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Competition in the railway passenger market in the Czech Republic

Author

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  • Tomeš, Zdeněk
  • Kvizda, Martin
  • Nigrin, Tomáš
  • Seidenglanz, Daniel

Abstract

This paper describes the development of competition in the Czech railway passenger market. The vertical separation of infrastructure and services occurred in 2003. Open access for commercial passenger services is allowed, and it was utilised in 2011 when the incumbent on the key rail route Prague–Ostrava was challenged by a new operator; a third operator entered the route at the end of 2012. This resulted in an intensive on-track competition with tariff declines and service improvements. With the exception of the Prague–Ostrava route, the operation of other passenger lines is classified as a public service obligation and is subsidised from public budgets. Long-distance services are organised by the Ministry of Transport, and the usual form of procurement used to be a direct awarding of services to the incumbent. However, this is changing as competitive tendering is being used more frequently. Competitive tendering is also theoretically possible in regional transport, but in 2009, regional transport authorities decided to directly award all contracts to the incumbent for 10–15 years, effectively closing regional markets for that period.

Suggested Citation

  • Tomeš, Zdeněk & Kvizda, Martin & Nigrin, Tomáš & Seidenglanz, Daniel, 2014. "Competition in the railway passenger market in the Czech Republic," Research in Transportation Economics, Elsevier, vol. 48(C), pages 270-276.
    • Handle: RePEc:eee:retrec:v:48:y:2014:i:c:p:270-276
    DOI: 10.1016/j.retrec.2014.09.052
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kvizda Martin, 2016. "Competitive Tendering in Public Transport – Opportunities and Risks. Report from the 10th Telč Seminar 2015," Review of Economic Perspectives, Sciendo, vol. 16(4), pages 389-394, December.
    2. Mizutani, Fumitoshi & Uranishi, Shuji, 2020. "An analysis of the inter-effect of structural reforms and rail mode share," Research in Transportation Economics, Elsevier, vol. 81(C).
    3. Vigren, Andreas, 2016. "Competition in Swedish passenger railway : entry in an open-access market," Working papers in Transport Economics 2016:18, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Gutiérrez-Hita, Carlos & de la Cruz, Omar & Ramos-Melero, Rodolfo, 2022. "Infrastructure access charges, service differentiation, and strategic competition in the EU railway passenger market," Transportation Research Part B: Methodological, Elsevier, vol. 164(C), pages 87-104.
    5. Badura, Ondřej & Melecký, Aleš & Melecký, Martin, 2023. "Liberalizing passenger rail: The effect of competition on local unemployment," Economics of Transportation, Elsevier, vol. 36(C).
    6. Król, Marcin & Taczanowski, Jakub & Kołoś, Arkadiusz, 2018. "The rise and fall of Interregio. Extensive open-access passenger rail competition in Poland," Research in Transportation Economics, Elsevier, vol. 72(C), pages 37-48.
    7. Jakub Chini & Martin Kvizda & Ondřej Špetík, 2023. "What is the real power of incumbents? Case study on the Czech Republic," Competition and Regulation in Network Industries, , vol. 24(1), pages 24-39, March.
    8. Beria, Paolo & Bertolin, Alberto, 2019. "Evolving long-distance passenger services. Market concentration, fares and specialisation patterns in Italy," Research in Transportation Economics, Elsevier, vol. 74(C), pages 77-92.
    9. Tomeš Zdeněk & Jandová Monika, 2017. "Open Access Passenger Rail Competition – Round Table Report," Review of Economic Perspectives, Sciendo, vol. 17(2), pages 205-208, June.
    10. Wheat, Phill & Smith, Andrew S.J. & Rasmussen, Torris, 2018. "Can competition for and in the market co-exist in terms of delivering cost efficient services? Evidence from open access train operators and their franchised counterparts in Britain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 113(C), pages 114-124.
    11. Broman, Emanuel & Eliasson, Jonas, 2019. "Welfare effects of open access competition on railway markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 129(C), pages 72-91.
    12. Tomeš, Zdeněk & Jandová, Monika, 2018. "Open access passenger rail services in Central Europe," Research in Transportation Economics, Elsevier, vol. 72(C), pages 74-81.
    13. Vigren, Andreas, 2017. "Competition in Swedish passenger railway: Entry in an open access market and its effect on prices," Economics of Transportation, Elsevier, vol. 11, pages 49-59.
    14. Licciardello, F. & Milani, M. & Consoli, S. & Pappalardo, N. & Barbagallo, S. & Cirelli, G., 2018. "Wastewater tertiary treatment options to match reuse standards in agriculture," Agricultural Water Management, Elsevier, vol. 210(C), pages 232-242.
    15. Seidenglanz, Daniel & Taczanowski, Jakub & Król, Marcin & Horňák, Marcel & Nigrin, Tomáš, 2021. "Quo vadis, international long-distance railway services? Evidence from Central Europe," Journal of Transport Geography, Elsevier, vol. 92(C).
    16. Fröidh, Oskar & Nelldal, Bo-Lennart, 2015. "The impact of market opening on the supply of interregional train services," Journal of Transport Geography, Elsevier, vol. 46(C), pages 189-200.
    17. Carlos Augusto Olarte Bacares & Julien Brunel & Damien Sigaud, 2019. "Influence of the evolution of high-speed railway infrastructure on the success of Italian liberalization," Competition and Regulation in Network Industries, , vol. 20(2), pages 113-137, June.

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    More about this item

    Keywords

    Railways; Competition; Open access; Competitive tendering; L13; L51; L92;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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