České dráhy Czech National Operator Cooperation and competition in Central Europe. Passenger Rail Europe 2016 Amsterdam - 7 June 2016

Transcription

1 České dráhy Czech National Operator Cooperation and competition in Central Europe Passenger Rail Europe 2016 Amsterdam - 7 June 2016

2 Structure Presentation of ČD Group Impact of 4th Railway package on operators Competition in CZ open access - experience, impacts, benefits, drawbacks 2

3 Brief Overview Joint stock company, 100% owned by the State 1993 Dissolution of Czechoslovakia Czech Republic - České dráhy (ČD), state enterprise Slovak Republic Železnice Slovenskej Republiky (ŽSR) 2003 ČD separation of Railway infrastructure manager and railway operator SŽDC Railway infrastructure manager ČD, a.s. Railway operator Passenger transport core business Cargo part of ČD till 2007, (in 2008 ČD Cargo, a.s. is established as 100 % owned subsidiary of ČD, a.s.) Railway operation control (till 2011, afterwards transfer to SŽDC) Ownership and operation of railway stations transfer to SZDC in 2016 Research and Development Institute (VUZ) 3

4 ČD Group Core Business Activities Passenger Transport Freight Transport 169,7 mil. passengers transported in 2015, 96 % share of passenger market - sole provider of services on almost all the routes, 66,4 mil. tonnes transported in 2015, 67,3 % share of freight market - long-term relationship with customers have helped to maintain a steady market share. 4

5 40 35 ČD Group Key Figures Total revenues, EBITDA, EBIT (in bn CZK) Total revenues EBITDA EBIT

6 Passenger Transport Regional under public service obligation Operated under long term contracts with each of the 14 regional authorities, including the city of Prague. Long-distance under public service obligation Consists of long-distance and international rail transportation activities. Operated under long term contract with the State represented by the Ministry of Transport. Open Access Non-regulated passenger transportation operations. Includes operations of SC Pendolino or IC Praha Ostrava. Passanger transport is ranked among the ten largest railway companies in the EU. 6

7 Main Goals in Passenger Transport TO MAINTAIN ITS DOMINANT MARKET POSITION TO FURTHER INCREASE PROFITABILITY OF THE KEY LINES (LINES WITH REVENUES > 100 MIL. CZK/YEAR): Increasing the market share of international long distance transport through the cooperation with national operators from neighbouring countries (DB (1), PKP (2), ZSSK (3), ÖBB (4), MÁV (5) ). Modernisation of rolling stock. Continuous operating cost efficiencies. TO CONNECT REGIONAL AND LONG DISTANCE TRANSPORTATION WITHIN INTEGRATED TRANSPORT SYSTEMS OF REGIONS AND CITIES: ČD s integrated network is a unique competitive advantage and barrier to entry for any potential competition. TO EXTEND IMPLEMENTATION OF YIELD MANAGEMENT AND DYNAMIC TARIFFS (RELATING TO PEAK AND NON-PEAK HOURS): Aiming at an annual revenue increase of 1 % p.a. 7

8 Main Goals in Passenger Transport TO FURTHER ENHANCE CLIENT-CAPTURING AND CLIENT-LOCKING-IN BY: Enhanced simplification of the process of ticketing further implementation of e- applications, Client engagement measures TO OFFER A COMPLEX TRANSPORT PRODUCTS: Enhanced onboard services and of complementary services (Loyalty programme, ČD Parking, ČD Car, tickets for public transport, skipass) Integrated products and services (Connecting taxi and bus service, bike rental, ČD Bus, ČD Parking, ČD car rental) with focus on arrangements with Municipalities (e.g. Integrated origin-to-final destination travel solutions for passengers and reducing stress in city transport (periphery-to-periphery passengers). 8

9 Passenger Transport Competition on the Czech Railway Long distance Regional and Suburban České dráhy (ČD) Public service obligation, Open Access Regiojet (Student Agency) Open Access since Sep 2011 Leo Express Open Acces since Dec 2012 České dráhy (ČD) Public service obligation GW Train Regio, Arriva, JHMD, Vogtlandbahn (Netinera), KŽC Doprava Public service obligation 9

10 Prague Wien Graz ČD railjet + ÖBB railjet trains operated Prah a Ostrava Praha Wien Graz Brno ÖBB railjet Budapest Wien Salzburg München/Bregenz/Zürich Wien Villach/Wien - Graz Zürich Bregenz München Linz Salzburg Innsbruck Villac h Wien Graz Břeclav Bratislav a Budapest Current state of the project agreement for yers Operation since Dec.2014, positive impact on demand and revenues WiFi in ČD railjet trains completed OeBB railjet trains higher capacity for bikes planned for time-table 2016/17 10

11 Prague Dresden Berlin/Hamburg 6 pairs of trains (1 transit pair Hamburg Budapest); Target higher quality standard of rolling stock and unification of services Modernisation of Siemens coaches and refurbishment of Ex ÖBB coaches to a multifunction coach and bike coach Shorter travel times after the infrastructure modernisdation on German territory since TT 2017/18 (incl.shorter waiting time in Dresden Hbf.; ČD and MÁV trains (transit train pair) ČD locomotives for all services; Operation based on a long-term cooperation agreement with DB (2014) Hamburg Nürnberg München Berlin Dresden Praha Current state agreement for years 12/2015 start of operation according to the agreement with DB Modernisation of coaches at Pars company underway delay behind schedule, some quality problems Locomotives tender under preparation for lease of locomotives for 200 km/h 11

