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1987-1989
 

 Vol. 18 No. 7
 July/August, 1988

Make Tomorrow Happen

European Railways Grapple with Reforms
By Ken Smith
 
 
R.J. Ritchie executive vice-president, Intermodal Freight Systems.
 
 
Hythe England - Just as North American railways have been grappling with regulatory reforms and freer trade, so, too, are the Europeans.
 
By 1992, not only is the new railway tunnel, the Chunnel, expected to be completed under the English Channel but railway rules, standards, and services within the European Community are also expected to undergo substantial changes.
 
The impending regulatory reforms and their impact were the focus of a recent conference here of senior European railway executives. R.J. Ritchie, executive vice-president, Intermodal Freight Systems, was invited to present a Canadian perspective. He was the only North American railwayman present.
 
SIMILAR PROBLEMS
 
Mr. Ritchie told CP Rail News he was struck by how similar European problems are to those in Canada.
 
"They are concerned about improving the quality of services, how to meet growing truck competition, the need for more plant rationalization, and viability and compensation levels for imposed public duties", he said.
 
"You would think you were at home to hear today's Europeans talk about the challenges they have to meet".
 
There are strong parallels between the economic reforms being considered in Europe and the current Canada-U.S. free trade debate in North America, Mr. Ritchie said, adding "the unknowns are similar".
 
"The big difference is that their railways have so much more in the way of passenger services while freight services play a relatively bigger role here than they do in Europe".
 
"But 1992 presents great opportunities for freight railroading in Europe, just as free trade does for us", he said.
 
OPPORTUNITIES
 
The twelve member states in the European Community are wrestling with the prospect of enhancing their current economic ties by removing all non-tariff-related barriers between their individual countries. The removal of the barriers by 1992 will affect the operations of the European railways in providing international services.
 
In addition to the railways of the European Community, those of Austria, Switzerland, and Yugoslavia also will be affected by the wave of regulatory reforms. Representatives of these countries and others in Eastern Europe also attended the conference here.
 
Goods moving between West Germany and Italy, for example, often have to pass through Switzerland and Austria, while those moving over land to Greece, a member of the European Community, have to cross Yugoslavia. Any regulatory changes adopted by the European Community will have to be taken into account by non-member countries.
 
Mr. Ritchie provided the meeting with a detailed overview of the regulatory changes in Canada brought about by the National Transportation Act, 1987. He also outlined some of the competitive forces at work in the Canadian transportation industry.
 
"North America and Europe are not so different that we can afford to lose sight of the ample common ground that we share", he told the conference. "Whether railways are state-owned or investor-owned, they are all struggling to define their contemporary role".
 
"Many of us are grappling with commercial viability, public-interest considerations, service issues, and the need for the equality of treatment for all modes".

 
This Canadian Pacific Railway News article is copyright 1988 by the Canadian Pacific Railway and is reprinted here with their permission. All photographs, logos, and trademarks are the property of the Canadian Pacific Railway Company.
 
 
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