RESTRUCTURING SWEDEN'S RAILWAYS: THE UNINTENTIONAL DEREGULATION

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Abstract

In 1988, Sweden made a vertical cut in its nationalised railway monopoly; since then, infrastructure is handled by a public-sector agency while trains initially were run by a government-owned monopolist. This paper seeks to describe this reorganisation, the subsequent process towards free entry and competition in parts of the sector and the consequences of these changes. It is argued that the policies have not focussed (ticket) prices and competition issues and rather been directed towards the sectors inability to recover costs, which seems to be a Europe-wide phenomenon. Some recommendations for further changes of the industry are suggested.

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References

2002Towards a welfare enhancing process to manage railway infrastructure access

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2008The Benefits for Rail Freight Customers of Vertical Separation and Open Access 2011Liberalization and regulatory reform of network industries: A comparative analysis of Italian public utilities 2007Deregulation of railroads and future development scenarios in Europe: analysis of the privatisation process taken place in the USA, the UK and Sweden

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