Eu strategy for ertms deployment n. gohel

1. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015
Technical support for the Deployment of ERTMS
along the core network corridors
The financial aspect of the ERTMS deployment
Brussels, 22nd June 2015

2. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015
Agenda
1. Methodology of the business case
2. Interoperability impact
3. Larger scope
2

3. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015
1. Methodology of the business case
3
• Business Case
The objective of the business case is to analyze the impacts of ERTMS on the railway sector.
All the upstream factors and downstream impacts linked with ERTMS deployment and included in the
business case methodology are presented in the figure below:
We have started with the
OPEX-CAPEX model,
detailing the operating
costs of Infrastructure
Managers and Railway
Undertakings, as well as the
required investment costs.
This quantitative approach
is one of the key part of the
business case.

4. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015
2. Interoperability impact
4
• The key principle of the business case is to understand the impact of ERTMS on interoperability
Which impact?
- Costs / Benefit of ERTMS on the cost
functions for RUs and IMs
- Impact on the price of the railway sector
- Possible modal shift from the road transport
- Separate analysis for passengers & freight
Which timing?
- What can we expect before the full
deployment on the Core Network Corridor
(2030)?
- How much time after the deployment on the
Core Network Corridor shall we get the full
benefits of interoperability?

5. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015 5
• OPEX-CAPEX model
The following charts present the calculator methodology, for RUs and IMs.
- Train Operating Company (TOC) & Freight Operating Company (FOC)
- Infrastructure Managers
RU cost inputs
• Cost inputs
• ERTMS impact
RU KPI inputs
• RS KPI (km/y, h/y)
• Staff KPI (driving hours /
day)
RU cost
function
• Cost calculation
• Cost inflation
• €/train-km
• €/ton-km
Summary
• RU costs
• RU revenue
• Fleet costs
IM cost inputs
• Cost inputs (Operation,
maintenance, renewal)
• ERTMS impact
IM KPI inputs
• Rail traffic KPI (train.km
/year)
• Access Charges KPI
IM cost
function
• Cost calculation
• Cost inflation
• €/train-km
• €/ton-km
Summary
• IM costs
• IM revenue
1. Methodology of the business case

6. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015
• Template for the results
2. Interoperability impact – expected
outputs
- Impact of interoperability: savings on
operating costs in € / train x km
- Multiplied by traffic volume: total savings
expected from ERTMS / year
- To be compared with the costs of
deployment (on-board & trackside)
- Outputs:
- Are the expecting savings higher than
deployment costs?
- If yes how many years does it take to
cover those costs?
- Next question: how can we transfer those
future benefits to today?
6
0,7
Locomotive possession
€ / train x km
Locomotive maintenance
Track access charge costs
Energy
Structure fees
Staff (driver, controller)
Wagons possession
16
1,0
1,7
2,0
2,5
2,5
2,7
In red: cost potentially
impacted by ERTMS

7. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015 7
• Business Case : next steps
The business cases will interact with external elements: studies, deployment plan…
3. Larger scope
September 2015: ERA conference
2 business cases for Rhine Alpine &
North Sea Mediterranean corridors
2016: Business cases for other
corridors and European level
Business cases
Study to develop tailor-made solutions for
use of innovative financing to support
deployment of ERTMS, in particular along
nine core network corridors
Identify adequate
financial instruments
and tools
Guidelines &
dissemination

8. Services of technical support for the deployment
of ERTMS along the core network corridors
Riga – TEN-T days –2015 8