Particularly as political decision-makers have failed to provide the impetus needed for competition to develop successfully, competition in the passenger and freight transport markets is developing only slowly. The subsidiaries of Deutsche Bahn AG continue to hold very dominant positions in all sub-markets. In general, the Monopolies Commission assesses the level of competition and the existing framework conditions in rail transport as unsatisfactory. In its report, the Monopolies Commission highlights where decisive action is needed to move closer to the goal of effective competition and an attractive rail transport offering for the benefit of consumers.
In the Monopolies Commission’s view, the regulatory framework has significant shortcomings. It therefore continues to call for the prompt introduction of incentive-based regulation, which would suitably complement the existing performance and financing agreement. This would ensure that the infrastructure is managed more efficiently, thereby reducing infrastructure costs and charges. Furthermore, the infrastructure operator’s statutory obligation to provide transparent information on infrastructure utilisation and condition should be amended. In addition, more comprehensive and clearer guidelines are needed for access to service facilities such as marshalling yards or maintenance facilities. In order to foster competition in long-distance transport as well, the regulations governing the conclusion of long-term framework agreements should be revised. These and other proposed measures can help to limit existing inefficiencies and potential for discrimination.
It must be noted that significant competition problems are directly attributable to the integrated structure of the industry leader, Deutsche Bahn AG, and result from its ability and incentives to disadvantage competitors in the transport markets when it comes to the use of the rail network, stations and other facilities. The Monopolies Commission therefore regards the immediate and complete institutional separation of Deutsche Bahn AG’s infrastructure and transport divisions as a key prerequisite for the successful development of competition in the rail sector. To this end, the group’s transport companies should be privatised in terms of ownership, whilst the infrastructure companies should initially remain under state control.
The conditions governing the supply of electricity to rail transport companies represent a major obstacle to competition. As it remains unclear whether a recent landmark ruling by the Federal Court of Justice on the regulation of transmission charges for traction current will resolve the problems relating to energy supply, the Monopolies Commission recommends adapting the provisions of energy law to the requirements of the rail sector. To this end, specific railway load profiles should be applied for railway undertakings.
The Monopolies Commission has found that the Federal Railway Authority’s procedural processes constitute significant obstacles to the efficient operation of rail services, and has identified necessary measures to improve communication with railway undertakings. Due to fundamental shortcomings in the existing regulatory framework, the Monopolies Commission recommends examining the possibility of transferring certain tasks of the Federal Railway Authority to private-sector supervisory bodies.
The Monopolies Commission welcomes the Federal Government’s fundamental decision to enable commercially viable long-distance bus services in Germany; however, it takes a critical view of the restrictions on market liberalisation associated with the planned licensing requirement.
