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Competition Is Good



– Mr Loubinoux, you have worked for the SNCF Company for 29 years. It’s a long time. What were your most important decisions?



– Yes it was a long period of time which was a pleasure every day with all the wonderful people – men and women – I have had the pleasure to work with. If I had to identify four points which have been very interesting I would mention the implementation of, in the 1980s, the global distribution systems in the airline business which would soon bring about the ticketing distribution revolution in the railway business in Europe. Then I would mention the excitement of being in London and part of the project and adventure of the Channel Tunnel and a wonderful and moving experience when I decided to send a team of experts to restore the railway system in Indonesia (Aceh) after everything was destroyed over there by the tsunami. And finally I should not omit the pleasure I’ve had in contributing to the revival of the UIC and its new development through the regained confidence of its members and partners.



– The UIC was founded in 1922. What were the most important steps taken last year? 



– Since its creation in 1922, the main objective of the UIC was – and still is – to contribute to the interoperability of the railway system so it can operate at an international level. It was at that time between neighbouring countries in Europe. Now it is various decisions that we take with our members at our general assemblies to contribute to intercontinental interoperability and this can be implemented through a lot of work on the development of European corridors or interoperability of transport modes to make rail the backbone of a fully integrated transport system and also through the preparation of international railway standards that we are trying to develop at global level.  



– The UIC's mission is “to promote rail transport on a global level and meet the challenges of mobility and sustainable development”. Also one of the most important goals is the development of passenger transport traffics in Europe. How would you describe the passenger transport market in the European Union today? Is there much competition between operators?



– The development of passenger transport in Europe is the answer to the growing demand for mobility with the enlargement of a 28–member Europe. Railways are a driver of development and changes within these countries at city level, with the growing implementation of modern intra–city systems. Also at inter–city level, with many services between cities with a great deal of market attractiveness, or at international level, through the development of a trans–European network. Regarding the latter, it is interesting to see that a high speed network is now developing on a European level. It was initiated 33 years ago with the French TGV between Paris and Lyon, but now we can see that most European counties have created their own high speed systems and have inter–connected these high speed systems so you can now go directly from London to Madrid or Madrid to Amsterdam or to Rome, and there is more to come. What is interesting is that the choice of high speed systems with the wheel to rail technology gives high speed trains the possibility of operating more widely on the regular network enabling wider coverage of European territory. What can be said is that it is very safe, comfortable and it can now only grow with a vision of modal interoperability so that passenger traffic can be considered with rail as the backbone and the door–to–door answer to passenger mobility.



– What do you think about the competition in the railway sector in general? Is it the right decision to allow private companies into the railway sector, in your opinion?



– I think that in a globalised economy competition is good in any sector provided that it brings additional services benefitting customers. In the railway sector it is a fact now with the various types of European legislation and railway packages both in the freight and passenger business. Introducing new operators must be carefully looked at to avoid the cherry picking situation whereby private operators will only operate on profitable routes with attractive and important markets and therefore abandon other public service operations where railways are also the answer especially in very dense or urban regions. One of the main obsessions of all railways since its creation is safety and therefore the introduction of competition must not be done at the expense of safety. That is an absolute must. The harmonious combination of railway operators must also be looked at so that they can grow in a complementary manner.



Difficult to Choose the Right Model



– Could you please tell us about the current main railway projects in Europe?



– Well in spite of the financial crisis there are still many railway projects being developed in Europe. Maybe fewer of course than the master scheme visions developed by every country, but one priority that seems to be emerging is the renovation of existing conventional lines to increase their capacity and therefore their profitability. A number of high speed links are also being considered, even if there are fewer than planned, but in France there is still the south–east Atlantic line, the Rhine–Rhone, the south west line around Nimes and Montpellier linking the Spanish and French networks. There are projects at European level linking Lyon and Turin through the Alps which will probably be a long–term project. In London there is one of the most important projects being developed in the world at the moment which is the HS2 project connecting to the north of the country and the CROSSRAIL project through London. There are a number of high speed extensions or renovation of lines in Germany, Poland, Italy and other countries in Central Europe. What must also be mentioned is the continuation of the development of freight corridors which will increase the capacity of railways to respond to the mobility of goods around Europe and market demands, and link Europe with its neighbours, especially through the central European corridors and the link via Turkey.



– Now it’s a very popular theme– the 4th railway package. Mr Loubinoux, what do you think about it? Probably, you have some corrections or additions?



– The Fourth Railway Package is the next step which has just been published and can be considered differently by various railways around Europe. Two points of progress are probably the incentive to develop public service operations which we know are much needed in bigger cities and also the ever–growing concern about reinforcing safety in the railway business.  



– What can you say about the vertical integration of railways – is it the best way to organise the work? Or can you recommend another model?



