Today, policymakers and industry gathered at the European Parliament for the Rail Forum Europe event, “Opening regional rail transport to competition: implementation, benefits and challenges.”
New evidence from the Czech Republic shows why this debate matters. Competitive tendering of rail Public Service Obligation (PSO) concession contracts is delivering clear, measurable benefits for both taxpayers and passengers.
Lower costs through competition
Recent Czech rail tenders demonstrate that competition significantly reduces operating costs. In several cases, the price per train-kilometre fell compared with previous arrangements.
One tender achieved savings of 42.8 CZK (€1.7) per train-kilometre, while others reduced costs by 17 CZK (€0.7) and 8.2 CZK (€0.3).
Major savings for public budgets
Across multiple competitively tendered services, total savings for public authorities range from 1.31 billion CZK (€52 million) to 5.49 billion CZK (€218 million).
Better trains for passengers
These savings go hand in hand with improved service quality, including new trains with ETCS, Wi-Fi, air conditioning and step-free access.
A clear policy lesson
Competitive tendering drives efficiency while accelerating investment in modern rail — delivering better value for taxpayers.
“The Czech example shows that transparent competitive tendering can simultaneously reduce costs, modernise fleets and improve the passenger experience. It is a role model for other countries.”
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