Analyst: More privatization of Europe’s railroads to get cargo off roads
Europe’s rail and intermodal sector requires far greater liberalization if targets to move a higher percentage of cargo on tracks rather than roads are to be met, according to a new report by U.K.-based analysts Transport Intelligence.
The study, European Rail and Intermodal 2008, said Europe’s rail and intermodal sector has benefited over the past decade by a series of region-wide market reforms that have allowed access to private operators. However, TI Chief Executive Officer John Manners-Bell said the sector still needs to move on from the “halfway house” it presently finds itself in.
“Liberalization of the rail sector has been painfully slow, with vested interests delaying the faster development of the private sector,” he said. “Administrators are relying on rail to help them meet their targets to offset the environmental impact of transport. However it will take more than subsidies to make rail a sustainable alternative to road freight in the long term. It will take a combination of real investment in infrastructure, and a substantial loosening of the Byzantine regulatory environment which presently exists to serve the state owned monopolies.”
Manners-Bell added that rail still has a significant role in the development of the European logistics sector, but issues such as bottlenecks, strikes and a lack of commitment to quality by many nationalized rail operators cause frustration among many industries, even those best suited for rail distribution.
“Compulsory compensation for customers when rail freight operators do not meet stipulated quality standards, something which European regulators have planned for years, should be introduced as soon as possible,” Manners-Bell said.