Liberalization and regulation in Central European railway markets
| Authors | |
|---|---|
| Year of publication | 2012 |
| Type | Article in Periodical |
| Magazine / Source | Uniwersytet Szczecinski Zeszyty Naukowe Nr 741 Problemy Transportu i Logistyki |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | liberalization; competition; railways |
| Description | European reforms were applied to revitalise Central European railways. These were based on a vertical separation of the infrastructure from the operation and on allowing third-party access. Central European countries were originally behind in application of the regulations. Approaching EU accession, however, made them apply these very rigorously. As a result of liberalisation, the competition in railway freight transport is fiercer in new member countries than in the old member countries. On top of this, those new member countries with the most developed competition are experiencing the largest drop in their railways’ market shares. Some countries indicate that competition development is supported not so much by the implementation of reform strategies but rather by the weakness of the incumbent who typically has chronic problems with liquidity and indebtedness while the newly arising competitors strip them of the most lucrative parts of the market. The drop in the railways’ modal shares is further deepened by the setup of the infrastructure fees. These are very high, especially for freight transport, in order to support the passenger transport. This approach, however, deforms the market and further weakens railway freight transport competitiveness. |