EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

Council Regulation (EU) No 642/2014 of 16 June 2014 establishing the Shift2Rail Joint Undertaking (hereinafter "S2R Regulation")[1] entered into force on 7 July 2014, thereby formally establishing a new public-private partnership to manage research and innovation activities in support of the development of better rail services in Europe.

The founding members of the Shift2Rail Joint Undertaking are identified in the S2R Regulation and include the Union, represented by the Commission, as well as eight partners from the industry, namely: Alstom Transport, Ansaldo STS, Bombardier Transportation, Construcciones y Auxiliar de Ferrocariles, Network Rail, Siemens Aktiengesellschaft, Thales and Trafikverket.

Additional associated members are to be selected through an open call for membership, launched by the Commission within 3 months of the entry into force of the S2R Regulation.

Shift2Rail's goal is to support the objectives of the 2011 Transport White Paper[2] and the modal shift towards rail from other less sustainable transport modes by making rail more cost-efficient and attractive.

The innovative technologies and solutions to be developed, demonstrated and validated by Shift2Rail are expected to double the capacity of the railway transport system, to reduce its lifecycle cost by 50% and to decrease unreliability and late arrivals by 50%. The Joint Undertaking will also support the global leadership of the European rail industry, thereby creating jobs and increasing exports.

In accordance with Articles 1(4) and 2(a) of Annex I to the S2R Regulation the Shift2Rail Joint Undertaking should establish, develop and ensure the effective and efficient implementation of a Master Plan. This Master Plan should be a forward-looking document defining the priority research and innovation activities to drive innovation in the rail sector in the long term.

In accordance with Article 1(3) of Annex I to the S2R Regulation, the Shift2Rail Master Plan should be structured around the five following thematic areas or 'Innovation Programmes’ (‘IPs’):

· IP1: Cost-efficient and Reliable Trains, including high capacity trains and high speed trains;

· IP2: Advanced Traffic Management & Control Systems;

· IP3: Cost-efficient and Reliable High Capacity Infrastructure;

· IP4: IT Solutions for Attractive Railway Services;

· IP5: Technologies for Sustainable & Attractive European Freight.

2. RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

The initial version of the Shift2Rail Master Plan has been developed by the Shift2Rail Joint Undertaking as initially constituted by its Founding Members in a process led by the Commission and in consultation with the European Railway Agency and the European Rail Research Advisory Council (ERRAC) Technology Platform.

It also integrates comments received from a wide range of relevant stakeholders during numerous individual meetings with sector representatives and a public consultation meeting held on 20 June 2014, to which close to 200 stakeholders took part.

The consultation revealed that the current version of the Master Plan is well balanced and broadly supported.

On 24 September 2014, the Governing Board of the Shift2Rail Joint Undertaking has approved the initial version of the Shift2Rail Master Plan.

3. LEGAL ELEMENTS OF THE PROPOSAL

This proposal concerns the endorsement by the Council of the Shift2Rail Master Plan, following the procedure described in Article 1(4) of Annex I to the S2R Regulation.

2014/0354 (NLE)

Proposal for a

COUNCIL DECISION

endorsing the Shift2Rail Master Plan

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to Council Regulation (EU) No 642/2014 of 16 June 2014 establishing the Shift2Rail Joint Undertaking, in particular Article 1(4) of Annex I to this Regulation[3] ,

Having regard to the proposal from the European Commission,

Whereas:

(1) The Shift2Rail Master Plan should be established and developed by the Shift2Rail Joint Undertaking, in consultation with the European Railway Agency and the European Rail Research Advisory Council (ERRAC) Technology Platform, to drive innovation in the rail sector in the long term,

(2) The Shift2Rail Master Plan should identify the key priorities and the essential operational and technological innovations required from all stakeholders to achieve the objectives of the Shift2Rail Joint Undertaking outlined in Article 2 of Regulation (EU) No 642/2014,

(3) The Shift2Rail Master Plan should be performance driven and structured around a limited number of key thematic areas, or Innovation Programmes as identified in Article 1(3) of Annex I to Regulation (EU) No 642/2014,

(4) The version of the Shift2Rail Master Plan approved by the Governing Board on 24 September 2014 and integrating major contributions from relevant stakeholders, constitutes the basis for the call for associated members launched by the Commission on 6 October 2014 in accordance with Article 4(2) of Annex I to Regulation (EU) No 642/2014 and the basis for establishing the Shift2Rail Joint Undertaking’s work plan,

HAS ADOPTED THIS DECISION:

Sole Article

The Shift2Rail strategic Master Plan is hereby endorsed.

Done at Brussels,

For the Council

The President

[1] OJ L 177, 17.6.2014, p. 9.

[2] White Paper "Roadmap to a Single European Transport Area – Towards a competitive and resource efficient transport system", COM(2011) 144 final.

[3] OJ L 177, 17.6.2014, p. 9.