Liberalisation and Structural Reform in the Freight Transport Sector in Europe
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LIBERALISATION AND STRUCTURAL REFORM IN THE FREIGHT TRANSPORT SECTOR IN EUROPE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT Paris Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format This paper is part of the OECD work programme on trade and environment. Presented to the OECD Joint Session of Trade and Environment Experts, it was prepared by Dr. Werner Rothengatter, a consultant, under the supervision of Dale Andrew of the Trade Directorate. It has been made available on Internet under the responsibility of the Secretary-General of the OECD with the aim of bringing information on this subject to the attention of a wider audience. Copyright OECD, 1997 Applications for permission to reproduce or translate all or part of this material should be made to: Head of Publications Service, OECD, 2 rue André Pascal, 75775 Paris Cedex 16, France TABLE OF CONTENTS INTRODUCTION AND EXECUTIVE SUMMARY ............................................................................ 6 Introduction ....................................................................................................................................... 6 Executive summary............................................................................................................................ 7 1. Regulation of the European transport market: 1950-1985.................................................................11 1.1 Historical roots of regulations and their development in selected countries ..................................11 1.2 Issues of the Rome Treaty and their reformulation in the Maastricht Treaty.................................12 1.3 Liberalisation and harmonisation.................................................................................................13 2. The liberalisation period: 1985-1994 ...............................................................................................15 2.1 Important steps in market liberalisation.......................................................................................15 2.2 Missing elements of a harmonisation policy................................................................................18 2.3 Deregulation in central European countries..................................................................................20 3. Regulation and taxation in EU countries, 1995 .................................................................................22 3.1 Taxation and tolling in the road sector.........................................................................................23 3.2 Regulations concerning road traffic and combined transport........................................................24 3.3 Licenses and quotas in international road transport and combined transport.................................26 3.4 Environmental regulations...........................................................................................................26 3.5 The EUR+3 countries, Norway and Switzerland..........................................................................27 4. Developments in road and rail transport and modal structure ............................................................30 4.1 Road transport in EUR15 ............................................................................................................30 4.2 Rail transport in EUR15..............................................................................................................33 4.3 Inland waterways and pipelines in EUR15...................................................................................35 4.4 Combined transport in EUR15 ....................................................................................................35 4.5 Developments in modal split in EUR15.......................................................................................37 4.5 EUR12 versus EUR+3, Norway and Switzerland ........................................................................38 4.6 Developments in the modal split in selected CEC Countries........................................................39 5. Conclusions......................................................................................................................................41 REFERENCES........................................................................................................................................44 Tables Table 1.1 Common transport policy: the key events that followed the European Court of Justice judgement (road, rail and inland waterways)..........................................................................14 Table 2.1 Examples of changes observed in the CEC transport sector since 1989..................................21 Table 3.1 Taxation and tolling in the EU member countries, 1995........................................................24 Table 3.2 Truck and combined transport regulations in EU member countries ......................................25 Table 3.3 Truck exhaust emission standards, 1988 until after 1999.......................................................27 Table 3.4 Austrian regulations following entry into the EU ..................................................................27 Table 3.5 Heavy vehicle motorway tax in Switzerland..........................................................................29 Table 3.6 Harmonization of road freight taxation in Sweden with EU fiscal conditions (ECU per year) .......30 Table 4.1 Road freight transport in Europe, 1985-1994.........................................................................32 Table 4.2 Road freight transport in Europe, 1985-1994.........................................................................32 Table 4.3 Rail freight transport in Europe, 1985-1994 ..........................................................................34 Table 4.4 Rail freight transport in Europe, 1985-1994 ..........................................................................34 Table 4.5 Freight transport in CEC countries........................................................................................40 Figures Figure 4.1 Road freight and total transport in EUR15, 1970-1994 (tonne-km) ......................................31 Figure 4.2 Rail freight and total transport in EUR15, 1970-1994 ..........................................................33 Figure 4.3 Inland waterway and pipeline transport in EUR15, 1970-1994 (in tonne-km).......................35 Figure 4.4 Cross-border modal split for combined transport in selected countries, (based on tonne-km).......36 Figure 4.5 Market shares of freight transport by mode in EUR15, 1985-1994 (tonne-km).....................37 Figure 4.6 Road freight market shares in EUR12 and EUR+3...............................................................39 Figure 4.7 Market shares for road and rail in CEC countries, 1990 - 1994 (tonne km)...........................41 The author gratefully acknowledges the assistance of Richard Deiss, EU Commission, DG VII Gunther Ellwanger, UIC, Paris Carlos Fernandes, Technical University, Lisbon Tonney Fowkes, ITS, Leeds Lars Hansson, University of Lund Marco Ponti, University of Venice Farideh Ramjerdi, TOI, Oslo Stefan Suter, ECOPLAN, Bern Katalin Tanczos, Technical University, Budapest Stefan Winkelbauer, Technical University, Vienna Jaap-Jan Wondergem, NEA, Rijswijk Introduction and Executive summary Introduction The objective of this paper is to analyse the extent to which structural changes in the European freight transport market have been brought about by liberalisation and structural reform on the supply side, as advocated in European Union (EU) common policy. The former market regulation approach had little chance of survival, not being based on valid economic foundations. But the implementation of deregulation policy in the EU has been criticised as having favoured the road sector. On one hand, the liberalisation process started with road haulage which helped make this sector strong and competitive. On the other, there has been no serious attempt across the EU to harmonise the fiscal, environmental and safety regimes of all the competing sectors by setting appropriate prices and environmental/safety standards. In the United States the deregulation process started earlier, first in the airline industry (1978), then the railway industry (1980) and road haulage (1980). In contrast to European developments, the US railway industry has improved its market position: in terms of transport volume (tonne-km) and shares of the freight transport market. To explain this discrepancy, the national European railway companies have always referred to the structural differences in the European market, such as the long distances, spatially concentrated demand and concentration on profitable transport businesses. In a European context, however, some of these “natural” discrepancies between the US and the EU freight transport market disappear, and the question arises why the volume increases in international, long distance freight associated with the European single market have not benefited railways and inland waterways. Analysis of this question requires an in-depth look at the deregulation process and market developments in Europe. Therefore, this paper will concentrate only on freight transport by road, rail and inland waterways in an attempt to define why the European single market has not led to increased market share for railways and inland waterways. In the first section of