– It is very difficult to give a definitive answer on the best governance for railways. The governance depends on the geographical, political, financial and historical context of any railways or any countries in which these railways operate. What I can say, and this is a position which has been adopted by the UIC, is that in terms of technology, we consider that railways – because of the complexity of the operations – and the technology involved with the wheel to rail interfaces or the pantograph to catenaries and the complexity of the maintenance of the infrastructure, which must be carried out in total harmony and transparency with the operators, is that in terms of the technical approach, we consider railways to be an integrated system and must be developed as such. Now the governance in which this system integration is developed depends again, as I said, on a number of factors.



Promotion at Global Level



– Many railway companies dedicate a lot of time to working out their strategy for innovation development. What can you say about the innovations in the railway sector of the European Union? We mean such innovations as magnetic levitation, super high–speed trains… Do you think that in some years Europe will see it?



– In terms of innovation it is very interesting to see that in the railway sector there is a lot of technological innovation at national and international level, but we have to see that railways are a very expensive mode to construct and to operate, therefore there is a lot of technological innovation with the aim of increasing capacity so as to increase profitability through higher speeds, better signalling systems and reducing transport times, through the reduction of maintenance costs, through improvement of LCC, and the reliability of railway systems so that they can offer the best service to railway customers. There are a number of innovative ideas as well which may not be technical: the financial engineering of the development of new projects which need large investments and there are many innovative solutions which have been put in place. Another innovative approach in favour of railways being the backbone of the transport system today, and if there is as we said before attraction between city peers to develop new lines there must also be connectivity with the rest of the network and also with other modes, so that likewise in the freight and passenger business it is a door–to–door approach which is proposed to customers through modal interoperability; and this approach is probably very innovative in the 21st century in comparison to the competitive modal approach of the 20th century. 

Now as far as fundamental research is concerned of course there are always a number of very innovative ideas that are being developed in research centres around the world and through the International Rail Research Board (IRRB) the UIC is currently contributing and supporting all these initiatives. It is probably fair to say that in the decades to come, because of the scarcity of finances, innovation will probably look into optimising existing systems rather than introducing totally new systems. A breakthrough however is expected in information technology which will probably revolutionise services to customers and make trains communicate mobility for everyone. 



– What can you say about green logistic? Is it an important factor in EU now? Are there going to be more restrictions in this area? Will it influence railway traffic in the future?



– Sustainability is definitely one of the key added values of the railway system for modern societies which we know very well – and this is not just a European issue, but everywhere in the world – how much greener societies are expected in terms of reduction of CO2 emissions, improvement in energy consumption, land take, noise, vibrations, etc. These are all areas to which the railways can bring sustainable solutions. And this is probably one of the reasons why railways are considered today as a much more valuable transport solution than before. We can see this not only at government level but also through the number of projects backed by international financial institutions.  



– What are the main targets of the UIC for 2014?



– The UIC is very much involved in the promotion of sustainable, green, added–value railways. We have been participating through our status at the UN and ECOSOC at the various COP events. In 2014 we will be in New York with the UN preparing for the Climate Change Conference – one of our major breakthrough events – to be held in Paris next year. Other major actions in 2014 are to continue the development of our technical and research projects, to launch the second edition of the innovation awards at global level, to further work with the UN and other institutions like OTIF, CIT and OSJD on the development of Eurasian corridors, to improve the strategy of railways in terms of safety and security and a number of other conferences that we organise to promote railways around the world. We will probably be doing the same again – organising about 50 events, which is around one a week on average, in major cities around the world. One important factor as well is to disseminate the results of our actions and our deliverables and ideas and we have been publishing this year a whole series of regional railway visions for the future – whether it is the railway technical strategy vision for Europe or the African, North and South American, Middle–East or Asian visions, these are now available and give an overall global vision of rail that UIC is promoting at world level.             

By Kirill Kovalenko
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Competition Is Good



– Mr Loubinoux, you have worked for the SNCF Company for 29 years. It’s a long time. What were your most important decisions?



– Yes it was a long period of time which was a pleasure every day with all the wonderful people – men and women – I have had the pleasure to work with. If I had to identify four points which have been very interesting I would mention the implementation of, in the 1980s, the global distribution systems in the airline business which would soon bring about the ticketing distribution revolution in the railway business in Europe. Then I would mention the excitement of being in London and part of the project and adventure of the Channel Tunnel and a wonderful and moving experience when I decided to send a team of experts to restore the railway system in Indonesia (Aceh) after everything was destroyed over there by the tsunami. And finally I should not omit the pleasure I’ve had in contributing to the revival of the UIC and its new development through the regained confidence of its members and partners.



– The UIC was founded in 1922. What were the most important steps taken last year? 



– Since its creation in 1922, the main objective of the UIC was – and still is – to contribute to the interoperability of the railway system so it can operate at an international level. It was at that time between neighbouring countries in Europe. Now it is various decisions that we take with our members at our general assemblies to contribute to intercontinental interoperability and this can be implemented through a lot of work on the development of European corridors or interoperability of transport modes to make rail the backbone of a fully integrated transport system and also through the preparation of international railway standards that we are trying to develop at global level.  



