Annual Report First part Activity report S.A. UNDER PUBLIC LAW 110, RUE BARA B BRUSSELS

Transcription

1 Annual Report 2005

2 Annual Report 2005 First part Activity report S.A. UNDER PUBLIC LAW 110, RUE BARA B BRUSSELS

3 Contents Mission, Vision, Values 3 Message from the Chairman and the CEO 4 Key Facts 6 Highlights 8 What is Infrabel? 11 Infrabel within the SNCB Group 12 How Infrabel is organised Management Report 18 Infrabel in three priorities 20 BRIO, a strategic plan for the future 23 BRIO, an action plan for Infrabel 24 BRIO, the strategic priorities 25 An ambitious investment plan 29 An ambitious investment plan 30 RER: A network vital to Belgium s mobility 32 A Diabolo for Brussels Airport 34 Port of Antwerp, on track for growth 36 HSL North Brussels to Amsterdam without a hitch 38 Brussels-Luxembourg, a line for Europe 42 Infrastructure and Purchasing Activity Report 46 Modernisation: prevention is better than cure 50 Network Activity Report 54 Punctuality the watchword 58 Access to the Network Activity Report 62 Infrabel customers 63 Safety: a priority for Infrabel and a priority for Europe 64 Corporate Centre 67 Corporate Centre 68 Rigorous management in pursuit of growth 72 Corporate Governance 74 TUC RAIL Activity Report 82

4 Pursuit of accuracy Mission As a self-governing public corporation and independent infrastructure manager, Infrabel is dedicated to providing rail operators with a competitive rail infrastructure geared to present and future needs. Its objective is to contribute actively, within the European rail network, to sustainable mobility in support of Belgium s economic and social development. Vision Infrabel aims to become the crossroads of Europe. In order to achieve that ambition, the company is committed to attaining optimum network reliability and accessibility. That involves working to develop powerful technology that reflects the needs of its stakeholders and pursuing, within the framework of railway interoperability, the best possible integration with different modes of transport. Values Infrabel constantly pursues the optimum safety and quality of its rail infrastructure in the interests of SNCB Group, its customers, employees, shareholders and other stakeholders. These imperatives call for the following values: Infrabel accepts responsibility for providing quality services, and in particular for enabling its customers to provide the punctuality of service to which they are contractually bound. The company seeks constantly to improve, to anticipate and to respond to change. Team spirit and trust Management and employees of the company cooperate through the sharing of knowledge, ideas and resources. Each individual contributes to the team while carrying out his or her daily work. Employees show respect in their dealings with one another. Safety and quality are the product of team work. Sense of responsibility Infrabel manages its activities efficiently and to the highest possible standards in terms of both safety and quality. Integrity Employees conduct themselves in an exemplary, honest and equitable manner at all times and in every aspect of their work. Commitment to customers For optimum customer satisfaction, Infrabel puts customer interests at the heart of its concerns. Infrabel also seeks to establish a balance between the needs of individuals and those of the entire SNCB Group. Open-minded, transparent and motivated staff Infrabel is proud of the wealth represented by the diversity of individuals and ideas within its workforce. The company undertakes to create a climate of trust for its employees. The company s continued success requires that its staff be offered the training and personal development opportunities they need. Employees are entrusted with the responsibilities necessary to carry out their work to best effect. This creates a sense of personal empowerment and contribution to the success of the company. ANNUAL REPORT 2005 / INFRABEL / 3

5 Message from the Chairman and the CEO On 1 January 2005, Belgian Railways turned a page with the liberalisation of the rail market. SNCB, a single company since 1926, has now bequeathed its technical, real and professional assets to a group of three independent public corporations: SNCB Holding, SNCB and Infrabel. Together they form the SNCB Group. They provide an optimum service in the rail sector and play a pioneering role in the field of public and intermodal transport. These three corporations within the SNCB Group, each with its specific attributes, are now part of the new European rail landscape, which is characterised by an increasing competition in freight and international passenger transport, and by a clear separation between the activities of transport and infrastructure management. In accordance with the principles of financial soundness imposed by the European directives, the Group s historic debt has been taken over by the State so that the Group can look forward to future decades of development with greater confidence and starting from a stable footing. As an infrastructure manager independent of the rail operators, Infrabel henceforth intends to contribute actively to a sustainable mobility in support of Belgium s economic and social development. Our aim is constantly to achieve optimum levels of safety and quality in order to provide an increasingly competitive infrastructure capable to meet the requirements of its customers. The management contract signed with the State and the business plans which are the result thereof, form the basis for an ambitious programme designed to make the best possible use of our funding allocation. budget to completing the high-speed line network (HSL), as well as to making further safety improvements, increasing punctuality and rail interoperability, constructing quality infrastructure and better passenger facilities. The driving force behind this new dynamic process is the strategic plan BRIO ( Belgian Railway Infrastructure Objectives ), to the formulation of which a large number of Infrabel staff have devoted considerable time and energy. The plan sets out 22 strategic priorities for the company for the period 2006 to It is an essential tool to modernise our industrial capacity and to promote the change of culture required at every level. Infrabel is determined to look firmly to the future. Secure in its professionalism and knowhow, Infrabel is determined to meet the challenges of major technological advances and rail liberalisation. The company is able and willing to adapt, without delay and with respect for continuity, to the developments of tomorrow. Constant innovation and improvement in our services can only be achieved thanks to the professionalism and motivation of all our employees, qualities that will guarantee Infrabel a solid future. We have the greatest esteem for the dedication and commitment that our colleagues have shown and continue to show on a daily basis, despite the uncertainties that such changes inevitably entail. Let us continue working together on the revival of rail so that it can take the place it deserves in a fast-growing mobility market. Over the period , Infrabel will invest 3.3 billion in a number of major projects. The main emphasis will be on the modernisation and extension of the infrastructure destined for domestic passenger and freight use, including the so-called Réseau Express Régional (RER) in and around Brussels and various infrastructure works in the Belgian ports and their surrounding areas. Infrabel will also devote a significant proportion of its investment Luc Lallemand CHIEF EXECUTIVE OFFICER Antoon Colpaert CHAIRMAN OF THE BOARD OF DIRECTORS 4 / INFRABEL / ANNUAL REPORT 2005

