BRUSSELS, 4 January 2024: As 2024 dawns, the European Union steps into a transformative era for passenger rail. ALLRAIL welcomes the landmark shift away from directly awarded public service obligation (PSO) contracts1, ushering in the start of a competitive and dynamic passenger rail market.
This pivotal change signals a promising future for EU passenger rail, where competitive tendering is poised to bring unprecedented advancements. Expectations are high for bidders to offer enhanced services with more frequent schedules, sometimes with state-of-the-art rolling stock, all while maintaining commitments to superior punctuality. This evolution signifies a significant leap in value for both passengers and taxpayers.
A shining illustration of these benefits comes from France. A report from the French rail regulator Autorité de régulation des transports (ART) highlights the success of competitive tenders in regional rail services. In 2022, regions embracing competition saw significant service improvements: increased frequency and quality, with costs reduced by an average of 25%.
ALLRAIL has consistently led the push for open passenger rail markets, a vision now strongly validated by recent developments. Bidders in a competitive environment are motivated to present more attractive offers, ensuring that public investments in rail transport deliver maximum value.
While this transition marks a significant leap forward, it is not without its setbacks. Some Member States and regions hastily secured direct awards in the eleventh hour, just days before the new regulations took effect, effectively freezing the market for the next decade.
This last-minute manoeuvring sadly postpones the benefits of market opening in those places, reflecting a missed opportunity for immediate progress. This underscores the need for continuous vigilance to ensure that all of Europe can enjoy the fruits of a fully opened rail market.
ALLRAIL Policy Officer Salim Benkirane says: “The New Year brings a New Era. The shift to competitive tendering is a major step forward. We are eager to see the widespread benefits this change will bring. The Future of Passenger Rail is Now, and we are sure that Europe will never look back.”
1 Pursuant to Article 8(2)(iii) of Regulation (EC) 1370/2007, whereby Article 5(6) allowing for direct awards of PSO contracts will cease to apply.