ERA Strategic Vision Version 1.0 January Strategic Vision for the European Railway Agency
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- Matilda Caldwell
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1 Strategic Vision for the European Railway Agency 1
2 1. Statement of Purpose This document describes the strategic vision for the European Railway Agency (ERA), in order to determine the right course of action in the coming years up to The further evolution of ERA is also described. The strategic vision and the associated mission statement should serve as main orientation while ERA as an organisation is undergoing a substantial transformation in the framework of the 4 th Railway Package. 2. ERA s current situation The European Railway Agency (ERA) has been established in 2004 to devise the technical and legal framework for creating a Single European Railway Area (SERA) as mandated under European Union law. ERA s core activities are creating a harmonised approach to safety, removing technical barriers, advancing the single European Train Control and Communication System (ERTMS), and promoting simplified access for customers for the European rail sector. The extension of ERA s mandate in the near future, following the entry-into-force of the technical pillar of the 4 th Railway Package (expected in June 2016) will make ERA the main body responsible for issuing vehicle authorisations and safety certificates across the whole EU. The 4 th Railway Package is a major milestone in ERA s history and will fundamentally change ERA s role, set against the following socio-economic circumstances that will significantly influence ERA s future. a) Political, Economic, Social, and Technological (PEST) Analysis Political ERA works in the wider framework of the European Commission White Paper on Transport and its policy objectives for railways: Improving competitiveness of rail with other modes in order to increase the market share of the safest and most environment-friendly mode of transport Spending public money more efficiently on public rail transport services Opening domestic rail passenger transport to competition Encouraging market entry by reducing administrative and technical barriers and ensuring non discrimination through a better governance of the infrastructure Thus, ERA is backed by a strong European political mandate, as set out in the Commission White Paper and the various Railway Packages. The need for sustainable transport solutions is acknowledged by a majority of European politicians. Yet, despite all efforts, there is a growing perception among decision-makers that the rail sector is not progressing in line with the past years efforts. There is an increasing questioning whether all the public money being injected into the rail sector is well invested, or should rather go somewhere else. The current discussion in the European Union on key policy issues such as the financial crisis or the migrant situation touches the balance between national sovereignty and delegation to European Institutions. ERA is not yet perceived and known as designer and leading player of the SERA, caused by a partial disconnection from, and limited access to, key stakeholders in the European rail sector. 2
3 Economical Austerity measures and reduced state budgets led to a plunge of rail investment in Europe - the rail sector will have to create projects that can attract private investment in order to fill the gap. At the same time, the completion of SERA is perceived to be very costly and not generating economic benefit. Generally, the cost situation in railways is leading to reduced competitiveness. In addition, competitiveness in European railways is further challenged by a remaining unfavourable taxation situation, and numerous other negative factors, vis-à-vis other modes of transport and increased intermodal competition due to the introduction of new long-distance bus operators in Europe. The market opening attracts new players from outside Europe who challenge the market position of the European rail industry, and subsequently employment in EU Member States. China has seen a rapid development of the railway sector over the past decade, and the largest railway supply company in the world has been formed there recently. On the other hand, the window of opportunity is opening wider to transform EU technical standards into global standards. Companies with headquarters outside the EU are investing in production facilities within the EU and EU railway operators are operating train services all over the world. The rail market is therefore becoming more and more a single world market but in an uncoordinated way and characterised by significant geographical patches where the market for rail operation or the supply of railway products and services is, to all intents, closed. Social The European rail sector with its different national cultures and languages today remains largely fragmented its cultural and linguistic harmonisation has only partially been achieved. The historical legacy of the rail sector often invokes painful social processes when translated into modern market-driven economy; however, the rail sector looks back at a strong and proud history of social dialogue. With an ageing population being a reality in EU Member States, new needs of accessibility, comfort, information, and usability arise for the railway system. In parallel, share information and get access to it everywhere, every time has become a standard customer expectation. There is an evolving trade-off between the need for freedom and the need for