Competition believes that the train liberalization approved by the government is insufficient

The National Commission for Markets and Competition (CNMC) has published a document stating that the liberalization of rail transport should be extended to routes with the highest demand, such as Madrid-Barcelona or Madrid-Sevilla. The Government has approved a transitional process in which for the moment there will only be competition for Renfe in the AVE corridor to Levante.

 

The report on the process of passenger rail liberalization published by the recommends that the geographic scope of the enabling title should be as broad as possible to allow operators to operate in the widest possible area;The authorizing title should be "as wide as possible" so that operators can benefit from the advantages derived from the extension of the territory.

Competencia understands that the progressiveness of the liberalization process proposed by the Ministry of Public Works should contemplate the opening of a number "defined and known" of corridors that guarantees a "greater legal certainty for operators".

According to the process of “progressive” opening to competition of the train approved by the Council of Ministers, Renfe sówill only have one private competitor and only on one AVE line for at least the next seven years.

The Planeta group, Globalia, the construction companies ACS, Ferrovial, Acciona and Comsa, and the bus transport companies Alsa and Arriva-DB are among the potential operators that may enter to compete with Renfe in passenger transport by train in the AVE to Levante corridor. These are the trains linking Madrid with Cuenca, Albacete, Valencia, Alicante, Murcia and Castellón.

Among the proposals of the CNMC is also the publication of a calendar indicative, to avoid an "excessive prolongation in the time of the process". In addition, the agency indicates that Renfe should adapt to the new regulatory framework and "take advantage of the liberalizing momentum to accelerate its internal adaptation and restructuring, in order to be more efficient in the provision of services".

This process should in turn be accompanied by greater transparency in its accounting to eliminate incentives for cross-subsidization and coupled with a more transparent accounting system;n of cross-subsidies and coupled with "a process of eliminationó n of privileges that may favor Renfe-Operadora over new entrants".

Also, the CNMC advocates its disassociationón with the Ministry of Public Works and the infrastructure manager, ADIF, to "reinforce the credibility of the system", so it advises the "separationón and disassociationón" of these activities of Renfe, preferably through its privatization by a competitive process, in order to guarantee a "real access" of the new operators to the related markets of rolling stock and its maintenance in order to eliminate the entry barriers to those markets.