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n°11
Factsheets




                           RAIL FREIGHT ON THE RIGHT TRACKS
                              ERTMS BUSINESS CASE FOR FREIGHT OPERATORS

             Today, cross-border operations account for a major share of rail freight operators’ activities. ERTMS,
             the European Rail Traffic Management System, facilitates cross-border movements whilst enhancing
             the reliability, quality and competitiveness of rail freight services in Europe. Investing in ERTMS today
             is a rational choice for freight operators that takes into account the evolution of the European rail
             network. It provides them with the guarantee of using a reliable high performance signalling system
             in the long term as the current legacy systems are being replaced by the common ERTMS standard.


             What are the advantages of a unique
             signalling system for freight operators?
             Due to the existence of several signalling systems in Europe
             today, freight locomotives have to be equipped with the
             appropriate signalling systems - and even in some cases
             they must be changed at the border, increasing costs and
             travelling times . As a unique signalling system, ERTMS
             provides the solution to the lack of interoperability of the
             existing rail networks in Europe.

             Indeed, once a unique signalling system will be installed
             along a given international freight route, rail freight
             operators will only need to purchase ERTMS as the
             onboard system, as opposed to having the several
                                                                               Can ERTMS help in improving freight
             legacy systems required for operations in the different
             countries. This represents a significant cost reduction for
                                                                               operations’ performance?
             freight operators. This will, in the end, benefit consumers,
                                                                               Indeed, besides interoperability, ERTMS offers
             the economy and society as a whole because economic
                                                                               advantages in terms of capacity, speed and
             exchanges will increase and become cheaper.
                                                                               reliability – three key components for successful
                                                                               rail operations. These advantages explain why
             Moreover, a common European signalling system also
                                                                               nearly 50% of all ERTMS investments are made
             leads to a reduction of maintenance costs and facilitates
                                                                               outside Europe – the system being recognised
             staff’s training, as drivers will only have to be familiar with
                                                                               worldwide as best in class.
             one signalling system.

                                               Why is ERTMS becoming a “must” for freight operators?
                                               Already today ERTMS is used as a unique system on some crucial European
                                               freight routes such as the Betuweroute or the Lötschberg tunnel. Increasingly,
                                               passenger-lines equipped with ERTMS will be used for freight operations – for
                                               instance, in Italy, the use of High Speed lines for freight operations at night/
                                               off peak times is foreseen. In total, an estimated 17,000 km of railway tracks
                                               are already contracted to work with ERTMS in Europe, 5,000 km of which are
                                               already in operation.

                                               In addition, infrastructure managers opt increasingly for a removal of legacy
                                               systems on ERTMS-equipped lines in order to increase their cost savings, in
                                               particular in terms of maintenance. Some countries, for example Switzerland,
                                               are even planning a full removal of legacy systems in the medium term. As a
                                                                                                                                   © UNIFE 2012




                                               consequence, ERTMS will be the only signalling system on those routes.



                                                          Avenue Louise 221, B-1050 Brussels, Belgium
                                                          Tel: + 32 2 626 12 60, Fax: + 32 2 626 12 61, unife@unife.org
Large parts of the EU rail freight network are not yet
  equipped. When will this be the case?
  Besides the existing investments mentioned above, rail freight
  operators have now the guarantee that the European rail network
  will be equipped with the ERTMS technology in the short and
  medium term. Indeed, in July 2009, the European Commission
  adopted the European ERTMS Deployment Plan that provides
  strong guarantees for freight operators wishing to equip their
  locomotives with ERTMS:

  –	 the plan foresees the equipment of more than 10,000 km of
     railway lines by 2015 and 25,000 km by 2020; this deployment is
     mandatory (part of EU Law);

  –	 these lines consist in the 6 full ERTMS corridors (i.e. the busiest
     cross-border freight routes in Europe) and a list of designated
     freight lines;

  –	 these requirements will also apply to freight locomotives (trains
     ordered after 2012 or put in service after 2015 will necessarily
     have to be equipped with ERTMS).;
  In parallel, an increasing number of European countries have
  planned to go beyond their obligations defined by the European
  ERTMS Deployment Plan and equip their entire network. This is the
  case of Denmark and Switzerland.


                                  Are there any benefits for “early investors”?
                                  Yes - since the equipment of ERTMS will be mandatory on the major
                                  European freight routes. Equipping fleets at an early stage may also
                                  provide freight operators with other key advantages. Indeed, trains will
                                  be ready to operate on the network as soon as the trackside is put into
                                  operation and an operator will therefore gain a significant advantage vis-
                                  à-vis its competitors. Front-runners will also be able to capitalise on their
                                  experience and maximise the advantage of their investment.


                                  Are ERTMS investments made now safeguarded in the
                                  long term?
                                  As the European Deployment Plan has made the implementation of ERTMS
                                  mandatory, freight operators have the guarantee that their investments
                                  are “future-proof”. Moreover, ERTMS as a standard is now stable and with
                                  a clear migration path that preserves its business case.

                                  Indeed, the current 2.3.0d version provides full interoperability whilst
                                  Baseline 3, which will be released in 2012, will be backwards compatible –
                                  this means that trains equipped with baseline 3 will be able to operate on
                                  2.3.0d tracks.

