In the White Paper on Transport adopted in March 2011, the EC presented its vision on the development of a Single European Area for railway transport with a domestic market where companies can deliver services without administrative or technical barriers. Over the last decade, three railway legislative packages have focused on opening national markets and on creating a competitive and interoperable railway environment across the EU.
Interested parties believe that, given the current legal framework, railway passenger transport services are non-performing from the point of view of ser-vices quality and efficiency in operation. The Eurobarometer poll of 2012 found 54% of the respondents displeased with the national and regional railway system. Among users, railway transport is disadvantaged against all transport modes (urban and air transport which have a higher percentage), ranking 27th of 30 in the top of services markets”, shows the Proposal amending Regulation (EC) no. 1370/2007 concerning the opening of the market for domestic passenger transport services by rail, published by EC at the end of January.
There are significant problems with the operational efficiency which reflect significant differences in using the assets such as rolling stock and infrastructure, as well as labour productivity. These efficiency gaps are the reason why substantial public funds are needed in the sector, as compared to other economic sectors, as many railway companies suffer losses.
There are several obstacles in improving the quality of services and operating efficiency referring mainly to the access on the domestic market of passenger transport services and the lack of competition pressure. In many member states, the market is closed to competition, which not only limits growth, but also creates gaps between the member states which have already opened the market and those whose markets are still closed to competition. The different national approaches on the market opening for railway passenger transport services prevent the development of an authentic domestic market.
The main objective of the EU transport policy is to establish a market that will help increase competitiveness and the development of balanced and sustainable econo-mic activities.
Thus, the objective of the Proposal, as part of the Fourth Railway Package, is to improve the quality of services and efficiency in operation by optimising the competitiveness and attractiveness of rail transport compared to other transport modes and the continuous development of the Single European Railway Area.
“This proposal encompasses common rules on the award of public service contracts for passenger transport by rail, together with accompanying measures to increase the success of competitive tendering procedures. The objective of mandatory competitive tendering for public service contracts is to intensify competitive pressure on domestic rail markets, in order to increase the quantity and improve the quality of passenger services. Competitive tendering for rail contracts can also ensure better value for money spent on public transport services”, the document stipulates.
According to a study elaborated by a foreign consultant, 60% of the respondents agreed that additional new open access rights, compulsory competitive tendering or a mix thereof could stimulate market integration. The majority of respondents (60%) also agreed that the creation of rolling stock leasing companies would help to improve access to rolling stock. Based on this study, and considering the conclusions of the consultancy process, the Commission has developed a quality and quantity evaluation of the impact of different options regarding the modernisation of the existing regulatory framework.
Measures refer to the “broadly defined open access rights subject to a test of their impact on the economic equilibrium of public service contracts; competitively awarded public service contracts; voluntary national integrated ticketing systems; and an obligation on member states to ensure non-discriminatory access to suitable rolling stock for railway undertakings which want to participate in a public tender procedure.
The impact assessment showed that a combination of the following would fare best in terms of economic, environmental and social impacts, generating a net present value of between EUR 21 and EUR 29 Billion from 2019 to 2035.
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