Council Regulation (EC) No 2196/98 of 1 October 1998 concerning the granting of Community financial assistance for actions of an innovative nature to promote combined transport
Date: 1998-10-01
Institutions: Council of the European Union
Subjects: EU financing, aid system, combined transport, common transport policy, project evaluation

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2196/98

of 1 October 1998

concerning the granting of Community financial assistance for actions of an
innovative nature to promote combined transport

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 75(1) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the Economic and Social
Committee (2),

Having regard to the opinion of the Committee of the
Regions (3),

Acting in accordance with the procedure laid down in
Article 189c of the Treaty (4),

(1) Whereas the present situation and the expected
development of transport in the Community make
it necessary to manage the Community’s transport
resources to optimum effect and hence to promote
combined transport;

support

for pilot

(2) Whereas Commission Decision 93/45/EEC of 22
December 1992 concerning the granting of finan-
cial
to promote
combined transport (5) launched, in 1992, an ex-
perimental five-year scheme for the granting of
financial assistance for pilot schemes to promote
combined transport; whereas that scheme came to
an end on 31 December 1996;

schemes

(3) Whereas, therefore, Community action in this area
is clearly useful; whereas this experimental scheme
should be converted into a proper framework for
Community action in the field of combined trans-
port which takes account of the experience gained
since 1992;

(4) Whereas the main objective of Community action
in the field of combined transport is to increase the
competitiveness of this type of transport in order to

(1) OJ C 343, 15. 11. 1996, p. 4 and OJ C 364, 2. 12. 1997, p. 5.
(2) OJ C 89, 19. 3. 1997, p. 18.
(3) OJ C 379, 15. 12. 1997, p. 47.
(4) Opinion of the European Parliament of 12 June 1997 (OJ C
200, 30. 6. 1997, p. 137), Council common position of 17
March 1998 (OJ C 161, 27. 5. 1998, p. 1) and Decision of the
European Parliament of 2 July 1998 (OJ C 226, 20. 7. 1998).

(5) OJ L 16, 25. 1. 1993, p. 55.

provide alternatives to road transport which are
acceptable to the user; whereas financial assistance
for projects eligible under
this Regulation can
therefore be of direct benefit only to Member States
and to natural or legal persons established in the
Community, and solely in respect of expenditure
and costs incurred on Community territory;

(5) Whereas Member States and natural or

legal
persons established in the Community should be
the only applicants submitting a combined trans-
port project; whereas it is possible, however, for
directly concerned third countries and persons
established outside the Community to be associated
with the submission of a project;

(6) Whereas combined transport projects should cover
commercial services relating to this type of trans-
port; whereas Community financial assistance is
innovative operational
consequently granted for
measures and for
feasibility studies relating to
them; whereas projects concerning infrastructure
networks and research and technological develop-
ment projects are therefore excluded from the
scope of this Regulation;

(7) Whereas

the Community

assistance
referred to in this Regulation should be provided
for a limited period;

financial

(8) Whereas it

is advisable to allow applicants to
submit projects which best match current market
needs; whereas innovation should therefore not be
discouraged by an over-rigid definition of innov-
ative projects;

(9) Whereas it is nevertheless necessary, during the
the
project selection procedure,
project chosen makes a real contribution to the
common transport policy and does not cause unac-
ceptable distortions of competition;

to ensure that

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(10) Whereas a financial reference amount, within the
meaning of point 2 of the Declaration by the Euro-
pean Parliament, the Council and the Commission
of 6 March 1995 (1), is included in this Regulation
for the entire duration of the action provided for,
without
the
budgetary authority as they are defined by the
Treaty;

thereby affecting the powers of

(11) Whereas

the Commission should monitor

the
progress of projects in order to obtain the desired
results; whereas the respective powers and respons-
ibilities of the Member States and the Commission
with regard to financial control should be spelt out;

(12) Whereas

the Commission should evaluate the
procedures for implementing combined transport
projects in order to assess whether the objectives
originally set can be or have been attained;

Article 2

Definitions and scope

1.

For the purposes of this Regulation:

— ‘combined transport' means the transport of goods
between Member States where the lorry, trailer, semi-
trailer, with or without the tractor unit, swap body or
container of 20 feet or more uses the road on the
initial or final leg of the journey and, on the other leg,
rail or inland waterway or maritime services, on the
understanding that the road section is as short as
possible,

— ‘combined transport action' means any action of an
innovative nature aimed at achieving the objectives
provided for in Article 1 and selected in accordance
with Article 7.

