EC authorises German aid railway infrastructure

Brussles – The European Commission decided not to raise any objections to a German aid package to support its railway infrastructure. The scheme consists in funding support for the construction, extension and reactivation of private railway sidings that are used for freight transport. € 8 million is earmarked for aid in 2004 and an annual amount of € 32 million is estimated for the period 2005 – 2009.

A private siding is a railway track owned by a business undertaking and used to dispatch and/or receive freight as part of its commercial activities. This railway track must connect directly or indirectly with the network of a public railway infrastructure undertaking. The objective of the aid scheme is to grant funding for investments in the construction, extension and reactivation of private sidings in order to increase rail freight traffic with the aim to shift a proportion of freight traffic from road to rail. The aid scheme is considered by the German authorities to be of particular importance to restore competition between road and rail, to increase environmental protection and to improve transport safety. Beneficiaries must undertake to carry a certain minimum tonnage on the siding over a pre-determined period of time.

The Commission assessed the aid scheme on the basis of Article 73 of the EC Treaty and related legislation that provides for specific exemptions for aid, among others concerning the financing of infrastructure. Given that undertakings offering competing modes of transport, notably road transport, do not have similar infrastructure costs, the Commission considers that, in line with its earlier practice, the financial support available under this aid scheme is compatible with the proper functioning of the common market. Furthermore, the Commission notes that the objective of promoting and developing the use of rail infrastructure and achieving a modal shift from road to rail for the transport of goods, is in the common interest.

Auteur: Redactie Infrasite

Bron: Press release European Commission

EC authorises German aid railway infrastructure | Infrasite

EC authorises German aid railway infrastructure

Brussles – The European Commission decided not to raise any objections to a German aid package to support its railway infrastructure. The scheme consists in funding support for the construction, extension and reactivation of private railway sidings that are used for freight transport. € 8 million is earmarked for aid in 2004 and an annual amount of € 32 million is estimated for the period 2005 – 2009.

A private siding is a railway track owned by a business undertaking and used to dispatch and/or receive freight as part of its commercial activities. This railway track must connect directly or indirectly with the network of a public railway infrastructure undertaking. The objective of the aid scheme is to grant funding for investments in the construction, extension and reactivation of private sidings in order to increase rail freight traffic with the aim to shift a proportion of freight traffic from road to rail. The aid scheme is considered by the German authorities to be of particular importance to restore competition between road and rail, to increase environmental protection and to improve transport safety. Beneficiaries must undertake to carry a certain minimum tonnage on the siding over a pre-determined period of time.

The Commission assessed the aid scheme on the basis of Article 73 of the EC Treaty and related legislation that provides for specific exemptions for aid, among others concerning the financing of infrastructure. Given that undertakings offering competing modes of transport, notably road transport, do not have similar infrastructure costs, the Commission considers that, in line with its earlier practice, the financial support available under this aid scheme is compatible with the proper functioning of the common market. Furthermore, the Commission notes that the objective of promoting and developing the use of rail infrastructure and achieving a modal shift from road to rail for the transport of goods, is in the common interest.

Auteur: Redactie Infrasite

Bron: Press release European Commission