Communication from the Commission - Further integration of the European rail system: third railway package
Date: 2004-03-03
Institutions: European Commission
Subjects: carriage of passengers, common transport policy, consumer protection, drivers, freight rate, provision of services, rail transport, vocational training

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 3.3.2004 
COM(2004) 140 final 

COMMUNICATION FROM THE COMMISSION 

Further integration of the European rail system: third railway package

EN 

   EN 

 
 
 
  
TABLE OF CONTENTS 

1. 

1.1 

1.2 

2. 

2.1 

2.2 

3. 

3.1 

3.2 

4. 

4.1 

4.2 

5. 

5.1 

5.2 

Towards an integrated European railway area: progress report................................... 3 

The “second railway package” and the particular need to cover the training of train 
drivers........................................................................................................................... 3 

Implementation of the schedule for integrating the European railway area ................ 4 

The human factor in interoperability: a common approach to driver training............. 7 

The driver’s profession: employing highly specific skills in a changing environment 7 

Certification needs to be based on simple principles ................................................... 7 

Guaranteeing passengers’ rights to make the railways more attractive ....................... 8 

Inadequate international arrangements ........................................................................ 8 

Guaranteeing minimum rights to facilitate passenger transactions.............................. 8 

Allowing new initiatives for passenger transport services........................................... 9 

Contrasting markets ..................................................................................................... 9 

The benefit of regulated competition in certain segments ........................................... 9 

Raising quality standards in the rail freight sector..................................................... 10 

Uneven performance, customer expectations ............................................................ 10 

Tools to help players improve quality........................................................................ 10 

 Annex: Transposition status of rail sector directives .............................................................. 12 

2 

 
 
  
 
1. 

TOWARDS AN INTEGRATED EUROPEAN RAILWAY AREA: PROGRESS REPORT 

Introduction  of  the  new  European  regulatory  framework  for  rail  transport  is  progressing  in 
line with the reform objectives set out in the White Paper European transport policy for 2010: 
Time to decide.1 These objectives place the revitalisation of the rail sector at the heart of the 
sustainable  mobility  strategy  and,  to  this  end,  seek  to  improve  the  atractiveness  and 
competitiveness of more environmentally friendly modes of transport. They also seek to put 
customers, and in particular passengers, at the centre of a high-quality transport system. 

Directives 2001/12/EC, 2001/13/EC and 2001/14/EC (the “first railway package”) have thus 
far  been  transposed  by  around  half  the  Member  States,  though  the  deadline  for  transposing 
them  was  15 March  2003  (see  table  in  annex).  The  Commission  has  brought  actions  for 
failure  to  fulfil  obligations  before  the  Court  of  Justice  against  those  Member  States  which 
have not yet notified transposition measures. The Directives have also been taken into account 
by the new Member States as part of the Community acquis. All in all, the Commission hopes 
they will be effectively implemented throughout the enlarged European Union in 2004. The 
ground they cover is of key importance to the reform of the European rail sector: they open up 
international  rail  freight  services  to  competition,  introduce  a  detailed  and  transparent 
framework  for  infrastructure  capacity  allocation  and  infrastructure  charging,  and  require  a 
regulatory body to be set up in each Member State. 

Integration of rail systems also requires convergence of technical specifications to ensure the 
interoperability of rolling stock and equipment. On the basis of Directive 96/48/EC, a series 
of  mandatory  specifications  were  adopted  in  2002  for  high-speed  rail  systems.  Work  now 
needs to proceed for the rest of the rail system: Directive 2001/16/EC on the interoperability 
of  the  conventional  rail  system  accords  priority  to  dealing  with  aspects  of  importance  to 
international  rail  freight,  with  an  initial  series  of  specifications  to  be  drawn  up  by  20 April 
2004. The Commission notes that Directive 2001/16/EC was to have been transposed by all 
Member States by no later than 20 April 2003 and that on that date eight Member States had 
yet to notify their transposition measures. 

