EC: Opening of rail freight to competition

As of 1 January 2007 all rail freight services will be opened up to competition, stated the EC.

This new stage in the process of revitalizing the rail industry in which the Community has been engaged for several years should mark a turning point for rail freight, the market share of which has been declining since 1970 in most Member States and needs to be increased.

Jacques Barrot, the European Commission Vice-President with special responsibility for transport said that "competition among freight operators will make it possible to stimulate the sector and contribute to the achievement of an integrated European rail area.

He added that he would like the railways, a safe and environmentally friendly mode of transport, to play a major role in the European logistical chain.

As of 1 January, all freight lines will be opened up to competition. At present, in the Member States which have followed the Community timetable, only international freight services, which represent approximately half of the total market for the transport of goods by rail in Europe, are liberalized Thanks to this new stage in the process, the Community hopes that rail freight will attract new investors and new customers by offering a quality service adapted to the needs of the market and that, overall, the railways will steadily increase their market shares in a lasting way.

The share of the carriage of goods by road grew steadily from 1970 to 2003, to the detriment of the railways. As a result, from 20% in 1970, the market share of the railways in the 15 Member States fell to less than 8% in 2003.

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