportsoftheS.MC8)
111973 1974"
»1975 1976 1977
!Railnetwork km[40844004I3998j3998 4003
IRoadnetwork km !
IFerry-boats km !
|Personnel 58.718 5941160414 58740 58768
|Traficcarried i
Numberofpassengers totalmio
rail-mioi.-237
' •i.232 227 200
Numberofpassengers/km totalmio
rail .mio8093j
I8279
i­|82588191 7667
Tonnesofgoodscarried totalmio
railaio75.5j
l*82-?.59.6 60.058.3
ITonnes/kmcarried totalmio
railaio ■8238 |9199 6804 6693 6527
IIncomeinmioFS
Trafficreceipts (1) 18363 20554 18368 197*7 20470
[Passengerreceipts 6825 7161 7420 7673 7532
JGoodsreceipts I10440'11957 9797:10664 j11459
IMiscellaneous trafficreceipts J1098 1436 1151 :1410
1 I1480
IOtherincome(2).• i*1* .217 144 305 j328
jTotalincome<1♦2)I18381 20771 18512 20052 20798
I inmioFB
!
Operating expenses (1)
ofwhichpersonnel costs
Depreciation (2)
Interest (3)
Totalexpenditure (1+2+3 )
Stateintervention
Balanceoftheexercise30271
23974
5700
1958
37929
19454
-9435535
27822
6430
2131
44096
23276
4942806
33179
6705
2568
52079
32364
-120345194 .
36201
7775
2859
56828
34819
-1957i
48646
43879
8320
3382
60348
38325
-1225
; •
Information •investments
renewal
ii i i2313
6011
i2323
61212608
65222714
73884825
8134

-3-
INFORMATION CONCERNING THEDANSKE STATSBANER (DSB)
(Source:AnnualreportsoftheDSB)
1973 1974 1975 1976 1977
RaiInetwork km'
Roadnetwork kmi;.
Ferry-boats ■ km
Personnel .
Traffic carried1999
7566
208
21765
120
.87
3809
3307]
*i
~8,7
2206
1282
571
452
220
163
1445
1748
1*286
100
192
2040
595
0
4571999
7134
208*
21543
i
116
85
'3750
3333
•?'9'
1974
1434
661
477
248
228
1662
2152
1540
109
207
2468
806
0
)
6611999
7430
204
21574
I
|
113
!•85
3205
2853
~7,0
1744'
1621
745
517
298
245
4866
2341
1715
120
229
2690.
824
0
7172004
7558
259
21406
115
.86
3353
2997
7,5
1875
1772
776
662
315
303
2075
2570
1841
135
255
2960
885
0
7542004
7639
265
21035
118
89
3440
3084
•7,0
1765
1876
837
582
396
314
2190
2678-
1919
154
.284
3116
926
0
802Numberofpassengers totalmio
„ railmio
Numberpassengers /km totalmio
railmio
Tonnesofgoodscarried totalmio
raiImio
Tonnes/kmcarried totalmio
railmio
InconeinmioDKr
(
Trafficreceipts (1) J
Passengers receipts
Goodsreceipts
i
Receipts ofcarscarriedbyferry
Otherincome (2) •
Totalincome (1+2)
Expenditure inmicOKr
Operating expenses (1)
ofwhichpersonnel -costs'
Depreciation (2)
Interest (3)
Totalexpenditure (1+2+3 )
Stateintervention
8alanceoftheexercise
Information •;Investments

INFORMATION CONCERNING THEDEUTSCHE 8UNDES9AHN (OD)
(Source:Annual -reportsoftheDS)
j19731974 '*1975 1976 1977
Railnetwork km I29022I28831I28796I28
I576I28552
Roadnetwork km j I
Ferry-Boats km 168i165168 168 168
Personnel 429891 I429578409433 390607373650
Traffic carriedI
L
Numberofpassengers totalmio1656 '■1568 ■1612 1510 1493
railmio1028 I1060 971 971
Kunoerpassengers-km totalmio49668 5029346562 j44625 44373
railmio40718 41607 38547 i37100 37348
Tonnesofgoodscarried totalmio j■•365 378 1313 !326 307
irailmio ,340 351 287 298 279
jTonnes.~k«carried totalmio {71636 73568 59383i
I64033 60559
I
!railaïo 66180 68128 54173 58268'54770
IncomeinmioDM '' I
..I
i
Trafficreceipts CD 12452i»
13430 12221«873 12645
IPassengers receipts.*130 4277 4348I
;4293 ♦388
Goodsreceipts j785.1 8570 7295 7976 588
IOtherincome(2)
i954 985 1159 i361 i295
|Totalincome(1♦2) 13*406 14415 13380 14234 13940
!Exoenditure inmioDM
!I
I
!Operating expenses(1) 17084I19252119435!19861 20576
iofwhichpersonnel costs14426 1632J4 16656 16893 17407 ■.
IDepreciation (2) 1742 1840,,2108 094 287
I
|Interest <3)i1495 1667 1950i2
I256 407
i
IPensions (4) 492 516 500 ■I
I485 469
Totalexpenditure (1♦2+3♦4)20813 2327523993 24696»739
Stateintervention 4896 6084 6251!à588 7275
Balanceoftheexercise -2511-2776-4362I-3
i'874-4524
jInformation:investments 3574 4080 4011 ■
.i4024 4154