– The UIC's mission is “to promote rail transport on a global level and meet the challenges of mobility and sustainable development”. Also one of the most important goals is the development of passenger transport traffics in Europe. How would you describe the passenger transport market in the European Union today? Is there much competition between operators?



– The development of passenger transport in Europe is the answer to the growing demand for mobility with the enlargement of a 28–member Europe. Railways are a driver of development and changes within these countries at city level, with the growing implementation of modern intra–city systems. Also at inter–city level, with many services between cities with a great deal of market attractiveness, or at international level, through the development of a trans–European network. Regarding the latter, it is interesting to see that a high speed network is now developing on a European level. It was initiated 33 years ago with the French TGV between Paris and Lyon, but now we can see that most European counties have created their own high speed systems and have inter–connected these high speed systems so you can now go directly from London to Madrid or Madrid to Amsterdam or to Rome, and there is more to come. What is interesting is that the choice of high speed systems with the wheel to rail technology gives high speed trains the possibility of operating more widely on the regular network enabling wider coverage of European territory. What can be said is that it is very safe, comfortable and it can now only grow with a vision of modal interoperability so that passenger traffic can be considered with rail as the backbone and the door–to–door answer to passenger mobility.



– What do you think about the competition in the railway sector in general? Is it the right decision to allow private companies into the railway sector, in your opinion?



– I think that in a globalised economy competition is good in any sector provided that it brings additional services benefitting customers. In the railway sector it is a fact now with the various types of European legislation and railway packages both in the freight and passenger business. Introducing new operators must be carefully looked at to avoid the cherry picking situation whereby private operators will only operate on profitable routes with attractive and important markets and therefore abandon other public service operations where railways are also the answer especially in very dense or urban regions. One of the main obsessions of all railways since its creation is safety and therefore the introduction of competition must not be done at the expense of safety. That is an absolute must. The harmonious combination of railway operators must also be looked at so that they can grow in a complementary manner.



Difficult to Choose the Right Model



– Could you please tell us about the current main railway projects in Europe?



– Well in spite of the financial crisis there are still many railway projects being developed in Europe. Maybe fewer of course than the master scheme visions developed by every country, but one priority that seems to be emerging is the renovation of existing conventional lines to increase their capacity and therefore their profitability. A number of high speed links are also being considered, even if there are fewer than planned, but in France there is still the south–east Atlantic line, the Rhine–Rhone, the south west line around Nimes and Montpellier linking the Spanish and French networks. There are projects at European level linking Lyon and Turin through the Alps which will probably be a long–term project. In London there is one of the most important projects being developed in the world at the moment which is the HS2 project connecting to the north of the country and the CROSSRAIL project through London. There are a number of high speed extensions or renovation of lines in Germany, Poland, Italy and other countries in Central Europe. What must also be mentioned is the continuation of the development of freight corridors which will increase the capacity of railways to respond to the mobility of goods around Europe and market demands, and link Europe with its neighbours, especially through the central European corridors and the link via Turkey.



– Now it’s a very popular theme– the 4th railway package. Mr Loubinoux, what do you think about it? Probably, you have some corrections or additions?



– The Fourth Railway Package is the next step which has just been published and can be considered differently by various railways around Europe. Two points of progress are probably the incentive to develop public service operations which we know are much needed in bigger cities and also the ever–growing concern about reinforcing safety in the railway business.  



– What can you say about the vertical integration of railways – is it the best way to organise the work? Or can you recommend another model?



– It is very difficult to give a definitive answer on the best governance for railways. The governance depends on the geographical, political, financial and historical context of any railways or any countries in which these railways operate. What I can say, and this is a position which has been adopted by the UIC, is that in terms of technology, we consider that railways – because of the complexity of the operations – and the technology involved with the wheel to rail interfaces or the pantograph to catenaries and the complexity of the maintenance of the infrastructure, which must be carried out in total harmony and transparency with the operators, is that in terms of the technical approach, we consider railways to be an integrated system and must be developed as such. Now the governance in which this system integration is developed depends again, as I said, on a number of factors.



Promotion at Global Level



– Many railway companies dedicate a lot of time to working out their strategy for innovation development. What can you say about the innovations in the railway sector of the European Union? We mean such innovations as magnetic levitation, super high–speed trains… Do you think that in some years Europe will see it?



– In terms of innovation it is very interesting to see that in the railway sector there is a lot of technological innovation at national and international level, but we have to see that railways are a very expensive mode to construct and to operate, therefore there is a lot of technological innovation with the aim of increasing capacity so as to increase profitability through higher speeds, better signalling systems and reducing transport times, through the reduction of maintenance costs, through improvement of LCC, and the reliability of railway systems so that they can offer the best service to railway customers. There are a number of innovative ideas as well which may not be technical: the financial engineering of the development of new projects which need large investments and there are many innovative solutions which have been put in place. Another innovative approach in favour of railways being the backbone of the transport system today, and if there is as we said before attraction between city peers to develop new lines there must also be connectivity with the rest of the network and also with other modes, so that likewise in the freight and passenger business it is a door–to–door approach which is proposed to customers through modal interoperability; and this approach is probably very innovative in the 21st century in comparison to the competitive modal approach of the 20th century. 

