It is time to get tough with the European Commission

‘It is in the interests of the UK Government to support our industry by pressing the case for the complete liberalisation of the rail market across Europe, technically, commercially and legally, with the minimum of delay.’

That is the conclusion of RFG after attending a consultation meeting on Friday 7 November 2008, where representatives of EU industry, regulators and government heard the first results of an EC-sponsored study into the progress on the liberalisation of the European rail freight market and what still needs to be done.

These discussions about ‘what to do next’ provide a vital opportunity for the UK Government to press for urgent Commission action on the Recast of the First Railway Package to complete the single market in rail freight across Europe. It would provide great opportunities for UK companies, train operators, leasing companies, suppliers and consultants and, in the process, help grow the volumes of freight carried by rail.

At the meeting, the Commission’s consultants, PwC, reported that most operators and infrastructure managers wanted no further change. The UK government also appears to prefer to let the current situation settle down for a few years before pressing for more action.

RFG chairman Tony Berkeley commented: ‘Its extraordinary that the Commission and its consultants can believe that, because the majority of stakeholders are incumbents who do not want their monopolies curtailed, this is the correct way of achieving a liberalised rail freight market. One would not expect turkeys to vote for Christmas!

‘RFG has welcomed the Commission taking infraction proceedings against member states for failure to implement the First Railway Package, but there is already general acceptance that further legislation is necessary, not least to provide total separation of track and train operations and comprehensive independent regulation. These are needed to give the private sector confidence they can invest and operate in a fair single market; without this, the sector will not grow.

‘The UK Government must not just sit on the sidelines and watch things develop. In the UK, rail freight has grown by 60% on ten years due to competition, innovation, a fair and comprehensive regulatory structure and total separation of track and train. The industry is keen invest these skills across Europe, but the present chaotic half way stage puts them off. Our Government will be failing the rail freight sector if it does not take a more proactive stance in Brussels and press for the completion of the single market in rail freight across Europe, as it has done with other industries.’

Source: Transportweekly