Eighth Annual Market Monitoring Working Document March 2020 List of contents List of country abbreviations and regulatory bodies .................................................. 6 List of figures ............................................................................................................ 7 1. Introduction .............................................................................................. 9 2. Network characteristics of the railway market ........................................ 11 2.1. Total route length ..................................................................................................... 12 2.2. Electrified route length ............................................................................................. 12 2.3. High-speed route length ........................................................................................... 13 2.4. Main infrastructure manager’s share of route length .............................................. 14 2.5. Network usage intensity ........................................................................................... 15 3. Track access charges paid by railway undertakings for the Minimum Access Package .................................................................................................. 17 4. Railway undertakings and global rail traffic ............................................. 23 4.1. Railway undertakings ................................................................................................ 24 4.2. Total rail traffic .......................................................................................................... 25 5. The rail freight market ............................................................................ 27 5.1. Rail freight market size .............................................................................................. 28 5.2. Market shares of freight railway undertakings ......................................................... 30 5.3. Economic performance of freight railway undertakings .......................................... 31 6. The rail passenger market ....................................................................... 33 6.1. Rail passenger market size ........................................................................................ 34 6.2. National and international passenger traffic ............................................................ 36 6.3. Share of PSO and Non-PSO ....................................................................................... 37 6.4. Market shares of passenger railway undertakings ................................................... 38 6.5. Economic performance indicators of passenger railway undertakings .................... 40 7. Competitive situation in rail passenger and freight markets..................... 43 7.1. Introduction .............................................................................................................. 44 7.2. Description of the competitive situation in the PSO passenger railway markets ..... 44 Description of the competitive situation in countries with HHI level below 2 500 ................ 44 Description of the competitive situation in countries with HHI level below 5 000 ................ 45 Description of the competitive situation in countries with HHI level below 7 500 ................ 46 Description of the competitive situation in countries with HHI level below 10 000 .............. 47 Description of the competitive situation in countries with de facto monopolies .................. 48 7.3. Description the competitive situation in the non-PSO passenger railway markets . 49 3 Description of the competitive situation in countries with HHI level below 2 500 ................ 49 Description of the competitive situation in countries with HHI level below 5 000 ................ 49 Description of the competitive situation in countries with HHI level below 7 500 ................ 50 Description of the competitive situation in countries with HHI level below 10 000 .............. 50 Description of the competitive situation in countries with de facto monopolies .................. 52 7.4. Description of the competitive situation in the freight railway markets .................. 52 Description of the competitive situation in countries with HHI level below 2 500 ................ 52 Description of the competitive situation in countries with HHI level below 5 000 ................ 53 Description of the competitive situation in countries with HHI level below 7 500 ................ 55 Description of the competitive situation in countries with HHI level below 10 000 .............. 56 Description of the competitive situation in countries with de facto monopolies .................. 57 8. Barriers to entry in the rail passenger and freight markets ....................... 59 8.1. Introduction .............................................................................................................. 60 8.2. About barriers to market entry in Commission guidelines ....................................... 60 8.3. The concepts of timeliness and sufficiency ............................................................... 61 8.4. Additional barriers to market entry in the PSO passenger railway market .............. 62 Directly awarded PSO-contracts and protection of PSO-contracts ........................................ 62 8.5. Additional barriers to market entry in the non-PSO passenger railway market....... 63 Lack of commercially viable train paths ................................................................................. 63 High amounts of sunk costs and/or upfront costs hinder profitability of low volume entry . 64 Long delivery time for new rolling stock ................................................................................ 64 8.6. Additional barriers to market entry in the freight railway market ........................... 64 Lack of viable alternatives for service facilities ...................................................................... 64 National regulations ............................................................................................................... 65 8.7. List of identified barriers to entry in the railway markets ........................................ 66 9. Direct competition on selected lines in the passenger rail market ............ 69 9.1. Aim and methodology ............................................................................................... 70 9.2. Detail by country ....................................................................................................... 70 Austria .................................................................................................................................... 70 Czech Republic ........................................................................................................................ 72 France ..................................................................................................................................... 73 Germany ................................................................................................................................. 75 Italy ......................................................................................................................................... 77 Poland ..................................................................................................................................... 78 Romania.................................................................................................................................. 80 Sweden ................................................................................................................................... 81 United Kingdom ...................................................................................................................... 83 4 10. Key national regulatory decisions in 2018 ................................................ 85 Annex ............................................................................................................. 111 Annex 1 – PSO railway market fact sheet per country ......................................................... 112 Annex 2 – Non-PSO railway market fact sheet per country ................................................. 135 Annex 3 – Freight railway market fact sheet per country ..................................................... 157 5 List of country abbreviations and regulatory bodies Country Country abbreviation Participating regulatory bodies Austria AT Schienen-Control GmbH Regulatory Body for Railway Transport and Belgium BE for Brussels Airport Operations Bulgaria BG Railway Administration Executive Agency Czech Republic CZ Transport Infrastructure Access Authority Croatia HR HAKOM Denmark DK Jernbanenaevnet Estonia EE Estonian Competition Authority Finnish Transport and Communications Finland FI Agency (Traficom) France FR Autorité de Régulation des Transports Germany DE Bundesnetzagentur Greece GR Regulatory Authority for Railways Hungary HU Rail Regulatory Body Italy IT Autorità di Regolazione dei Trasporti Kosovo* KS* Railway Regulatory Authority Latvia LV State Railway Administration Communications Regulatory Authority of Lithuania LT the Republic of Lithuania Luxembourg LU Institut Luxembourgeois de Régulation Netherlands NL Autoriteit Consument & Markt Norway NO Statens jernbanetilsyn Poland PL Urząd Transportu Kolejowego AMT - Autoridade da Mobilidade e dos Portugal PT Transportes