Long-distance cross-border rail services play a key role in creating a sustainable transport offer and in connecting people across Europe. This has raised the question to which extent charges can be used to support the development of these services. This summary presents the key findings of a PRIME study, carried out in 2022, on long-distance cross-border passenger services, which analysed and compared services in the different networks with regards to the market segment they are allocated to and the elasticities and the ability to bear these services show.
Main findings show that:
- Infrastructure managers do not differentiate between national and cross-border services as such, but consider other aspects in their approach for charging direct cost and mark-ups.
- For railway undertakings charges for long-distance cross-border passenger services reflect a significant cost component, on top of other additional efforts that result from international services.
- To promote long-distance cross-border passenger services, new charging approaches (e.g. newcomer discounts, promotional rates for underutilised lines etc.) can be considered, and are partly already put into practice.
- Current systems of market segmentation and differentiation of track access charges seem to leave room for further promotion of cross-border services. At the same time, track access charges are part of the sustainable business model of infrastructure managers, and other funding sources need to balance the loss of income in case charges are reduced and used as a promotion instrument.