1.1 

The “second railway package” and the particular need to cover the training of 
train drivers 

To supplement the above framework, on 23 January 2002 the Commission presented a series 
of  proposals  (the  “second  railway  package”)  together  with  the  Communication  Towards  an 
integrated European railway area.2 These proposals were: 

–  A proposal for a Directive on rail safety3 to establish the key elements of safety systems 
for infrastructure managers and railway undertakings. The idea was to develop a common 
approach to safety and introduce a common system for the issuing, contents and validity of 
safety certificates,  and also,  as in other sectors, to introduce the principle of independent 
technical investigations in the event of accidents. 

1 
2 
3 

COM(2001) 370, 12.09.2001. 
COM(2002) 18, 23.01.2002. 
COM(2002 ) 22, 23.01.2002. 

3 

 
 
  
 
                                                 
–  An amendment of the interoperability Directives 96/48/EC and 2001/16/EC,4 basically 
in order gradually to extend the scope of interoperability to cover the entire rail network. 

–  A  proposal  for  a  Regulation  establishing  a  European  Railway  Agency5  to  provide 
technical support for the work on interoperability and safety. Its activity would involve, on 
the one hand, producing common safety standards and developing and managing a system 
to monitor safety performance and, on the other, long-term management of the system for 
establishing, registering and monitoring technical specifications for interoperability. 

–  A  proposal  to  amend  Directive  91/440/EEC6  by  extending  the  right  of  access  to 
infrastructure to rail freight services within a Member State and speeding up the opening of 
the market. 

These  proposals  have  received  firm  backing  from  the  European  Parliament  and  the  Council 
and examination of them is now almost complete. The texts of this “second railway package” 
should be adopted in the first quarter of 2004. 

During  the  examination  of  these  texts,  especially  the  rail  safety  directive  and  the  agency 
regulation,  particular  attention  was  paid  to  the  issue  of  training  for  drivers  and  train  crews. 
The first draft of the safety directive took an initial approach to the issue, but it was felt that 
Community  legislation  needed  to  tackle  it  in  a  much  more  detailed  fashion.  Hence  the 
Commission  undertook,  at  the  Transport  Council  of  28  March  2003,  to  supplement  the 
“second railway package” with a specific proposal on licences for locomotive drivers. For its 
part, the European Parliament, as soon as it started examining the texts, underlined the crucial 
importance it attached to the question of training, and in its amendments at second reading it 
pointed  out  that  “the  development  of  a  safe  Community  railways  system  requires  the 
establishment  of  harmonised  conditions  for  delivering  driving  licences  to  train  drivers,  and 
on-board accompanying staff performing safety tasks.”7 

The Commission therefore started work immediately on preparing and drafting a proposal for 
a  directive  on  drivers’  licences.  This  work  involved  a  consultation  of  interested  parties, 
including the national safety authorities, railway undertakings and staff representatives. It also 
took account of work carried out by the social partners in this area. 

As a result, the Commission is now able to present, together with this communication, a full 
proposal  for  the  certification  of  locomotive  and  train  drivers  engaged  in  the  carriage  of 
passengers and goods in the Community. 

1.2 

Implementation of the schedule for integrating the European railway area 

In its communication introducing the second railway package,8 the Commission put forward 
an  implementation  schedule  for  the  measures  set  out  in  the  White  Paper  for  the  phase 
following  the  “second  railway  package”.  This  schedule  is  reproduced  below,  with  an 
indication of the current status of the measures. 

4 
5 
6 
7 

8 

COM(2002) 21, 23.01.2002. 
COM(2002) 23, 23.01.2002. 
COM(2002) 21, 23.01.2002. 
Amendment 50  –  European  Parliament  legislative  resolution  on  the  Council  common  position  for 
adopting  a  European  Parliament  and  Council  directive  on  safety  on  the  Community’s  railways 
A5-0325/2003 of 23.10.2003. 
COM(2002) 18, 23.01.2002. 

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Measures  and  schedule  set  out  in  the  Communication  Towards  an 
integrated European railway area of 23 January 2002 

Status 

Measure No 1 

The  European  Commission  intends  to  propose  legal 
measures and suggest complementary voluntary actions to 
provide a comprehensive system of quality incentives. 

