IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v48y2014icp270-276.html
   My bibliography  Save this article

Competition in the railway passenger market in the Czech Republic

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739885914000936
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.retrec.2014.09.052?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:hal:pseose:halshs-00754578 is not listed on IDEAS
    2. Alexandersson Gunnar & Hultén Staffan, 2008. "The Swedish Railway Deregulation Path," Review of Network Economics, De Gruyter, vol. 7(1), pages 1-19, March.
    3. Xavier Deville & Fabienne Verduyn, 2012. "Implementation of EU legislation on rail liberalisation in Belgium, France, Germany and The Netherlands," Working Paper Document 221, National Bank of Belgium.
    4. Guido Friebel & Sergei Guriev & Russell Pittman & Elizaveta Shevyakhova & Anna Tomová, 2006. "Railroad Restructuring in Russia and Central and Eastern Europe: One Solution for All Problems?," Transport Reviews, Taylor & Francis Journals, vol. 27(3), pages 251-271, August.
    5. Beria, Paolo & Quinet, Emile & de Rus, Gines & Schulz, Carola, 2012. "A comparison of rail liberalisation levels across four European countries," Research in Transportation Economics, Elsevier, vol. 36(1), pages 110-120.
    6. Lalive, Rafael & Schmutzler, Armin, 2011. "Auctions vs Negotiations in Public Procurement: Which Works Better?," CEPR Discussion Papers 8538, C.E.P.R. Discussion Papers.
    7. Finger, Matthias, 2014. "Governance of competition and performance in European railways: An analysis of five cases," Utilities Policy, Elsevier, vol. 31(C), pages 278-288.
    8. Chris Nash & Jan-Eric Nilsson & Heike Link, 2013. "Comparing Three Models for Introduction of Competition into Railways," Journal of Transport Economics and Policy, University of Bath, vol. 47(2), pages 191-206, May.
    9. repec:ces:ifodic:v:3:y:2005:i:4:p:14567567 is not listed on IDEAS
    10. Marc Ivaldi, 2005. "Restructuring Railways: In Theory and Practice," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(4), pages 3-9, 01.
    11. Preston, John & Almutairi, Talal, 2013. "Evaluating the long term impacts of transport policy: An initial assessment of bus deregulation," Research in Transportation Economics, Elsevier, vol. 39(1), pages 208-214.
    12. anonymous, 2003. "Annual Fed report tracks bank fees and services," Financial Update, Federal Reserve Bank of Atlanta, vol. 16(Q 3).
    13. Russell Pittman & Oana Diaconu & Emanual Šip & Anna Tomová & Jerzy Wronka, 2007. "Competition In Freight Railways: “Above-The-Rail” Operators In Central Europe And Russia," Journal of Competition Law and Economics, Oxford University Press, vol. 3(4), pages 673-687.
    14. Marc Ivaldi, 2005. "Restructuring Railways: In Theory and Practice," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(04), pages 3-9, January.
    15. Preston, John & Robins, Dawn, 2013. "Evaluating the long term impacts of transport policy: The case of passenger rail privatisation," Research in Transportation Economics, Elsevier, vol. 39(1), pages 14-20.
    16. Carbajo, Jose & Sakatsume, Toshiaki, 2004. "Plans, timetables, and delays: progress with railway reform in transition economies," Utilities Policy, Elsevier, vol. 12(4), pages 231-242, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Badura, Ondřej & Melecký, Aleš & Melecký, Martin, 2023. "Liberalizing passenger rail: The effect of competition on local unemployment," Economics of Transportation, Elsevier, vol. 36(C).
    2. 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.
    3. Beria, Paolo & Lunkar, Vardhman & Tolentino, Samuel & Pařil, Vilém & Kvasnička, Michal, 2023. "Long-distance rail in Europe: Comparing the forms of head-on competition across Europe," Research in Transportation Economics, Elsevier, vol. 102(C).
    4. 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.
    5. 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.
    6. 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).
    7. 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.
    8. 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.
