OPEN ACCESS PROPOSAL THREATENS PROFITABLE HARMONY

In 1995, the Finnish rail network was restructured under the influence of European Union (EU) Directive 91/440. This created the National Rail Administration (RHK) and transformed Finnish State Railways into the VR Group as a profitable commercial company. The VR Group is an operating group with operating and track maintenance subsidiaries. The Finnish Government has now decided to introduce more competition. The author of this article discussed the implications with RHK Director-General O Niemimuukko and VR Group President & CEO H Kuitunen. The new legislation is based on a 1998 report by a working group of Ministry and RHK staff. The report envisages that the change to a totally open rail network for domestic and international freight operations will greatly increase rail's market share of tonne-km from its present value of 25%. Long-distance passenger services are not to be deregulated, but local trains around Helsinki and in rural areas will be franchised on the basis of competitive tenders and specifications issued by local authorities. There will be a considerable increase in government funding of rail network development, with priority being given to electrification and upgrading. 42 double-deck coaches have been ordered to expand capacity for inter city services. The article includes a route map.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03735346
• Corporate Authors:

  Reed Business Information, Limited

  Quadrant House, The Quadrant
  Brighton Road
  Sutton, Surrey  United Kingdom  SM2 5AS
• Authors:
  • Jackson, C
• Publication Date: 1999-6

Language

• English

Media Info

• Pagination: p. 391-3,395
• Serial:
  • Railway Gazette International
  • Publisher: DVV Media Group
  • ISSN: 0373-5346
  • Serial URL: http://www.railwaygazette.com/about-us.html

Subject/Index Terms

• TRT Terms: Competition; Contracts; Deregulation; Federal government; Freight transportation; Interviewing; Legislation; Local government agencies; Networks; Public transit; Railroad transportation; Tenders
• Identifier Terms: European Commission; European Union
• Uncontrolled Terms: Transportation networks
• Geographic Terms: Finland
• ITRD Terms: 137: Bid; 235: Competition; 146: Contract; 144: Deregulation; 8303: EU; 8035: Finland; 741: Goods traffic; 183: Government (national); 9147: Interview; 1556: Legislation; 192: Local authority; 1054: Network (traffic); 744: Public transport; 1173: Rail bound transport; 137: Tender
• Subject Areas: Administration and Management; Freight Transportation; Law; Public Transportation; Railroads;

Filing Info

• Accession Number: 00768662
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD
• Created Date: Sep 10 1999 12:00AM