Liberalising Rail Freight Movement in the EU

Book excerpt: Despite a decline in traditional rail freight markets (especially coal and steel), and loss of market share to other modes, the overall growth in freight in recent years has allowed rail freight to maintain its volume. The Commission has introduced three packages of directives to stimulate further growth in this market (the first should have been implemented in the 15 member states, the second is to be implemented by 2005, and the third is yet to be adopted). This report reviews the background to the packages, and offers a provisional analysis of their effect so far. The quality of service offered to customers of rail freight movement in Europe falls seriously short of standards required in a competitive environment. Liberalisation of the UK market since 1994 has, however, resulted in better performance and a growing market share for rail freight. The Committee has reservations about some parts of the third package of directives, particularly the proposal to require all train drivers to hold an international rail driving licence, and the proposal for compulsory compensation to rail freight customers for poor quality service. The report also examines problems with the Channel Tunnel, the only direct rail link between the UK and mainland Europe.