Bright future for Belgium

In an interview with Global Railway Review, CEO Luc Lallemand openly talks about Infrabel, the manager of the Belgian railway infrastructure. During this conversation the CEO, among other things, talks about the main tasks, the investments, the major projects and the challenges of Infrabel.

Mr. Lallemand, during the past year a lot has changed in the Belgian railway industry. The former SNCB has been split up into several companies, hasn’t it?

Indeed, the new railway companies were created in order to comply with the European legislation on the liberalisation of rail transport. Next to Infrabel, there is the SNCB, the railway operator, which takes care of everything concerning the operation of passengers and freight. The mother company, Holding, operates a number of stations and handles the social matters of the entire group. Together, since 1 January 2006, we formed the SNCB Group.

Access to the railway network

Within that new structure Infrabel is a limited liability company of public law. What are its main tasks?

Infrabel has two main tasks. First of all we are responsible for the management of the Belgian railway infrastructure: its acquisition, construction, modernisation and maintenance. At the same time, Infrabel manages the traffic and safety monitoring systems. A second important task consists of granting access to the railway network for all operators. As from 1 January 2006, the European railway market is liberalised. This means that all railway companies of the European Union can – on payment – have their trains run on the networks of other member states and therefore also in Belgium.

Granting access to the railway network is a new, important task for Infrabel. What exactly does it imply?

As an independent network manager, Infrabel provides fair and non-discriminatory access to the Belgian railway network for all domestic and foreign operators. The main activities of the department Access to the Network are the distribution of railway capacity by trainpath allocation, the rate-fixing, invoicing and collection of fees and certifying railway undertakings’ personnel and rolling stock.

Infrabel investments

Over the coming years, Infrabel will invest substantially in its railway infrastructure. What are the essential points of your investment plan in the short term?

Between 2005 and 2007, Infrabel will account for the major part of the investments (69%) of the SNCB Group. In that period, Infrabel will invest €3.314 billion in various projects, with a particular emphasis on the modernisation and development of the domestic railway infrastructure. Furthermore, Infrabel will also, as of 2007, invest in a number of priority projects which are to be pre-financed by SNCB Holding and will receive interest subsidies from the Regions concerned (a total of €57 million in 2007). In addition to the numerous large-scale projects in Flanders and Wallonia, we are also highly occupied with the development of the Regional Express Network in and around the capital, Brussels.

Can you tell us some more about this Regional Express Network in Brussels?

The purpose of the Regional Express Network (REN) is to increase the share of public transport, and more specifically that of the train. Over the next seven years, Infrabel will invest €1.6 billion to provide Brussels and its outskirts with a rail express network deserving that name. Through the REN, train traffic from the various important railway arteries (Liège, Luxembourg, Antwerp) to the capital, will increase. Infrabel is also building a railway tunnel in order to let traffic circulate more freely. By 2012, the REN will be fully operational.

The emphasis of the investments is on the domestic railway network, but the completion of the high speed network is planned as well, isn’t it?

That’s right. We are in the final phase for both the eastern and northern branch of the high speed network of which Brussels is the main hub. In 2007, trains can run from Brussels to The Netherlands via the new HSL north of Antwerp. The construction of the north-south junction, a 3.8km long railway tunnel under Antwerp Central station and the city, is nearly finished. For that matter, domestic train traffic will also benefit from this project. Infrabel does indeed plan to have domestic trains run on the high speed lines as well. For instance, 70% of the trains using the north-south junction will be domestic trains. The eastern branch of the high speed line, between Brussels and the German border, with a passage through the 6.5km long railway tunnel of Soumagne – the longest railway tunnel in Belgium, will also become operational in 2007, with shorter travelling times for the passengers. The total investment of Infrabel for both high speed projects amounts to €3.7 billion.

Public Private Partnerships

A few major railway projects are financed through a public private partnership. Which projects are involved here?

First of all, there is the Diabolo project. Through this new project, Brussels National Airport is connected to the northern and eastern railway arteries in Belgium. By 2010, the Zaventem National Airport will be the airport best served by train in Europe and in the world. The high speed trains on both the lines Paris-Cologne and Paris-Amsterdam, but many domestic trains as well, will indeed from then on pass directly via the National Airport from both directions. The budget for the entire Diabolo project is estimated at €502.1 million. Of this amount, €221.8 million is realised by Infrabel with public funds. The other part is realised and financed by the private sector for an amount of €280.3 million.

Another project that is financed through a public private partnership is situated in the port of Antwerp, where Infrabel is very active with numerous infrastructure works. The PPP-project underway there is the Liefkenshoek railway tunnel, a new railway link under the river Scheldt between the left and the right riverbank. The goods railway tunnel is of the greatest importance for the opening of the port of Antwerp. The total investment for the Liefkenshoek railway tunnel, which has to be finished by the end of 2011, amounts to €685 million. Infrabel does indeed want to set itself up as an important and central player in the port business.

What is the future of a minor infrastructure manager such as Infrabel within Europe?

It is true that Infrabel is relatively small, but we also hold a lot of impressive statistics. For instance, we have one of the best equipped and safest railway networks in Europe. Another advantage is our favourable central location with Brussels as the capital of Europe and the strategic position of various important ports such as Antwerp and Zeebrugge. So I can say with confidence that Infrabel faces a particularly bright future as infrastructure manager at the service of both Belgian and foreign railway operators.