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Call for European ministers to accelerate rail liberalisation

Transport Intelligence: 08/Jun/2009

Major global and European customers, shippers, forwarders, independent train operators and other representative interest groups are calling on European Transport Ministers meeting at the Transport Council on 11-12 June 2009 to accelerate liberalisation of the rail freight sector.

The European Rail Freight Association (ERFA) has stated that the three major obstructions to liberalisation can be cleared if ministers and the Commission have the courage and political will to:

1. Approve the draft Regulation on the European rail network for competitive freight. The European Parliament completed its scrutiny before the election.
2. Require the Commission to proceed this month with infraction proceedings against member states for their failure to implement the 2001 First Railways Package.
3. Require the Commission to publish its proposed Recast of the First Railway Package by September 2009.

ERFA believes that all these measures are capable of resolution immediately and said that ministers must act now to enable the rail freight industry to develop strong, efficient and competitive services. The measures would enable an efficient European single market in rail freight to develop, bringing both economic and environmental benefits to member states. At present, member states still act in a highly uncoordinated way, which makes cross-border rail freight services, especially for new entrants, extremely difficult and expensive. It believes that this regulation is necessary to require them to co-operate.

ERFA went on to say that member states must also resist the temptation to impose barriers to effective European trade by providing state aids to freight companies that they own, and which would enable these companies to compete unfairly with the private sector. Where such state companies are in financial difficulties, they should be sold to the private sector.

At present, ERFA concluded, companies hold back investment because of a lack of confidence in European and member states' policies on such issues. EU action would increase private sector investment to the benefit of all parties.