COMMUNICATION FROM THE COMMISSION on integrating conventional rail systems

(presented by the Commission)

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

on integrating conventional rail systems

SUMMARY

1. For a century and a half, the railways developed on national lines. Each railway adopted its own technical standards and operating rules according to national requirements. This made it complex and costly to operate across frontiers and helped fragment the market for railway products along national lines. Even now, despite the efforts made to integrate railway systems, their segmentation is an obstacle to the development of the Europe-wide services needed by a Community that is fast integrating and soon to enlarge. The Treaty on European Union set the aim of creating trans-European networks and promoting their interoperability, in particular through technical harmonisation. Consequently, in 1996 the Community adopted a directive on the interoperability of the trans-European high-speed rail system, which is now being implemented.

2. The purpose of this communication is to propose a programme for the integration of conventional rail systems, including a directive on the interoperability of the trans-European conventional rail network. It responds to requests from the Council and the Parliament for proposals on the integration of conventional rail systems to accompany the creation of access rights for the provision of international freight services. It is an important element of the Commissions's strategy to improve the operating efficiency and customer service quality of the Community's railways through a wide ranging process of market liberalisation, improving the conditions of utilisation of infrastructure (charging and capacity allocation), interoperability and technical harmonisation. The proposals in this communication and the draft directives already before the Council (the infrastructure package) are a initial step in fulfilling the Treaty obligation of a single market in rail transport services. As the market develops, the Commission intends to combine this legislative approach with TENs policy on relieving infrastructure bottlenecks, strict application of Community competition law and rules on public procurement as regards railway equipment and support for research and development.

3. The first objective is to improve the organisation of international services, especially of freight. At present delays at borders and poor reliability lower the competitiveness of international freight services. Various obstacles prevent the efficient transfer of a freight train from one network to another, such as slow and costly exchange of operational and commercial data, poor matching of timetables and the complexity of the procedures performed at borders. Railway undertakings and infrastructure managers themselves could solve these problems rapidly and at modest cost, if they gave priority to this and better worked together. They should adopt the immediate aim of reducing delays at border crossings to the time needed to change locomotives. The next step should be to eliminate stops at borders entirely: railway undertakings and infrastructure managers should plan for non-stop services and procedures for transferring trains between networks should be simplified and harmonised.

4. Following Articles 154 and 155 of the Treaty, the second objective is to promote the interoperability of the conventional rail networks, that is their capacity to allow the uninterrupted movement of train across frontiers. While freight wagons and passenger carriages circulate throughout the Community, major differences between the technical and operational standards of the railways necessitate the change of locomotives and crews at frontiers. These stops add to costs, lengthen delivery times and threaten punctuality and reliability. The Community should take the initiative of extending interoperability through further harmonisation of technical and operating rules, so as to raise the performance of international services.

5. The third objective is to help create a single market for railway equipment. Despite restructuring of the sector in the 1990's, the bigger national markets remain largely closed. Railways are locked into buying from national suppliers, which raises procurement costs and so adds to the price of rail transport. Technical differences both reflect and reinforce this segmentation. Technical harmonisation by the Community would substantially contribute to market integration, although no substitute for effective changes in public procurement practices. Many Member States have not yet given railways freedom to take procurement decisions on commercial grounds, but continue to protect national producers.

6. For years, the railways themselves have set "in-house" standards that allow passenger carriages and freight wagons to run over the different networks. This was a major step towards interoperability but is not up to meeting new challenges posed by technical advance and structural change in the sector. Process is slow and often fails to achieve effective harmonisation, as it works by consensus between the railways. Moreover, the railway equipment industry and other companies offering relevant technology are excluded from the process. Assessment of conformity with standards is in most cases done by the railways themselves, which does not ensure fair treatment of all operators and suppliers.

7. The Commission is convinced that the Community must tackle the technical, regulatory and operational differences that divide the conventional rail systems. This should be done by extending the process created for the high-speed system to conventional rail, with the changes necessary to fit its specific characteristics. It therefore presents with this communication a proposal for directive on the interoperability of conventional rail. Like the high-speed directive, that on conventional rail would create Community mechanisms for preparing and adopting technical specifications that allow interoperability and for assessment of conformity with these specifications.

8. The directive would apply to the conventional trans-European network and would cover the renewal of equipment as well as upgrading and construction. It would provide for the drafting of technical specifications for a number of sub-systems; in particular signalling and command/control, rolling stock, energy, infrastructure, maintenance, operations and information technology. The technical specifications and the European standards requirement to make them operational would be obligatory throughout the conventional trans-European network, with certain exceptions.

9. Conventional rail is an old system, with a huge legacy of infrastructure and rolling stock built to national standards. Railway assets are replaced slowly and, as a general rule, accelerating renewal would impose heavy costs without corresponding benefits. So harmonisation should be concentrated where it will most improve competitiveness in the medium term, which means priorities must be set.

10. First, it is necessary to prioritise the sub-systems and constituents for harmonisation. On the basis of a thorough study, the Commission proposes giving immediate priority to harmonisation in these fields: signalling and command/control systems; data exchange, information technology and telecommunications, especially for freight transport; rolling stock used for international services; emissions of noise, particularly from freight wagons; qualifications of train crews for cross-border operations; assessment of conformity with specifications; mutual recognition of maintenance and repairs. The proposed directive would provide for the adoption of a work programme that gives priority to these areas, before the preparation of technical specifications begins. In the longer term, while general harmonisation of electrical systems and of infrastructure would be immensely expensive and disruptive, the Commission believes that harmonisation in specific areas should be considered, like catenaries and pantographs and infrastructure used for freight. The proposed directive would explicitly provide for the definition of priorities and of a work programme, before the preparation of technical specifications begins.

11. Second, priorities have to be set for introducing equipment built to Community specifications. The aim is to raise the performance of international services, so preference should be given to extending interoperability on the lines carrying the main international flows. In the case of freight this means giving priority to the Trans-European Rail Freight Network, for which the Commission is proposing the creation of access rights for the operation of international freight services. Such investment decisions are primarily the responsibility of railway undertakings, infrastructure managers and Member States, but the Community's role in guiding the extension of interoperability is an issue for the revision of the TENs guidelines.

12. As with the high-speed system, the interoperability specifications would usually be drafted by a body jointly representing the railways and the rail equipment industry. For certain specifications, however, other bodies could also be mandated if the joint body does not possess the expertise needed or represent all interests. The Community would then adopt the specifications. The supporting standards would be prepared by CEN, CENELEC or ETSI as relevant. Responsibility for conformity assessment would be given to independent bodies notified by the Member States. These mechanisms would overcome the weaknesses of existing arrangements.

13. The railway system does not stop at the borders of the Community, but extends to the countries of Central and Eastern Europe and is linked to those of the Middle East. Harmonisation over this wider area would benefit all the countries concerned, as would mutual recognition of conformity assessment. The Community can make a unique contribution, as it prepares and adopts specifications for high speed and conventional rail. Enlargement will extend its role as the candidates will adopt Community specifications by accession. The question is how best to include the other countries in the interoperable system. The communication argues that the legal adoption of specifications should be done under the Convention covering International Carriage by Rail, an existing international agreement. Its recent revision allows for this, and in such a way that Community specifications would be respected and countries would be protected against the imposition of unsuitable specifications.

A. ORGANISATION OF INTERNATIONAL SERVICES

1. Much progress has been made in integrating international services in the passenger sector. The situation is different with freight trains, although the Single Market has eliminated State controls at internal borders. It takes around thirty to forty minutes to change the locomotive of a freight train and verify that all is working correctly [1]. However the Commission's study found that freight trains have generally to wait much longer, which lengthens delivery times and threatens punctuality and reliability. This matters greatly for time-sensitive transport, a fast growing market in which the railways have not realised their potential, if less for transport of traditional commodities. While crossing borders is only one factor that determines the overall quality of a freight service, it is very important. Difficulties at borders have been one reason for initiatives to raise the performance of rail freight, like the Trans-European Rail Freight Freeways (TERFFs) [2]. The Commission's study found that the length and causes of delays varied, but that the following factors played a part.

[1] A brake test has to be made after a locomotive or wagon has been uncoupled.

[2] A major effort is being made to raise the performance of certain major international freight lines, the TERFFs. Certain Member States have opened access to the infrastructure, on a voluntary basis, and infrastructure managers have improved the quality of train paths and greatly facilitated utilisation of infrastructure, in particular through one-stop-shops. See Communication from the Commission. "Trans-European Rail Freight Freeways". COM (97) 242 final, 29.05.1997.

2. At a border, one "network" hands over a train to another. They therefore exchange information. The information needed for freight transport is considerable because trains carry different loads to different destinations, the mix of wagons varies and many trains circulate according to demand rather than to a fixed schedule. Links between railway computer systems are often poor so that paper is exchanged, which is costly and wastes time. The data exchanged may arrive late or be unreliable, and so has to be checked against the actual train. Poor interconnection is also a handicap in providing a full range of customer services like tendering, billing and tracking.