(13) Whereas the application of this Regulation should
be monitored on a regular basis; whereas, to this
end, the Commission should, two years after the
Regulation enters into force, report on progress to
the
the European Parliament,
Economic
the
and
Committee of the Regions;

the Council,
and

Social Committee

(14) Whereas the activities financed should be the
subject of appropriate information, publicity and
transparency;

(15) Whereas the purpose of the action covered by this
Regulation is to help start up combined transport
projects; whereas this Regulation should therefore
be of limited duration,

HAS ADOPTED THIS REGULATION:

Article 1

Objective

This Regulation specifies the conditions, detailed rules
and procedures for granting Community financial assist-
ance to innovative projects, which contribute to the
increased use of combined transport and encourage the
transfer of
traffic from roads to more environment-
friendly modes of transport through:

(a)

increasing the competitiveness of combined transport
as compared with exclusively road haulage; or

(b) promoting the use of
combined transport; or

advanced technology in

(c)

improving the possibilities of supplying combined
transport services.

2. Within the territory of the Community, combined
transport actions shall primarily be covered by Decision
No 1692/96/EC of the European Parliament and of the
Council of 23 July 1996 on Community guidelines for
the
trans-European transport
network (2).

development

the

of

These actions may be developed in rail freight corridors.

3. However, combined transport actions may also cover
routes situated partly outside Community territory, on the
following conditions:

— the action must be carried out in the interests of the
common transport policy, as in the case of projects
concerning transit third countries in the context of an
intra-Community transport operation,

— the action must cover the territory of at least one

Member State.

Article 3

Eligible projects

Eligible projects are innovative projects which constitute:

(a)

innovative operational measures;

(b) feasibility studies which plan and prepare innovative

operational measures.

Article 4

Applicants submitting projects

1. Any Member State or any public or private natural or
legal person, established within the Community, may
submit a project to the Commission.

(1) OJ C 293, 8. 11. 1995, p. 4.

(2) OJ L 228, 9. 9. 1996, p. 1.

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Without prejudice to Article 2(3), as a general rule the
project should be submitted by two or more public or
private natural or legal persons who are nationals of at
least two Member States.

(f)

the cost of measures related to staff training and the
dissemination of project results, as well as expenses for
information and communication action taken in order
to make new combined transport services known to
the relevant transport industry.

or

legal

When a project is submitted in accordance with the first
subparagraph, any third country and any public or private
natural
the
Community and directly concerned, may be associated
with the submission of that project on the understanding
that
they receive no Community support under this
Regulation.

established

person,

outside

2. Where the project involves exercising rights of access
to the rail infrastructure as provided for in Article 10 of
Council Directive 91/440/EEC of 29 July 1991 on the
development of the Community’s railways (1), Community
financial assistance shall be granted only to railway under-
takings which hold a licence within the meaning of
Article 2 of Council Directive 95/18/EC of 19 June 1995
on the licensing of railway undertakings (2).

Article 5

Eligible expenditure and costs

1. Regarding expenditure and costs in respect of innov-
ative operational measures, Community financial assist-
ance shall be limited to a maximum of 30 %. The eligible
expenditure and costs may include inter alia:

(a)

the cost of hiring, leasing or amortisation of combina-
tions of vehicles — lorries, trailers, semi-trailers, with
or without tractor unit, swap bodies or containers of
20 feet or more;

(b) the cost of hiring,

leasing or amortisation and of
making the adjustments necessary to complete the
planned action successfully, in respect of rolling stock
(including locomotives) and inland waterway and sea
vessels subject, with regard to inland waterway vessels,
to compliance with the specific rules on structural
improvements to inland waterway transport;

(c)

investment expenditure or the cost of hiring, leasing
or amortisation in respect of installations permitting
transhipment between railways,
inland waterways,
shipping routes and roads;

Expenditure and/or costs under (a),
(c) and (e) are
eligible provided that the beneficiary or beneficiaries of
the assistance undertake to keep the equipment for which
assistance has been granted on the route concerned
throughout the duration of the contract.

