Post on 20-Mar-2020
Swedish rail liberalisation and sector
development
- past, present and future Dr. Gunnar Alexandersson
Stockholm School of Economics
Ministry of Enterprise, Energy &
Communications
30 May 2013
Outline of presentation
• Brief history of rail liberalisation
• The current structure
• Effects and market development
• The new Government review of the
organisation of the railway sector
Brief history of rail liberalisation and
other (de)regulatory reforms
Pre-history
1960s-1980s: A period of decline and increasing
financial problems for the Swedish State
Railways (SJ)
- line closures
- operating subsidies introduced
- additional state grants needed
1985: New Railway Law:
- the State took additional responsibility for rail
infrastructure
- SJ to separate its accounts
- track access charges introduced
1986: SJ in severe financial crisis; need for 1
billion SEK in additional grants
1988: New Transport Policy Act
Evolution of rail liberalisation (1)
1988: Vertical separation of track infrastructure
(Banverket) from operations (SJ)
Decentralisation of responsibility and resources to regional authorities
1990: First tenders for regional services
1993: First tenders for interregional services
1996: Deregulation of freight services
1998: More functions taken over by Banverket
2000: Break-through for new entrants in several tenders
2001: Separation and corporatisation of SJ’s divisions
Business
Administration SJ
Green Cargo
Banverket
SJ Ltd
Jernhusen
EuroMaint
SweMaint
Unigrid
TraffiCare
ASG
Swebus
Scandlines
Royal Viking Hotel
Traffic Restaurants
1988 1996 1995 2000 2001
Separation and divestment of SJ
Public sector
Private sector
Evolution of rail liberalisation (2)
2004: Swedish Rail Agency is established
2006: Market opening for night trains and chartered
trains
2009: Jan Swedish Transport Agency is formed (out
of several other authorities) with multi-
modal regulatory responsibilities
June Market opening for weekend traffic (rest
capacity)
Oct Market opening for international
passenger services (to comply with EU directive)
Evolution of rail liberalisation (3)
2010: Jan Banverket’s construction and
maintenance unit is separated and
corporatised (Infranord)
April Banverket is merged with the Road
Administration to form Trafikverket - the
Swedish Transport Administration (a multi-
modal infrastructure manager)
Oct Market opening for domestic passenger
services, with full effect from Dec 2011
2012: New law on public transport
Current structure
Overview of regulatory structure
Rolling stock manufacturing
SJ ASEA
Train operation
Swedish railway market 1988 P
asse
nge
rs
Fr
eigh
t
IT services
Pas
sen
gers
Frei
ght
Swedish railway market 2013
Real estate management
Rolling stock manufacturing
Rolling stock management
Licenses, safety, market monitoring
Infrastructure management
EuroMaint Rail Bombardier DSB Vedligehold Midwaggon
Jernhusen Train Alliance (A-train, in-house) (SL, in-house)
SJ Veolia DSB DB A-train NSB/Tågk.
EuroMaint Rail Motala Trains MiTrans
Bombardier Alstom Stadler Siemens Ansaldo
Transitio SL SJ NSB DSB TÅGAB
Regional public transport authorities
IBAB Green Cargo Hector Rail TÅGAB CargoNet TX Logistik
AlphaTrains Mitsui Railpool Hector Rail Green Cargo CargoNet
InfraNord Balfour Beatty Strukton VR Track Baneservice
Infrastructure maintenance
Planning and tendering of public
transport Train operation
Swedish Transport Administration
Swedish Transport Agency
Cleaning
Rolling stock maintenance
Financing
Consultancy services
Rolling stock refurbishment
Mantena Alstom Motala Trains mgw Service
Bombardier DSB Vedligehold
Platforms
Railway tracks, main lines
Depots
Freight terminals
Par-king
Stations
Par-king
Shelf parking
13 Additional complexity when comparing
main system with sideline system
Experience and effects
Rail infrastructure investments and
maintenance
0
50
100
150
200
250
300
350
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Sta
te g
ran
ts t
o r
ail
in
frastr
uctu
re i
nvestm
en
ts a
nd
main
ten
an
ce;
ind
ex (
1989=
100)
Market development
0
20
40
60
80
100
120
140
160
180
200
Ind
ex (
19
88
=1
00
)
Passenger traffic (passenger km)
Freight traffic (tonne km)
Source: SIKA/Trafikanalys
Market development and new
entrants - passenger
0
2000
4000
6000
8000
10000
12000
Pas
sen
ger
traf
fic
(mili
on
pas
sen
ger
km)
SJ Other companies
Market development and new
entrants - freight
0
5000
10000
15000
20000
25000
Fre
igh
t tr
affi
c (m
illio
n t
on
ne
km
)
SJ Gods/Green Cargo Other companies
Subsidy effects from tenders
Lines procured by CPTAs (regional lines) Tender
No.
Year Subsidy effect
Network in county of Jönköping etc 1 1989 -21%
2 1993 -25%
3 1997 Minor increase
Ystad-Simrishamn 1 1995 -18%
2 1998 -10%
Herrljunga-Hallsberg 1 1994 -10%
2 1999 -3%
3 2002 Minor increase
Borlänge-Malung 1 1991 n.a.
2 1994 -20%
3 1996 Minor
Uppsala-Tierp 1 1991 n.a.
2 1999 -20%
Stockholm, commuter trains 1 1998 -32%
2 2005 +10%
Lines procured by the state (interregional lines) Tender
No.
Year Subsidy effect
All lines 1-2 1992-93 -21%
3-6 1994-98 No increase
7 1999 -28%
Northern trains 7 1999 -20%
10 2002 -42%
Capacity Constraints 2010
Track Access Charges
0
200
400
600
800
1000
1200
1400
1600
1800
2000
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
To
tal tr
ack
fees
, 200
9 p
rices
(m
illi
on
SE
K)
Source: Banverket/Trafikverket
Forecast
New Government review of the
organisation of the railway sector
Government decision 8 May 2013
• An appointed investigator is to make a
review of the organisation of the railway
sector
• The aim is to come up with suggestions
for improvement to address future
demands on efficiency and sustainability
A two-step approach
• Description of current organisation
• Analysis of how the organisation can be
improved
Ready Oct 2013
Following from
subsequent directives
Directives for step 1
• Using a functional description of the
railway system in order to show the
division of responsibilities and tasks among
different actors
• Describing the organisational develop-
ment since 1988, including motifs and an
explanation of concepts
• Mapping relevant EU law and the room
for national decision-making
• Making an inventory of potential areas of
improvement
• Deadline: 15 October 2013
Thank you!