Strategy for railway infrastructure development

rastructure played an important role in limiting the competitiveness of the railway transport. However, the reciprocity is true, in the sense that the railway infrastructure has a decisive role in the rehabilitation of the railway transport. CFR Network Statement - 2026 ANNEX 12.a Version: 15.0.0 Updated: 15.12.2024 Page: 7 / 14  Compania Naţională de Căi Ferate “CFR” S.A. România The analyzes presented also highlighted that the internal transport market must be the main target of the rehabilitation of the railway transport, as over 90% of the total volume of the railway transport services targets the internal transport. Moreover, the success of the rehabilitation of the railway transport in the internal market is likely to strengthen the international transport flows, implicitly it is likely to contribute to the success of the European Union's policy to achieve the Single European Railway Area. As a result, the general strategic objectives regarding the development of the railway infrastructure are: A: Increasing the competitiveness of the railway transport in the internal market B: Integration into the Single European Railway Area These general objectives represent the strategic pillars of the railway transport sector. The two strategic objectives are complementary, without being disjointed. Increasing the competitiveness of the railway transport is a precondition for the integration into the European railway area, which is strategically designed at a high level of competitiveness. On the other hand, the integration into the Single European Railway Area also involves measures to strengthen the competitiveness of the railway transport in the internal market. The general strategic objectives are associated with specific strategic objectives, the achievement of which conditions the achievement of the general objectives assumed. A Increasing the competitiveness of the railway transport in the internal market A.1 Increasing the traffic speed on the railway infrastructure Increasing the commercial speeds achieved, by reducing the gap compared to the speed allowed by the A.2 railway infrastructure. Increasing the punctuality of trains A.3 Increasing the economic efficiency of the railway infrastructure management activities A.4 Maintaining the high level of train traffic safety A.5 Increasing the energy efficiency and reducing the pollution levels A.6 Improving the connectivity of the railway network A.7 Increasing the competitiveness of the railway passenger transport A.8 Increasing the competitiveness of the railway freight transport B Integration into the Single European Railway Area B.1 Rehabilitation and modernization of the infrastructure of the international railway corridors B.2 Rehabilitation and modernization of the TEN-T network infrastructure B.3 Integration into the European high-speed railway network CFR Network Statement - 2026 ANNEX 12.a Version: 15.0.0 Updated: 15.12.2024 Page: 8 / 14  Compania Naţională de Căi Ferate “CFR” S.A. România 4. DIRECTIONS OF PRIORITY ACTION AND EXPECTED RESULTS Following the development logics mentioned above, for each specific strategic objective, the necessary strategic actions are identified in order to achieve the assumed objectives. As a result, the Strategy for Railway Infrastructure Development is structured in general objectives, specific objectives and strategic actions related to the specific objectives, according to the synoptic table below. A Increasing the competitiveness of the railway transport in the internal market A.1 Increasing the traffic speed on the railway infrastructure A.1.1 Renewal of the railway infrastructure A.1.2 Current repairs of the infrastructure elements A.1.3 Current maintenance of the railway infrastructure A.1.4 Increasing the projected speed of the railway infrastructure Increasing the commercial speeds achieved, by reducing the gap compared to the speed allowed by A.2 the railway infrastructure. Increasing the punctuality of trains A.2.1 Increasing the efficiency of the operational management of the train traffic A.2.2 Increasing the efficiency of tactical management of the train traffic A.2.3 Increasing the efficiency of train traffic planning on the strategic time horizon A.2.4 Strategic planning of the railway infrastructure and services A.2.5 Increasing the efficiency of the safety procedures for the communication with the moving trains A.3 Increasing the economic efficiency of the railway infrastructure management activities A.3.1 Increasing the degree of mechanization of the infrastructure maintenance activities A.3.2 Increasing the level of centralization of the railway signalling installations A.3.3 Concentration of the decision centres on the railway traffic management Increasing the efficiency of the financial resources use meant for the management of the railway A.3.4 infrastructure A.3.5 Optimizing the degree of division of the railway network and the distribution of the sectioning points A.3.6 Optimizing the business model in the field of railway infrastructure maintenance A.4 Maintaining a high level of train safety A.4.1 Maintaining a high level of safety of the railway signalling systems A.4.2 Increasing the level of road traffic protection at the level crossings A.5 Increasing the energy efficiency and reducing the pollution levels A.5.1 Increasing the degree of electrification of the railway network A.5.2 Increasing the efficiency of electricity distribution management A.6 Improving the connectivity of the railway network A.6.1 Construction of new lines A.6.2 Interconnection with other modes of transport A.7 Increasing the competitiveness of the railway passenger transport A.7.1 Promoting highly attractive services for passenger transport A.7.2 Logistically supporting the scheduled passenger