6 Board of Directors Christine Servaty GOVERNMENT COMMISSIONER Jan Kerremans DIRECTOR Mieke Offeciers DIRECTOR Laurent Vrijdaghs Luc Lallemand CHIEF EXECUTIVE OFFICER Nathalie Roose COMPANY SECRETARY DIRECTOR Antoon Colpaert CHAIRMAN OF THE BOARD OF DIRECTORS Management Committee Marcel Baele DIRECTOR-GENERAL NETWORK Jean Marie Raviart DIRECTOR-GENERAL, INFRASTRUCTURE & PURCHASING Luc Vansteenkiste DIRECTOR-GENERAL ACCESS TO THE NETWORK Luc Lallemand CHIEF EXECUTIVE OFFICER ANNUAL REPORT 2005 / INFRABEL / 5

7 Key Facts Train punctuality Trains arriving on time or delayed by less than 5 minutes (without neutralisation) 95.6 % Luxembourg 91.9 % Belgium 91.8 % Netherlands 83.1 % France 81.4 % Germany 94.8 % with neutralisation Infrastructure 2,072 8,700 signals level crossings 4,100 switches 3,536 kilometres on main line tracks and of track of which 2,950 8,000 electrified on secondary tracks Corporate expenses Purchase of raw materials 108 million Services provided by SNCB and SNCB Holding 123 millios Electricity 85 million Others 68 million Personnel 689 million Contribution FIF 300 million 6 / INFRABEL / ANNUAL REPORT 2005

8 EBITDA - EBT In Millions Gross operating income (EBITDA) 61 Operating costs - 65 Financial result 55 Exceptional result - 2 Global result (EBT) 49 Personnel 14,059 employees 4.3% women 95.7% men 5 dispatchings and 368 signal boxes Operating proceeds Realized investments Investment financing Electrical power for locomotive department and buildings 81.4 millions Produced fixed assets million Others million GEN-railway infrastructure 44.2 million Infrastructure allowance million HST-railway infrastructure million Others 29.5 million Capacity preservation million Capacity extension million HST-funds million Other financing sources 10.0 million State grant million State grant million Reception 43.2 million Fonds RER 44.2 million ANNUAL REPORT 2005 / INFRABEL / 7

9 Highlights Infrabel starts its operational activities, with its own mission, staff, assets and liabilities First steps in the process of developing the BRIO strategic plan Infrabel launches a European call for tenders for the Diabolo project, i.e. the Brussels Airport rail link, through Public Private Partnership (PPP) and with separate awards of the construction and finance components Planning permission granted by the Walloon Region for the track quadrupling of line 161 between Brussels and the Louvain-la-Neuve bifurcation ISO 9001 certification awarded to the Reusable Rails and Long Welded rails Production Division of the Track Replacement Centre at the Schaerbeek workshop, and to the Wondelgem workshop for the supply of wooden parts and impregnated sleepers Infrabel launches a pilot scheme for the ecological management of railway embankments (agreement signed between Infrabel and Belgian association Natuurpunt ) Signature of the management contract between the Federal State and Infrabel Decision by the Council of Ministers on supplementary funding to finalise the border to border high-speed train network Commissioning of the new EBP-PLP signal box in Charleroi Inauguration of the Deurganckdok (port of Antwerp) and its rail infrastructure Issue of a safety certificate to SNCF Fret to operate on the Belgian rail network Planning permission granted by the Brussels Region for the track quadrupling of line 161 within the Brussels area The Board of Directors of Infrabel chooses Electrabel as its electricity supplier Construction work begins on the Arcade stop (line 26) as part of the RER Last public visiting day to the Soumagne Tunnel prior to its opening: 25,000 visitors. The Deurganckdok (Antwerp port) was opened on 6 th July / INFRABEL / ANNUAL REPORT 2005

10 Completion of the final section of the Brussels-Midi viaduct on 4th November Adoption of the pluriannual investment plan ISO 9001 certification awarded to the Schaerbeek and Etterbeek workshops Creation of a dedicated BRIO unit Agreement between the federal government and regional governments on updating the investment plan and on the funding of certain priority investment projects by means of PPP or through prefinancing Approval of the BRIO strategic plan by the Board of Directors of Infrabel, on its first reading Partial commissioning of the new EBP-PLP signal box in Bruges ISO 9001 certification awarded to the General Department of the Schaerbeek workshop, to the Electromechanical workshop and to the General Department of the Etterbeek workshop Presentation of SandRail, Infrabel s first corporate film Infrabel organises a safety exercise in the rail tunnel beneath the station of Halle ISO 9001 certification awarded to the Roeselare concrete parts manufacturing plant Inauguration of the Nossegem curve, a first step in the realisation of the Diabolo project First freight train of SNCF Fret on the Infrabel rail network ISO 9001 certification awarded to the Schaerbeek special equipment maintenance centre Laying the last deck of the Schaerbeek viaduct Laying the final component of the Brussels-Midi viaduct. The Soumagne tunnel attracted 25,000 visitors on 24th September 2005 ANNUAL REPORT 2005 / INFRABEL / 9

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12 What is Infrabel?

