Law on the Railway Transport Sector Reform


Published: 2004-08-04

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OFFICIAL TRANSLATION
 
 
REPUBLIC OF LITHUANIA
Law on the railway transport sector reform
 
8 April 2004 No. IX-2104
Vilnius
 
CHAPTER ONE
GENERAL PROVISIONS
 
Article 1. Purpose and Application of the Law
1. The Law on the Railway Transport Sector Reform shall establish the objectives of the railway transport sector reform, the procedure and stages of its implementation, specific aspects of activity of the public railway infrastructure manager during the reform process as well as specific aspects of the supervision of such activity, also the financial sources for the upgrading and development of public railway infrastructure.
2. The railway transport sector reform (hereinafter referred to as the “reform”) shall be implemented in accordance with this Law; other laws of the Republic of Lithuania shall be applied to the extent that this Law does not provide otherwise.
3. The provisions of this Law shall be in compliance with the EU legal acts listed in the Annex.
 
Article 2. Definitions
1. “Railway transport sector” means a part of the Lithuanian transport system used for the carriage of passengers, luggage and/or goods by rail.
2. “Public railway infrastructure” means a railway infrastructure which is intended to meet the needs of the public as well as economic entities (carriage of passengers, luggage and/or goods) and which is owned by the State of Lithuania.
3. “Public railway infrastructure network statement” means an informational publication prepared and issued by the public railway infrastructure manager which describes the public railway infrastructure and sets out in detail the conditions and procedures concerning the use of public railway infrastructure. The statement shall be updated on a regular basis and, where relevant, amended.
4. “Public railway infrastructure manager” means any undertaking of the Republic of Lithuania which legally manages and maintains public railway infrastructure and provides related services to railway undertakings (carriers).
5. Other definitions used in this Law shall be used within the meaning of the Law on the Principles of Transport Activities of the Republic of Lithuania, the Railway Transport Code of the Republic of Lithuania and the Law on Railway Transport Traffic Safety of the Republic of Lithuania.
 
Article 3. Objectives of the Reform
The reform shall have the following objectives:
1) to ensure efficient operation of the railway transport sector under market conditions;
2) to create legal and economic conditions for the construction, upgrading and development of public railway infrastructure so that it is in compliance with the European railway network requirements;
3) to ensure free and non-discriminatory use of public railway infrastructure;
4) to ensure the financial stability of the railway transport sector;
5) to keep separate accounts for business relating to the carriage of passengers, luggage and goods and for business relating to the supervision and management of public railway infrastructure.
 
Article 4. Stages of the Reform
1. The reform shall be carried out in two stages:
1) the first stage shall include measures which are referred to in Chapter One of this Law and which are necessary to prepare for the establishment of a state undertaking to manage public railway infrastructure;
2) the second stage shall include the establishment of a state undertaking to manage public railway infrastructure.
2. Specific time limits for each of the stages of the reform shall be set forth by the Government.
 
Article 5. JSC Lietuvos Geležinkeliai: Continuity of Activities, Performance of Contractual Obligations and Assurance of their Continuity
The reform shall be carried out without disrupting the activities of the joint stock company (JSC) Lietuvos Geležinkeliai and by ensuring performance of its contractual obligations as well as their continuity.
 
Article 6. Funding of Public Railway Infrastructure
The Government approved programmes on the construction, upgrading and development of public railway infrastructure shall be funded from the state budget, loans received on behalf of the State or backed by a state guarantee, charges collected for the use of public railway infrastructure, also from the funds received as EU assistance through state and/or municipal financial mechanisms for capital partnership as well as from an undertaking’s funds.
 
CHAPTER TWO
FIRST STAGE OF THE REFORM
 
Article 7. Management of Public Railway Infrastructure
1. JSC Lietuvos Geležinkeliai shall perform the functions of a public railway infrastructure manager as listed in paragraph 1 of Article 8 of this Law. JSC Lietuvos Geležinkeliai shall manage, use and have at its disposal, on the basis of the right of trust, public railway infrastructure assets which are owned by the State.
2. The legal relations arising from the management, use and disposal of public railway infrastructure assets as well as from their registration in the real property register shall be established on the basis of a trust agreement concluded between the Government or the Ministry of Transport and Communications, under mandate from the Government, and JSC Lietuvos Geležinkeliai. The trust agreement shall, inter alia, provide for an authorisation to JSC Lietuvos Geležinkeliai to register public railway infrastructure assets as state property and the right of trust for such assets in the real property register.
3. The state land whereon public railway infrastructure objects are located shall be placed at the disposal of JSC Lietuvos Geležinkeliai under trust agreements and in accordance with the procedure established by the Government.
4. JSC Lietuvos Geležinkeliai, after having concluded the agreement referred to in paragraph 2 of this article, shall register public railway infrastructure assets as state property and the right of trust for such assets in the real property register and shall keep the accounts of such assets.
5. Inventory and registration of public railway infrastructure assets shall be performed from state funds.
 