3. Other obstacles create delays or compound them. One is the poor match of timetables between national systems. Freight trains stop to change locomotive, but then often suffer additional delays as they wait for the train path allocated in the timetable of the adjoining network. Inflexible working arrangements may cause further difficulties, both compounding delays and reducing productivity. Locomotives may stand waiting for the arrival of a train, or a train may be delayed as it awaits a locomotive. The scarcity of information on arrival times magnifies the difficulties. A constructive development, however, is that of "trains of trust". Eleven railways, so far, have agreed to inspect the physical condition of freight trains at their point of departure and to waive further inspections along the route.

4. The Commission's study found that the first priority should be to minimise border stops and better integrate national timetables. This would be a highly cost-effective way of improving performance. The TERFFs have demonstrated the potential for rapid improvement of services through better timetabling (The proposed directive on capacity allocation and changing should greatly improve coordination between infrastructure managers [3]). The exchange of information between networks should be made fast and reliable, through general use of information technology. Work practices should be improved, so as to raise the productivity of both manpower and rolling stock.

[3] Proposal for a Council Directive relating to the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification. COM (98) 480 final 22.07.98

5. If railway undertakings and infrastructure managers gave priority to the organisation of international services and worked together more effectively they could solve the problems quickly and without heavy expenditure. In fact, it is perfectly feasible to cut delays at frontiers to the time needed to change locomotives and crews. This would reduce end-to-end journey times and improve reliability, so raising the competitiveness of rail freight. Railway undertakings and infrastructure managers should aim to achieve this, except when it raises costs unacceptably. To stimulate progress, the Commission will consult interested parties on launching the monitoring of delays at frontiers, with regular publication of the results.

In the short term, railway undertakings and infrastructure managers should aim at reducing delays at border crossings for freight traffic to the time needed to change locomotives and crews. In 2000, the Commission will consult interested parties on initiating the monitoring of delays.

6. Few railway operations are carried out at national borders, other than those needed to transfer a train from one network to another. Borders are not the origin or destination of trains and marshalling yards are generally, but not always, situated well inland. Technology now makes it possible to eliminate stops at borders, which would greatly improve efficiency of service. Multi-current locomotives can operate over several networks without a heavy cost penalty. Procedures can be simplified and conducted through information technology (and sometimes performed inland where the service is interrupted for other reasons). Drivers can be trained to work over several rail systems. Railway undertakings and infrastructure managers should therefore plan the elimination, in the medium term, of stops at borders throughout the trans-European network. The only exception would be when this seriously raises the cost of a service without a compensating increase in its commercial attraction.

In the medium term, railway undertakings and infrastructure managers should aim at eliminating stops at borders. Depending on progress made, the Commission will decide whether to mandate the preparation of specifications for simplified procedures for transferring trains between networks without stops at borders.

B. INTEROPERABILITY AT PRESENT

B.1 EXISTING ARRANGEMENTS

7. Since the last century the railways have operated passenger carriages and freight wagons across national borders throughout Europe. This was achieved through action by the railways rather than governments [4]. They mandated their association, the International Union of Railways (generally known as UIC [5]), to make recommendations on the technical compatibility of equipment and on operational aspects of international services. These "in house" standards were drafted by experts from member railways and set out in UIC leaflets.

[4] In the late nineteenth century, various European governments did launch a process of technical harmonisation. This was superseded in practical terms by the work of the railways' association.

[5] Union Internationale des Chemins de Fer

8. There are agreements between the railways on the interoperability of passenger carriages and of freight wagons, the Regolamento Internazionale Carrozze and Regolamento Internazionale Veicoli (generally known as the RIC and RIV respectively) [6]. Under these, each network accepts a vehicle when its construction complies with a number of UIC leaflets. The RIC and RIV agreements allow the interoperability of accepted and registered vehicles throughout Europe. In addition, the agreements define the responsibility of networks for other aspects of international operations. Acceptance of vehicles under the RIC and RIV is the responsibility of the railways, there being one registering railway in each country. The agreements were an important step towards interoperability and the UIC leaflets a major attempt at harmonisation.

[6] Regulations covering the reciprocal use of carriages and brake vans in international traffic (RIC); Regulations covering the reciprocal use of wagons in international traffic (RIV).

9. While these arrangements have made possible the interoperability of passenger carriages and freight wagons and contributed to the excellent safety record of rail transport it is questionable whether they will let the railways to meet the challenges posed by new technology, rising expectations about services and political and economic changes. Signalling is one important example. The Community's railways have invested in different, incompatible electronic signalling systems - sixteen of them. Incompatibility of signalling systems is one reason why locomotives are changed at frontiers. This raises costs as they have to travel to border crossings and await trains, an unproductive use of valuable resources, and lowers reliability as a delay at one point has knock-on effects on the whole service. Alternatively, locomotives or multiple units [7] are loaded with the equipment needed to operate on several networks. The Thalys high-speed train sets, for example, carry up to six sets of signalling equipment; again this increases costs and reduces reliability. It took a Community initiative to bring the railways and the equipment industry together to prepare specifications for the next generations of signalling systems, the European Rail Traffic Management System.

[7] Set of specialised passenger carriages with its own tractive power, designed to be operated as a unit.

10. Another challenge is to exploit the potential of information technology in international transport. As explained in section E, all railways have deployed information technology (IT) systems for traffic management, customer services and administration, but have not achieved a full, reliable exchange of information between national systems. A limited exchange of information is possible but interfaces between IT systems remain incomplete. Among other things, this complicates and raises the cost of international services and makes it difficult to meet demand from customers for value-added services.

11. Commercial pressure is forcing the railways to cut procurement costs and give the equipment industry greater responsibility for research, development and design. It is also making them abandon the traditional practices of specifying design rather performance, of having equipment built specially for one railway and of developing railway-specific technology rather then using what the market offers. Consequently, there is no justification nowadays, if ever there was one, for not bringing the railway equipment industry and companies in other sectors that offer innovative and efficient solutions into the process of setting standards. Moreover present arrangements do not put sufficient pressure on the railways to find solutions. Decisions are taken by consensus and lack of market pressure may lead to long drawn-out negotiations on standards or failure to achieve useful agreements. It is necessary to speed up the process, to match the changes taking place in the transport market.

12. A related issue is responsibility for assessing conformity with the RIC and RIV. At present the railways themselves do this and, in some cases, also assess whether infrastructure and rolling stock meet national requirements [8]. However, this arrangement dates from the days when railways were monopolies, organised strictly on national lines and buying from national suppliers. Conformity assessment should now be brought into line with Community principles. It should guarantee non-discrimination and fair treatment of all railway undertakings and suppliers whether established companies or new entrants. Methods and deadlines should be clearly defined and duplication of tests avoided. Assessment should be done by independent bodies with no interest in the results.

[8] In the last few years, some Member States, like Germany and the United Kingdom, have given responsibility for safety regulation to independent bodies.

B.2 HIGH SPEED DIRECTIVE

13. Increasing technical sophistication has widened technical divergence, first with electrification and then with electronic signalling and data exchange. The introduction of high-speed rail presented a great challenge. It would be absurd for high-speed trains to stop at frontiers in order to change locomotives but, in any case, this would be impossible because they were designed as multiple units. In 1996 the Council adopted a directive on the interoperability of the European high-speed system, based on Article 156 of the Treaty. Its aim is to advance the interoperability of the high-speed network and to open up the market for railway supplies. The directive establishes processes for the setting of technical specifications for different sub-systems (Technical Specifications for Interoperability or TSI) and for drafting detailed European standards for "interoperability constituents" of sub-systems [9] when needed to make a TSI operational. It also provides for independent assessment of conformity and for mutual recognition of certification. Respect for the TSI is obligatory throughout the high-speed network. Specifications are now being drafted and should be presented in 1999.

[9] Components, groups of components and complete assemblies with sub-systems, on which interoperability depends, directly or indirectly. See Article 2 (d) of high-speed directive.

14. The high-speed directive remedies weaknesses of the traditional arrangements. It ends the effective delegation to the sectoral association by giving responsibility for ordering and adopting specifications to the European Community. It gives the task of preparing TSI to a body jointly representing the railways, public transport operators and the railway equipment industry, the European Association for Railway Interoperability (generally known as the AEIF [10]). The European standards for constituents of sub-systems are drafted by CEN, CENELEC or ETSI as relevant. These mechanisms should ensure that differences between the major railways are resolved, and that specifications are precisely drafted and keep up with technology. Another advance is that the directive makes independent organisations (the so-called "notified bodies") responsible for assessing conformity with specifications and standards. This is a break with the tradition of leaving the task to the railways themselves.

