In The Netherlands and in most European countries the market for rail services is organized as a regulated monopoly. The European Union aims at more competition in the rail market. To give the Dutch Railways the opportunity to compete in the new rail market the relationship between the government and the railway company should be reconsidered. Recommendations are given by a state committee for re-regulating the rail market. These recommendations are further developed by the projectgroup MOVER. Besides the Dutch Railways other companies should be allowed to supply train services. Certain services make no profit; the market will not support these services. Governments have to take the responsibility to finance these services if these services are considered to have any social value. This paper discusses the question whether there will be any potential entrants in the market for train services and under which conditions the entrance to the market will be successful. It is concluded that there will be more competition in the rail market for goods than for passengers.
Abstract