{"id":9855,"date":"2024-02-08T23:36:38","date_gmt":"2024-02-08T13:36:38","guid":{"rendered":"https:\/\/www.vibewire.com.au\/?p=9855"},"modified":"2024-02-08T23:36:38","modified_gmt":"2024-02-08T13:36:38","slug":"spains-transport-minister-current-market-opening-model-benefits-anything-but-free-competition","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=9855","title":{"rendered":"Spain\u2019s Transport Minister: Current market opening model \u201cbenefits anything but free competition\u201d"},"content":{"rendered":"<p>Spain is portrayed by some as an example of the benefits of passenger rail opening in Europe, with passenger ridership on the high-speed network having grown since the entry of the competing state-owned or state-backed operators.<\/p>\n<p>However, Spain\u2019s new centre-left Transport Minister \u00d3scar Puente recently said in parliament that this liberalisation model \u2013 in which only state incumbents compete with each other \u2013 has <em>\u201c<\/em>damaging effects\u201d because their losses will \u201chave the cushion of the state to cover them\u201d<strong>.<\/strong><\/p>\n<p>Mr Puente\u2019s remarks confirm that the liberalisation model in Spain is not sustainable. There must be a better solution.<\/p>\n<p><strong>How did this happen?<\/strong><\/p>\n<p>Several years ago, the infrastructure manager ADIF devised a system of \u2018market opening\u2019 where operators had to bid for large, inflexible packages and bring their own rolling stock within a comparatively short time frame.<\/p>\n<p>In effect, this opened the market only for those operators with large amounts of state-backed funding, for example, to finance the rolling stock.<\/p>\n<p>The result: the only new competitors to Renfe are operators owned or controlled by the French and Italian state-owned rail incumbents SNCF and FS.<\/p>\n<p>Spain\u2019s transport minister \u00d3scar Puente stated that while this model had brought \u201ca significant reduction in ticket prices\u201d it had also caused \u201cdamaging effects.\u201d<\/p>\n<p>\u201cThese companies in the end make (financial) losses based on taking decisions \u2026 but then these losses have the cushion of the state to cover them. This is something that, I believe, benefits anything but free competition\u201d.\u00a0<\/p>\n<p><a href=\"https:\/\/www.allrail.eu\/\">ALLRAIL<\/a> agrees with Mr Puente. They believe that Spain\u2019s market opening is financed by:<\/p>\n<p>French and Italian implicit state guarantees on the debt of their state-owned operators,\u00a0as acknowledged by rating agencies in public.<br \/>\nFrench and Italian taxpayers covering the deficits of their incumbents\u2019 subsidiaries in Spain \u2013 which qualifies as State Aid.<\/p>\n<p><a href=\"https:\/\/www.allrail.eu\/\">ALLRAIL\u2019s<\/a> Spain spokesperson Marc Planas Blanco says: \u201cWe call for a better solution in Spain, that creates the market conditions to attract passengers and private investment while reducing the burden on the taxpayer.\u00a0<\/p>\n<p>Such as: smaller, more demand-responsive packages and the same non-discriminatory access to loans from the European Investment Bank as\u00a0<a href=\"https:\/\/b5cch.r.a.d.sendibm1.com\/mk\/cl\/f\/sh\/1t6Af4OiGsEagCY4DlsYeUxwKO0yYA\/2SYa9PbSrgiH\">Renfe<\/a> and\u00a0<a href=\"https:\/\/b5cch.r.a.d.sendibm1.com\/mk\/cl\/f\/sh\/1t6Af4OiGsF30ukUc7yTol1liCziGE\/LbzUnqNCFPgT\">FS<\/a> have received. Otherwise, it is certainly not a role model for the rest of the <a href=\"https:\/\/european-union.europa.eu\/index_en\">EU<\/a>.\u201d<\/p>\n<div class=\"box\">\n<p><strong>More Like This<\/strong><\/p>\n<h3><a href=\"https:\/\/www.globalrailwayreview.com\/news\/160551\/hs2-transport-north\/\">Stopping HS2 at Birmingham a \u2018missed opportunity for the North\u2019 \u2013 Transport for the North Chair<\/a><\/h3>\n<h3><a href=\"https:\/\/www.globalrailwayreview.com\/news\/160515\/amtrak-tunnel\/\">Amtrak awards contract for new Frederick Douglass Tunnel<\/a><\/h3>\n<h3><a href=\"https:\/\/www.globalrailwayreview.com\/news\/160291\/northern-trains-apprentice\/\">Northern Trains offer life skills to even more railway apprentices<\/a><\/h3>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Spain is portrayed by some as an example of the benefits of passenger rail opening in Europe, with passenger ridership on the high-speed network having [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":9856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[32,47,488],"tags":[],"class_list":["post-9855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","category-rail-news","category-railway-stations"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/9855","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9855"}],"version-history":[{"count":0,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/posts\/9855\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=\/wp\/v2\/media\/9856"}],"wp:attachment":[{"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vibewire.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}