13 At 1 st January 2005, the former undivided rail company SNCB modified its structures to comply with the new European rules on liberalisation of the railways. Now organised into three entities SNCB Holding, Infrabel and SNCB each with its own specific missions, the SNCB Group is bringing a new dynamic into Belgian rail transport. Infrabel within the SNCB Group The reform of Europe s railways is the result of the adoption by the European Commission and the subsequent transposition into national legislation of the first rail package (three directives), of which European directive 91/440 is the main pillar. This directive lays the groundwork for liberalisation and sets out to achieve four objectives: Separation of the management of rail infrastructure, on one hand, and of the passenger and freight operations, on the other hand; Gradual opening up of rail infrastructure to operators other than the historic operators; Financial reorganisation of the historic rail operators; Management independent of State control. The various directives have been gradually transposed into Belgian law since 1997 and have culminated in the organisation implemented as from 1 st January The former SNCB was split into three entities. Each has the status of a limited liability company under public law with a Board of Directors, a Management Committee and a Chief Executive Officer (CEO). Together, SNCB Holding, Infrabel and SNCB form a vital link in the chain of transport in Belgium and Europe. Within the framework of a consistent group policy, each of the three companies ensures that its Marc Descheemaecker, Luc Lallemand and Jannie Haek activities are in line with the policy of sustainable mobility pursued by the government, and that they contribute to meeting transport needs. The three companies are tasked with a dual mission: firstly, to promote rail travel on the Belgian network, thereby offering an alternative to other less environment-friendly forms of transport and, secondly, guaranteeing an optimum quality service enabling growth in rail traffic to outstrip overall traffic growth for all other forms of transport. This is to be achieved while maintaining a balanced budget. 12 / INFRABEL / ANNUAL REPORT 2005

14 SNCB Holding SNCB Holding manages human resources, assets and real estate, group strategy, financial consolidation, information technology and telecommunications on behalf of the Group. It also provides security and protection services and the coordination of its subsidiaries. Infrabel All the tasks incumbent on Infrabel are public service missions assigned to it by law. These missions are of two types. Firstly, Infrabel must ensure the maintenance, management and extension of the rail infrastructure and the management of traffic and safety monotoring systems. Secondly, it is required to manage essential functions as understood in European law, i.e. the allocation of railway capacity and the setting of infrastructure usage fees, and must guarantee equitable and non-discriminatory access to the Belgian network to any rail operator in possession of a Safety Certificate. SNCB The main tasks of SNCB as a rail operator concern the transport of passengers (both national and international) and freight (B-Cargo). SNCB is responsible for defining and formulating its offering and its transport plan, for marketing via the various channels and for setting prices. It is also responsible for the management of rolling stock, train drivers and guards. It also manages its subsidiaries in passenger travel (Thalys, Eurostar, etc.) and freight transport (IFB, TRW, etc.). SNCB Group companies

15 The infrastructure manager has no commercial task to perform: all its energies are devoted to its public service missions. Infrabel is first and foremost a provider and seller of train paths. Its top priorities are the safety of the network for its customers, travellers and personnel, and the punctuality and smooth flow of traffic. Infrabel within the SNCB Group F.I.F. RAIL INFRASTRUCTURE FUND AGREEMENT ON THE TRANSFER OF ASSETS NECESSARY FOR INFRABEL TO PERFORM ITS FUNCTIONS VOTING RIGHT: 80% + 1 vote SHAREHOLDING: 7,34% INFRABEL INFRASTRUCTURE MANAGER A PUBLIC LIMITED COMPANY STATE PUBLIC TRANSPORT MINISTER MOBILITY MINISTER VOTING RIGHT: 20% + 1 vote SHAREHOLDING: 92,66% VOTING RIGHT: 99% SHAREHOLDING: 100% SNCB Holding S.A. A PUBLIC LIMITED COMPANY VOTING RIGHT: 100% SHAREHOLDING: 100% SNCB RAIL OPERATOR A PUBLIC LIMITED COMPANY A public service mission One of Infrabel s key missions is the maintenance and management of the infrastructure and of regulation and safety systems. Infrabel focuses on two main objectives in pursuit of this mission. To meet its responsibilities for maintaining the network in good operating order and for allocating rail capacity to operators, it applies a carefully devised policy of infrastructure replacement, maintenance and management. As guarantor of network safety, it devotes unflagging attention to regulation and safety systems. To meet the future needs of operators using the Belgian network, Infrabel is also developing its network on the basis of successive investment plans decided in agreement with the Federal State and with the SNCB Group Investment Committee. Infrabel is also required to guarantee equitable and non-discriminatory access to its network for any rail operator that so requests. The Access to the Network Division, which is organised in such a way as to guarantee its independence of any rail operator, manages the essential functions: the allocation of train paths and the charging of infrastructure usages fees. Through its Access to the Network Division, Infrabel monitors the compliance of rail operators safety personnel and rolling stock with national safety standards. It issues certifications as part of the Safety Certificate issuance procedure. The company also provides the rail operators with services relating to use of the rail infrastructure. 14 / INFRABEL / ANNUAL REPORT 2005