Now as far as fundamental research is concerned of course there are always a number of very innovative ideas that are being developed in research centres around the world and through the International Rail Research Board (IRRB) the UIC is currently contributing and supporting all these initiatives. It is probably fair to say that in the decades to come, because of the scarcity of finances, innovation will probably look into optimising existing systems rather than introducing totally new systems. A breakthrough however is expected in information technology which will probably revolutionise services to customers and make trains communicate mobility for everyone. 



– What can you say about green logistic? Is it an important factor in EU now? Are there going to be more restrictions in this area? Will it influence railway traffic in the future?



– Sustainability is definitely one of the key added values of the railway system for modern societies which we know very well – and this is not just a European issue, but everywhere in the world – how much greener societies are expected in terms of reduction of CO2 emissions, improvement in energy consumption, land take, noise, vibrations, etc. These are all areas to which the railways can bring sustainable solutions. And this is probably one of the reasons why railways are considered today as a much more valuable transport solution than before. We can see this not only at government level but also through the number of projects backed by international financial institutions.  



– What are the main targets of the UIC for 2014?



– The UIC is very much involved in the promotion of sustainable, green, added–value railways. We have been participating through our status at the UN and ECOSOC at the various COP events. In 2014 we will be in New York with the UN preparing for the Climate Change Conference – one of our major breakthrough events – to be held in Paris next year. Other major actions in 2014 are to continue the development of our technical and research projects, to launch the second edition of the innovation awards at global level, to further work with the UN and other institutions like OTIF, CIT and OSJD on the development of Eurasian corridors, to improve the strategy of railways in terms of safety and security and a number of other conferences that we organise to promote railways around the world. We will probably be doing the same again – organising about 50 events, which is around one a week on average, in major cities around the world. One important factor as well is to disseminate the results of our actions and our deliverables and ideas and we have been publishing this year a whole series of regional railway visions for the future – whether it is the railway technical strategy vision for Europe or the African, North and South American, Middle–East or Asian visions, these are now available and give an overall global vision of rail that UIC is promoting at world level.             

By Kirill Kovalenko
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Competition Is Good



– Mr Loubinoux, you have worked for the SNCF Company for 29 years. It’s a long time. What were your most important decisions?



– Yes it was a long period of time which was a pleasure every day with all the wonderful people – men and women – I have had the pleasure to work with. If I had to identify four points which have been very interesting I would mention the implementation of, in the 1980s, the global distribution systems in the airline business which would soon bring about the ticketing distribution revolution in the railway business in Europe. Then I would mention the excitement of being in London and part of the project and adventure of the Channel Tunnel and a wonderful and moving experience when I decided to send a team of experts to restore the railway system in Indonesia (Aceh) after everything was destroyed over there by the tsunami. And finally I should not omit the pleasure I’ve had in contributing to the revival of the UIC and its new development through the regained confidence of its members and partners.



– The UIC was founded in 1922. What were the most important steps taken last year? 



– Since its creation in 1922, the main objective of the UIC was – and still is – to contribute to the interoperability of the railway system so it can operate at an international level. It was at that time between neighbouring countries in Europe. Now it is various decisions that we take with our members at our general assemblies to contribute to intercontinental interoperability and this can be implemented through a lot of work on the development of European corridors or interoperability of transport modes to make rail the backbone of a fully integrated transport system and also through the preparation of international railway standards that we are trying to develop at global level.  



– The UIC's mission is “to promote rail transport on a global level and meet the challenges of mobility and sustainable development”. Also one of the most important goals is the development of passenger transport traffics in Europe. How would you describe the passenger transport market in the European Union today? Is there much competition between operators?



– The development of passenger transport in Europe is the answer to the growing demand for mobility with the enlargement of a 28–member Europe. Railways are a driver of development and changes within these countries at city level, with the growing implementation of modern intra–city systems. Also at inter–city level, with many services between cities with a great deal of market attractiveness, or at international level, through the development of a trans–European network. Regarding the latter, it is interesting to see that a high speed network is now developing on a European level. It was initiated 33 years ago with the French TGV between Paris and Lyon, but now we can see that most European counties have created their own high speed systems and have inter–connected these high speed systems so you can now go directly from London to Madrid or Madrid to Amsterdam or to Rome, and there is more to come. What is interesting is that the choice of high speed systems with the wheel to rail technology gives high speed trains the possibility of operating more widely on the regular network enabling wider coverage of European territory. What can be said is that it is very safe, comfortable and it can now only grow with a vision of modal interoperability so that passenger traffic can be considered with rail as the backbone and the door–to–door answer to passenger mobility.



– What do you think about the competition in the railway sector in general? Is it the right decision to allow private companies into the railway sector, in your opinion?



