In the recent year, the European policies proved to be both good and bad for the railway sector: good in the sense that the low carbon objective placed rail transport first among all modes of transport, emphasizing the role of public infrastructure investments, which represent the only viable way for further development, as well as the only way to reduce carbon emissions in the transport sector – by promoting rail transport to the detriment of all the other modes of transport; bad in the sense that there were no major policy changes – the railways did not receive support during the economic recession and this placed rail transport in disadvantage. Therefore, during the following period of time, decision-makers should focus more on enhancing the potential of the railways in order to develop a safer, more efficient and more sustainable European transport system.
The transport sector is at the heart of the global economy and it requires a more and more complex infrastructure in order to supply high quality freight and passenger transport services. However, every country’s capacity to finance the transport infrastructure has been affected by several factors, one of which is represented by public funding, the traditional source for most infrastructure investments. However, public funding is not able to cover all the needs concerning the development of infrastructure projects. The more developed Western economies face severe pressure in order to limit or reduce the level of infrastructure investments. In many countries, even the maintenance expenses, which are essential to keep up all vital assets, have dropped.
The money which comes from the private sector is not enough to boost the development of the railway sector. Once the recession came, tax returns dropped. As a result, private companies need protection and guarantees in order to invest. Irrespective of the success or the disadvantages of public-private partnerships, they cannot cover the gap created by the reduction of public funding.
Hence, each publicly invested euro in rail infrastructure brings an added value of two euros to national economies, according to a study carried out by the Institute for Advanced Studies (IHS), the Austrian Institute of Economic Research (WIFO) and Joanneum Research in Vienna, Austria. In addition, just over half of the investments would be returned to the state in the form of taxes and social contributions. Until 2014, the Austrian federal railways (ÖBB) plan to invest around EUR 34 Billion in the construction and operation of rail infrastructure. The IHS study now indicates that this investment can bring benefits of up to EUR 72 Billion to the Austrian economy in the long term – due to positive effects on GDP and a multiplier effect on the economy. Furthermore, an investment of EUR 1 Billion in rail infrastructure will create 17 000 jobs in the construction period and more jobs in the operating period. High tax returns support investing in environmentally sustainable rail transport. That is why countries should support and invest in the expansion of the railway network. These investments will create the basis for an efficient and environmentally friendly mobility of tomorrow.
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