Liberalization and regulation in Central European railway markets

TOMEŠ, Zdeněk. Liberalization and regulation in Central European railway markets. Uniwersytet Szczecinski Zeszyty Naukowe Nr 741 Problemy Transportu i Logistyki. Szczecin: Szczecin University, 2012, vol. 18, No 1, p. 267-278. ISSN 1644-275X.

Basic information

• Original name: Liberalization and regulation in Central European railway markets
• Authors: TOMEŠ, Zdeněk (203 Czech Republic, guarantor, belonging to the institution).
• Edition: Uniwersytet Szczecinski Zeszyty Naukowe Nr 741 Problemy Transportu i Logistyki, Szczecin, Szczecin University, 2012, 1644-275X.

Other information

• Original language: English
• Type of outcome: Article in a journal
• Field of Study: 50600 5.6 Political science
• Country of publisher: Poland
• Confidentiality degree: is not subject to a state or trade secret
• RIV identification code: RIV/00216224:14560/12:00071117
• Organization unit: Faculty of Economics and Administration
• Keywords (in Czech): liberalizace; konkurence; železnice
• Keywords in English: liberalization; competition; railways
• Tags: International impact, Reviewed

Abstract

European reforms were applied to revitalise Central European railways. These were based on a vertical separation of the infrastructure from the operation and on allowing third-party access. Central European countries were originally behind in application of the regulations. Approaching EU accession, however, made them apply these very rigorously. As a result of liberalisation, the competition in railway freight transport is fiercer in new member countries than in the old member countries. On top of this, those new member countries with the most developed competition are experiencing the largest drop in their railways’ market shares. Some countries indicate that competition development is supported not so much by the implementation of reform strategies but rather by the weakness of the incumbent who typically has chronic problems with liquidity and indebtedness while the newly arising competitors strip them of the most lucrative parts of the market. The drop in the railways’ modal shares is further deepened by the setup of the infrastructure fees. These are very high, especially for freight transport, in order to support the passenger transport. This approach, however, deforms the market and further weakens railway freight transport competitiveness.