20 years of competition in the German regional passenger market. Tobias Heinemann, Chief Commercial Officer Transdev GmbH, Berlin
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1 20 years of competition in the German regional passenger market Tobias Heinemann, Chief Commercial Officer Transdev GmbH, Berlin
2 Transdev is a global mobility service provider Canada United Kingdom Sweden The Netherlands Ireland Belgium Germany Finland France United States of America Portugal Marocco Spain China South Korea Western Sahara India Colombia Australia Chile New Zealand EUR 6.7 billion revenue in transport modes employees 22 tramway networks vehicles 19 countries 5 continents
3 In Germany Transdev is the leading private operator present in both segments (bus & rail) Facts and figures 2016 Approx employees Approx. EUR 620 million (IFRS) A revenues Approx. 210 million B passengers 71 million bus kilometres Approx. 43 million train kilometres 21 coaches 4 C locomotives 375 C rail cars C buses 15 tramway cars 43 active subsidiaries A) EUR 923 million HGB revenues B) Partly estimated C) Including leased vehicles
4 20 years after market opening: Regional rail service impressive long distance rail stagnated Billion passenger-km 1996 to 2016 in regional and long-distance rail 35,9 regional long distance 37,0 37,9 38,7 39,3 40,5 38,3 39,8 40,5 41,7 44,5 45,0 47,1 47,5 47,9 50,0 51,5 53,1 53,8 53,1 54,3 Liberalisation of longdistance bus transport re-vitalised competition 39,5 35,6 35,2 34,6 34,9 36,2 35,3 31,6 32,3 33,6 34,5 34,1 35,5 34,7 36,0 35,6 37,4 36,8 36,1 37,0 33, Massive competition in regional rail service leads to massive growth : Passenger-km went up by >50 % from 1996 to 2016, while timetabled train-km increased by more than 30 % No tendering of long-distance rail service : market stagnated until 2014 and was only re-vitalised by intermodal competition from long distance buses since then
5 Competition leads to a shift in market shares... Market shares 2016 (based on train-km) Non-DB operators market shares have grown rapidly over recent years 7% 5% 3% 2% 2% 2% 12% Transdev Netinera Benex Abellio Keolis Westfalenbahn DB has lost 33 % of its market shares since the regional passenger market was opened up in 1996 Competitors' market shares are growing steadily and 50/50 share between DB and non-db is likely to be reached until % DB Regio Other Transdev has 20 years of bidding experience, other competitors (Abellio, Go-Ahead) are comparatively new.
6 has generated massive cost savings for German tax payers Operating subsidy in per Train-km Massive total savings on operating subsidy 4,69 3,28 Year Subsidy in Overall market volume (train-km) Total of subsidies paid ,69 ~ 615 Mio. ~ 2,88 Bn ,28 ~ 665 Mio. ~ 2,18 Bn SAVING ~0,70 Bn Saving of 700 million p.a. through competition alone with increased volume & quality increased passenger numbers, * Figures cover operational expenses but exclude fees for use of infrastructure (tracks and stations) stable social standards - no competition at the expense of employees!
7 and has improved the quality of regional passenger rail service Competition in the regional passenger rail market works Even DB Regio admits that liberalization has created far more dynamism and innovation than anyone would have thought possible. The offer for passengers is becoming more and better: More departures, longer operating times (e. g. evenings and weekends) More direct connections through new lines More seats (e. g. for commuters, but also in leisure traffic) Better vehicles (e. g. accessibility, air conditioning, passenger information) Better customer service (e. g. higher train crew attendance, easier access to tickets)
8 But some topics are still unsolved and await further efficiency gains Infrastructure costs show lack of competitive effects 4,24 5,61 Award of concessions for long-distance rail service recommended 54,3 35,9 35,6 Billion passenger-km 39,5 + 51,25 % + 10,96 % Regional Infrastructure Costs in per Train-km Massive increase of regional infrastructure costs due to missing competition. Up to 1 billion savings p.a. could be achieved through tendering for regional infrastructure Regional Rail Under-average development of passenger kilometers in long-distance rail Liberalisation through award of concessions is recommended Long-distance Rail Positive effect on modal split expected
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