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17 Organisation chart Luc LALLEMAND CHIEF EXECUTIVE OFFICER Jean-Marie RAVIART DIRECTOR-GENERAL INFRASTRUCTURE & PURCHASING Luc VANSTEENKISTE DIRECTOR-GENERAL ACCESS TO THE NETWORK Marcel BAELE DIRECTOR-GENERAL NETWORK Jean-Luc GHISBAIN TECHNICAL MANAGEMENT Marc SMEETS FINANCE AND ADMINISTRATION Eric NOE HUMAN RESOURCES Guy VERNIEUWE STRATEGY, LEGAL AND INTERNATIONAL AFFAIRS Jacques VERSTREKEN BRIO UNIT Benoît GILSON COMMUNICATION Bernard LAMBERT SECRETARY S OFFICE Francky VERBRUGGEN LOGISTICS AND WORKSHOPS Ivan THIELEMANS MAJOR PROJECT MANAGEMENT Louis BRABANT SIGNALLING Richard MARCELIS STRONG CURRENTS Paul GODART TRACK AND PERMANENT STRUCTURES Dominique GARDIN FINANCIAL CONTROL Josef SANNEN PURCHASING, SALES AND ACCEPTANCE Gaston SURQUIN TECHNICAL COORDINATION AND QUALITY Etienne DE GANCK CENTRAL TRAFFIC MANAGEMENT Christian BOITEUX REGIONAL MANAGEMENT 16 / INFRABEL / ANNUAL REPORT 2005

18 Infrabel is an independent public corporation, 7.34% of which is owned by the Belgian State and 92.66% by SNCB Holding. However, in order to guarantee the infrastructure manager the independence required under the European directives, the Belgian State holds 80% of the voting rights (plus one vote) compared to 20% (minus one vote) for SNCB Holding. How Infrabel is organised Infrabel is headed by CEO Luc Lallemand and is composed of three divisions, six departments and an Internal Audit unit reporting directly to the Audit Committee. The company currently employs some 14,000 people and realises a turnover of some 1.3 bn. Infrabel is made up of two of the biggest divisions of the former SNCB: the Infrastructure Division with its workforce of around 7,750, and the Network Division, with over 6,000 employees. The new Access to the Network Division employs 70 people. The Network Division provides technical management of the network. It is responsible for coordinating train traffic, for overseeing traffic in real time, and for producing and updating information media. The Infrastructure & Purchasing Division designs, constructs, replaces and maintains rail infrastructure. It is also responsible for the purchasing of equipment and the procurement of fixed installations. In its workshops, it manufactures and repairs electrical equipment, track equipment and standardised concrete parts. The newly-established Access to the Network Division, created at the same time as Infrabel itself, handles essential functions including the distribution and allocation of rail capacity (train paths) between the various operators, and establishes the fees payable for the use of the rail infrastructure, including the billing and charging of infrastructure fees. It provides technical support in establishing technical standards and safety rules applicable to the use of the rail infrastructure. It monitors the safety compliance of the staff and rolling stock of the The Infrastructure Division designs, builds, repairs and maintains the rail infrastructure various operators using the Belgian rail network, issues accreditations as part of the process of granting Safety Certificates to rail operators and draws up the Network Statement. Infrabel also has 6 Corporate Centre departments: finance, communication, human resources, strategy and legal affairs, general secretariat and the BRIO unit. These departments report directly to the CEO and provide support functions for the company s overall strategy and for the three divisions. ANNUAL REPORT 2005 / INFRABEL / 17

19 2005, the year in which Infrabel came into existence, saw the first milestones in an ambitious development programme. The investment plan, strategic plan, management contract, establishment of consultation bodies, definition of objectives and priorities all combined to make a fruitful year on many fronts Management Report A year that saw Infrabel off to a fine start Among the highlights of 2005, September saw the adoption of the multi-year investment plan, in conjunction with the Group s two other companies through an Investment Committee. Negotiations began in December on the second investment plan, for , at the same time as negotiations on the first amendment to the management contract. Earlier in the year, a number of specific consultation bodies were set up within the Group in order to implement a common policy and harmonised strategy; these bodies included the Three CEOs Committee, the Steering Committee and the Investment Committee. The Three CEOs Committee prepares the ground for meetings of the Steering Committee and ensures consistency in decisions and projects. The Steering Committee is a statutory body - including trade union representatives - with powers to support the introduction of new structures, draw up corporate plans and deal with operational management issues. The Investment Committee is responsible for ensuring proper coordination of investments within the Group. It monitors compliance with the regional distribution key. Infrabel s tasks: meeting every challenge Strategic plan In addition to the signature on 27 th May 2005 of the management contract between each of the three companies and the Belgian State (published in the Belgian Law Gazette on 31 st August 2005), 2005 also saw the introduction of a strategic plan known as BRIO (Belgian Railway Infrastructure Objectives) which covers the period Based on broad consultation of executives and stakeholders, and on international benchmarking, the plan defined 22 strategic priorities which will be implemented through a matrix-based organisation. These project management imperatives launched by Infrabel have resulted in the creation of new intra-group interfaces and new forms of cooperation between the infrastructure manager and its customers. Under our strategic plan, explains Guy Vernieuwe, manager of the Strategies and Legal Affairs department, our commitment to 18 / INFRABEL / ANNUAL REPORT 2005