[10] AEIF - Association Européenne pour l'Interopérabilité Ferroviaire.

C. MARKET FOR RAILWAY EQUIPMENT

15. Political, technical and economic factors have maintained a segmentation of the market along national lines. Many Member States have followed a policy of promoting national companies and the railway sector is a prime example of this. There was an unspoken rule that the railways bought from national suppliers in closed public markets, except when there were no domestic producers. Inevitably technical requirements and designs of equipment, both reflected and reinforced this segmentation. Little exposed to commercial pressures, the railways prescribed very detailed specifications to which national manufacturers built products. This had serious consequences for the sector. Many technical requirements varied from country to country and even within some; they were detailed and went far beyond performance specifications. Technology particular to the sector was demanded rather than that available on the wider market, which slowed innovation and raised costs. Economic characteristics of the market also tended closely to tie railways and suppliers, like the need for compatibility between old and new systems, the necessity of buying follow-on orders from original suppliers, the size and duration of projects and the high sunk costs which deterred new entrants to the industry.

16. In the 1990's, these arrangements came under pressure. The Community adopted legislation on public procurement and on the interoperability of the trans-European high-speed rail system. These will have a positive impact on the market, but only in the medium term. Pressure to buy from national suppliers implies that orders placed with national suppliers will predominate for some time. Nevertheless, the opening-up of public procurement is putting pressure on prices, and Community research initiatives, for instance on signalling and command/control systems and on digital radio, are helping to integrate markets. Another force for change is the increasingly commercial orientation of the railways. This pushes them to cut procurement costs, so allowing producers to enter previously closed markets and giving the equipment industry greater responsibility for research, development and design.

17. Finally, the equipment industry itself has reacted strongly to changing circumstances. There has been rapid concentration, through mergers and take-overs by the major companies, in an attempt to access closed markets and gain economies of scale. Four major companies, "systems integrators", have emerged. Generally, they have clear national identities and dominate their national markets, but have production facilities in a number of Member States. Under pressure to contain costs and reduce overcapacity in manufacturing, the system integrators are standardising product ranges within the company, offering financial incentives to clients to purchase off the shelf equipment modified to meet their needs. The shape of the industry, however, is still fluid. Its structure is changing fast and the last years have seen consolidation on a large scale.

18. Despite these changes, the bigger national markets remain largely closed, mainly because of an unwritten rule that preference be given to national suppliers. For various sub-systems and constituents, the national railways' requirements reinforce the segmentation of the market. The railways have failed to agree on new specifications, or apply existing ones fully, for example in the field of information technology. Technical harmonisation, under the directive on interoperability described in the next section, would substantially contribute to the realisation of a single market for railway equipment, although it is no substitute for effective changes in public procurement practices. Many Member States have yet to give the railways the freedom to take procurement decisions on a commercial basis and still protect national producers.

D. CENTRAL PROPOSAL: DIRECTIVE ON CONVENTIONAL RAIL

D.1 PROPOSAL IN GENERAL

19. The Community must tackle the differences that divide conventional systems, in order to improve the competitiveness of international services and to help create a single market for railway equipment. The Commission believes that this should be done by extending the process established for the high-speed system to conventional rail, with changes to reflect its specific features. It therefore presents with this communication a proposal for a directive on the interoperability of conventional rail, based on the high-speed directive.

20. There are two major reasons for building on the directive adopted for high-speed rail. The first is that the process of harmonisation it establishes has major advantages over the present arrangements. The second is that the distinction between high-speed and conventional rail is neither clear nor rigid. Long distance passenger trains often share the same technology and designs; the emergence of tilting trains and other multiple units for long distance passenger transport further blurs the difference. TSI and the supporting European standards drafted for one system can be extended to the other, though in some cases there may be a need for different levels of specification to avoid unnecessary costs.

21. It is worth clarifying that these TSI, and consequently supporting European standards, would be obligatory throughout the network for new material in two ways. First a Member State would have to ensure that a sub-system was only put in service or operated if it respected the relevant TSI, and that an interoperability constituent was only put on the market if it respected the relevant European standard. Second a Member State could not prohibit the placing in service or operation of a sub-system that conformed with the TSI or the marketing of a constituent that met the supporting European standard. However, the directive would not create an obligation to bring existing infrastructure or rolling stock up to the level of a Community specification.

22. The directive on conventional rail should have a structure very similar to that of the high-speed directive. A number of adaptations are needed, however, to take account of the differences between the high-speed and conventional systems. The scope of the directive on conventional rail is the first adaptation. Following Articles 154 and 155 of the Treaty, the directive should cover the conventional rail TEN, as defined in the Community guidelines. The network includes the main international lines, as well as some of lesser importance at Community level. Another difference is that of the sub-systems for which TSI should be prepared and adopted. In addition to the subsystems of the high speed directive, the conventional directive should contain a sub-system for information and communications technology for passenger and freight transport, in the first place to facilitate solutions to the problems of integrating international freight transport and of developing value-added services for shippers and forwarders.

D.2 DEFINITION OF PRIORITIES

23. Conventional rail is an old system. There exists a huge legacy of infrastructure and rolling stock built to national specifications. As a general rule, accelerating renewal would impose heavy costs on railway undertakings and infrastructure managers, and would burden the public finances of Member States, without corresponding benefits. Harmonisation must therefore be concentrated on the sub-systems and interoperability constituents where it will give substantial benefits in the medium term, but not load the railways with a financial burden that would frustrate their efforts to raise competitiveness. Priorities will have to be set carefully, when choices about harmonisation are made. The proposed directive on conventional rail clearly recognises this necessity and would create mechanisms for defining priorities. Under the directive, the Commission and the regulatory committee (like the "Article 21" committee of the high-speed directive) would draw up a work programme that sets priorities, before preparation of the TSI begins. The directive would state the priorities for the first work programme which would be those set out in section F. Then, at an early stage of work on a TSI, a preliminary cost-benefit analysis would be made of the different technical solutions available, before detailed work on the specification begins.

24. For the Community to reap full benefits from harmonisation, priority should be given to introducing such equipment where it would do most to raise the performance of international services. The Commission's study identified the international markets in which rail could be expected to compete with other modes, if its performance matched theirs: international passenger services between large cities and international rail freight on major corridors. Priority should be given to the extension of interoperability, and the integration of services, on the links carrying the main international flows of traffic. In the case of freight this means giving priority to the Trans-European Rail Freight Network, to which the Commission is proposing open access for operating international services as this is vital for the revitalisation of rail freight. Decisions on the investments required are primarily the responsibility of railway undertakings, the infrastructure managers and Member States. However, it is important that they take full account of the European dimension. The revision of the TEN-T guidelines could be an occasion to define the Community's role in guiding and supporting the extension of interoperability.

D.3 PREPARATION OF SPECIFICATIONS

25. Like the high-speed directive, the directive on conventional rail should give a joint representative body general responsibility for drawing up TSI to the order of the Commission. This would bring together the main interested parties and ensure the coordination of work on high-speed and on conventional rail. The simplest solution would be to extend the role of the European Association for Railway Interoperability (AEIF) from high speed to conventional rail. To maximize confidence in this process of harmonisation and commitment to its success among the different actors, the drafting of TSI for conventional rail must go faster than that of specifications for the high-speed system.

26. Among other things this means that the AEIF must have the structure and resources needed to do the job. At present it is loosely organised and does not have full time staff; it needs a strong, permanent organisation with adequate human resources. Such changes are already planned, with the support of the Commission. The joint representative body includes the railways and the railway equipment industry and therefore usually represents the parties with an interest in the preparation of a TSI. However, in several cases, the AEIF does not represent all interested parties nor necessarily possess all the knowledge required for instance the qualifications of train crews and noise emissions; other parties have a valid interest and contribution to make, like the social partners and environmental groups. Also companies not specialised in railway equipment could offer valuable technology developed for other markets, like computer and telecommunications hardware and software. The proposed directive therefore allows responsibility for the preparation of TSI to be given to other bodies than the joint representative body, although generally joint representative body would be mandated.

E. PRIORITIES FOR HARMONISATION

27. On the basis of its study, the Commission proposes the following priorities for harmonisation, which would be written into the first work programme adopted under the directive on conventional rail. The first is signalling and command/control systems. A major obstacle to the interoperability of locomotives and multiple units is the incompatibility of signalling and command/control systems [11]. The introduction of electronic signalling systems has created a new barrier over the past decades. Sixteen incompatible systems are now used, so locomotives used on several networks have to be fitted with the equipment required to operate on each, increasing costs and reducing reliability. To overcome these divergences and exploit progress in information technology, the Commission supported the development of European Rail Traffic Management System project (ERTMS). One element of this is the European Train Control System (ETCS). It can be introduced directly as the sole form of signalling, but can also be deployed without making existing national systems immediately obsolete. A second element is the new standard telecommunications carrier suited to the railways. The Global System for Mobile Communication - Railways (GSM-R) is intended to create a unique telecommunications system for the sector, capable of handling all different applications and so allowing the replacement of a myriad of analogue systems dedicated to specific functions by a single, digital platform.