INFORMATION CONCERNING THESOCIETENATIONALS DESCHENINS DEFERFRANCAIS(SNCF)
(Source:AnnualreportsoftheSNCF).-
m1973 1974
j19751976 1977
JRailnetwork km.•
» ■•-
i:348.12
i
F■■.34834"34787 34717 34597
i
jPersonnel •283415286249I
i
276819 jI
i
272178 265444
jTrafficcarried ,
Numberofpassengers totalmio
railoutofParisnip620
223642
231i
■653 !
240[675
|239694
243
jNumberpassengers/km'totalthousand m1o
railoutParisthousand mio44.7
37.947.3
40.250.7I
43.4 I'51.5
43.952.3
44.3
Tonnesgoods-carried '•totalmio 258 266 219 227 !214
railmio I■
Tonnes/kmcarriedtotalmiothousand ]railmiothousand73.9 77.0-•I
•64.068.5 66.2
IncomeinmioFF(*) ]
Trafficreceipts <1> 14053 ,16011 16370 16802 17234
jPassengers receipts j
i ^4880 5479 6259 6485 6913
jGoodsreceipts I8-984 10343 9841 10019 10011
jOtherincome(2)" .I245Q 3437 3247 3074 '3552
jTotalincome(1+2)16503 19448 19617!19876
I20786
Expenditure ~^nmioFF"■ . ! I
I"
l. '•
Operating expenses (1)
ofwhichpersonnel costs:
Depreciation (2)
Interest (3)
Fiscality (4)
Totalexpenditure <1♦2♦3♦4}
Stateintervention •j
Balanceoftheexercise I
I16127
10881
1851
944
2458
21330 i
4592
-28519336
12751
1864
1146
2528
24874
5347
7921923
14832
2183
1153
2343
27607 j
6807.
-1183 j24926
17142
2249
1357
335
28867
7875
-1116•27810
19226
2296''
1684
407
32197
10458
-953
Information sinvestments213S 2990
I3730
I42625011
<*>after1976thesefiguresarewithout
TVA

INFORMATION CONCERNING THECORASIOKPAIREIREANN(CIE)
(Source:Irishgovernnent communication )
Railnetworic
«.«adnetwork
rcrry-acJts
:arr"ted
:;-jaberofpassengers
passengers /ka
f.*talgoodscarried
tonoes/k«carried
lr.coc.e1naio£KB
km
ka
total
rail
road«no
aio
aio
total «iio
railaio
roadaio
totalmio
rail-
roadaio
totalaiorail,aio
roadaio
Trafficreceipts <1>
Passengers receipts
Goccsreceipts
Otherincone(2)
Totalincome(1+2)
I
Ex-yr-jîfjreinnio£
Ooerating expenses (1)
ofwrier*personnel costs:
depreciation (2)
Interest (3)
rinõnciõl andadninistrative chargesTor
roadsransport C4)
Totalexpenditure CI♦2♦3♦4)
Stateintervention
oilanceoftheexercise
jt'on:rnvesT~ents1973
(yearended
31.3.1974 )
■1974
(9nonths)1975 1976 1977
■3096 3G89 3078 3067 3034
20097 19944 21200.1
19850 1
I8605
321" 190 315 305
13" 11 14 14 ■15
308•79~"307"302 289
875 694 899 788 873
■t.. 5.5 6.5 .6.5 6.6
3.7 2.8 3.4 3.5 3.6
2.83.Î|3.0 ]3.1
568'452568j
!i
595
-I
I596
47.1 37.0 59.1 68.4 78.4
31„i 24.3 41.2 48.257.»
15.9 12.7 17.9 20.2 21.0
5.9 5.6 7-9 9.5 10.7-
I53*142.6 67.0r77.9 89.1
I57.951.4 86.6!100.4 109.7
I41.2 I34.8 61.9 68.9 75.4
|4.0 3.5 5.2 7.2 8.8
2.0 1"7 2.4. 2.8.3.3
I0.8 0.6 6.8 1.0
I64.7 57.2- 95".0 111.5 122.8
J10.7 13.9 "26.5 31.9 33.2
I-0.9-0.7"1.5-1.7"0.5
138.3I57*II^f8I31.8l31.2

