Publication details

Competition Limits in Railway Transport


TOMEŠ Zdeněk

Year of publication 2011
Type Article in Periodical
Magazine / Source Ekonomický časopis/Journal of Economics
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords railway; competition; competition policy
Description The aim of the paper is to assess advantages and disadvantages of the policy of railway separation (unbundling) of infrastructure and services. The policy of vertical unbundling is an attempt to introduce competition into the provision of railway services. The vertical unbundling strategy in railways has been strongly advocated by the European Commission as a possibility to increase competition and efficiency in this sector. The strategy has been applied since the beginning of 1990’s in many European countries with varied energy, depth and timing. An evaluation of vertical unbundling strategy reveals both positive and negative aspects. On the positive side there are clear indications that introduction of reforms has improved efficiency. But it is evident that power of competition has significant limits in railways due to numerous specifics of this unique industry. If the unbundling policy has more advantages than disadvantages is subject to debate but there are strong indications that there are also other possible ways of combating inefficiencies in the railway sector.

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