Germany/Austria/Hungary/Italy railjet + DB/ÖBB EuroCity Erwin Kastberger Copenhagen, September 13, 2013
Case study 1 Danube Corridor Danube Corridor Vienna - Budapest Linz Vienna Budapest 15.09.2013 2
Initial situation 2005 Offer 2005 3 direct EC services between and Vienna 1 direct EC service between, Vienna and Budapest 5 direct EC services between Vienna Linz Vienna and Budapest Quadrupling section Linz - Wien New Central Station Vienna Budapest Initiative of ÖBB for regular services Budapest with new ÖBB trainsets in cooperation with DB and MAV 15.09.2013 3
Realization (1) Organizational issues Conventional cooperation model (= Railway undertakings are responsible for costs and revenues on their section) No common company Concordant planning of services Full Integration in national services Linz Vienna Budapest Business model DB and ÖBB are operating the line on commercial basis without subsidies MAV is getting subsidies from the national ministry for the railjet services between Hegyeshalom (border station and Budapest) 15.09.2013 4
Realization (2) Technical Issues Realization of new trainsets railjet without relevant problems Decision for investment (January 2006) Simple technical concept (new coaches coupled with existing locos) Usage in Germany, Austria, Switzerland and Hungary 4 signalling systems in the driving trailer Technical approval in a common parallel project of the responsible authorities of Germany, Switzerland, Hungara and Austria Technical Approval arrived in time! Start of services in December 2008 From decision to start of services were needed less than 3 years! 15.09.2013 5
Results and further developments Successful development in the last years Rising numbers of international passengers on the whole line between and Budapest (passengers between Vienna and Budapest almost doubled) Railjet is leader in quality in the destinations Vienna and Vienna Budapest More comfort, less time and lower prices than plane or car Next steps of timetable optimization 200% 175% 150% 125% 100% passengers Vienna - Hegyeshalom 2007 2008 2009 2010 2011 2012 2013 December 2013 December 2014 December 2015 Better connections in hourly fast connections between Vienna and Services Budapest can use Wien Hauptbahnhof travel time cut by half an hour additional services between Vienna and Budapest planned hourly sevices between Vienna and Budapest 15.09.2013 6
Case study 2 Brenner Corridor München Innsbruck Wien Brenner Corridor Innsbruck - Verona Milano Verona Venezia Bologna Firenze Roma 15.09.2013 7
Initial situation 2008 München Wien Offer 2008: 5 EC services between and northern Italy (Verona, Milan, Venice, Rimini) operated by DB, ÖBB, Trenitalia in conventional cooperation Innsbruck Milano Verona Venezia Bologna Firenze Roma Problems: Poor quality of service and vehicles Decline of demand Negative economic results for all partners No common strategy of the cooperation partners no reliability for planning Initiative of DB & ÖBB to restart Brenner services without Trenitalia! 15.09.2013 8
Realization (1) organizational ideas and reality New approach: München Wien DB + ÖBB found a new company and start open access in Italy! Innsbruck Verona Venezia Milano Bologna Firenze Roma NewCo No common (51 company % DB, 49 but % ÖBB) cost and fully revenue responsible sharing the for Italian the whole section business (DB 51 between %, ÖBB 49 %) and Northern Italy LeNord was integrated in a common LeNord company as with licensed Trenitalia domestic regional railway services undertaking Lombardia contracted as production partner Better No homologation better quality for of railjet service trainsets and better in Italy vehicles due to specific (railjet-trainsets) Italian tunnel safety rules! Usage of conventional ÖBB rolling stock Competition Inertness of the instead customers of cooperation in Italy was with Trenitalia underestimated Business model: Services on commercial basis without subsidies 15.09.2013 9
Realization (2) new strategy Turnaround program needed München Wien Concentration on a core network (destinations Verona, Venezia, Bologna) Verona Milano Innsbruck Venezia Concentration on the core market leisure ( intensive cooperation with tourism actors in Italy) Big efforts for marketing in Italy to reach better public awareness Bologna Firenze Cooperation with Trenitalia in information and sales Roma 15.09.2013 10
Realization (3) results München Innsbruck Verona Venezia Milano Bologna Firenze Wien Objectives achieved Reliabilty in planning Better quality of service, better vehicles improvement of punctuality Increase of cross-border passengers Improvement of economic results Passengers Innsbruck - Brenner 150% 125% 100% Roma 75% 50% 2009 2010 2011 2012 2013 15.09.2013 11
Realization (3) results Thank you for your attention! 15.09.2013 12