The roadmap for the entry of private competition in AVE

The National Commission for Markets and Competition (CNMC) has approved the participation of private operators in passenger transport for AVE and Long Distance services. On the other hand, Renfe will maintain the monopoly of the Cercaní and Regional trains until 2027.

Competencia has given the green light for private operators to pick up and drop off passengers at different stations in the same state despite the fact that, ultimately, their service is a cross-border route, according to Europa Press.

For example, companies offering routes between Spain and France via the Madrid-Barcelona AVE line and its cross-border connection under the Pyrenees and Spain and France via the Madrid-Barcelona AVE line and its cross-border connection under the Pyrenees;The cross-border connection under the Pyrenees could market tickets to travel between intermediate cities on the route, for example, between the capital and Barcelona, or on the Madrid-Tarragona or Zaragoza-Barcelona routes, among others.The CNMC requires the new operator to comply with a series of conditions, such as the fact that at least 30% of all passengers carried must have an international origin or destination. In addition, 20% of the routes they offer must run outside Spanish territory.

The regulatory body recalls that this regulation does not mean the opening to competition of passenger transport by train in Spain, that the Government has already assured that it will take place in 2020, in line with the deadlines set in European directives for all EU countries. The CNMC should also verify that there is a potential passenger demand for international transport to be offered depending on the cities it connects and the supply of other modes of transport.

With regard to Cercanías y Regionales, Renfe couldá continue with its monopoly one day more. In return, the company will have to invest in the facilities and the train fleet of such public services. In fact, it is already working on a plan to purchase and upgrade conventional trains.

European directives on rail liberalization set 2020 as the deadline for EU countries to open up rail passenger traffic to competition. However, in the case of public rail services (suburban and regional), they allow for a transition period to be applied.