Opening the rail passenger transport market means developing a competitive environment, more private operators, mergers between companies and reduced implication of national operators. The liberalisation should permit a higher level of services provided to a higher number of customers, while competition should permit a more varying offer of transport services. Overall, a diverse and well-defined transport sector will meet the users’ demands and will develop a business segment in the activity of railway operators.
A consequence of new operators accessing the market is the high number of trains running on the lines opened for competition. Also, a high rate of using the infrastructure will determine a growth of incomes per km, which means an increased return on equity. Also, opening up the market to competition is an opportunity for companies to expand services on attracting markets.
To expand activity on different rail passenger transport markets, companies recurred to mergers, one of the most commented on being that of Veolia and Transdev. Although the framework agreement between the two companies was announced in December 2009, the conditioned authorization of the merger received green light from the French Competition Authority as late as December 2010. It was the final step necessary in permitting the merger of Veolia’s transport branch with Transdev. To finalize procedures, Veolia and Caisse des Dépôts et Consignations (CDC, Transdev’s majority stakeholder) have committed to create “a fund for supporting competition” estimated at EUR 6.54 Million and dedicated to facilitating rival competitors to participate in the call for offers for operation of the small networks currently managed by Veolia and Transdev. With incomes of EUR 8.1 Billion and present in 28 countries, the new group will reinforce its position on the global market of transport operators. Operating cash flows amount to EUR 500 Million.
Veolia Transport has also signed with Trenitalia an agreement for establishing a stock rail company with EUR 1.5 Million in capital. Veolia and Trenitalia will each hold 50% of the new created company.
The company will provide high-speed passenger transport services on long distances, as well as cross-border and regional transport services on Paris-Venice and Paris-Rome routes. The two companies also consider the possibility to expand services on Turin-Lyon, Paris-Brussels and Paris-Milan routes. The company will also bid for managing rail lines in Europe.
Russia, ready for competition
In what concerns the railway passenger transport market in Russia, 2010 has brought significant changes, one of them being the first private operator providing rail suburban passenger transport services, Permsky Express. RZD has not had anything to do with the establishment of the new operator, nor the authorities in the Perm region. Permsky Express is a 100% private operator. The company received transport license in September 2010 and provides transport services in Perm region, on a 47-km long distance. The new operator contributes to an increased competition in the region, thus helping improve the quality of services provided to passengers and makes transport profitable. RZD and Aeroexpress operator will invest USD 443 Million for a new express transport service in the Russian city of St. Petersburg. USD 273 Million is RZD’s share of investment, the other USD 170 Million being Aeroexpress’ share. The new rapid transit line will link the new passenger terminal of Pulkovo airport to Baltic Station.
In 2011, Russia expects 26 operators to access the rail suburban transport market, one of these operators being 100% private companies, while others benefiting from the implication of authorities who will have to co-finance the upgrading of vehicles.
The decision of the Russian Government to provide suburban transport services has permitted RZD to launch in 2011 plans consisting in providing services in certain regions and establishing the investments necessary for maintaining tariffs affordable. “We have projects to set up railway companies capable to provide suburban transport services. It is important to increase the capital of companies in order to buy the necessary rolling stock”, declared Vladimir Yakunin, RZD President.
by Pamela Luică
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