Page 3 - Annual report - Araf 2014

EDITORIAL
2014,
A MILESTONE YEAR FOR ARAF
T his fourth annual report was drawn up in a context of signiicant legislative changes for the French regulator: a new railway Act, an European directive strengthening our role and a French draft law extending the scope of our missions and competences. They will deeply alter the role played by regulation in the land transport
sector.
The French rail reform legislation of 4 August 2014 speciies and increases the role played by Araf. The legislator having analysed the new railway architecture submitted by the government, conirmed and strengthened the regulator’s powers as well as its competences covering the economic and inancial aspects of railway activities. By creating a sanction commission independent from the board, the legislator also reinforced the legal certainty of Araf’s decisions.
« The legislator strengthened Araf’s powers as well as
its competences covering the economic and inancial aspects of the railway activities »
The reform concerns the future of railway industry. It reshapes its organisation and its operating structure, and recasts its social component. It asserts a number of principles underlying the absolute need to contain the downward cycle of debt that places the future of French railways in such jeopardy.
In addition to this reform, the railway sector must now consider the market opening to competition; it must also monitor the sustainability of its economic model in the face of intermodal competition; and also consider the behavioural changes adopted by citizens in their travel modes.
A second piece of legislation, the Recast directive - also conirms the role Araf is to play in an ambitious and long- term project: that of creating a Single European railway area (SERA). This calls for one single regulatory body in each Member State.
This directive entrusted us with the economic regulation of the Channel Tunnel, to be executed jointly with our British counterpart, the Ofice of Rail and Road, as of the 16th of June 2015. On 16 March 2015, both regulators signed a cooperation agreement.
The directive also strengthens cooperation between European regulators regarding international passenger transport and market monitoring.
Finally, a third piece of legislation brought by the minister for Economic Affairs is being debated as we write. This new Act should extend our mission to encompass highway infrastructures and coach transport services. This conirms Araf’s position as a key player in land transportation, acting for the beneits of users. This Act will introduce a new component to the regulator’s actions. We are preparing for it.
Pierre Cardo
Chairman of the French railway regulatory body
3 Araf 2014 annual report