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Publications
#Mobility

Liberalisation of passenger rail services

  • December 7, 2016
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Document(s)
REPORT | Liberalisation of passenger rail services
CASE STUDY: France | Liberalisation of passenger rail services
CASE STUDY: Germany | Liberalisation of passenger rail services
CASE STUDY: Sweden | Liberalisation of passenger rail services
CASE STUDY: Britain | Liberalisation of passenger rail services

Where it has occurred, liberalisation of passenger rail services in Europe has largely been successful, with improved services, increased traffic and reduced support from public finances. This offers lessons for markets that are yet to be liberalised. It also points to a number of key questions and difficult issues that policy-makers will have to address. These are the findings of a new mobility report on ‘Liberalisation of passenger rail services’, published today by the Centre on Regulation in Europe (CERRE), the Brussels-based think tank acknowledged for its academic independence, the quality of its expertise and the relevance of its contributions to the policy and regulatory process.

In markets, such as France, which have yet to undergo liberalisation, the report identifies a number of trade-offs to be faced by policy-makers. Those include:

  • Choosing a path to liberalisation – through competitive tendering for public service contracts, or open access for the operation of commercial services, or some combination of the two;
  • Deciding which levels of government should be responsible for competitive tendering: devolving this to regional administrations or maintaining central coordination;
  • Determining the optimal size and duration of franchises to maximise economies of scale and density;
  • Allocating risk-sharing between private operators and the state;
  • Dealing with the political and social implications of potentially transferring large numbers of public-sector staff to private companies.

CERRE Director General, Professor Bruno Liebhaberg, says:

“Through its wide geographical scope, its robust analyses and its clear policy recommendations, this new CERRE report highlights the benefits of liberalisation, to both users and taxpayers, in the countries where that process has been completed. As such, it should provide a valuable contribution to the current debate around rail transport reform which is currently going on in many Member States.”

Author(s)
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Heike Link
Senior Research Manager, Department of Energy, Transport and Environment
German Institute for Economic Research in Berlin (DIW Berlin)

Heike Link is a Senior Research Manager in the Department of Energy, Transport and Environment at the German Institute for Economic Research in Berlin (DIW Berlin).

She has led a number of national and international research and consultancy projects on infrastructure issues, transport pricing and railway economics focusing on areas such as access pricing, rail competition and efficiency analysis in the rail sector. The projects were commissioned by a range of national and European institutions, including the Transport Ministry, the Federal Environmental Board and the Federal Road Authority in Germany; the European Commission; the OECD; and national institutions in a number of other European countries.

Her work has been published both in international refereed journals and as book contributions.

Heike Link is a Senior Research Manager in the Department of Energy, Transport and Environment at the German Institute for Economic Research in Berlin (DIW Berlin).

She has led a number of national and international research and consultancy projects on infrastructure issues, transport pricing and railway economics focusing on areas such as access pricing, rail competition and efficiency analysis in the rail sector. The projects were commissioned by a range of national and European institutions, including the Transport Ministry, the Federal Environmental Board and the Federal Road Authority in Germany; the European Commission; the OECD; and national institutions in a number of other European countries.

Her work has been published both in international refereed journals and as book contributions.

Chris Nash
Chris Nash
CERRE Honorary Research Fellow
University of Leeds

Chris Nash is a CERRE Research Fellow and a Research Professor at the Institute for Transport Studies (ITS) of the University of Leeds.

He was previously Director of the ITS for seven years.

He has coordinated and contributed to a wide range of EU research projects, including the SUSTRAIL project.

He has advised many organisations, including the EC’s High Level Group on Infrastructure Charging, the OECD, and the Transport and European Union Select Committees of the British Parliament.

Chris Nash is a CERRE Research Fellow and a Research Professor at the Institute for Transport Studies (ITS) of the University of Leeds.

He was previously Director of the ITS for seven years.

He has coordinated and contributed to a wide range of EU research projects, including the SUSTRAIL project.

He has advised many organisations, including the EC’s High Level Group on Infrastructure Charging, the OECD, and the Transport and European Union Select Committees of the British Parliament.

Jan Eric Nillsson
Jan-Eric Nilsson
Swedish National Road and Transport Research Institute (VTI)

Jan-Eric Nilsson is Professor of Transport Economics at the Swedish National Road and Transport Research Institute (VTI) in Stockholm. Prior to this, he was the Research Director in the Transport Economics Department of Dalarna University from 2000 to 2008, having previously been a senior lecturer and researcher at the University from 1992. Prof. Nilsson also served for 10 years in the economics department of the Swedish National Rail Administration. He received his PhD in economics from Stockholm University.

Jan-Eric Nilsson is Professor of Transport Economics at the Swedish National Road and Transport Research Institute (VTI) in Stockholm. Prior to this, he was the Research Director in the Transport Economics Department of Dalarna University from 2000 to 2008, having previously been a senior lecturer and researcher at the University from 1992. Prof. Nilsson also served for 10 years in the economics department of the Swedish National Rail Administration. He received his PhD in economics from Stockholm University.

Andrew Smith
Andrew Smith
Professor of Transport Performance and Economics
University of Leeds

Andrew is Professor of Transport Performance and Economics at the Institute for Transport Studies, University of Leeds. He leads the Institute’s Rail Research Group. His research is focused on: infrastructure access pricing and marginal cost research; rail regulation and the impact of rail reforms on economic efficiency; cost and efficiency modelling; and modelling the economic impact of rail technology innovations. He has published important work in these areas and has led or is leading a wide range of research projects.

He is also academic advisor to water regulator Ofwat on econometric benchmarking, a member of the advisory board of the Italian Transport Regulation Authority, and an Editor of the Journal of Transport Economics and Policy.

Andrew has a visiting research position at the Centre for Transport Studies (Royal Institute of Technology (KTH) and VTI) in Stockholm and at the University of Masaryk, Czech Republic. He teaches at undergraduate level on Advanced Microeconomics and Public Enterprise and Regulation and teaches / or has taught at Masters level on Economics of Transport Regulation and Public Transport Planning and Management.

Andrew is Professor of Transport Performance and Economics at the Institute for Transport Studies, University of Leeds. He leads the Institute’s Rail Research Group. His research is focused on: infrastructure access pricing and marginal cost research; rail regulation and the impact of rail reforms on economic efficiency; cost and efficiency modelling; and modelling the economic impact of rail technology innovations. He has published important work in these areas and has led or is leading a wide range of research projects.

He is also academic advisor to water regulator Ofwat on econometric benchmarking, a member of the advisory board of the Italian Transport Regulation Authority, and an Editor of the Journal of Transport Economics and Policy.

Andrew has a visiting research position at the Centre for Transport Studies (Royal Institute of Technology (KTH) and VTI) in Stockholm and at the University of Masaryk, Czech Republic. He teaches at undergraduate level on Advanced Microeconomics and Public Enterprise and Regulation and teaches / or has taught at Masters level on Economics of Transport Regulation and Public Transport Planning and Management.

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