12 Prague Plzeň - Munich 7 train pairs Praha Plzeň Mnichov, 2hours cycle Common concept of BEG (Bayern) and Ministry of Transport CZ Hamburg Stralsund Duration of cooperation - 5 years from 12/2017 to 12/2022 (+ possible option + 2 Berlin yers) Dresden Fast connection Praha Plzeň, one of crucial CD lines Target of ČD highest possible standardisation of services Nürnberg Plzeň Praha Both on Czech and German territory tough competition from bus operators (in CZ München Praha Plzeň, in international services Prague Munich) Current state of project Negotiations with two bidders on Bavarian side companies Länderbahn (Netinera) and DB Regio, ČD as operator on Czech side Submission of bids in 05/2016 Announcement of the winner in Bavaria scheduled for Summer

13 Prague Linz 4-hours cycle of services Prague Linz Target = 4 pairs of trains in border-crossing transport Operated in cooperation with ÖBB Personenverkehr Shortening of travel time Prague Linz to 4 hours assumed Praha Č. Budějovice Pardubic e Brno Ostrava Usage of locomotives 380 and modernised coaches Wien Břeclav Combination of the services in border-crossing section with regional transport Salzburg Linz Graz Start of operation planned for12/2016 Current state of project Negotiations with ÖBB and both public customers (MD ČR, Ober Österreich) underway Fine-tuning of transport volumes and concept of services for TT 2016/17 13

14 Prague Brno Bratislava Budapest 2 hours cycle of trains DB/Prague Brno/Bratislava/Budapest 9 pairs of trains 1 transit pair Hamburg Budapest MÁV coaches Praha In section Prague Břeclav combination with railjet services Maximum unification of services on the line Use of ČD trains on the whole line (except transit train pair Hamburg Budapest ) Operation within the framework of long-time cooperation agreement with ZSSK (2015) Standard tariff policy as in other projects Current state preparation of agreement for years Brno Wien/Graz Ostrava Břeclav Bratislava Budapes t 12/2015 start of operation according to the agreement with ZSSK, train composition and defect monitoring Spring 2016 stabilisation of operation, since 12/2016 application of selected parameters Standard+ scheduled Negotiaitions with MÁV on standardisation of services and mutual cooperation June 2016 Modernised MÁV trains since December

15 Impact of 4th Railway Package on ČD market pillar - 1 Adoption of the market pillar will significantly affect the strategy of the ČD and its future market position on public transport market Market pillar consists of: amendment to the regulation on public passenger transport services by rail and road (1370/2007) amendment to Directive establishing a single railway area (2012/34) 15

16 Impact of 4th Railway Package on ČD market pillar - 2 ČD is a national operator providing rail services for state and regions - longdistance and regional services Status of a national operator is given by the law. Long-distance domestic rail passenger market in the Czech Republic has been opened on the basis of government resolution in government decided on gradual opening of the long-distance market while on some part of the market the scheme of direct award will be preserved Despite the opening of the PSO market any tender for operator has not yet been completed Individual regions do not yet have a coherent and single concept of market opening on regional level 16

17 Impact of 4th Railway Package on ČD market pillar - 3 Public rail transport in CZ is currently legally and economically stabilized on the basis of the Government Resolution of 2009 on funding on the basis of 10- year contracts signed by the state and regions All 10-year contracts will expire in 2019 with the exception of contracts whose validity has been extended due to significant investments in rolling stock Government approved this year a new resolution on the participation of the state in providing the funding of regional passenger rail transport until 2034 and guarantees the economic model of securing the funding of regional transport on the level of 2014 Financing model of regional rail transport from the state budget is not conditioned by any state interference into selection process for operators both options of tender/ direct award remain 17

18 Impact of 4th Railway Package on ČD market pillar - 4 ČD welcomes the latest compromise text of package Liberalisation freight transport in the Czech Republic failed to make a shift from road to rail. On the contrary, the total volume of freight has dropped slightly Liberalisation is not a universal remedy for improving quality of services and traffic volumes In PSO area the market in the Czech Republic was opened prematurely - without any rules for tenders, without equal conditions of access to rolling stock, rail-related facilities, without provision of any integrated system of information and ticketing and without the existence of a functional regulator In the Czech Republic we are undergoing a period of unbalanced competition in open access segment no level playing field for all the players 18

19 Impact of 4th Railway Package on ČD market pillar - 5 Market pillar of the package (in spite of postponed liberalization beyond the horizon of 2035) will have an immediate impact on the national operator. The reasons are following: in Czech Republic infrastructure and traffic services were institutionally separated there is no way back to integrated rail system competition between operators being and not being part of integrated company will never be fair market liberalization is favorable for financially strong operators particularly those within a holding structure 19

20 Impact of 4th Railway Package on ČD market pillar - 6 tenders will bring restrictions of public service volumes on the domestic market and limited chances of gaining access to other markets being protected by individual member states (integrated railway systems, different pace of market opening) preservation of a single ticketing concept requires the establishment of a special clearing centre for sharing of revenues = additional costs for operators and ultimately for passengers lack of reciprocity in EU - possible misuse of compensations of the states with different concept of market opening 20

21 Example of Prague Ostrava link Vital rail connection in CZ linking two major cities /conurbations Very attractive for rail operators (road transport not fully competitive) In open access regime 3 competitors on that line Not sufficient potential of the link for so many operators Result of non-regulated competition is: three competitors providing 30 trains/day in both directions Due to non-regulated competition and limited number of clients the long-distance trains are very short and infrastructure capacity is blocked overday This fact has a serious detrimental effect on REGIONAL and CARGO BUSINESS Absence of regulation harms the rail transport on that line 21

22 Thank you for your attention!