{"id":258171,"date":"2025-07-28T20:15:39","date_gmt":"2025-07-28T10:15:39","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=64562"},"modified":"2025-07-28T20:15:39","modified_gmt":"2025-07-28T10:15:39","slug":"kpmg-study-vertically-integrated-undertakings-contribute-to-uneven-playing-field","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=258171","title":{"rendered":"KPMG study: \u2018Vertically integrated undertakings contribute to uneven playing field\u2019"},"content":{"rendered":"

The largest railway undertakings (RUs) in Europe are part of state-owned holdings, both for freight and passenger services, despite both markets being open to independent operators. A new study published from the European Commission (EC) and consulting giant KPMG shows that a reason behind this might be the structure of these public groups, which leaves too much room for unfair competition.<\/strong>
\n<\/span>The study focussed on vertically integrated rail undertakings (VIUs), which are corporate structures where a single entity controls both the infrastructure manager (IM) and one or more RUs. \u201cThe frequency and persistence of these issues (editor\u2019s note: distorted competition and discriminatory practices) suggest that VIUs create an environment where such practices can emerge\u201d, the study concluded.<\/p>\n

\u201cA recurring feature in 7 of the 11 VIUs is intra-group financing, where dedicated subsidiaries or parent companies\u201d, the study said, raises concerns over unfair competition. This has already led to rail freight reforms in some countries, but many call for a full unbundling to enhance competition. Out of the 11 VIUs analysed, only Austria, Slovenia, Ireland, and Hungary don\u2019t have an active debate on restructuring.<\/p>\n