2002 

Measure No 2 

Extension of the scope of the term "applicant" in Directive 
2001/14/EC to allow greater numbers of players to reserve 
railway infrastructure capacity. 

2003 / 2005 

Measure No 3 

Amendment  of  Directive  2001/14/EC  to  extend  the 
powers of the regulatory bodies provided for in Article 30 
of 
railway 
undertakings  to  ensure  non-discriminatory  access  to  such 
services. 

to  services  provided 

the  Directive 

to 

Measure No 4 

Establish a plan for Europe-wide deployment of the traffic 
management system (ERTMS). 

Measure No 5 

The Commission intends to make a proposal for defining 
the  conditions  under  which  all  railway  undertakings  can 
benefit  from  simplifications  of  the  Community  transit 
procedure  in  the  framework  of  the  revision  of  the  rail 
transit procedures. 

2002 

2002 

Measure No 6 

Freight service quality 
proposal in annex 

Examined, but not 
included in the second 
railway package 

Not yet put into effect; 
an initial survey of the 
activity of these 
regulatory bodies is 
needed first 

Proposal due in 2004 

Proposal due in 2004 

The  Commission  will  propose  measures  to  reduce  noise 
emissions from new freight wagons. 

2003 / 2005 

Technical 
Specification for 
Interoperability being 
drawn up 

5 

 
 
  
 
 
 
 
 
 
 
 
 
 
Measure No 7 

The  Commission  will  propose  measures 
emissions from new diesel locomotives. 

to  reduce 

Directive adopted9 

2003 / 2005 

Measure No 8 

The  Commission  will  enter  into  a  dialogue  with  the 
industry to implement voluntary measures reducing noise 
and emissions from the existing fleet. 

Study in progress 

Measure No 9 

The  Commission  will  propose  to  open  gradually  the 
international passenger services market. 

Proposal in annex 

Measure No 10 

2002 

The Commission will propose actively to promote existing 
passenger rights to the public, and propose a regulation in 
order to strengthen passenger rights. 

Proposal in annex 

Implementation of the above measures is now set to continue by means of four new proposals: 

–  a proposal for a Directive on the certification of locomotive and train drivers engaged in 

the carriage of passengers and goods in the Community; 

–  a proposal for a Regulation on international rail passengers’ rights; 

–  a proposal for a Directive on opening up the market for rail passenger transport services; 

–  a proposal for a Regulation on the quality of rail freight services. 

9 

Directive  2002/88/EC  of  the  European  Parliament  and  of  the  Council  of  9 December  2002  amending 
Directive 97/68/EC on the approximation of the laws of the Member States relating to measures against 
the emission of gaseous and particulate pollutants from internal combustion engines to be installed in 
non-road mobile machinery, OJ L 35, 11.02.2003. 

6 

 
 
  
 
 
 
 
 
 
 
 
 
 
                                                 
2. 

2.1 

THE  HUMAN  FACTOR  IN  INTEROPERABILITY:  A  COMMON  APPROACH  TO  DRIVER 
TRAINING 

The  driver’s  profession:  employing  highly  specific  skills  in  a  changing 
environment 

The  good  level  of  training  and  professional  skills  of  the  200 000  train  drivers 
operating in the enlarged European Union is a key asset contributing to the high level 
of  safety  of  the  rail  system.  This  puts  driver  training  and  skills  at  the  heart  of  the 
railway undertakings’ safety management systems. Driver certification will thus be a 
central requirement when a railway undertaking wishes to obtain a safety certificate 
in order to operate on an infrastructure. 

Driver skills fall into two categories: general skills relating to the job of driver, and 
specific  skills  relating  to  line  knowledge,  the  rolling  stock  and  the  operating 
procedures of the railway undertaking for which the driver works. 

The  opening-up  of  the  rail  freight  markets  and  increasing  interoperability  will 
gradually  create  new  prospects  for  locomotive  drivers.  A  growing  number  of  them 
will  find  themselves  crossing  borders  and  operating  on  the  network  of  another 
Member State. There are already several successful instances of this, achieved thanks 
to agreements between railway undertakings, which have shown that, with a suitable 
system of training, this international movement of drivers can considerably enhance 
the performance of rail transport by avoiding unnecessary stops at borders. 

