European Union unveils plan to open up rail market  

The European Union has unveiled plans to open up the international rail travel market to competition and private enterprise. The European Commission in Brussels said its aim was to complete reform of passenger train travel services, which is largely state-owned in the individual countries of the EU. The proposals affect only international, cross-border services, and could mean alternative operators competing for passengers on the routes of the Eurostar between London and Parris and Brussels, and the Thalys high-speed service between Paris, Brussels and Amsterdam.

It is proposed that as from January 2010, railway operators which have a licence and the required safety certificates should be able to operate international services in the European Union. For example, existing services such as Thalys and Eurostar could see the arrival of competitors. This additional phase in the setting up of an internal market for rail services comes at a time when international rail services are facing increasing pressure from low-cost airlines within Europe.

The reform package is being driven by the European Transport Commissioner, Loyola de Palacio, and gives effect in part to an amendment passed by the European Parliament in October 2003, calling for the opening to competition of all rail services in Europe by 2008. The Commission’s proposals set the target date two years later, on the grounds that operators need more time to prepare for change.

“In 2010, the high-speed trans-European network will be connected and new services will be able to develop on the basis of competition” said Loyola de Palacio.  “Pressure from low-cost airlines is already a reality for international rail passenger services: they will have to evolve into new models and this is without any doubt the right time to free up initiatives. This proposal is both ambitious and realistic: with the 2010 deadline, we are establishing a clear timeframe for all operators so that they can prepare”

One of the key changes is that a train service based in one country will be allowed to pick up and set down passengers in another country; currently international trains may carry only cross-border passengers.

The proposals also include new rules on the certification of locomotive drivers. Drawn up in close consultation with all sides in the railway industry, the rules will establish a precise definition of the skills and responsibilities in terms of training, assessment and recognition of qualifications of locomotive drivers and train crew responsible for safety aspects. A driver will have to possess personal certificates attesting to his general qualifications and valid throughout the European Union. To this must be added a certificate issued by the railway company recognizing specific training relating to the route operated, the equipment used and the operational and safety procedures specific to that operator.

As has already been introduced in the aviation sector, with the protection of passengers rights in the event of denied boarding and delays, the Commission is also proposing to establish a framework to protect the rights of passengers using international rail services. It consists of a regulation establishing minimum standards for information for passengers before and during their journey, the rules to be followed in the case of delays, treatment of complaints and assistance for individuals with reduced mobility.

The proposed regulation includes proposals for ticket refunds and compensation in the event of long delays on train journeys. It has already drawn protests from some quarters. The German rail operator, Deutsche Bahn, said a compensation scheme would be costly and it would be forced to increase fares to cover its liabilities.

By David Browne
eTN London

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March 10, 2004   Posted in: Airlines & Railways