Ove Dahl Kristensen
May 18, 2025
Rewriting the rules of the rail market: Lessons from 11 paths to liberalisation
Rail is at the centre of Europe’s mobility ambitions — and its regulatory dilemmas. As passenger demand grows and climate targets tighten, governments are being asked to reform how rail is structured, funded, and operated. But beneath the surface of EU directives lies a much more complex and human reality: no two markets are alike, and liberalisation is not a copy-paste exercise.
This challenge formed the basis for a recent benchmarking study commissioned by the Finnish Ministry of Transport and led by Ove Dahl Kristensen, a senior engineer at Ramboll. The study examined how eleven countries across Europe have approached rail liberalisation — and what practical lessons can be drawn from their paths.
“There’s a myth that liberalisation is about letting go. In reality, it’s about redesigning the rules to serve passengers better.”
One market, many models
The EU’s Fourth Railway Package requires member states to open their rail markets to competition, but the form this takes varies widely:
- In Sweden, open access passenger rail has created a relatively competitive landscape, especially on intercity routes.
- Germany relies heavily on regional tendering and gross-cost contracts, maintaining a balance between market exposure and public control.
- France has cautiously opened parts of its market, but the state incumbent still dominates in most areas.
Each example illustrates that liberalisation is as much about local context as it is about legal compliance. Some countries have leaned into open access, while others have prioritised service contracts, depending on the size of the market, geography, and political appetite.
Key lessons for smarter market design
The findings distilled from the study offer insights for any government seeking to balance market openness with public value:
- Tailor liberalisation to national geography and policy goals — there is no single “EU model.”
- Focus on contract design and accountability — incentives matter more than ideology.
- Don’t overlook the role of public operators — reform doesn’t mean removal.
- Invest in capacity, data, and regulatory tools — liberalisation requires ongoing stewardship.
These lessons are particularly relevant for smaller markets, where full open access may not yield effective competition, but where smart contracting can still deliver efficiency and quality.
From benchmarking to strategy: Understanding the full picture
This work underscores the importance of bringing multiple perspectives together: understanding the technical complexity of rail operations, the expectations of passengers, and the governance and political realities that shape national transport systems.
Liberalisation efforts that don’t engage with all three dimensions risk being either too narrow to be effective or too rigid to be implemented.
The bigger picture: Reform with purpose
Liberalisation is not a purely economic or legal exercise. It’s a question of public purpose — of ensuring that rail continues to deliver environmental, social, and economic value in a rapidly changing world.
Done well, reform can unlock:
- Better performance through smarter incentives
- More innovation through supplier diversity
- Greater resilience through system accountability
- Higher trust through public value and transparency
“We’re not just managing trains. We’re managing trust in the system. That’s what passengers, operators, and governments all rely on. Liberalisation is not about stepping back. It’s about stepping forward — with clearer expectations, stronger tools, and a deeper understanding of what public transport is for.”
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Ove Dahl Kristensen
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