security (after recent events people could be inclined to trade part of their freedom to get more security ). Sharing culture is the new and ever more prevalent social ownership concept, changing markets and products. There is an increasing sensitivity among EU citizens for environmental issues, which together with the mega-trends of urbanisation and globalisation lead to an increased need for integrated, sustainable transport. The environmental impact of rail on society, in particular noise emission from railway services, are a major factor in the social acceptance of rail. Travel itself is a factor breaks down social and cultural barriers. Thanks to the competitiveness and efficiency of an aviation sector invigorated by the entry of low cost airlines a weekend break to another country with a different country speaking a different language is now as popular as a trip to the local seaside resort used to be in the middle of the last century. Technological The structural advantages of railway transport, in particular being an environmentally friendly and safe means of transport, can only be exploited if rail services are reliable and dependable. 3
4 Technological progress is, in general much quicker absorbed by other sectors (e.g. autonomously driving cars, availability of information), while railways, for a complex set of reasons, are subject to a kind of Dinosaur complex and in many areas the innovation gap is constantly increasing. However there are some exceptions such as high speed passenger technology. Progress of technology is also normally much quicker than the speed of regulation and legislation that governs it, and the heavy burden of regulation in rail encourages conservatism and inhibits adoption of technology. For example the rail equivalent of fly by wire adopted by aviation as the norm 20 years ago is not yet common practice in rail. Because of the factors listed above other transport sectors usually generate more customer satisfaction and attract more public and private investment, and often put it to better use. Digitalisation is an irreversible trend heavily impacting the behaviour and expectations of consumers and travellers. It changes the way people use transport, and also the way people communicate professionally. b) ERA under the 4 th Railway Package The recast of the ERA Regulation EC 881/2004 highlights the role of the European Railway agency to promote the establishment of a European railway area without borders and to help revitalise the railway sector while reinforcing its essential advantages in terms of safety (and environmental impact). The Agency should provide independent and objective technical support, predominantly to the Commission. Further, the promotion of innovation and research in the railway field is important and should be encouraged by the Agency. On this basis, Article 2 outlines the objectives of the European Railway Agency: Article 2 Objectives of the Agency The objective of the Agency shall be to contribute to further development and effective functioning of a single European railway area without frontiers, by guaranteeing a high level of railway safety and interoperability, while improving the competitive position of the railway sector. In particular, the Agency shall contribute, on technical matters, to the implementation of Union legislation by developing a common approach to safety on the Union rail system and by enhancing the level of interoperability on the Union rail system. Further objectives of the Agency shall be to follow the development of national railway rules to support the performance of national authorities acting in the railway safety and interoperability fields and to promote the optimisation of procedures. Where provided for by the new European Directives on railway safety and interoperability, the Agency shall perform the role of Union authority responsible for issuing authorisations for the placing on the market of railway vehicles and vehicle types and for issuing single safety certificates for railway undertakings. In pursuing those objectives, the Agency shall take full account of the process of enlargement of the Union and of the specific constraints relating to rail links with third countries. 4
5 3. The ERA Mission and Vision Mission To contribute to the effective functioning of a Single European Railway Area without frontiers, in particular by 1) promoting a harmonised approach to railway safety, 2) devising the technical and legal framework in order to enable removing technical barriers, and acting as the System Authority for the Single European Train Control and Communication System, 3) improving accessibility and use of railway system information, and by 4) acting as the European Authority under the 4 th Railway Package issuing vehicle authorisations and safety certificates 1, while improving the competitive position of the railway sector. Vision ERA, as a respected Authority, will be the engine for change driving the Single European Railway Area. The ERA target state in 2020 is described by the following breakthrough objectives: By 2020, ERA (then the "European Union Agency for Railways") will be successfully transformed into an Authority according to the 4 th Railway Package, including Return of experience from other agencies (EASA, EMSA,..) is incorporated Cooperation agreements are in place with all National Safety Authorities (NSAs) "One-Stop-Shop" for Safety Certification, Vehicle Authorisation, and ERTMS approval is fully operational Competency Management "Pool of Experts" concept is transferred into daily practice 1 the Agency s new functions under the 4 th Railway Package are: EU wide safety certification, vehicle and type authorisation, and opinion on ERTMS trackside installation 5