                                  Freight operators can already take advantage of version 2.3.0d whilst
                                  safeguarding their investment, for example by including “upgrade clauses”
                                  in contracts in order to guarantee that their rolling stock will be equipped
                                  with the baseline 3 of ERTMS as soon as it becomes available.

S uppliers
                                                                                                                  © UNIFE 2012




Want to know more about ERTMS? Please check www.ertms.net or contact UNIFE at unife@unife.org

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ERTMS Fact Sheet 11 - Rail freight on the right tracks

  • 1. n°11 Factsheets RAIL FREIGHT ON THE RIGHT TRACKS ERTMS BUSINESS CASE FOR FREIGHT OPERATORS Today, cross-border operations account for a major share of rail freight operators’ activities. ERTMS, the European Rail Traffic Management System, facilitates cross-border movements whilst enhancing the reliability, quality and competitiveness of rail freight services in Europe. Investing in ERTMS today is a rational choice for freight operators that takes into account the evolution of the European rail network. It provides them with the guarantee of using a reliable high performance signalling system in the long term as the current legacy systems are being replaced by the common ERTMS standard. What are the advantages of a unique signalling system for freight operators? Due to the existence of several signalling systems in Europe today, freight locomotives have to be equipped with the appropriate signalling systems - and even in some cases they must be changed at the border, increasing costs and travelling times . As a unique signalling system, ERTMS provides the solution to the lack of interoperability of the existing rail networks in Europe. Indeed, once a unique signalling system will be installed along a given international freight route, rail freight operators will only need to purchase ERTMS as the onboard system, as opposed to having the several Can ERTMS help in improving freight legacy systems required for operations in the different countries. This represents a significant cost reduction for operations’ performance? freight operators. This will, in the end, benefit consumers, Indeed, besides interoperability, ERTMS offers the economy and society as a whole because economic advantages in terms of capacity, speed and exchanges will increase and become cheaper. reliability – three key components for successful rail operations. These advantages explain why Moreover, a common European signalling system also nearly 50% of all ERTMS investments are made leads to a reduction of maintenance costs and facilitates outside Europe – the system being recognised staff’s training, as drivers will only have to be familiar with worldwide as best in class. one signalling system. Why is ERTMS becoming a “must” for freight operators? Already today ERTMS is used as a unique system on some crucial European freight routes such as the Betuweroute or the Lötschberg tunnel. Increasingly, passenger-lines equipped with ERTMS will be used for freight operations – for instance, in Italy, the use of High Speed lines for freight operations at night/ off peak times is foreseen. In total, an estimated 17,000 km of railway tracks are already contracted to work with ERTMS in Europe, 5,000 km of which are already in operation. In addition, infrastructure managers opt increasingly for a removal of legacy systems on ERTMS-equipped lines in order to increase their cost savings, in particular in terms of maintenance. Some countries, for example Switzerland, are even planning a full removal of legacy systems in the medium term. As a © UNIFE 2012 consequence, ERTMS will be the only signalling system on those routes. Avenue Louise 221, B-1050 Brussels, Belgium Tel: + 32 2 626 12 60, Fax: + 32 2 626 12 61, unife@unife.org
  • 2. Large parts of the EU rail freight network are not yet equipped. When will this be the case? Besides the existing investments mentioned above, rail freight operators have now the guarantee that the European rail network will be equipped with the ERTMS technology in the short and medium term. Indeed, in July 2009, the European Commission adopted the European ERTMS Deployment Plan that provides strong guarantees for freight operators wishing to equip their locomotives with ERTMS: – the plan foresees the equipment of more than 10,000 km of railway lines by 2015 and 25,000 km by 2020; this deployment is mandatory (part of EU Law); – these lines consist in the 6 full ERTMS corridors (i.e. the busiest cross-border freight routes in Europe) and a list of designated freight lines; – these requirements will also apply to freight locomotives (trains ordered after 2012 or put in service after 2015 will necessarily have to be equipped with ERTMS).; In parallel, an increasing number of European countries have planned to go beyond their obligations defined by the European ERTMS Deployment Plan and equip their entire network. This is the case of Denmark and Switzerland. Are there any benefits for “early investors”? Yes - since the equipment of ERTMS will be mandatory on the major European freight routes. Equipping fleets at an early stage may also provide freight operators with other key advantages. Indeed, trains will be ready to operate on the network as soon as the trackside is put into operation and an operator will therefore gain a significant advantage vis- à-vis its competitors. Front-runners will also be able to capitalise on their experience and maximise the advantage of their investment. Are ERTMS investments made now safeguarded in the long term? As the European Deployment Plan has made the implementation of ERTMS mandatory, freight operators have the guarantee that their investments are “future-proof”. Moreover, ERTMS as a standard is now stable and with a clear migration path that preserves its business case. Indeed, the current 2.3.0d version provides full interoperability whilst Baseline 3, which will be released in 2012, will be backwards compatible – this means that trains equipped with baseline 3 will be able to operate on 2.3.0d tracks. Freight operators can already take advantage of version 2.3.0d whilst safeguarding their investment, for example by including “upgrade clauses” in contracts in order to guarantee that their rolling stock will be equipped with the baseline 3 of ERTMS as soon as it becomes available. S uppliers © UNIFE 2012 Want to know more about ERTMS? Please check www.ertms.net or contact UNIFE at unife@unife.org