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.
|
|