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Competitive Tendering of Rail Services

image of Competitive Tendering of Rail Services

Competitive tendering provides a way to introduce competition to railways whilst preserving an integrated network of services. It has been used for freight railways in some countries but is particularly attractive for passenger networks when subsidised services make competition between trains serving the same routes difficult or impossible to organise. This report examines experience to date from around the world in competitively tendering rail services. It seeks to draw lessons for effective design of concessions and regulation from both the successful and less successful cases examined. The work is based on detailed examinations by leading experts of the experience of passenger rail concessions in the United Kingdom, Australia, Germany, Sweden and the Netherlands.  It also draws on examples of freight rail concessions in Latin America.

English French

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The pitfalls in competitive tendering: addressing the risks revealed by experience in Australia and Britain

European Conference of Ministers of Transport

The objective of this paper is to analyse policy and experience with competitive tendering. The context of this review is the European Commission's proposal to revise Regulation 1191/69, which sets out the terms for public service provision. The proposal would require compulsory competitive tendering wherever public transport receives subsidy or has exclusive operating rights (ECMT 2005, p. 54). This paper seeks to provide insight into competitive tendering and to highlight tendering designs that undermine the tendering objectives. My focus is on passenger rail franchising models and experiences in Britain and Australia.

English French

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