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Competition in rail transport: a new opportunity for railways

Competition in rail transport: a new opportunity for railways
Competition in rail transport: a new opportunity for railways
Throughout Europe, and in many other parts of the world, railways are suffering from declining
market share and deteriorating financial performance; consequently there is renewed interest in
deregulation and the introduction of competition into rail transport as a way of improving
performance. An EC Directive now provides for access to rail infrastructure for third parties to run
their own international trains in some circumstances. After a long debate, the British Government in
July 1992 published a White Paper (New Opportunities for the Railways) which aimed to go much
further. It would both open access to the infrastructure for any licensed operator and franchise out
existing passenger services via a competitive bidding process; all freight services would be privatised
outright. Draft legislation to implement these proposals, as well as a string of consultation documents
on details have also been published, and an Interim Report from the Select Committee of Members of
Parliament examining the proposals has appeared.
This paper review the debate that is currently raging over the British government proposals. It
considers the potential for innovation and cost savings which they offer, as well as the problems of
increased transactions costs, lack of competitive bidding and other potential inefficiencies of the new
system. The key issue of the charging regime for access to the infrastructure is also addressed. It is
concluded that competition in the provision of freight services is desirable, but that passenger services
present many more problems, and that the proposals need modification if they are to meet their
objectives.
0142-8942
397
University of Leeds
Preston, John
ef81c42e-c896-4768-92d1-052662037f0b
Nash, C
4b9675b2-609d-4fe7-9450-9bd25bca2bc7
Preston, John
ef81c42e-c896-4768-92d1-052662037f0b
Nash, C
4b9675b2-609d-4fe7-9450-9bd25bca2bc7

Preston, John and Nash, C (1994) Competition in rail transport: a new opportunity for railways. In Institut fur Verkhers Wissenschaft an der Univerisitat Munstere Reform der Eisenbahnend, Ausgabe Nr7. University of Leeds..

Record type: Conference or Workshop Item (Paper)

Abstract

Throughout Europe, and in many other parts of the world, railways are suffering from declining
market share and deteriorating financial performance; consequently there is renewed interest in
deregulation and the introduction of competition into rail transport as a way of improving
performance. An EC Directive now provides for access to rail infrastructure for third parties to run
their own international trains in some circumstances. After a long debate, the British Government in
July 1992 published a White Paper (New Opportunities for the Railways) which aimed to go much
further. It would both open access to the infrastructure for any licensed operator and franchise out
existing passenger services via a competitive bidding process; all freight services would be privatised
outright. Draft legislation to implement these proposals, as well as a string of consultation documents
on details have also been published, and an Interim Report from the Select Committee of Members of
Parliament examining the proposals has appeared.
This paper review the debate that is currently raging over the British government proposals. It
considers the potential for innovation and cost savings which they offer, as well as the problems of
increased transactions costs, lack of competitive bidding and other potential inefficiencies of the new
system. The key issue of the charging regime for access to the infrastructure is also addressed. It is
concluded that competition in the provision of freight services is desirable, but that passenger services
present many more problems, and that the proposals need modification if they are to meet their
objectives.

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More information

Published date: 26 September 1994
Venue - Dates: Third International Conference on Competition and Ownership in Surface Passenger Transport, Canada, 1993-09-26 - 1993-09-29
Organisations: Civil Maritime & Env. Eng & Sci Unit, Transportation Group, Faculty of Engineering and the Environment

Identifiers

Local EPrints ID: 403299
URI: https://eprints.soton.ac.uk/id/eprint/403299
ISSN: 0142-8942
PURE UUID: 89de1249-04ad-45ee-9272-64c8c1d9a1cf
ORCID for John Preston: ORCID iD orcid.org/0000-0002-6866-049X

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Date deposited: 05 Dec 2016 11:16
Last modified: 14 Dec 2018 01:34

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