-7-
INfORNATION CONCERNING THEAZIENDA AUTONOMA DELLE FERROVIE DELLO STATO «FS>
(Source :Annual reports ofthe FS)
•* 1973 1974 1975 !1976 1977
1
1- I ;

χ.
I»;f0.r-:ATÎ0N CONCERNING THESOCIETENATIONALE DESCHEMINSDEFERLUXEMBOURGEOIS
(CFL)
(SourceïAnnualreportsoftheCFL)
Φ
>\1973 1974 1975T
i
«1976 1977
j•'ailnetwork km 271j271 275|
It2741274
♦
jR:adnetworkkm 1395.395 '395!395 395
jferry-ooats km Ii
;Personnel
i447643914313!
i43044250
!Tr.ifficcarriedi
«i
\
l
;Numberofpassengers
I
Itotalnio
railmio13.4i
10.7-■13.8
10.9 114-.0
11.1i
!
»
«
i14.
11,.2
.314.2
11.3
jNunoerpassengers/km
itotalmio
railmio•270
2172S9 |
231293
234iI299
240297.
240
jTonnesgoods-carried
*
itotalmio
railmio••22.5 •23.1116.8
'i15,.714.4.
jTonnes/kmcarried
itotalmio
railmio"786
■7fi4866
864640
658t
!.
I
I626
624567
565
iI.-cjrgjr,nioFluxi
I
|Trafficreceipts(1) 1627 !18461537 II1
I530h466
jPassengersreceipts 177']186 191i
i202 197
.SeedsreceiptsI
I1450 1660"j1346.1328 1269
)OtherincomeC2)
iI
I65 62»!.87113
'Totalincome(1+2) 1692I19081590 1617 1579
jcxr-anditureinmioFluxi I
i
Operatingexpenses(1)
ofwhichpersonnelcosts:2671
23443270,•
28393SS
33o7I
Ih142
1014
4539
078
jDepreciation (2)' ■200 253 293I.
i328 360
!Interest(3)
i150|142"144i
ji
I175 190
].Transfertoreserves(4) 76 92 -106!118 128
Totalexpenditure (1+2+3+4) 3C973756I4391
1;
i!47635217
StateIntervention1367.i17612630i
i3087h559
3alanceoftheexercise
I
»-33-87-171;
i
i59 79
I
jInformation:investments 92'»
174
i216ι
I163336
I
I. "
! '(
«
I
I
*
!i

INFORMATION CONCERNING THENAAMLOZE VENNOOTSCHAP NEDERLANDSE SPOORWEGEN <NS)
(Source:communication fromtheDutchgovernment )
;i973 1974 „1975 1976j
1977
Railnetwork km m2832 X832 *2825 !2825
I2850
Personnel total 26853 26482 26933 26657 26318
TrafficcarriedI
I
I..Numberofpassengers mio 181 183 176 172 171
Numberpassengers /kmmio 8173 6589 8501 8218 8013
|Tonnesgoodscarried oioi23.6 22.61
-17.7I
17.8 17.7
ITonnes/kmcarried nio 3463 3370 2721 2696 2805
I•
IIncoTie'InmiofI.I
Trafficreceipts <1)_ _•L822 881-833936 968
I ■Passengers receipts 537 * 589.!615655 677
IGoodsreceipts •285 292 '268 281 291
IOtherincone<2) A3 50 51 63
JTotalincome<1♦2)865 931 934 991 1031.
J'ExpenditureinmioFt
IOperatingexpenses(1) 1036Ί237 1431 1538 1637
Iofwhichpersonnel costs: 765 857 9711058 j1120.
IDepreciation (2)*193 !220 241 249 269
Interest (3) «1 1021123 j36 31
Totalexpenditure (1*•2+3) 1370 1559 .1796- 1823 1937
Stateintervention 350 442 583 j835. 905
J'Balanceoftheexercise1"155-186-279 j0 0
I-Information-Investments 224 227 502 342 487
.... 1
Λ *
.1*
»I
I

