Financial relations between European railways for their international services

Abstract

The operations of European railway companies are generally confined to the territory of one country. Each company incurs the cost of operations on its network. For international trains there are systems of physical compensation for vehicles and staff operating outside their home network. Revenues either go direct to each company involved, or, in the case of through international rates, are apportioned according to distance. This situation implies that for any decision on price and services agreement of all operators involved is necessary. Also, the apportionment of costs between operators is not in line with real cost structure. With further integration in the European community, and freer movement between Eastern and Western Europe, international transport will become more important, and railways will be at a disadvantage compared with other modes that can operate international services throughout. An organisation is proposed and illustrated with some examples, wherein separate commercial units are formed responsible for running and marketing an international rail service. Track, vehicles, and staff of national railway companiew may be used as now, but at a price to be agreed, and without the need for physical compensation.