Overview

The First Railway Package (Railway Infrastructure Package)

In July 1998, the Commission put forward three proposals aimed solely at improving the effectiveness of the existing legislation. After long discussions in the European Parliament and the Council of Ministers, a political agreement was reached in November 2000 under the French presidency. The Council adopted the three directives on 26 February 2001. The Member States had to implement the provisions of the Directives in national legislation by 15 March 2003 at the latest. All Member States have now complied with this requirement.

Directive 2001/12 modifies Directive 91/440 (consolidated version) on the development of the Community’s railways. It requests the Member States to adapt their national legislation to enable the extension of access rights for international freight transport services to the national section of the Trans European Rail Freight Network (TERFN), which has a length of approximately 50.000 km. Some 70% of the rail freight traffic is carried out over the TERFN.

The Directive also provides that different organisational entities must be set up for transport operations and infrastructure management. Essential functions, such as rail capacity allocation, infrastructure charging and licensing be separated from transport operations to enable new rail operators fair access to the rail market. This Directive also foresees that Railway Undertakings set up different account for passenger transport services and freight transport services.

Directive 2001/13 amends directive 95/18 (consolidated version) on licensing of railway undertakings by defining the conditions under which companies can obtain a licence to run rail freight services over the TERFN. The Directive sets the framework for the financial, economic and safety conditions to which railway undertakings must comply to obtain a licence. The licensing authority will issue licenses that will be notified to the Commission and that will be valid throughout the territory of the Community. The Commission will publish the licenses. An operator however does not only need a licence, but it also needs a safety certificate and rail capacity, so-called train paths, to effectively run trains on the network, which are addressed under Directive 2001/14 on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification. This Directive replaces Directive 95/19. The directive applies to the entire network and sets the framework conditions for capacity allocation and management, as well as the tariff structure for the use of the network.

Directive2001/14 provides that the infrastructure manager shall publish a network statement, which contains information on the (technical) nature and limitations of the network, the access conditions to the network and rules on capacity allocation. The network statement also describes the tariff structure and the priority rules to be applied in case of conflicting demands. The directive also requires Member States to set up a Regulatory Body to monitor railway markets and to act as appeal body for railway undertakings if they believe they have been unfairly treated by for example the infrastructure manager or the organisations issuing licences or safety certificats.

In May 2006, the Commission adopted a Report on the implementation of the first railway package with an overview of the main impacts for the railway sector in the Member States.

The Second Railway Package and Third Railway Packages

On 23 January 2002, the Commission adopted the second railway package, which contained a Communication and a series of proposals to further open the railway markets in the European Union. These proposals were adopted by the European Parliament and the Council of Ministers in April 2004, and have now come into force. The main elements of this package are:

• creation of a European Railway Agency in Valenciennes, France;

• opening of the market for international freight transport to the entire European rail network as of 1 January 2006;

• opening of the market for national freight transport ('cabotage') as of 1 January 2007;

• adoption of a directive on railway safety.

Member States had to implement the provisions of this package by 31 December 2005 (for the market opening Directive) and 30 April 2006. Most of the Member States have notified their implementation measures.

More information on the second railway package and its proposals is available in the dedicated section of this website.

Meanwhile, the Commission adopte a third package of measures on 3 March 2004. This package consists of 4 proposals:

• a further opening of the market for international passenger transport by rail;

• a regulation on the rights and obligations for passengers in international rail traffic;

• a  regulation on rail freight quality;

• a directive for train driver licences.

The European Parliament has adopted the reports in its first reading of the proposals. The Council of Ministers has adopted its common position. Final adoption of the proposals though will only take place after the Council of Ministers and the European Parliament reached a common agreement on the proposals.