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Recent Developments in Rail Transportation Services 2013

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Recent Developments in Rail Transportation Services 2013 Recent Developments in Rail Transportation Services 2013 The OECD Competition Committee discussed the recent developments in rail transportation services in June 2013. This document includes an executive summary of that debate and the documents from the meeting: an analytical note by the OECD Secretariat, written submissions from Australia, the Czech Republic, Denmark, the European Union, France, Hungary, Indonesia, Italy, Korea, Latvia, the Netherlands, Poland, Romania, the Russian Federation, Spain, Chinese Taipei, Ukraine, the United Kingdom, the United States, and a summary of the discussion. Railway reforms are still very much in progress in many countries. This Roundtable discusses the changes that have happened since the Competition Committee last examined this sector in February 2005 and examines their impact on the performance of the railway sector. The main changes have taken place in Europe where first the freight market and then the market for international passenger services have been opened to competition on the tracks across the whole Union. Domestic passenger services will follow suit in 2020, though a few countries have already liberalised this last part of the railway sector. The introduction of open competition is leading to numerous antitrust cases where separation between the incumbent railway undertaking and the infrastructure manager is not complete, thus keeping alive the debate on the pros and cons of vertical separation. In addition some countries have introduced tendering procedure to allocate concession for the provision of passenger services, mostly for heavily subsidised local and regional services, to obtain the benefits of competition even when the market cannot support multiple operators. From these experiences lessons can be learnt on how tenders should be run and contracts should be designed in order to maximise the benefits that competition for the market can bring. Methods for Allocating Contracts for the Provision of Regional and Local Transportation Services (2013) Taxi Services Regulation and Competition (2007) Access to Key Transport Facilities (2006) Concessions (2006) Structural Reform in the Rail Industry (2005) Regulating Market Activities by the Public Sector (2004) Railways: Structure, Regulation and Competition Policy (1997) Unclassified DAF/COMP(2013)24 Organisation de Coopération et de Développement Économiques Organisation for Economic Co-operation and Development 13-Dec-2013 ___________________________________________________________________________________________ English - Or. English DIRECTORATE FOR FINANCIAL AND ENTERPRISE AFFAIRS COMPETITION COMMITTEE Unclassified DAF/COMP(2013)24 RECENT DEVELOPMENTS IN RAIL TRANSPORTATION SERVICES English JT03350413 Complete document available on OLIS in its original format - Or. English This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. DAF/COMP(2013)24 FOREWORD This document comprises proceedings in the original languages of a roundtable on recent developments in rail transportation services held by the Competition Committee (Working Party No. 2 on Competition and Regulation) in June 2013. It is published under the responsibility of the Secretary General of the OECD to bring information on this topic to the attention of a wider audience. This compilation is one of a series of publications entitled "Competition Policy Roundtables". PRÉFACE Ce document rassemble la documentation dans la langue d'origine dans laquelle elle a été soumise, relative à une table ronde sur les développements récents des services de transport ferroviaire qui s'est tenue en juin 2013 dans le cadre du Comité de la Concurrence (Groupe de travail no 2 sur la concurrence et la réglementation). Il est publié sous la responsabilité du Secrétaire général de l'OCDE, afin de porter à la connaissance d'un large public les éléments d'information qui ont été réunis à cette occasion. Cette compilation fait partie de la série intitulée "Les tables rondes sur la politique de la concurrence". Visit our Internet Site -- Consultez notre site Internet http://www.oecd.org/daf/competition/ 2 DAF/COMP(2013)24 TABLE OF CONTENTS EXECUTIVE SUMMARY ............................................................................................................................. 5 ISSUES PAPER .............................................................................................................................................. 9 CONTRIBUTIONS BY DELEGATIONS Australia .............................................................................................................................................. 45 Czech Republic ................................................................................................................................... 63 Denmark .............................................................................................................................................. 73 European Union .................................................................................................................................. 75 France (Version française) .................................................................................................................. 83 France (English version) ..................................................................................................................... 93 Hungary ............................................................................................................................................. 103 Indonesia ........................................................................................................................................... 115 Italy ................................................................................................................................................... 125 Korea ................................................................................................................................................. 135 Latvia................................................................................................................................................. 145 Netherlands ....................................................................................................................................... 147 Poland ................................................................................................................................................ 153 Romania ............................................................................................................................................ 157 Russian Federation ............................................................................................................................ 161 Spain .................................................................................................................................................. 179 Chinese Taipei ................................................................................................................................... 183 Ukraine .............................................................................................................................................. 187 United Kingdom ................................................................................................................................ 191 United States ..................................................................................................................................... 203 EXPERT CONTRIBUTIONS Didier van de Velde, Chris Nash, Andrew Smith, Fumitoshi Mizutani, Shuji Uranishi, Mark Lijesen and Frank Zschoche EVES-Rail - Economic Effects of Vertical Separation in The Railway Sector .................................. 205 Helène Jarefors Brief History of Rail Liberalisation and Other (De)Regulatory Reforms in Sweden ...................... 207 SUMMARY OF DISCUSSION .................................................................................................................. 213 *** SYNTHÈSE ................................................................................................................................................. 229 NOTE DE RÉFLEXION ............................................................................................................................. 235 COMPTE RENDU DE LA DISCUSSION ................................................................................................. 273 3 DAF/COMP(2013)24 4 DAF/COMP(2013)24 EXECUTIVE SUMMARY * By the Secretariat 0F From the discussion at the roundtable, the delegates’ submissions and invited presentations and papers, several points emerge: (1) Most developments in OECD railway sector reform since 2005 have concerned the ongoing opening-up of rail services to competition, especially in Europe. The objective for the railway sector is to ensure an optimal level of service quality and variety (including public interest considerations) and a high level of productive efficiency (and therefore a minimum level of subsidy where one exists), subject to efficient pricing of rail services to end-users (taking into account the price of substitute services, which are often subsidised). an optimal level of service quality and variety (including public interest considerations), and a high level of productive efficiency (and therefore a minimum level of subsidy where one exists).
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