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Finnish railway deregulation: An analysis of the possible outcomes of open access competition in the long-distance passenger market

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School of Business | Bachelor's thesis

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en

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59 + 5

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Objectives The objective of the research is to examine possible outcomes of competition in the open access long-distance passenger rail market and in doing so qualitatively consider the possible impacts of opening the market. Summary Firstly, a comprehensive analysis of the Finnish rail market and the current deregulation process is conducted. Primary data is collected through interviews with managers of various organizations operating within the railway sector forming the basis of the analysis while secondary data is used to gain an understanding of events in the deregulation process. The future studies approach introduced the use of the scenario methodology as a way to explore potential future outcomes in the market. Lastly, the domestic topic is tied to an international context through the comparison of the scenarios with market developments in comparable European countries. Conclusions The research presents the following three scenarios outlining how competition may play out in the market: 1. No challenger enters the market and VR will continue to operate as the sole provider of passenger rail services. 2. The challenger and VR engage in competition on the rails on select routes between major cities. 3. The challenger competes against VR using some sort of route network. A) The challenger operates a hybrid network of train and bus services B) The challenger wins the tendering of commuter services in the Helsinki region.

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Warhurst, Russell

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