Crackdown on EU state aid to boost UK railfreight
In a new statement issued at the end of April, the EU Commission made it clear for the first time that unlimited state guarantees, still being offered in some states to their incumbent railways, are clearly state aids. They insist that any railway operator in a competitive market should no longer receive support that goes against the spirit of the EU’s Rail Freight Directives aimed at achieving an open, efficient and competitive pan-European railfreight system.Derrick Potter, a board member of The Rail Freight Group and executive chairman of The Potter Group, endorsed RFG chairman Tony Berkeley’s comments. "These new guidelines are good news for the UK rail freight industry who are fighting the effects of current state aids, be they unlimited financial guarantees, writing off debt or aid for restructuring. Such support continues to provide many EU state concerns with an unfair advantage over those operating in the private sector and delays the EU’s commitment to a level playing field."
Derrick Potter explained further: "A recent report, ‘Successes and Lessons in Rail Liberalisation in the UK’ sponsored by the UK Rail Freight Group, concluded that the creation of an open and competitive market has made the UK sector an example of success for other EU states to follow. The total amount of freight moved on rail has grown by more than 60% over the past decade, now running 12.6% of all freight moved.
The UK has seen Rail Freight grow faster than in any other EU state during this period, playing a positive role in both the growth of the economy and towards an improved environment. Our success is down to an industry that has been privatised for nearly 15 years and in which the private sector has invested more than £1.5bn, creating an efficient, productive and cost-effective system, working to complement road and sea freight."
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