Competition in long distance train service between Eastand Westdenmark. Kontorchef Lasse Winterberg 9. februar 2011
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1 Competition in long distance train service between Eastand Westdenmark Kontorchef Lasse Winterberg 9. februar 2011
2 Rail in Denmark Rail has 8 percent market share Every Dane travels about 1200 km by rail pro annum DSB s present services are in principle divided in: Lyntog (yellow) Intercitytog (red) Regionaltog (green) Side 2
3 Heavy investments in rail network up to 2020 Extensive rail investments in the public investments plan: Double track on Nordvestbanen and in Sønderjylland 2015 Metro in København 2018 New mainline København Ringsted 2018 Fixed connection crossing Femern Bælt 2020 Replacement of signalsystem to ERTMS2 before 2021 Side 3
4 Rail sector in Denmark 6 billion passenger km on the state network and 172 millions journeys (2009). DSB had a monopoly until Production sums to 68 mio. trainkm yearly: 55 mio. km DSB (negotiated contract) 8 mio. km Arriva (tendered contract) 5 mio. km DSBFirst (tendered contract) + SJ commercial traffic Øresund København and København Odense Side 4
5 Figures for long distance trains København Aalborg On yearly basis: mill. customers about 2,4 bill. passengerkm about 2,0 bill. kr passenger revenues Accumulated on parts of the line: København Odense 57 p.c. København Aarhus 90 p.c. København Aalborg 100 p.c. Side 5
6 Long distance København - Jylland Long distance København Jylland covers about half of the total demand measured in passenger kilometers Long distance København Jylland is responsible for 30 percent of total production measured in train kilometers. Part of the line close to København is profitable. The whole line København Aalborg is foreseen to be able to be profitable in future. Side 6
7 Use of network capacity to day The Minister of Transport can reserve capacity to specific purposes. Public service has priority to capacity. A minor increase in capacity København - Ringsted will be taken into use 2012 A new main line København-Ringsted 2018 and fixed connection across Femernbælt 2020 expands capacity considerably Side 7
8 Direct competition Direct competition between at least two operators are intended to put the customers in focus. Advantages for the fares? New offers? Product- and price differentiation? More seats? Side 8
9 Models for direct mutual competition? Competition must be introduced in the long distance train service between east and west Customers satisfaction should be maximized Customers must therefore always have two operators to choose between There are several models for introducing direct mutual competition Dialogue with operators about which model is the best in order to maximize customers satisfaction Side 9
10 Rolling stock? It shall be possible to rent the necessary suitable number of trains from DSB. The trains can either be of the type IC3 or IC4 The operator can choose to provide his own trains. Side 10
11 IC3 train Diesel train sets max speed 180 km/h 144 seats 97 tons 58,8 meter long DSB has 96 train sets, delivered in the period Side 11
12 IC4 train Diesel train set max. 200 km/h (at present only possible to run 180 km/h) 215 seats 160 tons 86,5 meter DSB will have 83 train sets when the delivery is finished in the 3. quarter of Side 12
13 Requirement to rolling stock The line between København and Fredericia is electrified. Diesel trains are necessary between Fredericia and Aarhus/Aalborg. Danish Automatic Train Control system is required. It is decided to use ERTMS2 over the whole network from Side 13
14 Arrangements and contracts The parties will enter into flexible contracts concerning rights and obligations Infrastructure capacity? Access to stations? Fares and ticket systems? Other facilities? Rolling stock? Other? Side 14
15 All solutions are open All ideas and aspects are wanted on the table, so the process can be planned in a way which maximizes the satisfaction of the customers. A round of Expression of Interest is planned where each operator can put their proposals forwards. How big advantages are possible by different arrangements of the process? Do the interested operators have experience with direct competition? And how big advantages can we get by arranging the process in different manners? The Minister will participate in the meetings which will be held in March- April 2011 The objective shall be success for the passengers. Side 15
16 How? The round of expression of interest will be advertised in the Official Journal of the European Union Request for participation to Frederiksholms Kanal København K Att: Lasse Winterberg lwi@trm.dk Side 16
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