(1) The objective of this Convention is to ensure the optimal rail connection of the new Swiss railway line across the Alps (NLFA) to the Italian rail network, in particular to the High Performance Network (RHP) and to guarantee The necessary capacity of international rail passenger and freight transport between Switzerland and Italy.

(2) In order to achieve this objective, the Contracting Parties have agreed, within their competence, to put in place coordinated measures in the field of railway infrastructure, rational operation of the lines and Interoperability of rolling stock.

This Convention concerns the improvement of Italian-Swiss railway links between the Italian regions of Milan, Novara, Genoa and the Swiss regions of Zurich, Basel, Bern, Geneva and Lausanne.

An inventory of the links concerned appears in Annex 1.

(1) The Contracting Parties shall endeavour to facilitate the transport relations between the regions referred to in Art. 2 and to develop a system of lines with sufficient capacity, taking into account cross-regional public transport.

(2) Infrastructure and operational capacity will be increased gradually, coordinated and in line with the demand for transport and the development of rail technology.

The planned performance on each of the routes is shown in Annex 2.

To achieve the objective referred to in s. 1, the following measures shall be considered subject to the application of the procedures required by the national law of each party:

(a)

Short term:

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Adaptation of the template and one-time measures on the Loetschberg/Simplon-Milan and Saint Gothard-Novare; axes;

(b)

Medium and long term:

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Optimization of connections with Malpensa Airport;

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Ad hoc measures and technical improvements, in order to increase capacity and improve transit time, in particular on the following axes:

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Loetschberg/Simplon-Novara

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Loetschberg/Simplon-Milan

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Saint Gotthard-Milan

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Saint Gotthar-Novara

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Depending on the development of market needs and on the capacity of the infrastructure relating to the links mentioned in Annex 1, either the optimisation of existing terminals, or the introduction of additional terminals for the Both accompanied and unaccompanied combined transport is envisaged in order to improve terminal capacities and transfer time;

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Construction of a new high performance line from Lugano to Milan which connects the NLFA to the RHP.

(1) On the basis of this Convention, the Contracting Parties shall assist the railway undertakings concerned in implementing the technical measures to which they shall agree.

(2) The above-mentioned undertakings shall periodically inform the Steering Committee provided for in Art. 9 of the progress made in implementing the objectives of this Convention.

(1) The measures taken in the framework of this Convention shall be financed by the Contracting Parties on the basis of the financial competence in respect of railway infrastructure specific to each of them.

(2) The Contracting Parties shall examine any possibility of public/private partnership for the financing of infrastructure, where such a solution constitutes an effective means of carrying out such infrastructures.

(3) The Steering Committee defined in s. 9 ensures that the measures that are the subject of funding are carried out in stages, in a coordinated and parallel manner.

(1) The Contracting Parties undertake to

(a)

To strengthen cooperation with a view to harmonising, in accordance with Community legislation, the technical parameters in international rail traffic between the two States,

(b)

Work within the framework of their powers to ensure that the railway undertakings of both States promote the coordination of the operation of the railway lines referred to in Art. 2 and Annex 1,

(c)

To grant undertakings or groups of railway undertakings established in their respective territories access to their networks, on the basis of the rights provided for in Community legislation,

(d)

Encourage the competent authorities of both States to take all measures without delay in order to facilitate the crossing of the border into international rail traffic. The relevant measures are set out in Annex 3,

(e)

Encourage in the context of their possibilities the development of combined transport.

(2) The Contracting Parties shall encourage the international cooperation of railway undertakings, combined transport undertakings, as well as other operators in the transport chain.

In view of the deadline of the concession of 22 February 1896 for the construction and operation of a railway through Simplon on 31 May 2005, the Contracting Parties declare their agreement to begin, starting from 1 ^Er June 2000, negotiations aimed at defining future relations between them concerning the line in question.

(1) A Steering Committee shall be established to deal with matters relating to the application of this Convention.

(2) It is composed of representatives of the Federal Department of the Environment, Transport, Energy and Communication and the Ministry of Transport and Navigation of the Italian Republic. The railway organisations concerned are consulted in case of need. Each Contracting Party shall establish a liaison body responsible for relations with the cantons or regions concerned.

(3) The Steering Committee shall meet at least once a year. It shall monitor the provisions of this Convention and shall draw up the programme of implementation of the aforementioned measures. The Steering Committee shall propose any amendment to the Annexes which form an integral part of the Convention to the Ministries of Transport of the two States which have the competence to decide. With effect from 1 ^Er January 2005, and every five years thereafter, the annexes are reviewed to take account of the development of the measures and performance taken into account.

(4) The Steering Committee shall establish its rules of procedure.

(5) Each Contracting Party may request the convening of the Steering Committee if special circumstances so require.

(1) This Convention shall enter into force on the date of receipt of the second notification that the Contracting Parties have notified the completion of their internal procedures required for that purpose.

(2) It shall be valid until 31 December 2020 and shall thereafter be continued from year to year unless it is denounced in writing by one of the Contracting Parties not later than six months before the expiry of each calendar year. It may be amended by diplomatic means subject to the agreement of the Contracting Parties and the amendments shall enter into force on the date of receipt of the note of reply.

In witness whereof , the undersigned Representatives, duly authorized by their Government, have signed this Convention.

Done at Basel, 2 November 1999 in two originals in the French and Italian languages, both texts being equally authentic.