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21 developing a customer-supplier attitude is high on the agenda. As part of that attitude, we then have to manage our interfaces with all the rail operators including, of course, the previous sole operator, SNCB. In keeping with the spirit of the European directives, we are moving towards a more intensive contractualisation of all these relations through Service Level Agreements designed to maintain a high level of quality. Projects, objectives and major investment works Over the course of its first year in existence, Infrabel established and programmed its priorities in terms of projects and objectives. One of these projects is the modernisation of the network in order to boost safety and punctuality. Another is the concentration of signal boxes from 368 to teleoperated units (by 2012) and of dispatching centres from 5 to 1 (end 2006). Other priority projects launched in 2005 include the strategic plan to improve the safety of level crossings and optimising logistics (Infrastructure Logistics Centres by 2010). In terms of major investment works, the Concertation Committee made up of the federal and the two regional governments has designated six priority projects which will require the setting up of Public Private Partnerships (PPP) or of prefinancing projects: the Liefkenshoek rail link in Antwerp, the port of Zeebrugge, the Brussels- Luxembourg line, the port of Brussels rail terminal, Gosselies station (Charleroi airport) and, outside Infrabel s remit the Park & Ride car park at Louvain-la-Neuve. Infrabel also pursued various large-scale projects in 2005: important investments on the high-speed network continued, while the work on the RER system reached a full cruising speed. The Nossegem curve (on the Brussels-Louvain line 36), creating a direct link between Louvain and the airport, was the main project completed in 2005, but so much infrastructure work is nearing completion that 2006 and 2007 will bring a rich crop of new facilities into service. Infrabel in three priorities Guy Vernieuwe STRATEGY & LEGAL AFFAIRS Safety Infrabel is deploying new technology to provide greater network safety. One resource under development is GSM-R, a new GSM railway communication system offering improved security by providing optimum communication between all key players (station master, driver, signalman, etc.). Infrabel has also adopted the new European traffic control system, ETCS, with its enhanced safety features. The system will gradually be installed across the Trans-European network but also across most of the Belgian network, making it a truly interoperable network. Regularity and punctuality Punctuality is a key strategic issue and has a direct impact on rates of train use, and also on the trust built up over recent years between passengers and SNCB, Infrabel s biggest single customer. The first essential steps in ensuring regularity of service are good network maintenance and optimised working procedures. Modernisation of production capacity The third priority is to improve production capacity by adopting new technology. Signal boxes and production workshops are in the process of modernisation, while maintenance sites are gradually being regrouped into the new Infrastructure Logistics Centres which will offer better working conditions for employees. Infrabel relies heavily on new technology to provide greater network safety 20 / INFRABEL / ANNUAL REPORT 2005

22 The simple pleasure of a job well done With 26 years of hard physical work on the tracks to his credit, Ronny Zoetaerdt thinks of Infrabel as a second family. Full of confidence in the future, he views the changes that are leading to the modernisation of the network with great satisfaction. Along with his colleagues, Ronny works on maintaining tracks and switches, making repairs and laying new rails. I know I m only a tiny cog in the Infrabel organisation, he says. But it s still a great satisfaction to know that the work I do every day allows trains to run under optimum safety conditions. Ronny is something of a perfectionist and he, like all his colleagues, constantly demonstrates professionalism and great dedication. He is the first to praise Infrabel s keen attention to rigorous procedures and safety. At the mercy of what can sometimes be unforgiving weather, Ronny takes whatever the elements throw at him philosophically. Summer is the best time, obviously, but rain, shine or freeze, we re always ready. Although the job has seen a great deal of modernisation in recent years, it is still physically demanding. If you have a weak back, you won t last to the age of sixty in this job. The machines certainly make things easier, but our work makes enormous physical demands, the track-layer adds with a smile. A FULFILLING JOB Ronny Zoetaerdt We re always ready We aim for perfection. That s why we have so few accidents. I don t think it s the same in the private sector. More than ever, Ronny is one of the many workers at Infrabel who think of their work and colleagues as a second family. ANNUAL REPORT 2005 / INFRABEL / 21

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24 BRIO, a strategic plan for the future

