Optimising the Connecting Europe Facility requires modern, interoperable trains, says ALLRAIL

ALLRAIL has announced that the proposed strategic investment in rail infrastructure through the recently announced Connecting Europe Facility (CEF) grants will only achieve its full potential with the deployment of modern, interoperable trains. These advanced trains are essential for the future of Europe’s rail network, ensuring seamless cross-border operations, enhancing system efficiency and reducing track wear and tear.

However, acquiring and upgrading to modern, interoperable trains involves significant costs. Therefore, it is vital that the European Union (EU) provides ample, non-discriminatory funding to support the implementation of the latest interoperability technologies, such as the European Rail Traffic Management System (ERTMS) and the Future Rail Mobile Communication System (FRMCS). This support should extend to all interested investors, particularly private operators and leasing companies committed to investing in both new and existing rolling stock.

These stakeholders play a crucial role in the rail sector by fostering competition, which can lead to lower ticket prices, improved service quality and reduced taxpayer burden. The EU Commission’s recent proposals for State Aid, which include authorising financing guarantees of up to 80% of loans for acquiring rolling stock, exclusively target new entrants and SMEs. This measure could significantly increase the availability and affordability of modern, interoperable trains.

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Leasing companies and independent passenger rail operators are actively preparing comprehensive feedback for the European Commission’s public consultation. Their goal is to better address their unique needs and challenges in this sector.

Nick Brooks, Secretary General of ALLRAIL, said: “We urge the EU Commission and Member States to recognise the importance of the investment in rail interoperability and there are the resources necessary to drive the modernisation of Europe’s rail infrastructure and trains. These must be allocated in a non-discriminatory manner so that all rail operators, especially the independent ones with fewer financial resources and financing options, can benefit.”

Carole Coune, Secretary General of AERRL, said: “Aid for ERTMS upgrades and retrofits is crucial to the development of rail’s market share. Perhaps some thought should also be given to how this aid should be granted. Could subsidies not be applied at source (i.e. directly to the supply base) at a level that ensures that the cost to the end user is not unnecessarily high?“

ALLRAIL emphasises that the collective feedback from these stakeholders aims to ensure that the European Commission’s initiatives effectively support the modernisation and interoperability of Europe’s rail network, benefiting operators and passengers alike.