6 Rules are reduced and simplified (National and TSIs) There is a truly lived European Safety Culture for rail, inspired by ERA, and implemented in ERA Occurence Reporting as starting point The European Rail Traffic Management System (ERTMS) is successfully deployed Fully compatible products are available from a number of suppliers Breakthrough programme delivered, European governance in Place Real interoperability of on-board no extra checks for different MS ERA is respected as the Global Reference for railway harmonization and safety, and a key driver in railway R&D ERA s new role has driven the need for effective communications, as Member States are to be convinced to share resources at and transfer decision power from national to European level and to drive the internal change process. ERA Strategic Objectives Based on the above statement of mission and vision, as a guidance in strategic decision making, ERA refers to the following strategic objectives 1) Safety: Europe becoming the world leader in railway safety 2) Competitiveness: promoting rail transport to enhance its market share 3) Simplification: improving the efficiency and coherence of the railway legal framework 4) Efficiency: optimising ERA capabilities 5) Objectivity: Transparency, monitoring and evaluation 6) Environment and Society: improve economic efficiency and societal benefits in railways 7) Global Reference: fostering ERA reputation in the world 6
7 3. The core values of ERA We all carry out our activities, meeting the highest standards, by: 1. Stakeholder Focus We all are committed to offer excellent products and services to our stakeholders. This is to meet their needs and expectations in order to enhance their level of satisfaction. For that, we all strive to encourage permanent cooperation with our stakeholders. We look for a common understanding of priorities and the building of consensus solutions through our independent and transparent position based on facts. 2. Ethical Values Commitment In striving to gain our stakeholders confidence, we all act with professionalism, impartiality, objectivity, independence, transparency and proportionality. We all show respect for others and believe in progress through diversity. 3. Legal Compliance As a European Union Agency, we all act according to the law and apply the rules and procedures laid down in applicable legislation and regulations. 4. Staff involvement and development People are our most valuable resource. We commit to maintain a fair and open culture and a spirit of cooperation with the staff and recognise the need to provide good working conditions. When necessary, this includes making available the resources to develop their competence and skills. 5. Everybody s Commitment to Quality We are all committed to quality principles and responsible for complying with all the applicable requirements for delivering value to our stakeholders. All ERA managers are responsible for taking the lead, setting objectives and demonstrating their commitment to Quality. 6. Continuous Improvement It is our objective to continually improve the effectiveness of our Integrated Management System as well as our processes. By doing so, we all will be able to meet our challenges successfully and proactively. 7. Business Continuity Our success relies on the preservation of our business critical activities. These ensure our continued efficient operation in a manner which maintains adequate standards of service provision to our stakeholders. 8. Information Governance We all ensure the availability of information preserving its confidentiality and integrity. 9. A Culture of Sustainability We all act in a responsible and sustainable manner. 7
8 4. The future evolution of ERA Following the successful transformation according to the 4 th Railway Package by 2020, ERA should evolve as follows: The Single European Railway Area has progressed towards optimum harmonisation, including European operational rules, based on the next generation of train control, and open and fair access the administrative burden borne by the railway sector evolves to be comparable with that in other sectors such that unnecessary Railway specificities are progressively removed (e.g. no railway specific modules for conformity assessment nor special notification tools). This in order to make the railway sector more competitive and in line with the industrial reality of other sectors ERA is a Think Tank for all matters of rail transport, from socio-economic to technology trend watching and evaluation ERTMS and its equivalents have evolved to a Universal Train Control System, with applications on all continents with Europe a leading player in its system management ERA has established an agile and flexible system authority to optimise the benefits of harmonised standards for all things digital specific to rail where harmonisation gives competitive advantage or multi-modal customer benefits (including but not li mited to train and infrastructure condition monitoring, timetabling and train/access planning, ticketing, enquiries, customer services) And before 2030 By 2030, there is one integrated entity in Europe for rail authorisation and safety certification (NSAs to become subsidiaries of ERA) Multi-modal integrated transport is common, enabled by a digital agenda, with ERA evolving to a European Land Transport Authority 8
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