-10-
INFORMATION CONCERNING THEBRITISHRAILWAYSBOARDCERB)
(Source;AnnualreportsoftheBRB)
'km
km
kmiRc.ilnetwork
■Roadnetwork
(
jFerry-boats
!Personnel
;Trafficacarried
Numberofpassengers
.'iutfberpassengers/km
Tcnnesgoodscarried
,Tonnes/kmcarried
I
Incomeinmio£
i
Trafficreceipts(1)
Passengersreceipts
jGoodsreceipts
iOtherincome(2)
!Totalincome(1+2)
expenditure inmio£
:Operatingexpenses(1)
'ofwhichpersonnelcosts:
Depreciation (2)
IInterest(3)..
Totalexpenditure <1+2+3)
Stateintervention ■
Balanceoftheexercise
Information :investmentstotalmio
railmio
totalmiorail.mio
totalmio
railmib
totalm,io
railmio.1973 '.974 1975 .1976
18227
190874
.728-
29772
197
22961181671811718006
194891
733
30898
1771899311826951977
17973
78239
730
30255
-175
2163220985701
28485
176
20448
636.2
347.3ί
288.9ί
64.3
-700.5
736.1
500.ôj
I
54-ôj
57.3]
848.0'
95.9
51.6
101.5689.91
i
388.3j
301.6]
78.2!
768.l!
956.71
635.7|
53.41
71.9823.9985.6
468.7552.6
355.2433.0
140.8149.7
964.71135.3
1301.2
840.6
27.1
32.5702
29289
170
20171
.1212.1
706.5
505.6
119.9
.1332.0
1082.0!-1360.8
156.1I401.6
157.Si♦5.5
129.9i
1
il1110.61422.4
921.8
31.0
43.4
1*496.8
366.8
+5.3
143.01597.0
990.9.
36.8
44.4
1678.2
373.2
+27.0
140.7

ANNEXEII
MARKET TRENDS C1)
GOODSTRANSPORTED BYROAD,RAILANDINLANDWATERWAYS (inmrdt/km)
Country Year RoadInland
WaterwayRailuays (2)
Belgium 1965
1970
1973
1974
1975
1976
1977Domestic International
6.1
6.7
6.5
6.9
5.1
6.1
5.86.8
7.9
8.2
9.2
6.8 ••
6.7
6.56.A
9.2
10.0
10.3
9.8
9.3
9.3.2.1j4.0
6.0
6.7!
6.7 :
6.5::<3?
; i
; i
Denmark
j1965
1970
1973
1974
1975
1976 *
1977notavailable
it
9
9
9
9
notav;
inotavailable
•I
.2
.0
.4
.8
ailable
i1.4
1.8
2.2
2.0
1.8
1.9
notavailable
Germany1965
1970
1973
1974
1975
1976
1977
197859.1
70.5
81.1
78.5
75.9
82.4
84.3
87.43.4
7.5
13.8
16.5
17.2
21.1
22.6
24.3 :43.6
48.8
48.5
51.0
47.6V
45.8
49.3
51.5notavailable
'73.6
69.3
71.3
57.3
61.4
57.9
59.5
France ••1965
.•1970
1973
1974
1975
1976
'1977notavailable
66.9
83.7
,87.3
72.1
76.1
77.4 j
j12.5
14.2
13.8
13.7
11.9
12.2
11.364.4
70.1
73.3
76.4
63.5
67.9
65.6
Ireland 1965
1970 ■
1973
1974
1975
1976
1977notavailable notavailable
ft !
it
ii
tnotavailable
0.5
0.6
0.5
0.6
0.6
notavailable
Italy1965'
1970
1973
1974
1975 .
1976
197745.8
53.7
61.9 *
62.4
62.8
notavailable
M*notavailable
II
It
II
Itnotavail.
(I
II
II
It15.4
18.1
17.6
18.1
14.9
16.4
notavailable

ν
-2-
Country Year RoadInland
Waterway (2Railways (2)
Domestic
Luxembourg 1965 0.2
1970 0.1
1973 0.2
1974 0.2 -
1975 0.2
1976 0.2
1977 notavailableInternational
notavailable
0.3
0.3
0.3
0.3
0.3
0.30.6
0.8
0.8
0.9
0.7
0.6
0.6
Netherlands 1965
1970
1973
1974
1975
1976
19778.9
12.4
15.2
15.6
15.4
16.7
17.1notavailable 24.1
30.8
32.0
33.2
29.6
31.0
32.13.5
3.5
3.5
3.4
2.7
2.7
2.8
UnitedKingdom 1965 i68.8
1970 85.0
1973 90.4
1974 89.9
1975 95.3
1976 95.6
1977 98.0notavailable 0.2
0.1
0.1
0.1
0.1
0.1
0.125.2
26.8
25.6
23.5
23.4
23.0
22.7
(1)Source-Statistical OfficeoftheEuropearv Communities
12)Includes national andinternational transoorts
(3)Relatesonlytotransport undertaken byBelgianhaulers

