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EVES-Rail study: Economic Effects of Vertical Separation in the rail sector

In order to assess the economic effects of vertical separation, the CER commissioned a study conducted by an international consortium. The study was led by inno-V, and included researchers from the universities of Leeds (GB), Kobe (Japan) and Amsterdam (NL) as well as experts from civity.

What are the consequences of separating operations and infrastructure? Is any particular model superior to others?

Rather than relying on a single methodological approach the study brings together several approaches and lines of evidence such as econometric analysis, qualitative research and practical experience.

The key findings are

  • Substantial country differences within the EU call for a differentiated approach rather than a one size-fits-it-all model
  • No structural model outperforms all others and competition within the railway sector does not seem to work better with vertical separation than with a holding company
  • In the case of separation, coordination mechanisms are needed to overcome misalignment throughout the value chain

More information can be found on the CER website.

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