[11] The term is used to include automatic train protection and control systems (ATP and ATC)

28. The success to date of the ERTMS projects shows that a common solution can be found, when the Community provides guidance and support. The AEIF is drawing up TSI based on ERTMS for the high-speed system that it will present with the other TSI late this year; the Commission will then propose them for adoption. The same approach should be followed for the conventional network. In the meantime, infrastructure managers and Member States should only invest in signalling systems based on ERTMS.

In 2001, the Commission will propose a mandate for the joint representative body to prepare specifications for signalling and command/control systems for conventional rail, based on ERTMS.

29. Data exchange, information technology and telecommunications. When trains cross borders, the railways exchange the information needed for operations and for customer services; this is particularly important for freight traffic. Over the past three decades, all railways have deployed computer-based IT systems for traffic management, administration and customer services. Unfortunately none have the same system, nor is there yet seamless and reliable exchange of information between national systems. A limited exchange of information is possible but, despite a decade of development, interfaces between the railways' IT systems are still incomplete. Consequently, when one railway transfers a train or vehicles to another at the frontier, it usually presents a set of paper documents. This can seriously delay freight traffic at borders. Moreover, in addition to the cost and risk of error, opportunities are being lost to develop the increasingly complex services that customers demand, and other modes of transport offer. Shippers and forwarders now demand tracking and tracing of freight consignments, as do the owners of private wagons, which carry around half of freight traffic. Respect of precise schedules for delivery and real-time information on location of consignments is essential for an efficient supply chain. It also permits much more efficient utilisation of assets, like wagons, terminals and trucks. Many truck companies can tell their customers where their consignments are, when they ask, as can the North American railways.

30. The Commission intends to propose a mandate for the preparation of specifications for procedures at border crossings, the interconnection of railway IT systems and their interface with other modes [12]. These specifications should have growth potential and open architecture to allow the introduction of new technology and the development of new customer services; they should also take account of the needs of new entrants to the rail transport market. In the mandate, the right balance has also to be struck between technical harmonisation and leaving the market free to offer new solutions. Besides, over time the development of satellite navigation should provide tools for a wide range of operational and logistic services, such as fleet management and tracking and tracing [13].

[12] To prepare the ground, the Commission is ordering a study on the exchange of operational data when freight trains cross borders.

[13] Communication from the Commission "Galileo: involving Europe in a new generation of satellite navigation services". COM (99) 54 final 10.2.1999.

In 2001, the Commission will propose the preparation of specifications for procedures at border crossings, the interconnection of railways IT systems, and their interface with other modes.

31. Rolling Stock. The proposed directive would prevent Member States from refusing rolling stock that met Community specifications. This obligation would take precedence over the provisions on acceptance of vehicles in the RIC and RIV. The directive would also create a process for drafting and adopting Community specifications and standards so that the UIC code referred to in the agreements would no longer determine the characteristics of interoperable passenger carriages and freight wagons. To implement the directive, the Commission will propose a mandate for the AEIF to prepare specifications for the interoperability of rolling stock, to be followed by the drafting of the European standards required. Specifications developed for the high-speed system or UIC recommendations would be drawn on when appropriate. (It should be noted that parts of the RIC and RIV do not concern acceptance of vehicles but other aspects of international operations, outside the scope of the directive.)

In 2001 the Commission will propose a mandate for the joint representative body to prepare specifications for the interoperability of passenger carriages and freight wagons. It will also propose a mandate to assess what specifications for multiple units and locomotives may be needed.

32. For passenger rolling stock designed only for use on domestic routes, the capacity for safe and uninterrupted movement across frontiers is not relevant. There is no point in making them interoperable. The aim is rather to integrate the market for new equipment and to create, over time, one for used rolling stock. This would bring down prices, enhance the competitiveness of the equipment industry and facilitate entry into the rail transport sector. Several issues need to be considered before deciding on policy in this area. First, the Community can approach harmonisation of such rolling stock in different ways. One is to start with Community legislation; another is to promote initiatives by the interested parties to agree on common requirements. For instance, in the case of light rail the Commission is supporting an initiative by the associations of public transport operators and of railway equipment producers to harmonize the key system interfaces and safety requirements [14]. The results of the exercise could be then introduced into legislation and form the basis of Community specifications, if considered desirable. A second issue is the form of legislation: this should be adapted to the aim of creating a single market, rather than interoperability and could perhaps have a simpler structure than the proposed directive on the interoperability of conventional rail. Another question is how best to provide for assessment of conformity by independent bodies and for mutual recognition of assessment.

[14] Mass Transit Rail Initiative for Europe (MARIE), supported by the Commission, is an initiative of the Union of European Railway Industries (UNIFE) and the International Association of Public Transport (UITP). As well as design criteria, the initiative covers life cycle costs, contractual terms and conditions and financial engineering.

In 2001 the Commission will report on the creation of a single market for passenger rolling stock designed only for use on domestic routes.

33. Noise. Railway lines pass through densely populated areas and consequently citizens are exposed to unacceptable levels of noise. Their main concern is about disturbance of sleep at night caused by the operation of freight trains and by marshalling of wagons in terminals. There are two distinct problems: emissions by new wagons and those by the huge stock of vehicles in service throughout the Community. These last a long time and are replaced slowly, so any solution has to take account of the existing fleet.

34. Policy on railway noise has to reconcile several objectives. On the one hand citizens must be protected from disturbances; this is an important environmental goal. On the other, it is necessary to maintain the free circulation of railway wagons and hence of goods throughout the Community, and ensure a single market for these wagons. If a Member State were to impose its own noise standards on freight wagons, this would hinder free circulation. Also, the most efficient mix of measures has to be found, whether technical like measures to quieter vehicles and track noise barriers of different kinds, operational like restrictions on speed or the use of certain lines, or economic like charges. This is complicated by the division of responsibility among different actors.

35. For the Community, reducing emissions at source is the first priority. This should be tackled in the context of general Community policy on noise. Following its Green Paper on future noise policy [15] the Commission has launched a far-reaching programme, beginning with technical work on indicators, methods of measurement, mapping and abatement measures. It considers that it is time to begin work on emissions of railway noise and plans to establish a working group. This would carry out the technical work needed to propose Community limits on emissions, covering measurement methods, limit values, costs and benefits, financial implications and so on. The working group would consist of representatives of the Member States, environmental bodies, the railways and the railway equipment industry. Its work would then serve as a basis for the drafting of Community specifications under the directive on conventional rail.

[15] Green Paper on Future Noise policy COM (96) 540 final, 4.11.1996.

In 2000, the Commission will launch technical work on emissions of railway noise, through a working group.

36. As said, a particular problem is the large stock of freight wagons that will remain in service for several decades. A possible solution would be to fit wagons with quiet brake shoes instead of the traditional iron blocks, though this also involves the replacement of wheels and axles [16]. At the usual rate of replacement, it would take around fifteen years to retro-fit the whole stock and emissions would be roughly halved. It should be possible, however, to concentrate efforts where the problems are worst, so that reductions in nuisance are achieved early; and the possibility of accelerating of retro-fitting should be considered by all the interested parties, though this should not reduce the competitiveness of rail freight. Such a programme must be carefully discussed with the representative bodies of the railways and of private wagon owners.

[16] With the present generation of quiet brake shoes, wheels have to be replaced; research is being done on quiet shoes that would not require their replacement.

37. Qualifications and working methods. The usual practice of railway undertakings has been, and largely remains, to change train crews [17] at frontiers or close to them. It is rare that crews work across borders, although it happens. If international rail transport is to be competitive, railway undertakings must be able to use their crews as productively as possible, while respecting rules on working time, in order to provide services of the quality that the market demands. In some cases it will be more efficient to change a crew at the frontier, in others to employ it to drive across the border within the limits of working time. The interoperability of train crews raises several issues: the additional knowledge needed to drive across borders; health and age requirements and working methods.

[17] « Train crew » principally means the driver but also any other member of staff involved in operation of the train.

38. A driver working across borders needs additional knowledge, essentially of languages, of signalling and operating rules and of the route. Knowledge of languages is a particularly serious barrier, as traditionally the railways did not take it into account when recruiting. In general, crews need one additional language, because the distances they can work across borders are limited by working time. Each railway has its own signalling system and operating rules and each route has unique geographic characteristics. A driver has to act rapidly under emergency conditions, and so needs thorough knowledge of the signalling and operating rules of different networks and of the route worked. At present interoperability across national frontiers is subject to bilateral agreements, with the host railway undertaking or infrastructure manager responsible for training and qualification. The social partners are studying the qualifications needed for cross-border operations; the Commission will take full acount of this when considering the measures needed.