transport services A.7.3 Integration of railway passenger transport into intermodal flows intended to increase mobility A.7.4 Increasing the accessibility of the railway passenger transport A.7.5 Increasing the level of quality and efficiency of the railway passenger transport services A.8 Increasing the competitiveness of the railway freight transport A.8.1 Promotion of containerized railway-car intermodal transport A.8.2 Promoting semi-trailer transport and RO-LA transport A.8.3 Promotion of the railway freight transport in isolated wagons A.8.4 Increasing the level of quality and efficiency of the railway freight transport services B Integration into the Single European Railway Area B.1 Rehabilitation and modernization of the infrastructure of the international railway corridors B.1.1 Rehabilitation and modernization of the infrastructure of the Rhine-Danube corridor B.1.2 Rehabilitation and modernization of the infrastructure of the Orient / East-Med corridor B.2 Rehabilitation and modernization of the TEN-T network infrastructure B.2.1 Rehabilitation and modernization of the Core TEN-T network infrastructure B.2.2 Rehabilitation and modernization of the Comprehensive TEN-T network infrastructure B.3 Integration into the European high-speed railway network B.3.1 East - West high speed axis B.3.2 North - South high speed axis CFR Network Statement - 2026 ANNEX 12.a Version: 15.0.0 Updated: 15.12.2024 Page: 9 / 14  Compania Naţională de Căi Ferate “CFR” S.A. România The main strategic priority (see paragraph 9.1.1 of the strategy) is to implement a program for the recovery of arrears on the renewal of railway infrastructure, which aims to restore the infrastructure to the originally designed performance parameters. This program is meant to last over 15 years and is summarized in the following table. Estimated renewal costs Renewal Renewal of current and Renewal of critical Year length TOTAL direct lines (refurbishment) infrastructure elements [km] Million Euro Million RON Million Euro Million RON Million Euro Million RON i 70 40.9 188.3 33.0 151.8 73.9 340.1 ii 150 87.7 403.6 45.0 207.0 132.7 610.6 iii 250 146.2 672.6 60.0 276.0 206.2 948.6 iv 375 219.3 1 008.9 75.0 345.0 294.3 1 353.9 v 550 321.7 1 479.8 90.0 414.0 411.7 1 893.8 vi 600 350.9 1 614.3 100.0 460.0 450.9 2 074.3 vii 600 350.9 1 614.3 100.0 460.0 450.9 2 074.3 viii 600 350.9 1 614.3 100.0 460.0 450.9 2 074.3 ix 650 380.2 1 748.8 100.0 460.0 480.2 2 208.8 x 700 409.4 1 883.3 100.0 460.0 509.4 2 343.3 xi 700 409.4 1 883.3 100.0 460.0 509.4 2 343.3 xii 700 409.4 1 883.3 100.0 460.0 509.4 2 343.3 xiii 750 438.7 2 017.9 100.0 460.0 538.7 2 477.9 xiv 750 438.7 2 017.9 100.0 460.0 538.7 2 477.9 xv 800 467.9 2 152.4 100.0 460.0 567.9 2 612.4 TOTAL 8 245 4 822.4 22 182.9 1 303.0 5 993.8 6 125.4 28 176.7 AVERAGE 549.7 321.5 1 478.9 86.9 399.6 408.4 1 878.4 In conjunction with the program for the rehabilitation and modernization of the railway infrastructure related to the European corridors and the TEN-T network, this program aims - over a 10-year horizon - the complete the rehabilitation of all main railways, as well as the main inter-bus links (according to the figure below). As a result of the implementation of this program, an average increase of at least 24% of the maximum speeds allowed on the main railway lines is expected. It is also expected that the actual commercial speeds of the trains on the railway lines shall increase by at least the same percentage rate. The strategy also highlights the need to prioritize the implementation of an accelerated recovery program on repairs, in order to eliminate the existing speed restrictions (see Annex 5 of the strategy), as well as the need for ongoing and permanent maintenance to prevent widening the gap between the projected speed and the maximum speed allowed by the railway infrastructure (see Annex 6 of the strategy). CFR Network Statement - 2026 ANNEX 12.a Version: 15.0.0 Updated: 15.12.2024 Page: 10 / 14  Compania Naţională de Căi Ferate “CFR” S.A. România Complementary to this approach, the strategy recommends the modernization of the railway traffic management, which would further generate a space for increasing the commercial speeds of over 20% compared to the current situation (see paragraph 9.1.2 of the strategy and the related annexes). CFR Network Statement - 2026 ANNEX 12.a Version: 15.0.0 Updated: 15.12.2024 Page: 11 / 14  Compania Naţională de Căi Ferate “CFR” S.A. România 5. FINANCING NEEDS The financing needs of the railway infrastructure in the period 2021-2025, by categories of expenditures, substantiated by the development strategy of the Romanian railway infrastructure, are summarized in the following table. Necessary costs Expenditure category UM Year I Year II Year III Year IV Year V TOTAL mil. Euro 366.67 366.67 364.67 361.67 358.67 1 818.33 Maintenance and repairs mil. RON 1 760.00 1 760.00 1 750.40 1 736.00 1 721.60 8 728.00 mil. Euro 316.67 316.67 316.67 316.67 316.67 1 583.33 Routine maintenance (strategic action A.1.3) mil. RON 1 520.00 1 520.00 1 520.00 1 520.00 1 520.00 7 600.00 mil. Euro 50.00 50.00 48.00 45.00 42.00 235.00 Current repairs (strategic action A.1.2) mil. RON 240.00 240.00 230.40 216.00 201.60 1 128.00 Renewal of the railway network mil. Euro 73.94 132.73 206.22 294.33 411.69 1 118.91 (measures A.1.1.1 and A.1.1.2) mil. RON 354.92 637.12 989.86 1 412.79 1 976.10 5 370.79 mil. Euro 1 111.58 1 990.62 2 777.78 2 270.75 2 499.93 10 650.66 Investment projects mil. RON 5 335.60 9 554.98 13 333.33 10 899.61 11 999.66 51 123.18 Projects eligible for funding from the European mil. Euro 1 086.58 1 958.21 2 705.03 2 193.78 2 408.86 10 352.46 grants mil. RON 4 998.28 9 007.75 12 443.15 10 091.39 11 080.75 47 621.32 mil. Euro 25.00 32.41 72.74 76.97 91.07 298.20 Projects financed from the national fund