25 The BRIO (Belgian Railway Infrastructure Objectives) strategic plan, approved by the Board of Directors, the Management Committee and the overseeing ministry, sets out the company s priorities for 2006 to BRIO, an action plan for Infrabel Developing modern infrastructure is one of Infrabel s tasks. BRIO: behind the catchy acronym lies a strategic plan that is vital to Infrabel s future development, which explains why it was the focus of all the company s efforts over several months. The roots of the BRIO strategic plan are closely linked to the creation of Infrabel on 1 st January 2005, explains Jacques Verstreken, head of the BRIO unit responsible for implementing the strategic plan. In the interests of greater efficiency, Infrabel decided to launch a modern management process involving a project-based matrix structure to implement the company s strategic priorities. By 1 st March 2005, the groundwork of the plan was laid and the Strategy department is now in a position to launch the preliminary phase. As the first step, 173 of the company s senior executives were interviewed by four University professors. The aim of the exercise was to amass as much pertinent information as possible, to monitor consistency and prompt action in areas for future development. At the same time, stakeholders were also interviewed. This preliminary investigation was rounded off by a comparative study of rail companies and a survey of freight transport. All this information was analysed by corporate management at a week-long study seminar, explains Jacques Verstreken. Over the course of the session, we arrived at a clear definition of the vision, mission and values of Infrabel. In addition, we identified 22 strategic priorities inherent in every aspect of the company (in the technical, financial, commercial and human resources fields). All this work laid the foundations for the BRIO strategic plan. At the close of the seminar, a financial chapter was added to the BRIO plan before it was finally communicated to the management of Infrabel. This informal consultation process was of great help in refining the plan and settling the final details. On 7 th February 2006, the BRIO plan was submitted to the Board of Directors and approved. It was then incorporated into the business plans of SNCB Holding and of the rail operator SNCB as part of the Group s consolidated business plan. All that now remains is to implement this plan According to the plan as finalised, points out Jacques Verstreken, the 22 top priorities have been rolled out to all Infrabel departments and divisions. The six top priorities, seen as crucial to the company, are handled directly by the BRIO unit specifically set up for the purpose and which reports directly to the CEO. The other 16 are allocated according to the topics they relate to: six to the Infrastructure Division, four to the Access to the Network Division and four to the Corporate Centre. All the priority projects are the responsibility of a particular sponsor CEO, manager, or head of the BRIO unit who answers for the projects taken on by the division or department concerned. Each project is then dealt with individually by a project manager who runs a working group. In the interests of cross-functionality, the working groups are made up of representatives of senior management from the three divisions, Infrabel Corporate Centre and various divisions of SNCB (Assets, Rolling Stock, ICT, etc.) which rely on coordination with the infrastructure manager. To make sure that priority projects are completed without being affected by the problems of too compartmentalised an organisation, Jacques Verstreken continues, we opted for a matrix-based project management structure. Based on cross-functional management, this organisation enables us to manage a project across all the Infrabel departments and divisions. Each project manager reports to his or her sponsor who then reports in turn to the Management Committee via the head of the BRIO unit. Reporting is always channelled via the BRIO unit, ensuring consistency in our manner of addressing problems and measuring progress. Thanks to this broad overview, we can keep a close and careful watch on all the priorities defined by BRIO. Clearly much more than a strategic plan, BRIO is now the real driving force for the company in the years ahead, a driving force in which every member of staff is a key component. 24 / INFRABEL / ANNUAL REPORT 2005

26 BRIO, the strategic priorities INFRABEL 1. Safety Introduction of a safety management system and prioritisation of related investment, organisation of independent inspection for all operators and increasing operator awareness of safety issues, implementation of the ETCS and GSM-R systems. 2. New organisation of Infrabel Network Organisation according to specific tasks and concentration of dispatching centres and signal boxes in order to modernise the structure of Infrabel Network regional managements with three main objectives: safety, punctuality and quality of information. 3. Concentration of signal boxes and merging of dispatching centres Merging of dispatching centres for improved traffic flow and punctuality. Concentration of signal boxes in order to replace and standardise installations in order to improve reliability, increase traffic regularity and staff efficiency, while reducing costs. 4. Optimising logistic chains Grouping staff in a certain number of Infrastructure Logistics Centres (CLI Centre Logistique Infrastructure) and organisation, within these centres, of optimal logistic support by the introduction of highly efficient workshops and real stores. 5. Customer / Product strategy Development of a consistent policy towards stakeholders in order to promote rail traffic on the Belgian network to best effect and promote maximum use of the infrastructure. 6. Management by results (including implementation of the BRIO strategic plan, Balanced Scorecards ) Development of fully-fledged strategic management on the basis of the BRIO plan, with introduction of management by results to evaluate and monitor implementation of strategic priorities through the use of Balanced Scorecards. INFRASTRUCTURE DIVISION 7. Integrated financial planning (short and long term) covering maintenance, renewal and investment Prioritisation of renewal with the prime objective being to limit maintenance costs thanks to technological advances and the introduction of more targeted maintenance procedures. 8. Smoothing peaks in the bar charts representing component ages: developing a long-term infrastructure health strategy Refining renewal needs through improved inventorying of the components making up the network. A knowledge of needs associated with investment in network extension is fundamental. 9. Reduction in diversity (standardisation) Objective: to arrive at greater standardisation of installations in order to simplify the task of field operatives, reduce stock and hence improve maintenance teams working methods. 10. Simplification of the infrastructure (seeking a balance between cost and performance for a desired capacity) More systematic pursuit of simplification of installations and encouraging the removal of level crossings. 11. Social and economic dimensioning of resources Limitation of external costs by allocating human resources freed by the reduced maintenance requirements to the performance of capital work. 12. Use of automated safety devices to protect track workers in order to improve the existing level of trackside safety Analysis of economic pertinence and efficiency in terms of safety of automatic train warning devices for track workers. ANNUAL REPORT 2005 / INFRABEL / 25