– I think that in a globalised economy competition is good in any sector provided that it brings additional services benefitting customers. In the railway sector it is a fact now with the various types of European legislation and railway packages both in the freight and passenger business. Introducing new operators must be carefully looked at to avoid the cherry picking situation whereby private operators will only operate on profitable routes with attractive and important markets and therefore abandon other public service operations where railways are also the answer especially in very dense or urban regions. One of the main obsessions of all railways since its creation is safety and therefore the introduction of competition must not be done at the expense of safety. That is an absolute must. The harmonious combination of railway operators must also be looked at so that they can grow in a complementary manner.



Difficult to Choose the Right Model



– Could you please tell us about the current main railway projects in Europe?



– Well in spite of the financial crisis there are still many railway projects being developed in Europe. Maybe fewer of course than the master scheme visions developed by every country, but one priority that seems to be emerging is the renovation of existing conventional lines to increase their capacity and therefore their profitability. A number of high speed links are also being considered, even if there are fewer than planned, but in France there is still the south–east Atlantic line, the Rhine–Rhone, the south west line around Nimes and Montpellier linking the Spanish and French networks. There are projects at European level linking Lyon and Turin through the Alps which will probably be a long–term project. In London there is one of the most important projects being developed in the world at the moment which is the HS2 project connecting to the north of the country and the CROSSRAIL project through London. There are a number of high speed extensions or renovation of lines in Germany, Poland, Italy and other countries in Central Europe. What must also be mentioned is the continuation of the development of freight corridors which will increase the capacity of railways to respond to the mobility of goods around Europe and market demands, and link Europe with its neighbours, especially through the central European corridors and the link via Turkey.



– Now it’s a very popular theme– the 4th railway package. Mr Loubinoux, what do you think about it? Probably, you have some corrections or additions?



– The Fourth Railway Package is the next step which has just been published and can be considered differently by various railways around Europe. Two points of progress are probably the incentive to develop public service operations which we know are much needed in bigger cities and also the ever–growing concern about reinforcing safety in the railway business.  



– What can you say about the vertical integration of railways – is it the best way to organise the work? Or can you recommend another model?



– It is very difficult to give a definitive answer on the best governance for railways. The governance depends on the geographical, political, financial and historical context of any railways or any countries in which these railways operate. What I can say, and this is a position which has been adopted by the UIC, is that in terms of technology, we consider that railways – because of the complexity of the operations – and the technology involved with the wheel to rail interfaces or the pantograph to catenaries and the complexity of the maintenance of the infrastructure, which must be carried out in total harmony and transparency with the operators, is that in terms of the technical approach, we consider railways to be an integrated system and must be developed as such. Now the governance in which this system integration is developed depends again, as I said, on a number of factors.



Promotion at Global Level



– Many railway companies dedicate a lot of time to working out their strategy for innovation development. What can you say about the innovations in the railway sector of the European Union? We mean such innovations as magnetic levitation, super high–speed trains… Do you think that in some years Europe will see it?



– In terms of innovation it is very interesting to see that in the railway sector there is a lot of technological innovation at national and international level, but we have to see that railways are a very expensive mode to construct and to operate, therefore there is a lot of technological innovation with the aim of increasing capacity so as to increase profitability through higher speeds, better signalling systems and reducing transport times, through the reduction of maintenance costs, through improvement of LCC, and the reliability of railway systems so that they can offer the best service to railway customers. There are a number of innovative ideas as well which may not be technical: the financial engineering of the development of new projects which need large investments and there are many innovative solutions which have been put in place. Another innovative approach in favour of railways being the backbone of the transport system today, and if there is as we said before attraction between city peers to develop new lines there must also be connectivity with the rest of the network and also with other modes, so that likewise in the freight and passenger business it is a door–to–door approach which is proposed to customers through modal interoperability; and this approach is probably very innovative in the 21st century in comparison to the competitive modal approach of the 20th century. 

Now as far as fundamental research is concerned of course there are always a number of very innovative ideas that are being developed in research centres around the world and through the International Rail Research Board (IRRB) the UIC is currently contributing and supporting all these initiatives. It is probably fair to say that in the decades to come, because of the scarcity of finances, innovation will probably look into optimising existing systems rather than introducing totally new systems. A breakthrough however is expected in information technology which will probably revolutionise services to customers and make trains communicate mobility for everyone. 



– What can you say about green logistic? Is it an important factor in EU now? Are there going to be more restrictions in this area? Will it influence railway traffic in the future?



– Sustainability is definitely one of the key added values of the railway system for modern societies which we know very well – and this is not just a European issue, but everywhere in the world – how much greener societies are expected in terms of reduction of CO2 emissions, improvement in energy consumption, land take, noise, vibrations, etc. These are all areas to which the railways can bring sustainable solutions. And this is probably one of the reasons why railways are considered today as a much more valuable transport solution than before. We can see this not only at government level but also through the number of projects backed by international financial institutions.  



– What are the main targets of the UIC for 2014?



