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"BDZ - Passenger Transport" remains a monopolist on the market for at least another year At the end of last year, PIMK Rail Express became the first company to officially receive a license for a private passenger rail carrier. To a large extent, at the moment, however, there are neither conditions nor a legal basis for private rail transport to start. BDZ's monopoly in the passenger transport sector is coming to an end, although it is not yet entirely clear when exactly it will come. According to "BDZ Passenger Transport", there are currently no more than 12 profitable railway routes in the whole country, with 5% of the lines generating up to a third of the revenue, which turns the passenger transport market into a not particularly attractive territory for private investors. One option is for the state to bundle the new companies in the sector with a profitable line along with several smaller ones that are more difficult to generate profit. The so-called "package option" (which several Eastern European countries such as the Czech Republic and Romania have already implemented) would only be possible if the sector were subsidized for all loss-making lines. The subsidies (which currently only BDZ can receive) are part of our country's commitments to the European Commission through the National Recovery and Sustainability Plan. This should happen next year with the new contract for the public passenger service, which will run until 2039. Thus, in practice, by the end of 2024, the Ministry of Transport will have to launch a public procurement for passenger transport, in which any company with a license for such transport on railway lines will be able to participate. At the moment, there are 18 companies in our country with a license for freight rail transport and only one for passenger transport, but in the first months of this year, at least 2 more companies are expected to officially enter the segment. In practice, the key to the liberalization of this market remains with the rulers, who have to pass laws concerning the regulations for obtaining a subsidy. There is another dimension to the change in the way railways operate. At the moment, all stations, depots and objects serving passenger transport are under the management of the state company. In order to operate, private carriers would need to be able to lease or lease from the Ministry of Transport such mission-critical infrastructure, which could further delay the entry of private carriers.

 

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