In 2000, the Commission will launch a study of the qualifications required for cross-border operations by train crews and the certification of competence, in consultation with the social partners.

39. Conformity assessment. Traditionally the railways not only set their own standards but also assessed conformity with them. This arrangement has definite drawbacks: assessment can take too long, methods do not keep up with technology, and duplication of tests occurs. Nor do the present arrangements guarantee objectivity and fair treatment of all railway undertakings and producers of equipment, whether newcomers or incumbents. The high-speed directive gives responsibility for conformity assessment to the independent "notified bodies". The Commission considers that these "notified bodies" should be given responsibility for conformity assessment for conventional rail, because often there is no clear distinction between equipment for high-speed and for conventional rail and the same principles apply. The high-speed directive provides for co-ordination of the notified bodies. It is an open question whether this mechanism will prove adequate or whether more will have to be done. One option would be to create a European Co-ordination Body responsible for comparison of methods and recommendations for further harmonisation. This should be considered when experience has been gained of the working of the notified bodies.

40. In some areas, like testing for fitness for use on different lines, national requirements will continue, while in others there will be a transitional period until the adoption of Community specifications and standards. For example, under the RIC and RIV, one "registering railway" in a Member State decides whether a vehicle complies with the UIC code and registers accepted vehicles. However, this process does not guarantee fair treatment of all operators of vehicles or producers of equipment. Consequently, responsibility should be given to the notified bodies for certification of conformity of vehicles with national rules and requirements current in the Community (i.e. the relevant UIC leaflets). As for the registration of wagons used in international transport, this should be done by independent bodies. The Commission will launch a study on registration systems throughout the Community and on the need for common rules, to ensure mutual recognition and fair treatment.

In the directive on conventional rail, the Commission proposes that responsibility be given to the notified bodies for the assessment of conformity not only with Community specifications and standards, but also with national rules and with requirements current in the Community.

41. In the railway sector, assessing conformity is not simply a matter of testing prototypes under laboratory conditions or on test sites. Different tracks and signalling systems have their own specific characteristics, so rolling stock may have to be tested on the infrastructure over which it will operate, under normal working conditions. An example is testing for electro-magnetic incompatibility between certain types of electric motor and of signalling equipment. Such tests have to be carried out by the railway undertaking or infrastructure manager directly concerned, but should not be more onerous than necessary and must be transparent and non-discriminatory. To ensure this, Community guidelines on testing under operational conditions may be needed.

In 2001, the Commission will propose a mandate for the joint representative body to assess whether guidelines for testing railway equipment under operational conditions are needed.

42. Mutual recognition of maintenance and repairs is important for the free circulation of vehicles throughout the Community, in particular freight wagons. The owner of a wagon should be free to chose between having work carried out in the Member State where it is registered or in that State where it happens to be when work is needed; otherwise the owner is obliged to bring the wagon back specially to the State of registration. This implies mutual recognition of maintenance and repairs, which would involve, for instance, common specifications or standards for components, including spare parts, for maintenance and repair procedures and for accredited workshops. The present set-up is criticised, for example by owners of private wagons, on the grounds that owners are obliged to have work done in the State of registration and to meet a number of different requirements. Work on solutions should involve both the AEIF and owners of private wagons.

In 2001, the Commission will propose a mandate for the preparation of the specifications and procedures required for mutual recognition of maintenance and repairs.

F. LONGER TERM ISSUES OF HARMONISATION

43. Regulation of safety. The Community's aims should be to maintain the enviably good safety record of rail transport, while minimising that safety regulation may create the obstacles to interoperability and the integration of the equipment market. Another equally important aim is to ensure that safety regulation is transparent and non-discriminatory, so that all railway undertakings are treated equally. Also there may be scope for convergence between national approaches to safety regulation, which would help achieve these aims. The Commission has launched a study, first, to compare how safety regulation is organised in different Member States and, second, to make recommendations on convergence of policy and on fair and open processes. This will be completed in 1999. More detailed work may then be needed on the impact of operating rules and safety procedures on interoperability.

44. Electrical systems. Currently five different electric systems co-exist in the Community. This usually oblige railways to change locomotives at frontiers. There was some use of multi-current locomotives but, until a short time ago, they still represented a costly technical challenge and their reliability was not always satisfactory. Technology has advanced, however, and Community railways have recently placed substantial orders for multi-current locomotives and tractive units. They can now make a choice between using multi-current locomotives or changing at the frontier on commercial and operational grounds. This further weakens the case for general harmonisation of electrical systems throughout the Community. It would be an immensely expensive and disruptive exercise that could not be justified on commercial or cost-benefit grounds. Harmonisation of catenary geometry [18] and pantograph width is a different matter. These vary considerably so that a locomotive may require several pantographs to work international routes. Harmonisation could give substantial benefits at reasonable cost.

[18] The lines to be followed by an overhead contact line hanging between its supports.

In 2002, the Commission will propose a mandate for the joint representative body to assess whether harmonisation of catenary and pantograph design would be justified.

45. Loading, structure gauge and other parameters [19]. These gauges are sufficiently close to allow passenger trains to circulate throughout most of Continental Europe [20]. However, structure gauge and other parameters restrict the movement of large freight loads and limit the dimensions of freight trains, preventing improvements in efficiency (length of trains and axle loads are cases in point). General harmonisation of infrastructure to higher specifications, as opposed to selective improvement when economically justified, would be astronomically expensive, as tracks, bridges and tunnels would have to be reconstructed. Nevertheless, the construction of high-speed lines gives an opportunity to dedicate other lines to slower traffic. The possibility of a network, or a set of routes, that meets the requirements of international freight will be discussed in the revision of the guidelines for the TEN-T; this will also be an opportunity to identify the bottlenecks in the conventional network. There is also the question of whether further harmonisation of infrastructure parameters of such lines would be justified and of the most suitable specifications to employ. The Commission intends to mandate the AEIF to assess whether further harmonisation of infrastructure would be justified to raise the efficiency of freight traffic.

[19] The loading gauge and maximum axle load determine the maximum dimensions of rolling stock. The structure gauge defines the space above and around the track needed for rolling stock of given dimensions to clear safely fixed installations.

[20] Track gauges are a different matter. Most of Europe uses standard gauge, but Spain, Portugal, Finland and Ireland employ various wide gauges, as do the Baltic States.

In 2002, the Commission will propose a mandate for the joint representative body to assess whether further harmonisation of infrastructure would be justified to raise the efficiency of freight traffic.

G. INTEROPERABILITY BEYOND THE COMMUNITY

46. The European railway system does not stop at the borders of the Community. It extends to the countries of Central and Eastern Europe and is linked to those of the Middle East and North Africa. Harmonisation of specifications over this whole area would benefit all the countries concerned, as would mutual recognition of conformity assessment with them. Harmonisation would have a greater chance of success, if based on work already being done at international level. The Community can make a unique contribution, as it has competence to act at international level in this field. It will adopt specifications for high-speed and conventional rail that could form the basis for wider harmonisation, and establish a system of mutual recognition of conformity assessment. The candidate states will align on Community specifications and, once members, take part in the harmonisation process, like other Member States. Interoperability with the Swiss rail system can be ensured through the agreement between the European Community and the Swiss Confederation on carriage by rail and road.

47. The question is how to include in the interoperable system all the countries of Europe, the Middle East and North Africa, through a legal framework that would bind all states to applying the same specifications and to mutual recognition of conformity assessment. The process should be as simple and economical as possible, so specifications must be based on those already drafted or agreed at international level, above all those coming from the Community. At the same time it should protect minorities of countries against the imposition of unsuitable specifications.

48. The Convention concerning International Carriage by Rail (generally known as COTIF - Convention relative aux transports internationaux ferroviaires) could offer the right framework as its members includes forty countries in Europe, the Middle East and North Africa, among them all Member States. This intergovernmental convention presently covers liability, contracts, and the transport of dangerous goods, but was revised at a general assembly in June 1999. One result of the revision is to extend its scope to legal adoption of technical specifications and to rules on mutual recognition of conformity assessment for equipment used in international transport. The revised text states that specifications must be based on those already drafted or agreed at international level and that the usual voting rules, which allow a quarter of members to block decisions, should also apply to votes on technical specifications. This approach should advance harmonisation simply and effectively, while protecting members' rights. The revised COTIF allows for international bodies, such as the European Community, to become members of the Central Office for International Carriage by Rail (generally known as OTIF [21]), the organisation created by the convention. Membership would allow the Community strongly to influence decisions on technical harmonisation. On the basis of an assessment of its best interests, the Community should take a decision on membership during the period of ratification, which is likely to take until late 2003.

[21] L'Office central des transports internationaux ferroviaires.