Article 8. Functions of the Public Railway Infrastructure Manager
1. JSC Lietuvos Geležinkeliai shall perform the following functions:
1) carry out a technical analysis necessary for the allocation of public railway infrastructure capacity to railway undertakings (carriers) and submit the results to the State Railway Inspectorate under the Ministry of Transport and Communications;
2) develop and publish a public railway infrastructure network statement;
3) collect charges for the use of public railway infrastructure. These charges shall be utilised in accordance with the procedure laid down in the Law on the Principles of Transport Activities of the Republic of Lithuania;
4) ensure proper technical condition of public railway infrastructure and the safe and uninterrupted traffic of trains;
5) organise rail traffic on public railway infrastructure.
2. The rules for levying of charges for the use of public railway infrastructure shall be approved by the Government, while the actual amount of the charge shall be determined by the State Railway Inspectorate under the Ministry of Transport and Communications.
3. The State Railway Inspection under the Ministry of Transport and Communications shall, acting in accordance with the Rules on the Allocation of Public Railway Infrastructure Capacity approved by the Government, allocate public railway infrastructure capacity to railway undertakings (carriers) and approve train traffic schedules.
 
Article 9. Examination of Disputes relating to the Allocation of Public Railway Infrastructure Capacity, Collection of Charges for the Use of Public Railway Infrastructure and the Amount or Structure of Such Charges
1. Pre-trial disputes relating to the allocation of public railway infrastructure capacity, collection of charges for the use of public railway infrastructure and the amount or structure of such charges shall be examined by the Ministry of Transport and Communications acting in accordance with the procedure approved by the Minister of Transport and Communications.
2. Decisions adopted by the Ministry of Transport and Communications shall be appealed against in accordance with the procedure established by the law.
 
Article 10. Specific Aspects of Activity of JSC Lietuvos Geležinkeliai
1. It shall be prohibited to use state funds and the funds of other institutions allocated for upgrading and developing public railway infrastructure as well as for discharging public service obligations to finance other activities.
2. Objects used for manufacturing purposes, engineering networks, community facilities, buildings and parts thereof which do not belong to public railway infrastructure shall be transferred into state or municipal ownership in accordance with the procedure established by the Government. The authorised capital of Lietuvos Geležinkeliai shall be reduced respectively (by the value of the capital transferred) and the shares belonging to the State by ownership right shall be annulled.
 
CHAPTER THREE
SECOND STAGE OF THE REFORM
 
Article 11. Establishment of the State Undertaking to Manage Public Railway Infrastructure
1. The state undertaking to manage public railway infrastructure (hereinafter referred to as the “state undertaking”) shall be established by transferring thereto the public railway infrastructure assets which are managed by JSC Lietuvos Geležinkeliai on the basis of the right of trust and which belong to the State by ownership right. The authorised capital of JSC Lietuvos Geležinkeliai shall be reduced respectively (by the value of the capital transferred) and the shares belonging to the State by ownership right shall be annulled.
2. Public railway infrastructure assets shall be transferred, in accordance with the procedure established by the law, to the state undertaking on the basis of the right of trust together with a portion of financial liabilities of JSC Lietuvos Geležinkeliai which is proportionate to the assets transferred for the creation and renewal of the used portion of loans, as well as other obligations pertaining to the activities of the public railway infrastructure manager. Public railway infrastructure assets transferred to the state undertaking shall be assessed according to their residual value.
3. State guarantees issued to ensure the repayment of bank loans granted to JSC Lietuvos Geležinkeliai for the upgrading and development of public railway infrastructure shall extend to the obligations taken over by the state undertaking.
 
Article 12. Functions of the Public Railway Infrastructure Manager after the Establishment of the State Undertaking
1. The state undertaking shall perform the functions specified in paragraphs 1 and 3 of Article 8 of this Law; it shall also determine the actual amount of charges for the use of public railway infrastructure.
2. After the establishment of the state undertaking, the State Railway Inspectorate under the Ministry of Transport and Communications shall perform the function referred to in paragraph 1 of Article 9 of this Law in accordance with the procedure approved by the Minister of Transport and Communications. The decisions of the State Railway Inspectorate may be appealed against in accordance with the procedure established by the law.
 
CHAPTER FOUR
FINAL PROVISIONS
 
Article 13. Proposal to the Government
The Government shall adopt the legal acts necessary to comply with this Law within three months of its entry into force.
 
I promulgate this Law passed by the Seimas of the Republic of Lithuania.
 
 
ACTING PRESIDENT OF THE REPUBLIC                          ARTŪRAS PAULAUSKAS
Annex to
Republic of Lithuania
Law on the Railway Transport Sector Reform
No. IX-2104 of 8 April 2004
 
 
EU LEGAL ACTS IMPLEMENTED BY THE LAW ON THE RAILWAY TRANSPORT SECTOR REFORM
 
 
 
1. Council Directive 91/440/EEC of 29 July 1991 on the development of the Community’s railways.
2. Paragraph 2 of Article 4 set out in Article 1(6), paragraphs 1, 2 and 3 of Article 6 set out in Article 1(7), paragraph 3 of Article 7 set out in Article 1(8), and Article 1(10) of Directive 2001/12/EC of the European Parliament and of the Council of 26 February 2001 amending Council Directive 91/440/EEC on the development of the Community’s railways.
3. Article 3, paragraph 1 of Article 13, paragraph 1 of Article 14, paragraph 1 of Article 30 of Directive 2001/14/EC of the European Parliament and of the Council of 26 February 2001 on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification.