1. No category

INFRASTRUCTURE PRICING
The Operation of High Performance Railway Lines –
Bilbao, February 23-24, 2015
Aleksandr Prodan ([email protected])
Researcher, Ph.D. Candidate
Instituto Superior Técnico (IST), University of Lisbon
Paulo F. Teixeira
([email protected])
Assistant Professor of Railways
Instituto Superior Técnico (IST), University of Lisbon
Agenda: Infrastructure Charges
> Introduction
> Theory behind infrastructure pricing
> Implementation in Europe
Passengers
Freight
> Importance to Operators and Infrastructure Managers
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A EUROPEAN Railway Network
Map: High-Speed Lines in Europe, UIC, 2013
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REFERENCE FRAMEWORK: BEFORE REFORM
Final Users
User
charge
(tickets)
Production
Costs
State Railway Enterprise:
STATE
BUDGET
4
Operations
Subsidies
Infrastructure
Management
A. PRODAN - P.F. TEIXEIRA / Infrastructure Pricing / Bilbao, 23-24 Feb. 2015
REFERENCE FRAMEWORK: AFTER REFORM
Final Users
User
charge
(tickets)
Production
Costs
Train Operators
(Railway Undertakings)
STATE
BUDGET
?
Track
access
charge
Infrastructure
& services
Costs
Infrastructure Manager
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THE PLAYERS
> European Commission
Creates directives which are to be implemented, has some enforcement power
> National Lawmaking Bodies
Responsible for implementing EC Directives in EU Law
> National Regulators
Independent entities, regulate adherence to EU and national
laws, deal with competition
> Infrastructure Managers (IM)
Government-owned or private company
Separate accounts from Government and Train Operators (RUs)
Reason to Exist: manage and maintain infrastructure
> Train Operators (TO)
[Official Term: Railway Undertaking (RU)]
EC Goal: promote competition within the market or for the market.
Make operation efficient
Not subsidized where the market allows it
Subsidized in cases where Public Service Obligations are required
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Different Player Interests
Infrastructure Investor
Society
End Users
Legislation
Regulation
Market
Infra Manager
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Train Operator(s)
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Infrastructure Pricing Theory
Full Cost vs. Marginal Cost
(case of no scarcity or congestion costs)
FC
State
Budget
State
Budget
State
Budget
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MC
MC
MC or MSC
MC+ or MSC+
FC or FC-
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FIXED
Marginal Costs
> Different ways to calculate: top-down vs. bottom up
> Short-Run MC
Maximum use of existing capacity
High State Budget Needs
Hard to calculate and no common way
> Marginal SOCIAL Cost
Internalizes External Costs
Examples: Noise charges, environmental charges/discounts
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What is a Mark-up?
%
%
“Fixed” Mark-up
(for all segments)
MC2
MC1
Service 2
Service 1
WTP 2
b
WTP 1
• Ramsey pricing (based on demand
elasticity)
a
MC1
Service 1
Differentiates type of service and
different time bands
MC2
Service 2
Information on Willingness to Pay hard to obtain/estimate…
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EU DIRECTIVE PRICING PRINCIPLES
SCARCITY
CHARGES
FULL
COST
Directives:
2001/14/EC
2012/34/EC
Can be used for resolving of capacity
problems only
MARK-UPS
Other Allowed Charges
(up to Full Cost level):
Reservation Charges
Willingness to pay
Non-discriminatory
Performance Schemes
ETCS-charges
EXTERNAL
COSTS
BASIC
CHARGE
(MARGINAL
COSTS)
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±
+
=±€
Temporary Discounts
=+€
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SCARCITY
≠
> Cannot add more train paths
due to infrastructure
limitations (maybe only for
certain time periods)
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CONGESTION
> Cannot add train paths
and keep timetable
reliable
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IMPLEMENTATION OF RAIL
INFRASTRUCTURE CHARGES
IN EUROPE
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2008 Charging System Classification
Type of
System
Description
Qty.
MC
Marginal Cost
6
MC+
Marginal Cost Plus Additions
10
FC-
Full Cost Minus Discounts
8
FC
Full Cost
3
Source: RailCALC 2008
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Item
What Is Charged
Time-of-day pricing
Train Frequency
Train speed
Train Type (Physical Characteristics)
Axle load
Loco/Traction Type
Service Type (Service Pattern, distance)
Train-path quality
Line Type (importance categorization)
Line Type (capacity)
Capacity maximization Charge
Scarcity Surcharge
Low-speed penalty
How It is Charged
Flat Fee
Fee per train-km
Fee per tonne-km
Fee per min
Node fee
Fee per Axle-km
Axle load
15
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
UK - HS1
UK - Netw. Rail
UK - N. Ireland
TP Ferro
Eurotunnel
Oresund
Influencing Factors and Variables (2013)
• •
• •
•
•
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•
•
•
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•
•
• • •
• •
WHAT IS CHARGED
• • • •
•
•
•
• •
•
•
•
•
•
•
• • • •
• •
•
(train
characteristics,
•
•
•
• •
•
•
•
service
characteristics,
• •
• •
• • • •
•
•
• •
• • •
•
• • •
• •
•
Infrastructure
characteristics,
• •
•
• •
•
•etc.)
