The Financial Backbone: UIC Leaflet 120 and International Revenue Division

What is UIC Leaflet 120?

UIC Leaflet 120, titled “Uniform Rules concerning the division of amounts between Railway Undertakings,” is a commercial and financial standard issued by the International Union of Railways (UIC). It serves as the definitive rulebook for how revenue generated from international passenger transport is split among the various operators involved in a journey.

In the era of integrated European travel, a passenger often purchases a single ticket (a “through ticket”) that spans multiple countries and networks. UIC Leaflet 120 ensures that the money collected by the selling railway (the issuer) is correctly calculated and distributed to the other railways (the carriers) that actually provide the transport service.

The “Through Ticket” Challenge

Without a standardized clearing mechanism, international rail travel would require passengers to buy separate tickets at every border. UIC 120 solves the financial complexity behind the scenes. It establishes the “pro-rata” or fixed allocation rules that dictate how much of a €100 ticket goes to the German operator (DB), the Austrian operator (ÖBB), and the Italian operator (Trenitalia).

This leaflet works in close conjunction with UIC Leaflet 301 (Accounting Regulations), which handles the actual accounting statements and settlement procedures. While 301 is about the “how” (the accounting format), 120 is about the “rules” (the division logic and auditing).

The PATRIC Framework

A key component associated with UIC 120 is the PATRIC project (Process for the AuDiting of Revenue in International Carriage). Since revenue division relies on trust and accurate data exchange, UIC 120 outlines the framework for auditing these processes.

• Revenue Protection: Ensures that carriers are not underpaid due to errors in the issuer’s tariff data.
• Auditing Rights: Gives participating railways the right to audit the accounts and sales data of their partners to verify correct allocation.
• Dispute Resolution: Provides a mechanism to settle disagreements over revenue splits without legal escalation.

Comparison: Bilateral Agreements vs. UIC 120 Clearing

The following table illustrates why a standardized network approach (UIC 120) is superior to ad-hoc agreements for international travel.

Digitalization and TAP-TSI

As the railway sector moves toward full digitalization, the principles of UIC 120 are being integrated into modern EU regulations, such as the TAP-TSI (Telematics Applications for Passenger Service). The logic defined in Leaflet 120 is encoded into the software algorithms that manage Online Leading Distribution (OLD) systems, ensuring that when you buy a digital ticket on an app, the revenue split happens instantly and accurately in the background.