The Regional Trains in the New Railway ModelREGIONAL TRAINS IN SPAIN : Victoriano Sanz LosadaMarch 31st, 2004

A NEW RAILWAY MODEL IN SPAINRENFERENFE REGIONAL TRAINS PRESENTATIONRENFE REGIONAL TRAINS STRATEGYRENFE REGIONAL TRAINS FUTUREANNEXES

SUMMARY

A NEW RAILWAY MODEL IN SPAIN

1. Starting Point (I)Companies that operate today in Spain:STATE-OWNED : National: RENFE (SPANISH RAILWAYS) Regional: FEVE (WIDE-GUAGE SPANISH RAILWAYS)SELF-GOVERNING:Regional: Baleares, Catalua, Valencia and Pas VascoUrban: Metros Madrid, Barcelona, Valencia and Bilbao (under construction underground railways in Sevilla and Mlaga)SPANISH RAILWAY NETWORK OPERATIONSOPERATION DATARENFE (SPANISH RAILWAYS): 12,319 Km. FEVE (WIDE-GUAGE SPANISH RAILWAYS): 1,194 Km. SELF-GOVERNING: 661 Km.

1. Starting Point (II): MAP OF SPANISH RAILWAY NETWORK Self-governing companiesFEVE (Wide-guage Spanish railway) network zoneState-owned Railway Network managed by RENFE (Spanish Railway)High-speed line Madrid-Sevilla managed by RENFE (Spanish Railway)

2. SYNTHESIS OF THE NEW REGULATION FRAMEWORK (I)SERVICE PROVIDERSRAILWAY AUTHORITYAllocation of capacity RAILWAYS UNDERTAKINGSINFRAESTRUCTURE MANAGER SERVICES SUPPLIERSREGULATORY BODYMINISTRY FOR PUBLIC WORKS AND DEVELOPMENTGeneral rail policyStrategic planning.licencesSAFEGUARD THE PLURALITY OF THE OFFER OF RAIL SERVICES ON THE GENERAL INTEREST RAIL NETWORKBuildinn and managing ordersPublic interest servicesBuildManage railway infraestructureRailway transport service s supppliers

3. Price Regime for Rendering Rail ServicesOn the part of the ADIF, for rendering additional complementary and auxiliary rail services to third parties, in a free competition and Private Law regime, as well as the commercial use of its installations and spaces available.

They will have the character of Private Prices.

They will be approved annually by the ADIF and sent to the Ministry of Promotion.

The amount will be fixed depending on the type of activity, the rail interest and its economic relevance.

Integrated railway structures that are ESSENTIAL to guarantee a common railway transport system all over Spain.Corresponding to the Ministry of Works, the INCLUSION/EXCLUSION, in/from the RFIG, of the railway infrastructures when justified for GENERAL INTEREST reasons.Comprising of:All infrastructures that are in force under the Law being managed by RENFE (Spanish Railway).Those whose administration is not GIF-controlled.Those whose administration comes under the Port Authority of Ports of General Interest as well as those in General Interest Airports.The wide-guage network managed by FEVE.

4. Railway of General Interest (RFIG) (I)

PlanningProject and ConstructionAdministrationAccessNetworkCapacity Allocation4. Railway of General Interest (RFIG) (II)

That performed by railway undertakings using appropriate vehicles that circulate around the RFIG.Are considered to be a PUBLIC INTEREST SERVICE a receives the qualification of GENERAL AND ESSENTIAL GENERAL INTEREST SERVICE for the Community. Offered under the regime of FREE COMPETITION, without damaging the declaration of the determined railway services such as PUBLIC INTEREST SERVICES.To provide railway transport services the following is required:RAILWAY UNDERTAKING LICENSESAFETY CERTIFICATE

4. Railway of General Interest (RFIG) (III)

II.RENFE

1. RENFEs figures (I)

1. RENFEs figures (II)

2. RENFEs Organization Chart

2. RENFEs Organization Chart

3. INECO (I)

3. INECO (II)

III.RENFE REGIONAL TRAINS PRESENTATION

Distances of more than 300 kms. National Trip Distance between stations of circa 150 kms.Distances between 30 and 300 kms. Regional Trip Distance between stations from 20 to 50 kms.Distances from 10 to 30 kms. Commuter trip With a separation of de 800 m. between stations.Distances of less than 500 m. of separation between stations. Urban transport.1. Regional Trains

