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A study released by the European Commission earlier this week highlights the user benefits of competition in both passenger rail and rail freight services. It reveals that increased competition in the EU rail market has resulted in significant reductions in ticket prices for rail passengers and in freight transportation costs.

Efficiency gains are evident across all segments - passenger open access, public service obligations (PSO), and freight. For instance, in the open access market, Italy saw a 31% reduction in prices, while Austria recorded a 41% increase in service frequency, illustrating how competition enhances both affordability and service quality. These efficiency improvements provide benefits such as lower fares, increased frequency, more comfort, and public cost savings. In the freight rail market, competition has led to decreased prices and operational costs, with a slight increase in demand, particularly in intermodal freight, as demonstrated by stable and resilient rail share growth in Germany.

Key areas for improvement in the rail services market include infrastructure, ticketing, and equal access. In terms of infrastructure, enhancing interoperability, digitalisation, and developing flexible, coordinated timetables alongside efficient network traffic management at the EU level are essential. Additionally, equal access to infrastructure, rolling stock availability and financing, and service facilities must be ensured to allow all operators to compete on a level playing field.

The report notes that delays, particularly on international connections, remain a major obstacle for the competitiveness of the cross-border rail freight sector. This is concerning especially for long-distance rail transport in Europe, which is more competitive compared to other modes of transport, such as road. The report notes that only 30% of rail freight services arrive on time, with an average of just 47% of international rail freight services being punctual.

Addressing these challenges is crucial for unlocking the full potential of competition, benefiting both the industry and consumers. The Commission therefore presented a proposal related to the capacity management of rail infrastructure to improve the efficiency in the use of the rail network. At the same time, the EU is investing heavily in its rail infrastructure via the Connecting Europe Facility (CEF). Under the latest CEF Transport calls for proposals (2023), in July 2024 the Commissionselected 134 transport infrastructure projects to receive over EUR 7 billion. 81% of this investment was dedicated to rail projects (over EUR 5,7 billion).

The report can be accessed here.