– The UIC is very much involved in the promotion of sustainable, green, added–value railways. We have been participating through our status at the UN and ECOSOC at the various COP events. In 2014 we will be in New York with the UN preparing for the Climate Change Conference – one of our major breakthrough events – to be held in Paris next year. Other major actions in 2014 are to continue the development of our technical and research projects, to launch the second edition of the innovation awards at global level, to further work with the UN and other institutions like OTIF, CIT and OSJD on the development of Eurasian corridors, to improve the strategy of railways in terms of safety and security and a number of other conferences that we organise to promote railways around the world. We will probably be doing the same again – organising about 50 events, which is around one a week on average, in major cities around the world. One important factor as well is to disseminate the results of our actions and our deliverables and ideas and we have been publishing this year a whole series of regional railway visions for the future – whether it is the railway technical strategy vision for Europe or the African, North and South American, Middle–East or Asian visions, these are now available and give an overall global vision of rail that UIC is promoting at world level.             

By Kirill Kovalenko
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Competition Is Good



– Mr Loubinoux, you have worked for the SNCF Company for 29 years. It’s a long time. What were your most important decisions?



– Yes it was a long period of time which was a pleasure every day with all the wonderful people – men and women – I have had the pleasure to work with. If I had to identify four points which have been very interesting I would mention the implementation of, in the 1980s, the global distribution systems in the airline business which would soon bring about the ticketing distribution revolution in the railway business in Europe. Then I would mention the excitement of being in London and part of the project and adventure of the Channel Tunnel and a wonderful and moving experience when I decided to send a team of experts to restore the railway system in Indonesia (Aceh) after everything was destroyed over there by the tsunami. And finally I should not omit the pleasure I’ve had in contributing to the revival of the UIC and its new development through the regained confidence of its members and partners.



– The UIC was founded in 1922. What were the most important steps taken last year? 



– Since its creation in 1922, the main objective of the UIC was – and still is – to contribute to the interoperability of the railway system so it can operate at an international level. It was at that time between neighbouring countries in Europe. Now it is various decisions that we take with our members at our general assemblies to contribute to intercontinental interoperability and this can be implemented through a lot of work on the development of European corridors or interoperability of transport modes to make rail the backbone of a fully integrated transport system and also through the preparation of international railway standards that we are trying to develop at global level.  



– The UIC's mission is “to promote rail transport on a global level and meet the challenges of mobility and sustainable development”. Also one of the most important goals is the development of passenger transport traffics in Europe. How would you describe the passenger transport market in the European Union today? Is there much competition between operators?



– The development of passenger transport in Europe is the answer to the growing demand for mobility with the enlargement of a 28–member Europe. Railways are a driver of development and changes within these countries at city level, with the growing implementation of modern intra–city systems. Also at inter–city level, with many services between cities with a great deal of market attractiveness, or at international level, through the development of a trans–European network. Regarding the latter, it is interesting to see that a high speed network is now developing on a European level. It was initiated 33 years ago with the French TGV between Paris and Lyon, but now we can see that most European counties have created their own high speed systems and have inter–connected these high speed systems so you can now go directly from London to Madrid or Madrid to Amsterdam or to Rome, and there is more to come. What is interesting is that the choice of high speed systems with the wheel to rail technology gives high speed trains the possibility of operating more widely on the regular network enabling wider coverage of European territory. What can be said is that it is very safe, comfortable and it can now only grow with a vision of modal interoperability so that passenger traffic can be considered with rail as the backbone and the door–to–door answer to passenger mobility.



– What do you think about the competition in the railway sector in general? Is it the right decision to allow private companies into the railway sector, in your opinion?



– I think that in a globalised economy competition is good in any sector provided that it brings additional services benefitting customers. In the railway sector it is a fact now with the various types of European legislation and railway packages both in the freight and passenger business. Introducing new operators must be carefully looked at to avoid the cherry picking situation whereby private operators will only operate on profitable routes with attractive and important markets and therefore abandon other public service operations where railways are also the answer especially in very dense or urban regions. One of the main obsessions of all railways since its creation is safety and therefore the introduction of competition must not be done at the expense of safety. That is an absolute must. The harmonious combination of railway operators must also be looked at so that they can grow in a complementary manner.



Difficult to Choose the Right Model



– Could you please tell us about the current main railway projects in Europe?



– Well in spite of the financial crisis there are still many railway projects being developed in Europe. Maybe fewer of course than the master scheme visions developed by every country, but one priority that seems to be emerging is the renovation of existing conventional lines to increase their capacity and therefore their profitability. A number of high speed links are also being considered, even if there are fewer than planned, but in France there is still the south–east Atlantic line, the Rhine–Rhone, the south west line around Nimes and Montpellier linking the Spanish and French networks. There are projects at European level linking Lyon and Turin through the Alps which will probably be a long–term project. In London there is one of the most important projects being developed in the world at the moment which is the HS2 project connecting to the north of the country and the CROSSRAIL project through London. There are a number of high speed extensions or renovation of lines in Germany, Poland, Italy and other countries in Central Europe. What must also be mentioned is the continuation of the development of freight corridors which will increase the capacity of railways to respond to the mobility of goods around Europe and market demands, and link Europe with its neighbours, especially through the central European corridors and the link via Turkey.