The Commission will study the case for Community membership of the Central Office for International Carriage by Rail (OTIF) and present its position in 2001.

WORK PROGRAMME

49. This summary brings together the proposals for action made in the communication on integrating conventional rail systems. The central proposal of this communication, a directive on the interoperability of conventional rail, would contribute to both the extension of interoperability and the integration of the equipment market. As technical harmonisation is a lengthy process and resources are scarce, the Commission believes that preparation for the implementation of the directive should begin at an early stage. This would give an impetus to work on the integration of conventional rail systems, as it did to that of high-speed.

50. Integration of services

In the short term, railway undertakings and infrastructure managers should aim at reducing delays at border crossings for freight traffic to the time needed to change locomotives and crews. In 2000, the Commission will consult interested parties on initiating the monitoring of delays.

In the medium term, railway undertakings and infrastructure managers should aim at eliminating stops at borders. Depending on progress made, the Commission will decide whether to mandate the preparation of specifications for simplified procedures for transferring trains between networks without stops at borders.

51. Priorities for harmonisation

In 2001, the Commission will propose mandates to the joint representative body for:

- the preparation of specifications for signalling and command/control systems for conventional rail, based on ERTMS;

- the preparation of specifications for the interoperability of passenger carriages and freight wagons;

- assessment of what specifications for multiple units and locomotives may be needed;

- assessment of whether Community guidelines for testing railway equipment under operational conditions are required.

In 2001 the Commission will also propose mandates for:

- the preparation of specifications for procedures at border crossings, the interconnection of railway IT systems, and for their interface with other modes.

- the preparation of the specification and procedures required for mutual recognition of maintenance and repairs.

In 2000, the Commission will launch preparatory technical work on emissions of railway noise, through a working group.

In 2000, the Commission will launch a study of the qualifications specifically required for cross-border operations by train crews and the certification of competence, in consultation with the social partners.

In the directive on conventional rail, the Commission proposes that responsibility be given to independent "notified bodies" for the assessment of conformity not only with Community specifications and with standards, but also with national rules and with requirements current in the Community.

52. Longer term issues of harmonisation

In 2001 the Commission will report on the creation of a single market for passenger rolling stock designed only for use on domestic routes.

In 2002, the Commission will propose mandates to the joint representative body for:

- assessment of whether harmonisation of catenary and pantograph design would be justified.

- assessment of whether further harmonisation of infrastructure would be justified to raise the efficiency of freight traffic.

53. Interoperability beyond the Community

The Commission will study the case for Community membership of the Central Office for International Carriage by Rail (OTIF) and present its position in 2001.

Proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the interoperability of the trans-European conventional rail system

EXPLANATORY MEMORANDUM

JUSTIFICATION IN TERMS OF SUBSIDIARITY

a) What are the aims of the intended activities as compared with the Community's obligations-

The aims of the activities lie in the creation of a regulatory framework which contains mandatory technical specifications for interoperability (TSI) and harmonised standards for the purpose of ensuring interoperability on the trans-European network, while helping to open up transport service and equipment contracts and enhance the competitiveness of the railway sector overall.

b) Do the intended activities fall within the exclusive competence of the Community or within a competence that is shared with the Member States-

The activities in question are a matter of shared competence in accordance with Article 155 of the EC Treaty.

c) What is the Community dimension of the problem (for example how many Member States are involved and what solution has been applied so far)-

The Community dimension is the outcome of the master plan for the trans-European rail network which concerns all Member States. Hitherto interoperability has not been achieved by each Member State individually.

d) Comparatively speaking is the Community or the Member States approach more efficient-

Whether by intergovernmental agreement or standardisation the Member States are not in a position to provide the technical, operational and regulatory conditions needed for interoperability.

e) What practical added value do the intended Community activities provide and what would be the cost of inaction-

At the moment it is only possible for trains to make cross-frontier journeys by changing locomotives and personnel, following procedures for inspection and exchange of documentation, juxtaposing national operating techniques and rules and complying with all of the national regulations, depending on the case. This may lead to a deterioration in the service and/or excessive investment costs for those links. The Community action will, in the medium to long term, permit a substantial improvement in the quality of the service and a reduction in the costs of those links since it simplifies and eases access to the network and enables both operators and the industry to achieve economies of scale.

f) What forms of action is the Community able to take

The Community is able to prompt standardisation, harmonise essential requirements and adopt measures to implement the technical parameters.

The Member States have national laws based on differing philosophies of safety, health, consumer or environmental protection, reliability/availability and technical and operational compatibility. Operators must work to differing mandatory technical parameters. An adequate level of interoperability requires harmonisation of the basic parameters that guarantee the necessary technical, operational and regulatory conditions.

g) Is a uniform body of regulations needed or would a directive laying down general aims and transferring implementation to the Member States be sufficient-

The proposed Directive lays down general aims and a uniform framework as regards the essential requirements to be met by the system, the role of the Member States in putting subsystems into service, the role of the independent bodies responsible for assessing the conformity of constituents and verifying subsystems. The directive also lays down the rules governing the development of the TSI to be observed whenever something new is put into service.

Harmonisation covers both the essential requirements and the technical specifications for interoperability and leaves the implementation to the Member States and the European standardisation.

INTRODUCTION

1. The gradual building up of the trans-European conventional rail network starting from existing or planned national networks requires interlinking and interoperability from infrastructures, fixed equipment, logistical systems and rolling stock.

2. Hitherto each network had been operated and trains had been moved within the national frontiers on the basis of and in compliance with regulations and technical and operational requirements that differed and were very broadly incompatible from one Member State to another. This is particularly the case as regards safety, the environment, the physical characteristics of infrastructures and in particular loading gauge, electricity supply systems, signalling and the control/command of traffic movements together with the operating rules.

3. The outcome is that the Member States have not been in a position individually to take the steps that would permit interoperability of the trans-European conventional rail network.

4. All these reasons together led the Commission to announce, in its 1996 White Paper "A strategy for revitalising the Community's railways", Community action on the integration of national rail networks, at the same time as the Council adopted a directive the provisions of which were intended to provide and ensure interoperability within the European high-speed train network (Directive 96/48/EC of 23 July 1996).

5. Following this White Paper, a study was launched in 1997 which concluded in May 1998 by recommending a strategy and a plan of possible short, medium and long-term actions, the main one being the adoption of a Directive based on the approach followed in the high-speed sector.

6. The communication to the Council and the European Parliament which accompanies this proposal for a Directive highlights the problems in the railway sector stemming from differences in regulations and operational and technical requirements and sets out a number of actions to overcome those difficulties; most of these actions will be carried out under the Directive which is the subject of this proposal.

INTEROPERABILITY AND SUBSIDIARITY

7. As already stressed above the railway network in each country has over the last 150 years been set up as a totally integrated system on the responsibility of one or more national companies to which, against a general legal background, the overseeing authority has delegated very broad authority as regards management, operation and development. The resultant compartmentalisation does not enable the optimal running of trains on the various parts of the network infrastructure that are due to the juxtaposition of the national networks.

8. The cohesion of a network of this type presupposes a sufficient level of harmonisation of:

- in the national regulations, the differences contained in the relevant provisions on, in particular, safety, health, the environment and consumer protection;

- technical and operational characteristics relevant to the interfaces of:

- infrastructures

- power supply and collection systems

- maintenance facilities and procedures

- control/command and signalling systems

- traffic operation and management facilities and procedures

- information and communication systems required for passenger and freight applications

- rolling stock.

9. Moreover, from the point of view of the stock and equipment of all types making up a system, it is necessary that the conditions governing the setting up of an open, competitive market be met.

10. All of the above shows that achieving the objective of interoperability requires harmonisation at Community level.

These activities concern the interfaces between the various parts of the system, the provisions linked with operation and those contained in the national regulations on safety, health, the environment and consumer protection.

These activities give practical shape to the concept of interoperability, the achievement of which requires the provisions of a Community framework. That Community framework should enable a body of essential requirements, in particular at interface level, and procedures to be defined which are to link together all operators involved, i.e. in the first instance the Member States but also economic operators and in particular the infrastructure operators, the railways and the industry which are to cooperate.

11. As in the high-speed rail sector, such a vehicle requires the drawing up, in line with the principle of subsidiarity, of a directive on the interoperability of the trans-European convention rail network. Neither the deliberate preparation of technical standards by the economic operators themselves, nor the mutual recognition of existing national provisions are able to resolve the political and technical problems standing in the way of the integration, coherence and interoperability of a trans-European rail network such as that envisaged.

ARCHITECTURE AND CONTENT OF THE DIRECTIVE

12. This proposal for a Directive has been based as far as possible on the structure and content of the high-speed Directive. However, as explained in the communication, a number of changes have been made. These mainly concerns the geographical (network concerned) and technical (subsystems concerned) scopes, the progressive nature of the imposition of new Community specifications, the adoption of a work programme and priorities for the work of the joint representative body and the committee.

