The reform of passenger rail in Switzerland: More performance without competition

The Swiss railway system is known for its high quality of service and integration in a particularly dense public transport system. People are generally less aware of ongoing institutional reform. This article strives to shed light on passenger transport reform, and more particularly on regional traffic. Which institutional frameworks are implicated? What have been the results obtained both for public finances and for travelers? What are the key elements for explaining recorded performance gains? What lessons could be drawn for railway reform? In summary, it appears that improved performance has been possible in Switzerland even in the absence of competition. These improvements are due to the nature of public governance and its impact on the various stakeholders. Public authorities have imposed ambitious but negotiated targets on operators, coupled with severe financial constraints, in a context of decentralization of public procurement. Given this new institutional framework, railway companies and especially the former state-owned railway, the national incumbent SBB have achieved significant productivity increases through management and technical innovation. Client satisfaction, at the heart of the reform, also contributes to these successes.