2. Regional Trains and other Business Units

2. Regional Trains and other Business Units (II)

Mision: giving the railway regional service in a conventional high speed railway making compatible the enterprise criteria and the public service in accordance with the current regulation..VisionTo optimize the efficiency of the given public sources To achieve the highest efficiency in the mission development To respect the territorial structure of the regions3. Mision and Vision of the Enterprise

Cultural Values The satisfaction of the institucional and private clients as the ultimate target of our business. The efficiency and transparency in the management. The human and professional development of the organization. The rescpect to the environment as a clue of the sostainable development. The compromise with the quality.

4. Cultural Values of the Enterprise

5. Regional OrganizationStaff : 393Parque: 64Staff : 369Parque: 54Staff : 287Parque: 34Staff: 173Parque: 27Staff: 254Parque: 42

IV.RENFE REGIONAL TRAINS STRATEGY

Obligations of the Public ServiceComercial ServicesServices agreed with VoivodeshipsFramework Program1. RENFE Framework Program (I)

1. RENFE Framework Program (II)

P.VASCO15.78115.808ANDALUCIAEXTREMADURACASTILLA-LA MANCHACASTILLA Y LEONARAGONCATALUAVALENCIAConvenioDenunciadoGALICIACANTABRIAMURCIATALAVERANAVARRALA RIOJA2.363.307192.660254.5641.102.548568.410196.38024.656Train km per yearAgreed with local and regional Institutions459.66231.270768.066327.954276.7622. Regional Contracts (I)

2. Regional Contracts (II)

Areas with higher potential demandDisposition of the appropriate material Acquisition of new material: the TRD Transformation of the obsolete material : 593 -> 596 592 -> 592-200440 -> 470Less stops and higher speedCorporate Image

3. Strategy

3.2 New rolling stock and new technologies

3.2 Upgrading of Rolling Stock

3.3 Less stops and higher speed

4. Traffic evolution 1994-2002 (thousands)

5. Enterprise evolution 1994-2004

Catalua ExpressAndaluca ExpressCastilla-Len ExpressNet TRD AndalucaSuppression C.P. Services Net TRD SalamancaCoast of GaliciaExpress Services in Madrid-Toledo

V.RENFE REGIONAL TRAINS IN THE FUTURE

Opening to the CompetitionNew Railway ModelNew Infrastructures

1. Environmet Changes

Change of cultural valuesNew Products and New MarketsHigh Speed Regional TrainsOFFER ORIENTED TO MINIMAL COMMUNITIES BETWEEN 10.000-15.000 INHAB. HIGH COMMERCIAL VELOCITY : TRIP TIME COMPETITIVE WITH THE AUTOROUTE AND SELECTIVE NUMBER OF STOPS HIGH FREQUENCY OF THE SERVICES HIGH SERVICE VEHICULES : COMFORT, AIR CONDITION, ETC.TOLERANCE OF THE DEMAND TO HIGHER TARIFFES

2. New Strategies: Iris Project

21 new Diesel locomotives (2004)20 vehicles for High Speed Regional TrainsNew electric trains

3. Future Rolling Stock

INFRAESTRUCTURE10% INFRASTRUCTUREDEBTHISTORICAL DEBT ASSUMEDBY THE STATE OPERATOR DEBT90%RENFE-OPERADORADEBT ASSUMTIONRENFEADIFFixed assetConventional network HS (GIF)High Speed (HS)HS(RENFE)Transport OperatorHS(ESTADO)INFRASTRUCTURE (HS)INFRASTRUCTURE CONVENTIONAL NETWORK(RENFE)RENFE-OPERADORASTATENowadays ModelRENFEGIFFIXED ASSET REARRAGEMENTADIFPATRIMONY TRANSFERAnnex: Reorganisation of Public Railway SectorFuture ModelFixed asset (HS)INFRASTRUCTURE (HS)Transport OperatorSTATENowadays ModelFuture ModelDEBTHISTORICAL DEBT ASSUMEDBY THE STATE OPERATOR DEBTINFRAESTRUCTUREDEBTSTATE

Decrease of time of journeyHigh quality services

Annex: Distance (in time) from Madrid

Annex: Future High Speed Regional Trains