– Now it’s a very popular theme– the 4th railway package. Mr Loubinoux, what do you think about it? Probably, you have some corrections or additions?



– The Fourth Railway Package is the next step which has just been published and can be considered differently by various railways around Europe. Two points of progress are probably the incentive to develop public service operations which we know are much needed in bigger cities and also the ever–growing concern about reinforcing safety in the railway business.  



– What can you say about the vertical integration of railways – is it the best way to organise the work? Or can you recommend another model?



– It is very difficult to give a definitive answer on the best governance for railways. The governance depends on the geographical, political, financial and historical context of any railways or any countries in which these railways operate. What I can say, and this is a position which has been adopted by the UIC, is that in terms of technology, we consider that railways – because of the complexity of the operations – and the technology involved with the wheel to rail interfaces or the pantograph to catenaries and the complexity of the maintenance of the infrastructure, which must be carried out in total harmony and transparency with the operators, is that in terms of the technical approach, we consider railways to be an integrated system and must be developed as such. Now the governance in which this system integration is developed depends again, as I said, on a number of factors.



Promotion at Global Level



– Many railway companies dedicate a lot of time to working out their strategy for innovation development. What can you say about the innovations in the railway sector of the European Union? We mean such innovations as magnetic levitation, super high–speed trains… Do you think that in some years Europe will see it?



– In terms of innovation it is very interesting to see that in the railway sector there is a lot of technological innovation at national and international level, but we have to see that railways are a very expensive mode to construct and to operate, therefore there is a lot of technological innovation with the aim of increasing capacity so as to increase profitability through higher speeds, better signalling systems and reducing transport times, through the reduction of maintenance costs, through improvement of LCC, and the reliability of railway systems so that they can offer the best service to railway customers. There are a number of innovative ideas as well which may not be technical: the financial engineering of the development of new projects which need large investments and there are many innovative solutions which have been put in place. Another innovative approach in favour of railways being the backbone of the transport system today, and if there is as we said before attraction between city peers to develop new lines there must also be connectivity with the rest of the network and also with other modes, so that likewise in the freight and passenger business it is a door–to–door approach which is proposed to customers through modal interoperability; and this approach is probably very innovative in the 21st century in comparison to the competitive modal approach of the 20th century. 

Now as far as fundamental research is concerned of course there are always a number of very innovative ideas that are being developed in research centres around the world and through the International Rail Research Board (IRRB) the UIC is currently contributing and supporting all these initiatives. It is probably fair to say that in the decades to come, because of the scarcity of finances, innovation will probably look into optimising existing systems rather than introducing totally new systems. A breakthrough however is expected in information technology which will probably revolutionise services to customers and make trains communicate mobility for everyone. 



– What can you say about green logistic? Is it an important factor in EU now? Are there going to be more restrictions in this area? Will it influence railway traffic in the future?



– Sustainability is definitely one of the key added values of the railway system for modern societies which we know very well – and this is not just a European issue, but everywhere in the world – how much greener societies are expected in terms of reduction of CO2 emissions, improvement in energy consumption, land take, noise, vibrations, etc. These are all areas to which the railways can bring sustainable solutions. And this is probably one of the reasons why railways are considered today as a much more valuable transport solution than before. We can see this not only at government level but also through the number of projects backed by international financial institutions.  



– What are the main targets of the UIC for 2014?



– The UIC is very much involved in the promotion of sustainable, green, added–value railways. We have been participating through our status at the UN and ECOSOC at the various COP events. In 2014 we will be in New York with the UN preparing for the Climate Change Conference – one of our major breakthrough events – to be held in Paris next year. Other major actions in 2014 are to continue the development of our technical and research projects, to launch the second edition of the innovation awards at global level, to further work with the UN and other institutions like OTIF, CIT and OSJD on the development of Eurasian corridors, to improve the strategy of railways in terms of safety and security and a number of other conferences that we organise to promote railways around the world. We will probably be doing the same again – organising about 50 events, which is around one a week on average, in major cities around the world. One important factor as well is to disseminate the results of our actions and our deliverables and ideas and we have been publishing this year a whole series of regional railway visions for the future – whether it is the railway technical strategy vision for Europe or the African, North and South American, Middle–East or Asian visions, these are now available and give an overall global vision of rail that UIC is promoting at world level.             

By Kirill Kovalenko
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Due to the development of global logistics, existing routes can’t satisfy all their customers, both passengers and shippers. Therefore the development of new lines will be the main priority for railway companies in future.

This year RZD will focus on development of a high-speed railway system in Russia. Thus, the project for the first HSR line linking Moscow and Kazan is ready. A number of foreign companies are willing to take part in it, but the question of investment still remains (pp. 28-29).

