Dense is beautiful: Investing in regional and local railways

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Dense is beautiful: Investing in regional and local railways VCÖ-Forschungsinstitut

Larger Network more subscribers more connections higher benefits Foto: Postmuseum Frankfurt a.m Stadtfernsprecheinrichtung Berlin: Jan. 1st 1881 8 Subscribers April 1st 1881 48 Subscribers June 1881 94 Subscribers End of 1881 458 Subscribers 1882 1069 Subscribers 1885 4324 Subscribers 1888 9199 Subscribers May 27th 1889 10.000 Subscribers

5 % more users make a network 10 % more attractive number of connections increases by number of users square R = number of different connections 100 80 60 40 20 0 R = n(n-1) ~ n 2 R 2 n 90 72 56 42 30 20 12 0 2 6 1 2 3 4 5 6 7 8 9 10 number of users connected to network

Intensity of goods transport by rail depends on rail access to customers rail ton-kilometeres per inhabitant per year* Intensity of rail transpor increases with network density square 6000 5000 4000 3000 2000 1000 0 *adjusted for density of population Sources: EU-Kommission GD- 7, own calculations NL EU-15 B D UK P E I DK EL y = 0,0025x 2,022 R 2 = 0,986 F IRL L 0 200 400 600 800 1000 1200 1400 track length (kilometres per million inhabitants) A FIN S

Most regional railways improve the cost benefit ratio of the rail network 6 5 4 3 2 1 0 1,72 1,08 0,39 0,40 0,40 0,86 0,44 5,05 0,16 0,27 Million ton + passenger-kilometres per year Pinzgaubahn Zillertalbahn Mariazellerbahn Ybbstalbahn Linzer Lokalbahn Salzburger Lokalbahn Stubaitalbahn Wiener Lokalbahn Außerfernbahn 1998 Außerfernbahn 2002

Why is there never a problem with the deficit of local roads? local roads are almost free for lorries coverage of road cost caused by lorries (%) 180 160 140 120 100 80 60 40 20 0 Source: Herry/Sedlacek (2003) 171 motorways (A+S) 56 all roads 42 regional Highways* *Bundesstraßen B 11 local roads** ** sonst. Landes und Gemeindestraßen

Despite dismal cost coverage local roads are well funded Almost 60 % of expenditure for local roads % of road budget 80,0 60,0 40,0 20,0 0,0 *previously Bundesstraßen B 20,6 20,4 motorways Sources: Herry/BMVIT 2003, own calculations regional highways* 59,0 local roads

Infrastructure cost of regional and local railways is peanuts Percent of total infrastructure-cost* 80 60 40 20 0 *excluding investment in new or upgraded main lines 7,3 % of infrastructure-expenditure for "Nebenbahnen" 73,6* Source: ÖBB Anlagenmanagement, SCHIG, own calculations 13,6 5,4 4,3 3,1 A B1 B2 C1 C2 A+B = Core Network C = "Nebenbahnen"

A large proportion of freight-customers are located off the main lines

There is no lack of money for costly and inefficient projects Better competitiveness of rail high medium low Dismal benefit-cost ratio at bottom/right low medium Cost of investment high

Funds for regional and local railways instead of inefficient mega-projects! Millionen Euro pro Jahr "Unterinntal" is more expensive than the whole regional rail network 200 150 100 50 0 127 Streckenkosten des gesamten C-Netzes 150 Annuitäten des Unterinntal-Projektes Quelle: ÖBB / PROGNOS, eigene Berechnungen

Many chances to improve local rail access: Efficient use of funds for infrastructure New local railway networks following the Karlsruhe-model or the Saarbahn Promoting direct rail access for existing trade- and industry areas Zoning laws requiring direct rail access for new industrial developments Housing developments only within public transport corridors New technolgies for shunting-operations via rail sidings (automatic shunting, automatic coupling) Private operation of access-lines ( ma and pa operation )

Keep up regional and local access to rail to ensure mobility for the future! VCÖ Mobilität mit Zukunft

Start of Spare slides

Some questions on network economics: What is the optimum density of networks? How large is the benefit of connecting additional users to a network? What benefit cost ratio is acceptable for extensions of a network as compared to trunk-connections?

Combined transport: even on long distances not always viable Euro 1200 1000 800 600 400 200 Comparison of combined transport and transport by lorry** 0 19% Source: RECORDIT, Brussels 2001 9% 17% 55% Kombinierter Verkehr Lkw sonstige Kosten* Umladen Vor-/Nachlauf direkter Lkw -Transport Bahntransport Mainly cost of organizing complex transport chains **average cost on several corridors (average distance = 2600 km)