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EU member states adopt new rules to improve railway market

Xinhua, October 18, 2016 Adjust font size:

Transport ministers from 28 member states of the European Union (EU) on Monday have formally adopted new rules aimed at boosting train travel in Europe, a statement released by European Council said.

The reform will open up domestic rail passenger markets in EU member states and create fairer conditions for train companies in terms of non-discriminatory access to the network.

The revised rules make it easier for new operators to enter the market and offer their services, the statement said, adding this will result in wider choice, cheaper fares and improved quality for passengers.

However, under the new rules, EU countries can limit a new operator's right of access if the proposed new service would compromise the "economic equilibrium" of an existing public service contract.

Competitive tendering will become the norm for public service contracts after the reform, but direct award will still be possible where it leads to better quality of service or cost efficiency.

To make this work, the EU requires directly awarded contracts to include performance and quality targets, covering, for instance, the punctuality and frequency of trains.

The new rules will also strengthen the independence and impartiality of rail infrastructure managers in order to ensure that all railway companies have equal access to tracks and stations. On this regard, EU member states are allowed to keep their current organizational structures, but safeguards will be put in place to increase financial transparency and avoid conflicts of interest.

However, the new legal system aiming to make train travel cheaper, faster and more comfortable will be introduced gradually, according to the statement.

Infrastructure managers must comply with the new requirements at the latest two years after the legal act has entered into force.

On the basis of the access rules, operators will be able to launch new commercial services on Dec. 14, 2020. Competitive bidding for public service contracts will start seven years after the legal acts are published.

According to the European Council statement, the legal acts are expected to enter into force by the end of this year after the European lawmakers approve the texts. Enditem