ERTMS ("European Rail Traffic Management System") is a major industrial project being implemented by the European Union, a project which will make rail transport safer and more competitive.

ERTMS, which stands for ‘European Railway Traffic Management System’, is the European standard for the Automatic Train Protection (ATP) and command and control systems. It creates an interoperable railway system in Europe that is more efficient and safer. It contributes to making rail operation between the Member States much easier and is an essential element of the Single European Railway Area.

ERTMS is a safety system that enforces compliance from trains with speed restrictions and signalling status. Due to its nature and the required functions, at present this system is partly installed trackside and partly installed onboard.

When talking about ERTMS, we presently talk about two systems:

• ETCS (European Train Control System), a train control standard, based on onboard equipment able to supervise train movements at all times and to stop the train if it moves beyond the permitted stopping point. Information sent to the cab is received from the trackside equipment, Eurobalises or radio, depending on the operation level. The driver’s response is continuously monitored and, if necessary, ETCS takes control and activates the emergency brakes.
• GSM-R (Global System for Mobile Communications - Railways) is the European radio communications standard for railway operations. Based on GSM radio technology, GSM-R uses exclusive frequency bands for communications between the train and traffic control centres and the trackside devices (Radio Block Centres [RBCs]).

EU FUNDING

In the next multi-annual programme (the Connecting Europe Facility 2021–2027 Regulation), rail transport continues to be a funding priority, as the focus in transport shifts to making transport connected, sustainable, inclusive, safe and secure. The proposed transport budget consists of three parts. Funds are available under the general transport envelope (EUR 12.8 billion) and the Cohesion Fund envelope (EUR 11.3 billion).Cohesion and European Regional Development Funds will continue to play their role in financing ERTMS projects in eligible Member States and regions.

Finally, ERTMS could also benefit from the InvestEU Programme, whose objective is to provide a simplified and streamlined investment support with just one set of rules and procedures and one point of contact for advice. The policy areas for sustainable infrastructure (EUR 11.5 billion) and research, innovation and digitalisation (EUR 11.25 billion) especially are potentially of interest for the financing of railway projects.

ERTMS INNOVATIVE FINANCING

Based on the positive experience of the Blending Call, a new instrument called CEF Blending Facility was released in 2019. It is a mix of CEF grants / debt instruments paired with financing from the EIB or national promotional banks (so-called implementing partners). There are several rolling deadlines, unlike a CEF call, with the facility remaining open as long as funds are available, allowing project promoters to submit their applications once ready and sufficiently mature.

Blending can significantly reduce the riskiness of projects for other investors and enables the mobilisation of private capital. Moreover, the involvement of financial institutions (‘Implementing Partners’), such as the European Investment Bank (EIB) or national promotional banks, is mandatory to ensure the financial maturity of projects before they are submitted to the Innovation and Networks Executive Agency (INEA).

For information on how B2EU Consulting could support your organisation in developing a funding strategy and in unlocking different financing tools for your operation in the transport sector, please don’t hesitate to contact us at: info@b2eu-consulting.com.