To enable train drivers to operate in the future integrated European railway area, it is 
important  that  action  be  taken  now  to  set  up  a  certification  system  which  fully 
recognises the specific skills needed to drive a train and at the same time facilitates 
driver movement and mobility. 

2.2 

Certification needs to be based on simple principles 

The  certification  system  thus  needs  to  be  based  on  a  clear  and  logical  distinction 
between two levels. 

Firstly, general knowledge, which is comparable to basic training, acquired by each 
individual.  This  general  knowledge  does  not  relate  to  a  specific  infrastructure  or  a 
particular  network.  It  needs  to  be  recognised  and  to  be  valid  throughout  the 
Community.  Its  recognition  needs  to  be  authenticated  by  a  licence  granted  to  the 
individual driver. 

Secondly, specific knowledge, relating to a specific route. This needs to encompass 
line  knowledge,  the  rolling  stock  and  the  operating  procedures  of  the  particular 
railway undertaking. Accordingly, recognition of this knowledge must necessarily be 
restricted to a specific context. 

The  Community  instrument  proposed  observes  these  simple  principles,  in  that  it 
provides  for  a  single  document  valid  throughout  the  Community  for  the  first  level, 
and a series of certificates for the second. To be able to operate, drivers will therefore 
need to be in possession of a licence and a certificate (or several certificates) relating 

7 

 
 
  
 
to the railway undertaking which employs them, the line they will be working on and 
the rolling stock they will be operating. 

3. 

GUARANTEEING  PASSENGERS’  RIGHTS  TO  MAKE  THE  RAILWAYS  MORE 
ATTRACTIVE 

3.1 

Inadequate international arrangements 

Passengers’ rights are, along with punctuality and safety, a key factor when people 
decide to use one or other mode of transport. In several Member States, there have 
been  instances  where  positive  action  by  the  railway  undertaking  to  uphold 
passengers’  rights  (delays,  reimbursements,  etc.)  has  enhanced  the  railway’s  image 
and made it more attractive. Passenger confidence that the purchase of a ticket will 
confer certain rights makes the railways more attractive, and many instances of good 
practice can be found at national level. 

Nonetheless, the situation of passengers on international journeys is often less secure, 
and railway undertakings sometimes pass the buck to one another as regards liability. 
The  current  international  arrangements,  based  on  an  international  convention 
(CIV10),  are  inadequate.  The  convention  essentially  governs  relations  between 
railway  undertakings  (and  not  between  passengers  and  railway  undertakings). 
Moreover, it offers a relatively low level of protection. Lastly, being an international 
convention,  the  CIV  does  not  create  passengers’  rights  directly.  A  Community 
framework  therefore  had  to  be  created  which  was  compatible  with  the  CIV  but 
afforded passengers greater protection, including better knowledge of their rights and 
their means of appeal. 

3.2 

Guaranteeing minimum rights to facilitate passenger transactions 

Access  to  information  and  fares,  and  the  option  of  buying  international  rail  tickets 
easily, are the very least that is needed to make rail services attractive. In addition, a 
framework  is  required  for  liability  in  the  event  of  accidents  or  incidents  during  a 
journey  or  in  the  event  of  delay.  The  principle  of  compensation  also  needs  to  be 
acknowledged, and thresholds set for the amount of compensation depending on the 
type  of  journey.  The  various  channels  for  making  appeals  and  handling  complaints 
need to be clearly identified so as to facilitate passenger transactions. Lastly, account 
needs to be taken of the particular needs of people with reduced mobility. 

These arrangements to protect passengers’ rights will be all the more vital once the 
market is opened up for certain services. The combination of an open market and a 
rigorous  framework  of  passengers’  rights  should  generate  a  positive  dynamic  in 
which  international  rail  services  improve  in  quality  and  become  more  attractive 
compared with competing modes, notably air travel, which has its own increasingly 
detailed framework to protect passengers’ rights. 