27 Prioritising (track) renewals NETWORK DIVISION 13. Ensure the punctuality of trains Mobilising all staff in support of a common objective: to be and to remain one of the most reliable networks in Europe thanks to a sound timetable, reliable infrastructure, optimal traffic regulation and excellent coordination with all rail operators. 14. Strategic plan for level crossings Objective: to reduce the number of level crossings or, where this is not possible, make them safer, and take part in awareness campaigns organised by the IBSR (Belgian road safety institute). 15. Social and economic dimensioning of resources Systematic examination of aspects relating to human resources as part of any study involving the dimensioning of resources. 16. Objective definition of traffic suspensions and line closures for maintenance and replacement (with the Infrastructure and Access to the Network Divisions). Economic optimisation of the allocation of line closures and pursuit of working methods designed to make the best possible use of long-term line closures. Encouragement for grouping work on a section of line (clustering). ACCESS TO THE NETWORK DIVISION 17. Account Management (ports, industry) and Safety Management structure (with the Network Division). Rationalisation of contractual relations by means of a single point of contact, adopting a uniform attitude to all customers, developing a consistent approach in order to promote rail transport and guarantee a high level of safety. 18. Seek greater reliability from operators by means of Service Level Agreements (SLAs) Draw up appropriate Service Level Agreements with the various operators in order to ensure a high degree of reliability on their part. CORPORATE CENTRE Strategy and Legal Affairs and Information Technology 19. Develop Project Management and dedicated IT tools Continue the implementation of a modern project management structure for investments, as initiated in 2004, and development of an integrated IT strategy. Finance and Administration 20. Adapting the accounting system in the light of the introduction of IAS-IFRS and an ERP system Improving the process of drawing up the operating budget, continuing the construction and improvement of the financial reporting system within a short time scale, redesigning cost accounting, implementing an ERP system and IAS-IFRS accounting standards. Human resources 21. Develop an effective HR strategy through skills management Preservation and optimal management of knowhow through organised and targeted training. Communication 22. Develop a high-profile image of Infrabel Development of external communication designed to give the company an independent, young, modern, dynamic profile and to produce motivational internal communication encouraging a sense of team spirit and stressing the distinctive aspects of Infrabel s corporate culture. 26 / INFRABEL / ANNUAL REPORT 2005

28 After a rich and diversified 30-year career with SNCB, in January 2006 Jacques Verstreken was appointed head of the BRIO unit, responsible for implementing Infrabel s strategic plan. An appointment that offers the 53-year old engineer a great opportunity to put his experience to work on a unifying project. Civil engineer Jacques Verstreken has the railways in his blood. He joined SNCB early in his career and followed a diversified career path, managing a number of major projects (the Brussels- Luxembourg and Brussels-Midi high-speed train passenger terminals) before taking over responsibility for the Brussels zone, reporting to the Infrastructure and Purchasing Division. Since the creation of Infrabel, my responsibilities have remained essentially the same from the technical standpoint, he explains. In relational terms, however, I have been heavily involved in communicating with my teams to explain the new structures of the SNCB Group, the creation of Infrabel and the impact these changes will have on our activities. I was convinced then and am even more convinced now that change, any change, must always be accompanied by effective communication. Jacques Verstreken is a born communicator, with organisational capacities widely recognised by his peers, and he will be involved in every stage of implementing the BRIO plan. At a meeting, Luc Lallemand told me he was planning to establish a matrix-based project management system at Infrabel, to ensure that the plan is implemented and becomes a real driver for the company. He gave me to understand that he was looking for a hands-on manager with good interpersonal skills to head the unit responsible for coordinating the plan. So it was that on 1 st January 2006 Jacques Verstreken was officially appointed as head of the BRIO unit. It s never easy to start something new, he explains. Especially since this strategic plan is particularly important to Infrabel s future development. The opportunity I have been given is extremely rewarding mainly, because I am working side by side with people from very different backgrounds. This has led me to adopt a highly participative form of management to get the best out of everyone. The next step now is to get to grips with the actual implementation of the plan, and this is where the real challenge lies. I am confident of success, however, because this plan relies on 14,000 people who have the qualities and energy to achieve great things. A FULFILLING JOB Jacques Verstreken HEAD OF THE BRIO UNIT The plan relies on 14,000 people who have the qualities and energy to achieve great things. ANNUAL REPORT 2005 / INFRABEL / 27

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30 An ambitious investment plan

31 With the adoption on 30 September 2005 of a particularly ambitious investment plan, Infrabel is clearly demonstrating its determination to play a decisive role in developing transport offerings for today and tomorrow. An ambitious investment plan Marc Smeets FINANCE & ADMINISTRATION A sound financial position is a guarantee for the future of the company. The implementation of the investment plan will continue the development of a powerful mobility program in Belgium. Over this period, the SNCB Group will invest on average 1.6 bn per year with the aim, by 2007, of achieving a 25% increase in passenger numbers and consolidating rail s share of the freight market. The bulk of this budget will be invested by Infrabel ( 3.3 bn for the period ) in a number of projects, focused primarily on the modernisation (27%) and extension (20%) of the country s domestic rail infrastructure. Safety, the RER project, the completion of the highspeed train network and improved passenger amenities are some of the key items in the investment plan. Enhancing the potential of the Belgian network Infrabel plans to spend 878 m (over three years) on capacity maintenance (keeping the existing infrastructure in good condition). A budget of m will be devoted to signal boxes: their modernisation is one of the priorities of the BRIO strategic plan. This is just one of many projects, throughout the country, that will make a significant contribution to two of Infrabel s main priorities, safety and regularity. Besides maintaining capacity, the investment plan also provides for an extension of the capacity of Belgium s conventional network through 13 large-scale projects. The objectives of these major investments are to cope with increased traffic, create possibilities for new links and enhance the potential of Belgium s rail network. The biggest projects include the Diabolo ( 114 m) at Brussels Airport, the Liefkenshoek rail link under the river Scheldt ( 146 m), the Brussels-Luxembourg line ( 73 m), a number of investments in the port of Antwerp ( 65.1 m), etc. In accordance with the BRIO strategic plan, these projects have all been selected for their excellent return on investment and for the impact those investments will have on rail transport in Belgium. The GSM-R project ( 86 m), a high-level track-to-train telecommunication system, will also be a priority in view of the vital contribution it will make to safety on the Belgian rail network. 30 / INFRABEL / ANNUAL REPORT 2005