13. As in the case of high-speed trains, the proposal for a Directive on interoperability is the basic component of a three level architecture:

- the Directive proper, with the essential requirements that the system has to meet;

- the technical specifications for interoperability (TSIs);

- all of the other European specifications and in particular the European standards drawn up by the European standardisation bodies: CEN, CENELEC and ETSI.

This architecture is derived from the typical structure of "new approach" directives. These directives define the essential requirements that products must meet when they are placed on the market, but they do not stipulate the technical means to be used to meet these essential requirements. Next, when a European standard which meets these essential requirements is published by the EC, any product conforming to that standard is presumed to meet the essential requirements; however, these standards are not binding. This is one of the reasons why, in the case of interoperability, the intermediate level of TSIs had to be created: to ensure technical compatibility between the various elements of such a complex and interlinked system, it had to be possible to impose a set of specifications, particularly at the level of the interfaces between the elements.

14. The proposal for a Directive considers the trans-European conventional rail network in its entirety and complexity and applies to the infrastructure, fixed equipment, logistical systems and rolling stock and their components which play a critical part in terms of interoperability.

For operational reasons, the overall system has been broken down into subsystems:

- infrastructure;

- energy;

- maintenance;

- control/command and signalling;

- rolling stock;

- traffic operation and management;

- telematic applications for passenger and freight services.

The breakdown of Directive 96/48 has been slightly modified to take account of the conclusions of the abovementioned study. The study recommends that, instead of tackling all the obstacles to interoperability head on, the aim should be to resolve the problems gradually in accordance with an order of priority established on the basis of a cost benefit analysis of each proposed measure; in particular, the harmonisation of the procedures and rules in use and the interlinking of information and communication systems are more beneficial than measures affecting for example the infrastructure gauge.

As in the case of the high-speed sector, the proposal then defines in a general manner, in terms of a mandatory result, the essential safety, health, environmental protection, consumer protection, technical compatibility and operational requirements needed to ensure interoperability of the system.

Where necessary, those essential requirements will be set out in detail for each subsystem in the "Technical Specifications for Interoperability" (TSIs).

15. The technical specifications for interoperability (TSIs) themselves will form the second level of the proposed architecture.

If necessary, the TSI thus set out in detail the essential requirements and determine the constituents and interfaces which play a critical role in relation to interoperability and the procedures governing the assessment of conformity or suitability for use.

The TSIs are drawn up to the order of the Commission by a joint body which is representative of the sector and is made up of experts from the railway companies, infrastructure managers and industry and are then adopted by means of the procedures laid down in the directive.

In the case of the high-speed sector, the European Association for Rail Interoperability (AEIF) was designated by the Directive 96/48/EEC Committee as the representative joint body; the Commission considers that the AEIF could continue to play this role but, as a precaution, proposes that the Committee set up by the directive on the conventional rail system should be consulted on this decision.

16. As in the case of the high-speed sector, the technical specifications needed for the constituents and the conditions at the interfaces that are critical for interoperability will be drawn up by the specialist bodies, particularly as regards European standards by the CEN/CENELEC and ETSI.

In such instances, conformity or suitability for use will be assessed at the manufacturer's request by the bodies that have been identified for that purpose by the Member States and the manufacturer will draw up the EC declaration of conformity in accordance with the conditions laid down in the directive and on the basis of the modules referred to in the corresponding TSI.

As required by Directive 93/38/EEC on the opening up of contracts in excluded sectors, where there is a European specification the assessment must without fail be based on this.

It must be noted here, that, in the case of the railways, the assessment and the absolute conformity of the constituent, considered in isolation, to the relevant technical specifications is not the only aim in view.

Indeed, in numerous cases, it is the assessment of the suitability of use of a component, considered in its railway environment, and in particular together with its interfaces, which must be checked in relation to technical operational specifications. In terms of form, this latter instance does not differ from the previous one and the modules defined in Decision 90/683/EEC are to be used in implementing the procedure, provided that the necessary technical specifications are available.

17. As with the high-speed sector, verification of the conformity of the subsystems with the essential requirements is in line with the TSIs, the procedure defined to that end in the Directive being followed.

That procedure is examined by a notified body at the request of an assessment body which draws up the EC declaration of verification. It is on the basis of that declaration that the Member State concerned authorises the placing in service of the subsystem in question.

It must be stressed here that the suitability of a complex system for delivering a given level of performance is not equal to the sum, extended to all of the constituents, of the individual abilities to meet the performance requirements of each intended use within a subsystem. It is for this reason that each subsystem must be considered as such, including its operation and the more specific instance where it is intended to perform a public service.

18. The notified bodies must meet the criteria set out in the Directive. In the present case of the railways, the role of the approved bodies is assumed by the railways themselves which are therefore both judge and defendant. With the entry into force of Directive 91/440/EEC on the development of a Community railways and the provisions of title XV of the EC Treaty concerning the trans-European network this situation can no longer continue and the designation of notified bodies is required.

At the time of drafting of this proposal, the process of setting up such bodies to verify conformity in the high speed sector has progressed in most Member States; some have already been prenotified or are the subject of a declaration of intent. The Commission considers that for reasons of cohesion and economies of scale, these same bodies could play the same role in the conventional rail sector; however, responsibility for assessing candidates on the basis of the criteria in the directive and for notification remains entirely in the hands of the Member States.

COOPERATION

19. Although cooperation between all those involved, i.e. Member States, railways, infrastructure managers and industry is one of the aims of the Directive and thus forms part of its content, its importance with regard to the setting up of the trans-European networks requires that this should emerge in its own right.

20. Cooperation between Member States takes place, in particular, within the "Standing Committee" set up under the Directive in order to discuss all matters deriving from the implementation of the Directive. This is essential in ensuring an integrated, coherent expansion of the trans-European rail network bearing in mind the increase in the number of railway companies which results not only from the changes already made or planned in several Member States but also the gradual opening-up of the market to new railway undertakings.

At European level there is also an intergovernmental agreement that was signed back in 1882. This is the Technical Unit the most recent decisions concerning which were taken in 1938 and are currently out of date.

Furthermore, not all of the Member States are signatories to the agreement which, moreover, includes non-Member States.

21. There is cooperation between the economic operators - in the main the railways, infrastructure managers and industry - within the joint representative body in order to draw up the technical specifications for interoperability (TSI).

Before the adoption of the Directive on the interoperability of the high-speed network, there had been no cooperation between railways and industry. Only the railways cooperated among themselves within the UIC (International Union of Railways) and via the CCFE (Community of European Railways) on matters linked with Community policy.

Since then, experts from the railway companies, infrastructure managers and industry have been meeting regularly in the working groups set up by AEIF. These experts together have drawn up partial drafts of TSI which are currently before the Directive 96/48 Committee; these drafts are the result of cooperation which was difficult to establish but which now enjoys considerable political support within the various undertakings.

22. Hitherto, questions of technical compatibility, in particular those relating to international movements of passenger coaches and goods wagons, have been covered by UIC notes. However, account being taken of the procedure followed in order to prepare and adopt them, they do not in principle seem able to be used as such under Directive 93/38/EEC. For that to be possible, it would be necessary to convert them into European specifications and in particular, European standards within the technical committees set up by the CEN, CENELEC and ETSI, which constitute another forum for cooperation between the railways, infrastructure managers and industry.

23. Finally, as with the high-speed sector, the proposal for a Directive introduces cooperation between the notified bodies on the assessment of conformity or suitability for use of components and the EC checking of subsystems.

This cooperation is particularly important on the trans-European networks, in particular those carrying passengers, which are very much the responsibility of the States. Indeed, ensuring system interoperability, i.e. ensuring mutual operational links between its various parts or subsystems within a geographical area covering the Community in its entirety and, subsequently, all of Europe within an open competitive market, requires a guarantee of the greatest possible transparency as regards certification.

That transparency can only be effective if the notified bodies are cooperating as vigorously and as closely as possible.

IN CONCLUSION

24. It must be noted from all of the above that the proposal for a Directive on the interoperability of the trans-European conventional rail system constitutes the Community framework needed to allow the creation and operation of a trans-European network that is integrated, coherent and interoperable under optimum conditions of economic efficiency as far as the States, industry and the operators are concerned, without forgetting the essential factor: its users.

COMMENTS ON THE ARTICLES

In view of the above factors the enacting terms of the Directive have been divided up into six chapters.

25. CHAPTER I - GENERAL PROVISIONS

Article 1

This Article concerns the aim of the Directive which consists in achieving interoperability on the trans-European conventional rail system at the various stages of its design, construction, renewal, upgrading, gradual placing in service and operation.

In geographical terms the Directive applies to those railway lines forming part of the trans-European transport network identified in Decision No 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for the development of the trans-European transport network, as set out in greater detail in Annex I of the Directive.