According to Alexander Misharin, the First Vice President of RZD, the mechanism for investment has already been developed. It should be a concession, as such a scheme is familiar to the government, the ministries, and business. 

However, many experts say that the problem is a lack of private companies ready to take part in other important infrastructure projects, because companies still have doubts about profitability. Many PPP projects failed around the world, but there are still some really great examples in Russia. The best one is the construction of the Pulkovo airport in St Petersburg. Also there are the construction and utilisation of the “Western High-Speed Diameter” toll road, bridges over the Kama and the Bui in Udmurtia and the Lena in Yakutia. There are not so many PPP projects in the railway sector now, but the situation may change after the federal law “On Public-Private Partnership” comes into force (pp. 14-17).

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Süleyman Karaman, current President and Director General of TCDD shares his experience: “When I took up this position after the neglect of the railways for 50 years, the existing tracks were in very bad condition, the rolling stock obsolete and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people were used to seeing railways which used to make a loss, as a burden. We had two options; a loss maker establishment would either be closed down or the railways would be revitalised with investments similar to the examples in other developed countries” (pp. 59-61).

Without any doubt, it is important to learn from our neighbor’s experience. Even if it is not a positive one. Such as in the USA, where the majority are still against construction of HSR (pp.  22-25). But it is important to understand that every country has its own strengths. In the USA, the network of highways is developed extremely well. But in Russia, where more than 85% of people support the Moscow-Kazan HSR project, development of high-speed railways will be the solution to many of the problems of passenger traffic.
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This year RZD will focus on development of a high-speed railway system in Russia. Thus, the project for the first HSR line linking Moscow and Kazan is ready. A number of foreign companies are willing to take part in it, but the question of investment still remains (pp. 28-29).

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Süleyman Karaman, current President and Director General of TCDD shares his experience: “When I took up this position after the neglect of the railways for 50 years, the existing tracks were in very bad condition, the rolling stock obsolete and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people were used to seeing railways which used to make a loss, as a burden. We had two options; a loss maker establishment would either be closed down or the railways would be revitalised with investments similar to the examples in other developed countries” (pp. 59-61).

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Due to the development of global logistics, existing routes can’t satisfy all their customers, both passengers and shippers. Therefore the development of new lines will be the main priority for railway companies in future.

This year RZD will focus on development of a high-speed railway system in Russia. Thus, the project for the first HSR line linking Moscow and Kazan is ready. A number of foreign companies are willing to take part in it, but the question of investment still remains (pp. 28-29).

According to Alexander Misharin, the First Vice President of RZD, the mechanism for investment has already been developed. It should be a concession, as such a scheme is familiar to the government, the ministries, and business. 

However, many experts say that the problem is a lack of private companies ready to take part in other important infrastructure projects, because companies still have doubts about profitability. Many PPP projects failed around the world, but there are still some really great examples in Russia. The best one is the construction of the Pulkovo airport in St Petersburg. Also there are the construction and utilisation of the “Western High-Speed Diameter” toll road, bridges over the Kama and the Bui in Udmurtia and the Lena in Yakutia. There are not so many PPP projects in the railway sector now, but the situation may change after the federal law “On Public-Private Partnership” comes into force (pp. 14-17).

Heavy investment will soon be made into the development of railway infrastructure by both the government and RZD. Lastly, it was agreed to spend RUB 562 billion for modernisation of the Baikal-Amur and Trans-Siberian Mainlines. The reasons why Russia must focus on these projects now, despite an uncertain payback period, are rather important. For example, the development of the New Silk Road, the backbone of which is the TRACECA project. Roads from the Southeast of Asia to Europe bypassing Russia can take away a significant share of traffic from Russian ports located in the Primorsky Krai area. And now, when logistics are moving eastwards, this investment is a really clever decision (pp. 46-47).

Süleyman Karaman, current President and Director General of TCDD shares his experience: “When I took up this position after the neglect of the railways for 50 years, the existing tracks were in very bad condition, the rolling stock obsolete and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people were used to seeing railways which used to make a loss, as a burden. We had two options; a loss maker establishment would either be closed down or the railways would be revitalised with investments similar to the examples in other developed countries” (pp. 59-61).

Without any doubt, it is important to learn from our neighbor’s experience. Even if it is not a positive one. Such as in the USA, where the majority are still against construction of HSR (pp.  22-25). But it is important to understand that every country has its own strengths. In the USA, the network of highways is developed extremely well. But in Russia, where more than 85% of people support the Moscow-Kazan HSR project, development of high-speed railways will be the solution to many of the problems of passenger traffic.
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Süleyman Karaman, current President and Director General of TCDD shares his experience: “When I took up this position after the neglect of the railways for 50 years, the existing tracks were in very bad condition, the rolling stock obsolete and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people were used to seeing railways which used to make a loss, as a burden. We had two options; a loss maker establishment would either be closed down or the railways would be revitalised with investments similar to the examples in other developed countries” (pp. 59-61).

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