32 Investments through Public Private Partnership In general terms, a Public Private Partnership (PPP) can be defined as structured collaboration between a public agency and a private sector entity for the purpose of financing and executing a concrete project in return for the creation of added value for each of the parties. In such a structure, the private partner assumes an important part of the risks associated with the project. In concrete terms, Infrabel is currently setting up two PPP schemes for major investment projects: the Diabolo railway connection to Brussels Airport, and the Liefkenshoek rail link at the port of Antwerp, offering a connection between the left and right banks of the river Scheldt destined for freight traffic. A private consortium made up of entrepreneurs and investors carries out the investment and assumes certain risks. Once the project is completed, Infrabel will be entitled to long-term use of the infrastructure in return for a predetermined annual fee. Public-private partnerships make it possible to speed up the execution of certain projects. All eyes on the RER The construction of the Réseau Express Régional (RER), the regional express transport system in and around Brussels that so often makes the headlines, is more of a priority than ever. Between 2005 and 2007, 487 m will be spent on continuing the construction of RER infrastructure, representing 15% of the total budget available for this project, which is vital to mobility in and around Brussels. The biggest subprojects are the construction of the Josaphat tunnel in Brussels ( 129 m), the Brussels-Ottignies line ( 133 m), the Brussels-Nivelles line ( 101 m) and the Brussels-Denderleeuw line ( 99 m). High-Speed Lines (HSL) Infrabel will also invest large sums in finalising the high-speed train network from border to border ( 917 m, equivalent to 28% of the investment budget). Infrabel has allocated a budget of 453 m to complete the high-speed line from Antwerp to the Dutch border (including the connection through Antwerp Central station), while 363 m is to be spent on the high-speed line between Liège and the German border. Direct and indirect customers and production capacity All these investments will enable Infrabel s customers rail operators transporting passengers or freight to open new links, increase operating speeds, lay on more frequent services, make their traffic more reliable all accompanied by constant improvements in safety. This will in turn benefit Infrabel s customers customers, i.e. business users and passengers. Moreover part of the investments will benefit directly to the passengers since Infrabel intends to invest over the next three years no less than 210 m in improved passenger amenities (6%), particularly platforms and underground corridors. These investments have been planned at the stations of Brussels-Central, Louvain, Gent-Sint-Pieters, Brugge, Liège, Mons and Charleroi among others. Finally, Infrabel will invest another 152 m in different productioncapacity related projects (3%): logistics centres and Infrastructure workshops, special maintenance plant, dedicated IT resources and other items. ANNUAL REPORT 2005 / INFRABEL / 31

33 Every day some 360,000 commuters travel into and out of Brussels, and a further 50,000 or so are forecast to join their ranks by Against this background of increasing commuter numbers, and as road networks become increasingly congested, the Réseau Express Régional is undoubtedly the best solution for ensuring long-term mobility in and around Europe s capital. RER A network vital to Belgium s mobility The RER: greater mobility in and around Brussels The Brussels RER will take the form of nine closely interconnected rail links and special bus services in areas not served by trains. The frequency of service (a train every 15 minutes at peak times), which is the biggest advantage of the RER, will mean expanding most lines concerned from two tracks to four. Not only will this increase line capacity, but it will also improve traffic flow by dedicating track to different types of traffic. Two tracks will be set aside for faster trains (IC-IR, peak-time express trains and, where appropriate, certain highspeed trains), while the two others will be dedicated to RER and the slower P trains. For Infrabel, which is responsible for the construction of this new infrastructure, the RER project represents a total investment of 1,720 bn, much of it provided by the RER fund set up on the initiative of the government and managed by SNCB Holding. A considerable amount of infrastructure work has already commenced or is to begin shortly on several radial lines in Brussels, where over 120 stations and stopping points will also be upgraded or modernised. The target date for full service on the RER network is set for In 2005, says Guy Vernieuwe, manager of the Strategy, Legal and International Affairs and IT department, the RER project was still for the most part at the stage of applications for planning permission in the country s three regions. Even so, work in the Brussels-Schuman- Etterbeek zone is already well under way. Brussels Denderleeuw (L. 50A) As is the case with many of the lines making up the RER network (L124, 161 and 36), the addition of a third and fourth track along the L50A between Denderleeuw and Brussels involves two regions, the Flemish Region and the Brussels-Capital Region. For the Flemish Region, the environmental impact study was completed in In spring 2005, the final version was submitted to the Flemish Region s environmental impact unit (MER Unit Milieu-Effecten Rapport), with an application for a certificate of conformity. This has been followed by much debate, so much so that no MER certificate of conformity has been forthcoming and, as a result, no application for planning permission can be made. These two constraints have caused a oneyear delay. 32 / INFRABEL / ANNUAL REPORT 2005