MARKETEVOLUTION OFTRANSPORT BYRAIL,ROADANDINLAND WATERWAYS INGERMANY
iinmrdtons/km)
l l ROAD I I
YEARTOTAL INLANDRAILWAYSMARKETTOTAL DOMESTIC INTERNATIONALWATERWAYS
1970 200.4 78.0
I70.5 7.5 48.8 73.6
1978 . 222.7 111.7 87.4 24.3 51.5 59.5
Index
|1970=100111 143 124 324 106 81
EVOLUTION OFTHEMARKET SHARES OFTHETHREEMODESINGERMANY
*
YEARTOTAL !ROADINLANDRAILWAYS
|MARKET |TOTALDOMESTIC IINTERNATIONAL WATERWAYS
1970 100 38.9 35.2 3.7 24.4 36.7
1978 100 50.2 39.3 10.9 23.1 26.7
Changein
share +11.3
I+4.1 +7.2 -1.3 -10.0

-1-
ANNEXII
FINANCIAL TRENOS
TABLEI:Totalexpenditures byrailwayundertakings
" #(in»illions,nationalcurrency)
8R8CFLCIE[090S8FS(1)|MSSNC8
________SHCF
Expenditures 1973 848309764.7208132040165613703792721380
Expenditures 1977 16785219122.8257393116331619376034832197
I
Index1977(1973.IOC)198169190 124153200141159151j
Indexofconsumerprices 198142192 123153197 .140148'153
TABLEII:Staffexpendituresccsparedwithoperatingexpenditures
(in»i11lons,nationalcurrency)
Year1977 BR8CFL(2)J
CIE
i08(2)JosaFS(1)NSj
Sf.'CS(2}SNCF'
Staffexpenditures 9914078.
j^17409"1519154811204387919226
Operatingexpenditures 15974539109.7j
I2057526782505.116374864627810
Percentageshare1977 6290'
I"I857262.68|9069
Share1975 65|8869 8673646878J
i68
I
I
TAELEIII:Self-generated revenue
(inaillions,nationalcurrency)
j
8R9caCIE08OS8j1
FS(1)NSSNC8SNCF
Revenue1973 i
i.701169253.1j
i13406
l14455678651838116503
Revenue19771332157989.1
[139402-190!
i11091031207S820785
Index1977 19093168I
103
i152!196119113126
Indexoftotaleyoenditurs 1977'
(1973•100)198168190I
•124153200141153151
(1):InLit.thoussndaillions
(2):thesefiguresincludedirectpensionpsyacntsadebytheundertakings,subjecttonormalizationunder
AnnexIIIofRegulation(EEC)Nr1192/69

TABLEIV:Compensations,aidsandotherfinancialassistancebytheStates(2)
(incilllons,nationalcurrency)
BR8CFLCIE08DS3FS(1)NSSKCB SNCF
Payaenls1973 393135710.789225951098560203407177
Payients1977 |493
I361933.101311926221112914137515278
Index1977(1973.100)125259309127155201231 203213
TABLEVRatiobetweenself-generated revenueandtheundertakings
totalreceiptsfor1577(inaillions,nationalçurreney)
Year1977 3RB!σιCIE08DSB !FS(1)
IUSj:kçbi
'SSCF''
Statepayients 493361933.1113119262211129141375.15278
Self-<jenerated revenue 1332157989.1 ;139402190110910312079820786
Totalreceipts 18255198122.2j252513116332023226217336064
*revenue.100>*
■ ■•X(1577)7330'7355703344 33|58
receipts 'I
revenue.100^
receipts "(1975)66387258694758 i3466
TABICVI:Interestcharges
(inaillions,nationalcurrency)
BR8(3)CFLCIE083S3FS(1).NSSNC8 SNCF
Interest1973 57.31502.01495192366911958j
944
Interest1977 44.41903.324072845263133821684
Index1977"(1973•100)77127165.16114814434173178
(1):inLit.thousandillHons
(2):figuressuooliedbythefleaberStates(Annexla)
(3):9Rhasundergoneacaottalreconstruction'Inaccordancewiththe1974RailwayAct.