Dutch Government wants to liberalise rail transport and open international routes (except Brussels) to competition

The Dutch government is progressing with railway market liberalisation, with the National Railway Company of the Netherlands (NS) set to lose its monopoly on international routes.

Negotiations between NS and the Ministry of Infrastructure and Water Management have resulted in a new concession, allowing NS to maintain almost all domestic rail operations except for international routes such as London, Paris, and Berlin. Starting in 2025, NS will no longer have exclusive rights to these international destinations, except for Brussels.

Other transportation companies, including Arriva and Qbuzz, are anticipated to benefit from this shift, as they have submitted applications to operate trains on routes like Paris and Berlin.

A significant development in the new contract is the potential introduction of a rush hour charge. NS has been advocating for this for some time, aiming to raise prices during peak hours to alleviate congestion and increase revenues. NS has noted overcrowding during rush hours and underutilisation during off-peak times.

The new concession, effective from 2025 to 2033, also incorporates two measures to boost NS’s income. NS will be permitted to raise ticket prices by 7 percent in addition to annual inflation-based increases. Furthermore, the current concession fee, which NS pays for operating rights, will be replaced with an annual subsidy of 13 million euros.

The concession’s approval by the Dutch Cabinet has been contentious. Rival rail companies have filed lawsuits against the decision, claiming violations of European Union competition rules. The European Commission has initiated proceedings against the Netherlands in agreement with these concerns.