Volume 3: Assessment of the European Commission's Third Railway Package: Proposed Regulation of Freight Quality

Mon Nov 22 15:24:38 EST 2004
By Michael Spackman et al.

In 2004 NERA was commissioned by the UK Department of Transport to assist in assessing the impacts of the four proposed items of European Union legislation known as the Third Railway Package. NERA's role was to prepare the evidence base, including quantified costs and benefits of the proposed legislation and alternative options, which would allow the Department to prepare a fully costed regulatory impact assessment of the Package.

The resulting report consists of four volumes, one for each proposal, as follows:

  • Volume 1: A draft Directive concerning opening the market for international passenger services by rail;
  • Volume 2: A draft Regulation setting out the rights and obligations of international rail passengers;
  • Volume 3: A draft Regulation on contractual quality and compensation requirements for rail freight services; and
  • Volume 4: A draft Directive on train driver licensing.

This third volume concerns the quality regulation of rail freight services, including specified minimum levels of compensation for delays and cancellations. The UK rail freight market is fully liberalised and, though it is difficult to quantify the impact of this proposal, NERA argued that in these circumstances the costs of imposing this form of quality regulation is likely to exceed the benefits to customers.

Visit the website for the UK Department for Transport to learn more.