New European Commission study confirms benefits of competition in passenger rail

ALLRAIL has announced that the European Commission (EU) has published a study highlighting the benefits of competition in passenger rail transport, in both Open Access (competition in the market) and competitively tendered Public Service Obligations (‘PSOs’ – competition for the market).

The study adds to the growing evidence that competition, both in Open Access and PSOs, delivers benefits for all – passengers, operators, taxpayers and the climate – that are crucial for accelerating the modal shift to rail.

The study reveals that commercially driven ‘Open Access’ competition “both decreased ticket prices and improved the quality of the service as compared to the situation prior to the start of competition. These two main effects have resulted in making railways more attractive to passengers, thereby increasing demand for rail, and shifting passengers to rail from competing modes.”

However, the study also warns that “there are several challenges which impede reaching the full potential of competition,” which can be addressed by ensuring “easy access to all types of rolling stock…” and “equal access to ticket vending platforms for operators…”, as well as by “introducing track access charges rebates for operators in their first years of operations.”

Regarding taxpayer-subsidised PSO contracts, the study shows that “where competent authorities have used competitive awards, they have consistently achieved a decrease in costs enabling improvements in the rail offer, notably as regards to service quality.”

ALLRAIL’s Salim Benkirane said: “The evidence is clear – competition improves rail services for everyone. We must finally break down remaining barriers and fully open the rail market, to benefit passengers, taxpayers, and the environment alike.”