•
•
•
•
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•
•
•
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• • • • • • •
• • • •
• • • • •
• • • • • • • • • •
•
• • • • • • • •
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• • • • • •
• • •
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•
•
•
•
•
•
•
•
• •
HOW IT IS CHARGED
(flat fee, fee per train-km or t-km,
node access, axle load)
A. PRODAN - P.F. TEIXEIRA / Infrastructure Pricing / Bilbao, 23-24 Feb. 2015
Austria
Belgium
Bulgaria
Croatia
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Netherlands
Norway
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
Switzerland
UK - HS1
UK - Netw. Rail
UK - N. Ireland
TP Ferro
Eurotunnel
Oresund
Influencing Factors and Variables (2013)
Item
Charge Categories
Reservation Fee
•
•
Cancellation Fee
• •
•
•
Running Charge
• • •
• • • • •
Admin Fee
•
•
Access Fee
Security Fee
•
Accident Insurance Charge
Environmental Surcharge
•
Special Infrastructure Fees
•
•
Dangerous goods transport
•
Low noise fee/discount
ETCS fee/discount
Performance Scheme
• •
• •
• •
Freight Subsidy / Discount
•
Traction Current and Fuel
Traction Current - access
•
•
Traction Current - management
Traction Current - use fee
•
•
Fuel - management
Fuel - dispensing
Fuel - access
•
•
Varying rates for Diesel/Electric
•
•
•
• • •
•
• •
• • •
• •
•
•
•
•
• • • • • • • • • • • • • • •
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•
•
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•
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•
•
•
•
•
•
•
• •
•
• • •
•
•
•
•
•
TYPE OF FEE
(reservation, cancellation,•
administrative,
noise, etc.)
•
• •
•
•
•
•
• • • •
•
•
•
• •
•
•
•
•
•
•
•
•
• •
•
•
•
• • •
ENERGY AND FUEL
•
•
•
•
•
• • • • •
On Average: 5-20 variables per country
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•
•
•
Full Cost and Marginal Cost-based Systems
2012 Passenger Charging System: Germany
> Usage Fee: ( Base Price × Product Factors ) + Station Fees
Depends on
Line Type
× Path Type
× Utilization
× Minimum Speed
Penalty
Based on Station
Category and
Region
2012 Passenger Charging System: France
1. Usage Fee:
Train Running Charge +
Other Fees
base price per km
electricity charges
× service coefficient
+ 2. Reservation Fee:
Base Price per km × Paris OD Coefficient × Peak coefficient × other coefficients
Multiple line types
+ 3. Station Fee (Depends on Station, train length and type)
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UIC Studies on Infrastructure Charges
35,00 €
26,84 €
€ per km 2012 (National ODs)
Sorted in Ascending Order
30,00 €
13,85 €
20,00 €
8,21 €
7,90 €
5,71 €
5,51 €
4,96 €
4,48 €
3,35 €
3,14 €
3,00 €
2,81 €
2,06 €
1,86 €
1,66 €
1,45 €
1,43 €
1,28 €
1,03 €
0,91 €
0,77 €
0,61 €
0,00 €
5,00 €
0,00 €
10,00 €
4,37 €
15,00 €
0,00 €
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14,01 €
25,00 €
29,20 €
(2005, 2007, 2012, 2013)
Passenger High-Speed Results: National OD Pairs
% change per year 2007-2012
20%
NEW HSL
15%
10%
5%
0%
0%
0%
10%
4%
0%
0%
0%
3%
1%
6%
6%
4%
6%
9%
0%
0%
-14%
-1%
-5% -2%
-14%
-6%
-5%
-10%
-15%
-20%
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7%
2%
4% 15%
Passenger High Speed International Links:
Differences in Charge Levels (2012)
OD Pair
Fee per train-km in each Section (€ per train-km)
With Eurotunnel
London –
Brussels
400 €
300 €
200 €
100 €
0€
353,65€
London –
Bordeaux
60 €
43,48€
40 €
43,48€
HS1
400 €
300 €
200 €
100 €
0€
No Eurotunnel
Eurotunnel
14,91€
7,35€
France
Belgium
351,55€
14,91€
20 €
7,35€
0€
HS1
60 €
France
43,48€
43,48€
12,82€
Eurotunnel
FR
12,82€
20 €
0€
HS1
FR
40 €
20 €
7,09€
20 €
FR
BE
NL
15,12€
6,21€
10 €
0€
20
33,24€
21,63€
0€
Paris – Rome
Belgium
40 €
HS1
Paris –
Amsterdam
Avg:
22.46€
FR
IT
A. PRODAN - P.F. TEIXEIRA / Infrastructure Pricing / Bilbao, 23-24 Feb. 2015
Avg:
16.13€
European Freight Corridors ODs
Corridors from Directive 913/2010 (and 1316/2013)
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1,39 €
Italy
1,43 €
Portugal
1,47 €
Luxembourg
Netherlands
1,48 €
1,56 €
United Kingdom
1,61 €
Belgium
1,70 €
Slovakia
