European Rail Freight Services Open to Competition
January 2, 2007 // Published as a news service by IHS
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As of Jan. 1, 2007, all European Union (EU) rail freight lines were opened up to competition, as part of a long-standing plan to revitalise the rail industry in the European Community.
Previously, in the member states that followed the European Community timetable, only international freight services, which represent approximately half of the total market for the rail transport of goods in Europe, were liberalised. Thanks to this new stage in the process, the European Community hopes that rail freight will attract new investors and new customers by offering a quality service adapted to the needs of the market and that, overall, the railways will steadily increase their market shares in a lasting way.
Jacques Barrot, the European Commission (EC) vice president with special responsibility for transport, said that "competition among freight operators will make it possible to stimulate the sector and contribute to the achievement of an integrated European rail area. I would like the railways, a safe and environmentally friendly mode of transport, to play a major role in the European logistical chain."
The share of goods carried by road grew steadily from 1970 to 2003, to the detriment of the railways. The railways market share in the first 15 EU member states fell from 20% in 1970, to less than 8% in 2003. Additionally, the railway sector shed one million jobs over the same period. However, rail freight, which has the advantages of being safe and environmentally friendly, remains essential to the proper functioning of the European economy. It should occupy an important place within the logistical system of the EU.
To reverse the decline in rail freight, the EU has initiated a policy based in particular on support for investment in rail infrastructure, accompanied by a policy aimed at the gradual opening up of the rail freight market and the development of railway interoperability. The objective is twofold: to promote rail freight and create an integrated European rail area.
The downward trend was reversed in 2003, when the volume of goods transported by rail in the 25 EU member states began to increase. But this recovery remains very fragile, too limited and unbalanced between member states, and the modal share of rail freight is still falling. The total opening up of the rail freight market in all the EU states should give a new impetus to the railways and provide a stimulus for the players in the sector.
Source: European Commission.