10 

The CIV (Uniform Rules concerning the Contract for International Carriage of Passengers and Luggage 
by  Rail)  is  Appendix A  to  the  Convention  concerning  International  Carriage  by  Rail  (COTIF)  of 
9 May 1980,  as  amended  by  the  Vilnius  Protocol  of  3 June  1999.  The  texts  are  available  at: 
www.otif.org. 

8 

 
 
  
 
                                                 
4. 

ALLOWING NEW INITIATIVES FOR PASSENGER TRANSPORT SERVICES 

4.1 

Contrasting markets 

Passenger transport services by rail are not a homogeneous market but one which is 
highly  segmented.  Of  the  6 billion  passengers  carried  each  year  in  the  European 
Union (EU25), the vast majority are making urban, suburban and regional journeys. 
Much  of  this  traffic  is  subject  to  public  service  obligations  and  therefore  receives 
public funding. 

As  the  Court  of  Justice  pointed  out  in  a  recent  case,11  such  services  have  to  be 
organised in accordance with Regulation No 1191/69, the modernisation of which, as 
proposed by the Commission,12 is more necessary than ever. 

The  situation  is  different  for  interregional  or  long-distance  national  traffic.  The 
development  of  high-speed  rail  in  several  Member  States  and  the  prospect  of  the 
interconnection  of  the  high-speed  trans-European  network  in  2010  are  set  to  bring 
profound  changes  to  the  framework  of  these  services,  making  them  more 
international. 

Currently, the proportion of rail passengers making international journeys, estimated 
on the basis of ticket sales for such journeys, already represents around 10% of the 
turnover13  (2.4  billion  euros).  These  are 
railway  undertakings’  passenger 
international  journeys,  during  which  the  passenger  crosses  at  least  one  border.  It 
should be noted that international trains generally pick passengers up and put them 
down within the same Member State (cabotage). This represents a variable but often 
significant  proportion  of  traffic.  For  instance,  on  the  journey  between  Brussels  and 
Cologne,  trains  are  very  full  between  Brussels  and  Liège,  but  far  less  full  between 
Liège and  Cologne.  Very few international trains, on  a few high-speed links, make 
no intermediate stops within a given Member State. 

4.2 

The benefit of regulated competition in certain segments 

There are two models for opening up to competition. Firstly, a competitive procedure 
can  be  used  to  award  a  public  service  contract,  accompanied,  if  necessary,  by 
exclusive rights for a certain period and, where appropriate, by compensation for the 
public  service.  This  model  works  well  for  suburban  and  regional  services.  It 
underpins the Commission’s proposal to modernise Regulation No 1191/69 on public 
service obligations. 

The other model consists, as for rail freight, in opening up access to the infrastructure 
for operators wishing to provide services. It should be noted that opening up access 
rights  is  not  in  itself  sufficient  to  create  a  situation  of  genuine  competition  right 
away. Before operating, potential competitors will need to have: 

–  rolling stock and drivers authorised to move through the Member States in which 

they plan to operate; 

11 
12 
13 

Judgment of the Court of 24 July 2003 in Case C-280/00 (“Altmark”). 
COM(2002)107, 21.2.2002; OJ C 151E, 25.6.2002, pp. 146-183. 
For the smaller countries the proportion is much larger: Luxembourg 70%, Belgium 33%, Austria 17%. 

9 

 
 
  
 
                                                 
–  a railway undertaking licence in a Member State; 

–  a safety certificate issued by the national safety authority of each of the Member 

States they plan to cross; 

–  infrastructure capacity (for a scheduled service, the application for capacity has to 
be submitted to the infrastructure manager around one year before operations are 
due to start). 

This second model, based on free access to the infrastructure, is better suited to long-
distance services and to specific services where a commercial innovation is likely to 
attract new customers (e.g. occasional trains, car trains). 

The high-speed trans-European network, which will be linked up by 2010, could also 
provide scope for the appearance of new competing services. 

That is why the proposal now being put forward is designed to take account of the 
diversity of markets segments by providing a clear and simple link between the area 
covered by public service contracts (within the meaning of Regulation No 1191/69) 
and  the  area  open  to  new  initiatives.  Under  the  proposal,  all  international  services 
would be opened up to competition on 1 January 2010, except for services operating 
between two specific locations under a public service contract. 

