Competition on the railway lines

Europe's railways are in line for a radical shake-up next year when legislation intended to promote more competition in passenger services is meant to come into force. With the low-cost airline sector now attracting a growing number of passengers, rail operators need to adapt fast to survive.

The third railway package, currently awaiting a second reading in the European Parliament after the summer break, covers international passenger services, international rail passengers' rights and licensing for drivers.

Among its provisions, competition on international passenger routes is to be unlocked by 2008, a move that will allow foreign companies to operate stops in countries with international lines. This practice, known as cabotage, will naturally have an impact on highly protected national railway markets.

Colin Hall, deputy executive director of the Community of European Railway and Infrastructure Companies (CER) supports the principle of competition. "We have always said yes to liberalisation," he says. "International passenger service is a good place to start."

But he advises caution on introducing cabotage. "We'll have to see how this balances with national obligations," he says. "It gets a bit tricky where national services are run as public services. If you're looking to open the international market, you've got to check the impact on national services."

Travellers are set to enjoy improved customer services under proposals for the regulation of passenger rights and obligations. In the event of delayed or cancelled services, they will be able to claim compensation and, in some cases, the right to overnight accommodation. The proposals would also ensure improved accessibility to services for people with reduced mobility and would oblige operators to allow people to take bicycles on trains.

"We think the Council [of Ministers] and the Parliament have done good work in proposing changes that make it fit better with national law," says Hall. "But, there are still some details that need to be cleared up. "Some operators are not too happy about absolute obligations to carry bicycles on trains at all times. There are obviously practical limits in terms of time and types of train."

The certification of train drivers is a thornier issue with rail companies. Under the current proposals, drivers would have to have three years' experience operating freight trains before being allowed to drive passenger trains. The measure was evidently introduced to ensure optimum safety standards, but Hall is worried about its effect on the market.

"We don't think it's necessary professionally," he says. "Training is an arduous process and has to be done properly in terms of responsibility for safety. But, this is at odds with the idea of liberalisation. New operators would not be able to go onto an open employment market. [CER is] still challenging this detail. We support the principle of competition. It seems odd to have such restrictions."

The potential for lobbying is considerable, considering that the Parliament and the Council are at odds on certain aspects.

Referring to the differences of opinion between member states and Parliament on previous railway packages [mainly covering freight transport], a transport expert in the Finnish permanent representation, says: "We know that railway packages have a tradition of ending up in conciliation, but, in spite of this, we will try and get a second reading deal. The Council position is not exactly what Parliament had in mind."

Europe's railways are in line for a radical shake-up next year when legislation intended to promote more competition in passenger services is meant to come into force. With the low-cost airline sector now attracting a growing number of passengers, rail operators need to adapt fast to survive.

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