Article 1 also lays down that the "conditions that have to be met to achieve interoperability" (in other words, the TSIs) apply to those elements of the system which will be put into service after the date of entry into force of the Directive: this means that the TSIs do not apply to those elements already in service at the present time, provided that they are not the subject of upgrading or renewal as defined moreover in Article 2.

Article 2

This Article contains a number of definitions. The definitions in Directive 96/48 have been retained as far as possible, for the sake of cohesion.

However, it should be noted that the definition of the term "interoperability" in Directive 96/48 - "the ability of the trans-European rail system to allow the safe and uninterrupted movement of trains which accomplish the expected levels of performance for these lines" - is somewhat restrictive and must cover, in the case of this Directive, the ability to allow:

- easy access to the network;

- operation which is free of technical, operational and regulatory obstacles;

- achievement of the single market in the equipment and services necessary for the construction, renewal, upgrading and operation of the system.

Moreover, four definitions have been added to those from the high-speed Directive: basic parameters, specific cases, upgrading and renewal.

Article 3

This Article describes in detail the scope of the harmonising provisions. These provisions concern only the constituents, interfaces and procedures that are needed and adequate in order to ensure and guarantee interoperability of the trans-European conventional rail network.

Article 4

This Article requires compliance with the essential requirements.

The essential requirements concerning safety, reliability and availability, human health, environmental protection and technical compatibility are defined in general terms in Annex III.

26. CHAPTER II - TECHNICAL SPECIFICATIONS FOR INTEROPERABILITY

Article 5

This article introduces the concept of "Technical specifications for interoperability" (TSI); in particular, each TSI sets out in detail the essential requirements, determines the operational and technical specifications of each subsystem and identifies the constituents which play a critical part in terms of interoperability.

Article 6

This article lays down the procedure to be followed for drawing up, adopting and revising the TSI.

As with the high-speed Directive, the draft TSI are drawn up by the joint representative body.

The new provisions concern:

- the designation of that body in accordance with the procedure referred to in paragraph 2 of Article 21 (Committee);

- the rules to be observed by the joint body, contained in Annex VIII to the Directive, which are based on general Community standardisation procedures;

- the possibility of choosing another representative if the designated joint body fails to comply with the rules in Annex VIII or does not have the necessary authority in the case of a specific TSI. This is a safeguard clause to enable the Committee to pursue its work in the event of any problems; neither the Member States nor the Commission are in a position to dictate the powers and functioning of the joint body;

- completion of the draft TSI in two phases: the first phase sees the adoption of the characteristics of the basic parameters of the TSI on the basis of an economic analysis, and the second the drawing up of the draft TSI proper. Moreover, the joint body must take account of standardisation work already carried out, progress achieved by existing working groups and recognised research; this will make it possible to draw up TSIs on the basis of existing documents and agreements and thus speed up their preparation.

Article 7

This article provides for derogations. In all cases where derogations are requested, the Commission will examine whether the measures proposed by the Member State are justified and take a decision in accordance with the procedure laid down in paragraph 2 of Article 21; if necessary, a recommendation is drawn up concerning the specifications to be applied. This enables the Committee to stay informed on progress with regard to the degree of interoperability of the rail system and to consider alternatives to derogations. Where appropriate it might be expedient to examine the possibility of providing financial support for a proposal by a Member State where its economic viability for the State in question is at risk because of a TSI, but compliance with the TSI is economically justified at Community level.

27. CHAPTER III: INTEROPERABILITY CONSTITUENTS

Articles 8 to13

These articles bring together the provisions which must be met if interoperability constituents are to be used and concern, in particular, compliance with the essential requirements, the European specifications and the resultant standards, assessment of conformity or suitability for use, the use of the EC declaration of conformity, the safeguard clause and the role of the notified bodies.

These provisions are identical to those in the high-speed Directive.

28. CHAPTER IV: SUBSYSTEMS

Articles 14 to 19

This chapter is one of the most specific of the Directive in connection with the interoperability problems facing the trans-European conventional rail system. The constituent articles deal with the assignment of the roles and prerogatives of the Member States, the assessment bodies, manufacturers and notified bodies. They contain provisions concerning authorisations to place in service, the EC verification procedure and the EC declaration of verification as compared with the essential requirements and the TSIs, and the role of the notified bodies.

Compared with the high speed directive, there are two additional provisions:

- in Article 14.2, each Member State is asked to check regularly that the subsystems whose putting into service it authorises are operated and maintained in accordance with the relevant essential requirements. The TSIs contain a number of provisions to be observed after entry into service, whether operating procedures or maintenance operations. As checking compliance with these provisions is not part of the responsibility of the notified body as described in Article 18, it is proposed that it be assigned to the Member States;

- in Article 18.2, the notified body is requested explicitly to verify that the subsystem to be put into service is coherent in relation to the system into which it is integrated. Such verification is implicit since the TSI contains provisions relating to the interfaces between the subsystem to be placed in service and the other subsystems. However, as the TSIs cannot cover all combinations, individual cases, specific cases and the results of any future requests for derogations, this verification of cohesion is extremely important, particularly from a safety point of view.

29. CHAPTER V : NOTIFIED BODIES

Article 20

This article sets out, in detail, the provisions applying to the notified bodies and the corresponding obligations that are incumbent on the Member States. These provisions are identical to those laid down in respect of the high-speed network.

30. CHAPTER V : COMMITTEE AND WORK PROGRAMME

Article 21

As with the high-speed Directive, there is provision for a Regulatory Committee which delivers its opinion before each measure adopted by the Commission.

However, this article has been amended to take account of the new Council Decision (28 June 1999) laying down the procedures for the exercise for implementing powers conferred on the Commission.

Finally, it must be ensured that there is no divergence in harmonisation work between European high-speed and conventional networks, which are in fact superimposed. The trans-European conventional and high-speed networks are in reality inextricably linked and interdependent:

- increasingly "high-speed" rolling stock leaves the "high-speed" network to extend its operating life on the conventional network;

- the part common to the two networks in itself represents a genuine network, made up of new mixed traffic lines; lines upgraded for mixed traffic; common access routes to cities; connecting railways; common tracks in stations for stopping or transit.

For this reason, the Commission is proposing to extend the powers of the Committee set up under Directive 96/48 to conventional rail, rather than set up a new committee.

Article 22

The Committee is asked to draw up a work programme which takes account of the order of priority used to establish its priorities and the steps to be taken.

31. CHAPTER VII : FINAL PROVISIONS

Articles 23 to 26

The articles of this final chapter, on the final provisions, do not raise any particular problems as compared with what has been encountered in other directives already in force or the high-speed Directive.

There are two additional provisions compared with the high-speed Directive:

- in Article 24(1), non-publication of TSIs cannot justify exceeding the time limit for transposition of the Member States. This provision takes account of difficulties experienced with the high-speed Directive and is all the more justified since, in this case, it is not proposed to draw up all the TSIs simultaneously but gradually as actual needs arise;

- in Article 25, the joint representative body is asked to produce a tool capable of providing a chart of the trans-European conventional rail system presenting, for each element of the system, the main characteristics and their conformity with the characteristics laid down by the TSIs. This will allow the Committee and the Commission to remain informed on the progress with regard to the level of interoperability of the rail system and also to report accurately to the Council and the European Parliament on the implementation and effects of the Directive.

32. ANNEXES

Eight annexes dealing with the following specific areas are connected with the chapters of the enacting terms:

ANNEX I: THE TRANS-EUROPEAN CONVENTIONAL RAIL SYSTEM

This annex defines the geographical scope of the proposal for a Directive: a set of infrastructures and a fleet of rolling stock.

ANNEX II: SUBSYSTEMS

This annex defines the technical scope of the proposal for a Directive; the system is itself subdivided into eight subsystems and for each of the subsystems a list of the elements and aspects to be examined is given, without however prejudging which aspects give rise to problems in terms of interoperability, or the order in which the subsystems are subjected to TSI.

ANNEX III: ESSENTIAL REQUIREMENTS

This annex sets out first the essential requirements of a general nature, i.e. those applying to the whole system as defined in Annex I, and then the essential requirements specific to each subsystem.

ANNEX IV : CONFORMITY AND SUITABILITY FOR USE OF INTEROPERABILITY CONSTITUENTS

This annex indicates the rules to be observed when drawing up EC declarations of conformity and suitability for use in the case of interoperability constituents.

ANNEX V : DECLARATION OF VERIFICATION OF SUBSYSTEMS

This annex sets out the standard content of a "EC" declaration of verification in the case of subsystems.

ANNEX VI : PROCEDURE FOR VERIFYING SUBSYSTEMS

This annex sets out the procedure to be followed for verifying the conformity of subsystems.

ANNEX VII : MINIMUM CRITER