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

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