This  gradual  approach  strikes  a  balance  between,  on  the  one  hand,  the  need  to 
consolidate the traffic covered by public service obligations (within a framework in 
the process of modernisation) and, on the other, an opening-up to new initiatives for 
other types of traffic. 

5. 

RAISING QUALITY STANDARDS IN THE RAIL FREIGHT SECTOR 

5.1 

Uneven performance, customer expectations 

Despite many encouraging initiatives, the average performance of rail freight has yet 
to  reach  the  level  expected  by  customers.  Several  examples  of  success  show, 
however,  that  with  better  organisation  at  international  level,  player  accountability, 
and  serious  dialogue  on  service  quality  with  customers,  it  is  possible  to  provide  a 
quality  service  and  attract  new  traffic  to  the  railways.  Yet  despite  these  many 
encouraging signs of renewal, much of the sector is still finding it hard to improve. In 
some  cases,  the  last  few  years  have  even  seen  deteriorating  service  and  the  loss  of 
major customers. For much of the sector, the analysis put forward two years ago in 
the Communication Towards an integrated European railway area14 still applies. 

5.2 

Tools to help players improve quality 

The initiative being proposed by the Commission is not intended to replace freedom 
to  conclude  contracts.  On  the  contrary,  customers  and  railway  undertakings  are 
actively encouraged to introduce the most effective systems possible to monitor and 
improve  quality  according  to  their  requirements  for  each  type  of  traffic.  What  is 

14 

COM(2002) 18, 23.01.2002. 

10 

 
 
  
 
                                                 
being proposed is instead a common base which will apply by default if the railway 
undertaking and its customer fail to introduce a specific system to improve quality. 

To  that  end,  the  proposal  establishes  mandatory  minimum  clauses  for  transport 
contracts, failure to include which will make the latter null and void. These clauses 
include a requirement for the parties to provide for a system of compensation in the 
event  of  freight  being  delayed  or  damaged.  In  addition,  the  directive  introduces 
minimum ceilings for compensation in the event of delay: the parties have to set the 
amount  by  mutual  agreement  in  the  transport  contract,  but  in  order  to  provide  a 
reasonable economic incentive the compensation may not be less than 5% of the cost 
of the transport. 

The  Commission  believes  this  proposal  will  act  as  a  strong  incentive  for  railway 
undertakings  and  their  customers  to  take  a  contractual  approach  to  quality 
management. 

11 

 
 
  
 
Annex 

Transposition status of rail sector directives 

Directives 2001/12/EC, 2001/13/EC and 2001/14/EC were to be transposed by no later than 
15 March 2003. At 15 December 2003 the situation was as follows: 

Member 
transposition measures 

States  which 

had 

notified 

Belgium,  Denmark,  Finland,  France,  Italy, 
Netherlands, Portugal, Spain 

States  which 

Member 
notified 
transposition  measures  for  one  or  two  of  the 
three directives 

had 

Ireland, Luxembourg 

Member  States  which  had  not  yet  notified 
measures 

Austria,  Germany,  Greece,  Sweden,  United 
Kingdom 

N.B.  Of  the  five  Member  States  which  have  not  yet  notified  transposition  measures,  four 
(Austria,  Germany,  Sweden,  United  Kingdom)  have  opened  up  their  rail  freight  markets  to 
competition on the basis of their national legislation. 

Directive 2001/16/EC was to be transposed by no later than 20 April 2003. At 15 December 
2003 the situation was as follows: 

Member 
transposition measures 

States  which 

had 

notified 

Belgium,  Denmark,  Finland,  Luxembourg, 
Netherlands, Portugal, Spain 

Member  States  which  had  not  yet  notified 
measures 

Austria,  France,  Germany,  Greece,  Ireland, 
Italy, Sweden, United Kingdom 

The  Commission  has  brought  actions  for  failure  to  fulfil  obligations  before  the  Court  of 
Justice against those Member States which have not yet notified transposition measures. 

12