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Journal of Competition Law and Economics Advance Access originally published online on October 23, 2007
Journal of Competition Law and Economics 2007 3(4):673-687; doi:10.1093/joclec/nhm028
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Published by Oxford University Press (2007). For Permissions, please email: journals.permissions@oxfordjournals.org

COMPETITION IN FREIGHT RAILWAYS: "ABOVE-THE-RAIL" OPERATORS IN CENTRAL EUROPE AND RUSSIA

Russell Pittman *, Oana Diaconu **, Emanual Sip §, Anna Tomová {dagger} and Jerzy Wronka {ddagger}

The railways of Russia and the Central and Eastern European countries are in the process of restructuring. In most cases, the "vertical separation" reform model is being pursued, and reformers are seeking to introduce competition among freight train operators through the provision of "open access" to the monopoly infrastructure. This paper shows that, in two countries, Poland and Romania, a good deal of competition has been created by the entry of new freight operators, many of them either large shippers integrating upstream or former freight forwarders. However, in other countries, the incumbent freight operators retain virtually 100 percent of the market. In particular, Russia has taken only the very first steps toward creating competition in this sector, and new freight train operators face significant barriers to competing with the incumbent.

* Director of Economic Research and Director of International Technical Assistance, Economic Analysis Group, Antitrust Division, U.S. Department of Justice, and Visiting Professor, New Economic School, Moscow; E-mail: Russell.Pittman{at}usdoj.gov.

** Assistant Professor, Department of Economics and Management, Polytechnic University of Bucharest; E-mail: Diaconu.Oana{at}gmail.com.

§ Special Advisor, Viamont, a.s.; E-mail: Sip{at}alliproc.com.

{dagger} Professor, Faculty of Operation and Economics of Transport and Communications, University of Zilina; E-mail: Anna.Tomova{at}fpedas.utc.sk.

{ddagger} Professor in Economic Sciences, University of Szczecin; E-mail: Jerzywronka{at}wp.pl. Some of the results here were presented at the 4th Annual Conference on "Railroad Industry Structure, Competition and Investment," Universidad Carlos III de Madrid, October 2006.


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