(b),

2. Community financial assistance in respect of feas-
ibility studies shall be limited to a maximum of 50 %.

3.
The Community financial assistance provided for by
this Regulation shall directly benefit Member States and
the persons referred to in the first subparagraph of Article
4(1), in respect of the expenditure and costs incurred in
Community territory.

This assistance shall be granted for a maximum period of
three financial years.

4. When examining a project
extending beyond
Community territory submitted under this Regulation,
the Commission shall consider
the possibilities of
financing the part of the project situated outside the
Community by means of other Community budgetary
instruments,
efficient use of
Community resources.

to ensure

in order

Article 6

Submission of projects

1.
Projects for combined transport actions shall be
submitted to the Commission. The submission shall
contain all the elements necessary to enable the Commis-
sion to make its selection in accordance with Article 7.

The submission of an innovative operational meas-
2.
ures project shall describe the project, taking into account
the following elements:

(a)

identification of
the project and the applicants
submitting it, its general objectives and the financial
assistance requested;

(d) the cost of using rail, inland waterway and maritime
infrastructures, with the exception of harbour dues
and transhipment costs;

(b) project objectives:

(e) expenditure relating to the commercial operation of
techniques,
technologies or equipment previously
tested and approved, in particular transport informa-
tion technology;

(1) OJ L 237, 24. 8. 1991, p. 25.
(2) OJ L 143, 27. 6. 1995, p. 70.

— customer potential for combined transport,

— prices and service performance (accessibility, relia-
bility, time gains) in comparison with competing
transport services, in particular road transport (at
the time of submission and after implementation
of the project),

— envisaged receipts,

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— cost factors (particularly elements for evaluating
the marginal cost of access to the infrastructure,
particularly rail, for the service covered by the
action and any further information enabling a
judgment to be made as to whether aid towards
the costs of infrastructure access is justified),

— timetable for viability,

— compatibility and interoperability;

(c) contribution of the project to the common transport

policy:

— benefits to the environment and safety when
compared with the existing situation, in particular
in terms of the balance between different modes,
making
to develop
inter alia,
combined long-distance transport,

it possible,

— effects on other competing transport services in
the relevant market and possible new entrants,

— relevance of project results for other natural or
legal persons, other routes, or other participants,

— contribution of the project to the development
and use of trans-European transport networks and
rail freight freeways;

(d) project characteristics:

— identification of modes of transport, natural or
legal persons involved and cooperation planned,

— reason for envisaged project (customer requests,
congestion, market potential, remoteness of area,
etc.),

— innovative features in comparison with current

situation,

— duration of project,

— need for assistance and information on the other
sources of financing planned for the project as a
whole,

— market conditions, including existing technologies
and services, taking account also of other modes;

(e) financial statement itemising all the costs in ecus and
the amount in ecus of aid applied for in respect of
each eligible heading.

3.
The submission of a feasibility study project must
describe the project taking into account the following
elements:

— information available on the content of points (a) to (c)

of paragraph 2,

— organisation of tasks, and implementation phases and

timetable,

— broad lines and summary of the study project.

Article 7

Selection of projects — Granting of financial assist-
ance

The Commission shall decide whether to grant financial
assistance under this Regulation taking into account, for
the selection of the project, the objectives referred to in
Article 1, and the information referred to in Article 6(2)
and (3) as appropriate, in accordance with the procedure
laid down in Article 8.

It shall inform all beneficiaries and all Member States
concerned directly of its decision.

Article 8

Committee

1. Where reference is made to the procedure laid down
in this Article, the Commission shall be assisted by a
the
Committee composed of
Member States and chaired by the representative of the
Commission.

the representatives of

The representative of the Commission shall submit
2.
to the Committee a draft of the measures to be taken. The
Committee shall deliver its opinion on the draft within a
time limit which the Chairman may lay down according
to the urgency of the matter. The opinion shall be de-
livered by the majority laid down in Article 148(2) of the
Treaty in the case of decisions which the Council
is
required to adopt on a proposal from the Commission.
The votes of the representatives of the Member States
within the Committee shall be weighted in the manner
set out in that Article. The Chairman shall not vote.

3.

