Impact of various methods for choosing a railway undertaking: Case evidence from the Czech Republic

Investor logo


Year of publication 2022
Type Article in Periodical
Magazine / Source Case Studies on Transport Policy
MU Faculty or unit

Faculty of Economics and Administration

Keywords Transportation policy Competitive tendering Liberalisation of passenger rail transport
Attached files
Description The liberalisation of passenger rail transport in the EU has brought a procedure (competitive tendering) for choosing a railway undertaking and observing the principles of transparency and non-discrimination. However, the latest experience has shown that this procedure has brought about many problems. Competitive tendering will be the obligatory method for choosing a railway undertaking under the EU regulation from 2023 (with some exceptions). This paper evaluates three methods (direct award, competitive tendering procedure, and direct award with competition) used for choosing a railway undertaking in different circumstances and assesses the EU regulation that specifies a rule for choosing the railway undertaking. Methodologically, the paper is based on four case studies of choosing railway undertaking in the Czech Republic and eight expert interviews with the representatives of railway undertakings and the representatives of public authorities. The results show that competitive tendering is suitable only for long-term simpler services where all necessary requirements are set in the tender documentation, no major changes can be expected during the contract period, and access to rolling stock is non-discriminatory. Direct award with competition is the best method of choosing a railway undertaking for more complex service delivery contracts because it enables PTAs to compare alternative bids, and thanks to cost-plus contracts it enables to respond flexibly to changes in the transport demand during the contract period with the control of costs and price due to the maximum amount of profit. Direct award is the best solution only if public authorities do not expect more bidders.
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.