    9. Tomeš, Zdeněk & Jandová, Monika, 2018. "Open access passenger rail services in Central Europe," Research in Transportation Economics, Elsevier, vol. 72(C), pages 74-81.
    10. 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.
    11. 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).
    12. 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.
    13. 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.
    14. 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).
    15. 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.
    16. Chini, Jakub & Špetík, Ondřej & Kvizda, Martin, 2024. "Measuring market power of rail incumbents," Research in Transportation Economics, Elsevier, vol. 103(C).
    17. 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.
    18. 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.
    19. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    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. Preston, John, 2018. "The wheels keep on turning: Is the end of rail franchising in Britain in sight?," Research in Transportation Economics, Elsevier, vol. 69(C), pages 187-196.
    4. Pittman Russell, 2015. "Railways Restructuring and Ukrainian Economic Reform," Man and the Economy, De Gruyter, vol. 2(1), pages 87-107, June.
    5. Florent Laroche & Ayana Lamatkhanova, 2020. "Exploring effects of competitive tender for users in the regional railway market: evidence from Europe," Working Papers halshs-02930832, HAL.
    6. Matthias Aistleitner & Christian Grimm & Jakob Kapeller, 2018. "Auftragsvergabe, Leistungsqualitaet und Kostenintensitaet im Schienenpersonenverkehr. Eine internationale Perspektive," ICAE Working Papers 86, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    7. Tomeš, Zdeněk, 2017. "Do European reforms increase modal shares of railways?," Transport Policy, Elsevier, vol. 60(C), pages 143-151.
    8. Florent Laroche & Ayana Lamatkhanova, 2022. "Exploring effects of competitive tender for users in the regional railway market: evidence from Europe," Post-Print halshs-02930832, HAL.
    9. Fitzová Hana, 2017. "European railway reforms and efficiency: Review of evidence in the literature," Review of Economic Perspectives, Sciendo, vol. 17(2), pages 103-120, June.
    10. Zdeněk Tomeš & Monika Jandová, 2016. "Approaches to Czech Passenger Railway Market Liberalisation [Přístupy k liberalizaci osobní železniční dopravy v ČR]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2016(1), pages 68-81.
    11. Preston, John & Bickel, Charles, 2020. "And the beat goes on. The continued trials and tribulations of passenger rail franchising in Great Britain," Research in Transportation Economics, Elsevier, vol. 83(C).
    12. Pittman, Russell, 2016. "Reforming and Restructuring Ukrzaliznytsia: A Crucial Task for Ukrainian Reformers," MPRA Paper 76028, University Library of Munich, Germany.
    13. Cui, Shana & Pittman, Russell & Zhao, Jian, 2018. "Restructuring the Chinese Freight Railway: Two Scenarios," MPRA Paper 88407, University Library of Munich, Germany.
    14. 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).
    15. Link, Heike, 2019. "The impact of including service quality into efficiency analysis: The case of franchising regional rail passenger serves in Germany," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 284-300.
    16. Laurino, Antonio & Ramella, Francesco & Beria, Paolo, 2015. "The economic regulation of railway networks: A worldwide survey," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 202-212.
    17. McTigue, Clare & Monios, Jason & Rye, Tom, 2020. "The principal-agent problem in contracting public transport provision to private operators: A case study of the UK Quality Contract Scheme," Utilities Policy, Elsevier, vol. 67(C).
    18. Ida, Yoram & Talit, Gal, 2015. "Regulation of public bus services: The Israeli experience," Transport Policy, Elsevier, vol. 42(C), pages 156-165.
    19. Mizutani, Fumitoshi, 2020. "A comparison of vertical structural types in the railway industry: A simple mathematical explanation model," Research in Transportation Economics, Elsevier, vol. 81(C).
    20. Cowie, Jonathan, 2014. "Performance, profit and consumer sovereignty in the English deregulated bus market," Research in Transportation Economics, Elsevier, vol. 48(C), pages 255-262.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:48:y:2014:i:c:p:270-276. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.