1,76 €
Hungary
Greece
2,05 €
2,17 €
2,47 €
2,80 €
3,15 €
Denmark
Germany
3,17 €
3,44 €
Poland
3,52 €
Romania
3,61 €
Estonia
4,50 €
5,00 €
5,69 €
7,61 €
Latvia
9,98 €
Freight - National OD Calculations
Bulgaria
10 €
0,93 €
1,22 €
€ per km 2013 (National ODs)
Sorted in Ascending Order, 500t train
A. PRODAN - P.F. TEIXEIRA / Infrastructure Pricing / Bilbao, 23-24 Feb. 2015
Finland
Switzerland
Ireland
France (Not Subsidized)
9€
0,79 €
Lithuania
8€
Slovenia
Czech Republic
7€
0,24 €
0,67 €
France (Subsidized)
6€
0,00 €
Sweden
Austria
5€
4€
3€
2€
Spain
1€
0€
22
Norway
Freight Corridors:
Individual Country Charges and overall Mean
Mean value in € per train-km
7€
Corridor Mean
means
means
Country Mean
1-data
6€
within a corridor
5€
4€
3€
2€
1€
0€
1
23
2
3
4
5
6
Corridor
7
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9
IMPORTANCE OF CHARGES TO
OPERATORS AND
INFRASTRUCTURE MANAGERS
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Ticket Prices
< 200 km
200-300 km
300-400 km
400-500 km
500-600 km
>600 km
< 200 km
200-300 km
300-400 km
400-500 km
500-600 km
>600 km
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A. PRODAN - P.F. TEIXEIRA / Infrastructure Pricing / Bilbao, 23-24 Feb. 2015
IM CHARGE
Tariff Impact on RUs =
RU REVENUE
17%
33%
29%
14%
16%
16%
28%
6%
9%
7%
10%
10%
15%
9%
20%
14%
25%
18%
30%
29%
35%
25%
35%
29%
40%
35%
36%
Fee as a percentage of estimated revenue (variable ticket prices)
5%
0%
*
* - Barcelona-Paris considers a night train only
2007-2012: Impact increased (charges increased more than ticket prices)
26
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IM COST RECOVERY = TOTAL REVENUES – MAINTENANCE COSTS
(per year) in 2012
2,00
1,75
Charges (Σ all trains)
M€ (Millions of Euros)
per year, per km
1,92 1,92
1,64
1,50
M€
1,25
1,00
0,75
0,50
0,25
0,52
0,28 0,33
0,11
0,06 0,14
0,20
0,15 0,18 0,14
0,00
*
* - considers passenger trains only
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What’s missing from a EUROPEAN network?
> A EUROPEAN Network still does not exist…
Technological differences decreased
Policy is not converging
> Infrastructure Charges: Domestic Markets
No stability over time
Hard to justify RU investments
High-speed lines: charges are important to RUs and IMs
> Infrastructure Charges: International Corridors
No corridor-wide regulation, though steps are being taken
Different Charges for similar infrastructure
Freight: charges in international corridors not homogenized
By increasing charges one IM may make whole corridor
unprofitable
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Projects and Studies
UIC Study on Freight Infrastructure Charges (2014)
http://www.uic.org/etf/publication/publication-detail.php?code_pub=190_46E/PDF
INFRACHARGES - UIC study on railway infrastructure charges in Europe (2012)
http://www.uic.org/download.php/publication/541e_pub.pdf
UIC Study on Railway Station and Auxiliary Charges in Europe
http://www.uic.org/IMG/pdf/final-report-20140121.pdf
ACTUALISATION DE: « ETUDE DES TARIFICATIONS DE L’INFRASTRUCTURE FERROVIAIRE EN EUROPE
CONCERNEES PAR DES RELATIONS POTENTIELLES DES TRAINS PASSAGERS A GRANDE
VITESSE »
http://www.uic.org/IMG/pdf/203_20071200_Rapport_Infrastructure_charges_Dec2007_Rapport_FINAL_2_fr.pdf
“Study on Infrastructure Charges of High Speed Services in Europe” (2006)
http://www.uic.org/IMG/pdf/203_20061100_Report_Study_on_infrastructure_charges_of_high_speed_in_Europe_Final_r
eport_en.pdf
RailCalc
Calculation of Charges for the use of railway infrastructure
IMPRINT NET www.imprint-net.org
Implementing Pricing Reforms in Transport Networking
GRACE www.grace-eu.org
Generalisation of Research on Accounts and cost Estimation
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Eskerrik asko zuen arretagatik
Thank you for your kind attention
Gracias por su atención
Aleksandr Prodan, Researcher
Instituto Superior Técnico (IST), University of Lisbon
[email protected]
Paulo F. Teixeira, Assistant Professor of Railways
Instituto Superior Técnico (IST), University of Lisbon
[email protected]
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