EU proposes new rules to increase rail investment

The European Commission has proposed new rules to increase competition and investment in the European railways, reported Dow Jones Newswires.

"Europe needs and deserves better rail services," said Transport Commissioner Siim Kallas. "My aim in all of this is more competition in passenger and freight services."

The proposal seeks to improve transparency in the sector–which is still dominated by state-controlled companies in many countries–and lays out specific rules to avoid conflict of interests and discriminatory practices.

It also aims at encouraging investments by requiring "national long-term strategies and multi-annual contractual agreements," the commission explained.

Kallas acknowledged, however, that the proposal is just one step in the direction of more competition in the sector.

The commission is analysing whether companies running services and infrastructure in the rail sector should be forced to split, to avoid abusing their dominant position and prevent competitors from accessing the market, but it hasn't come up with a conclusion yet, a commission official who works on the issue explained later.

The commission, the European Union's executive and anti-trust body, has been a strong supporter of unbundling, which seeks to separate infrastructure and service providing segments into separate entities, such as in the transport and energy sectors.
(Source:www.cargonewsasia.com)