(a) The Commission shall adopt the measures envis-
aged if they are in accordance with the opinion of
the Committee;

(b) If the measures envisaged are not in accordance
the Committee, or if no
with the opinion of
opinion is delivered,
the Commission shall,
without delay, submit to the Council a proposal
relating to the measures to be taken. The Council
shall act by a qualified majority.

If, on the expiry of a period of three months from
the date of referral to the Council, the Council has
not acted, the proposed measures shall be adopted
by the Commission.

Article 9

Financial provisions

4.
The Commission shall forward to the Committee
referred to in Article 8 the list of projects submitted to it,
accompanied by a summary of eligible projects.

Financial assistance may be granted for expenditure
1.
on the implementation of combined transport actions
carried out by the beneficiaries or by third parties who
have been made responsible for implementation.

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Financial assistance shall not cover expenditure
2.
incurred before the date on which the Commission
received the application.

action and if the beneficiaries had not obtained prior
approval from the Commission.

3. Commitments and payments shall be expressed and
paid in ecus.

4. As a general rule, payments shall be made in the
form of advances and a final payment. The first advance
shall be paid once the application for financial assistance
has been approved. Subsequent payments shall be made
on the basis of requests for payment and taking into
account progress with the project.

5.
The Commission shall make the final payment after
approval of an activity report on the study or other
measure submitted by the beneficiary and itemising all
the expenditure actually incurred.

6.
The Commission shall inform the Member States of
the payments made and of the activity reports accepted.

Article 10

Financial reference amount

The financial reference amount for the implementation of
the actions provided for in this Regulation, for the period
1 January 1997 to 31 December 2001, is ECU 35 million.

The annual appropriations shall be authorised by the
budget authority within the limits of
the financial
perspective.

Article 11

Financial control

1. Without prejudice to inspections carried out by
Member States in accordance with national laws, regula-
tions and administrative provisions, to the provisions of
Article 188a of the Treaty, and to inspections carried out
under Article 209(c) of the Treaty, officials or other staff
of
the sites of supported
combined transport actions to carry out spot checks.

the Commission may visit

If

the implementation of a combined transport
2.
action appears not to correspond, wholly or in part, to the
project approved and/or its objectives, the Commission
shall conduct appropriate investigations.

3.
Following the investigations referred to in paragraph
2, the Commission may reduce, suspend or withdraw
financial assistance for the combined transport action if
the investigation confirms that there is some irregularity
or that the conditions set out in the decision granting the
financial assistance have not been met, particularly if
there is an important change which affects the nature or
conditions of implementation of the combined transport

Article 12

Monitoring and evaluation

The Commission shall be responsible for the finan-
1.
cial execution and implementation of the Regulation. In
order to ensure that Community aid is used efficiently,
the Commission shall monitor and evaluate the imple-
mentation of combined transport actions during and after
their completion. On completion of a combined transport
action and before final payment, the Commission shall
carry out an evaluation of it, taking into account a report
by the beneficiary showing how money has been spent
and demonstrating the extent to which traffic forecasts
have been achieved.

2. Up to 1 % of the budget provided for in this Regula-
tion shall be set aside for independent monitoring and
evaluation.

3.
The monitoring and evaluation procedures referred
to in this Article shall be defined by the contracts, based
on the decisions adopted in accordance with Article 7(1).

Article 13

Report

Two years after the entry into force of this Regulation, the
Commission shall submit a report on the activities carried
out under it to the European Parliament, the Council, the
Economic and Social Committee and the Committee of
the Regions. It shall
the
comments made by the other institutions and bodies on
the report.

take the utmost account of

The report shall be accompanied, if need be, by appro-
priate proposals for adjusting the orientation of
the
actions provided for in this Regulation.

The application of this Regulation shall be evaluated in
line with Commission evaluation principles. The result of
this evaluation shall be available by 1 October 2001.

Article 14

Publicity

The beneficiaries of Community aid shall ensure that
proper publicity is given to the assistance granted under
this Regulation to make the public aware of the role
played by the Community in implementing combined
transport actions. They shall consult the Commission on
how this is to be done.

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Article 15

Duration

Article 16

Entry into force

The granting of financial assistance for combined trans-
port under this Regulation shall be authorised from 1
January 1997 to 31 December 2001.

This Regulation shall enter into force on the day of its
publication in the Official Journal of the European
Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Luxembourg, 1 October 1998.

For the Council

The President

C. EINEM