Westbahn-CRRC: Rail Competition & Double-Decker Impact in Austria & Europe

Introduction

Austrian open access operator Westbahn has criticized the European rail industry’s oligopoly, following its announcement to introduce new double-decker trains from Chinese manufacturer CRRC on Austria’s Western line. The company’s statement defends this move and calls for a more open market.

European Rail Industry Criticism

Westbahn argues that the European rolling stock market is dominated by a few large suppliers, which limits operators’ choices, increases waiting times, and escalates costs. The company stated that there is no functioning competition in the European rail industry, with waiting times for new trains reaching many years. Prices are also increasing, and individual requirements and innovations are difficult to implement. Westbahn highlighted that this situation differs from the automotive sector, which faces different structural challenges.

Market Imbalance and Consequences

According to Westbahn, the current lack of competition results in high prices, limited variety, and extended delivery times. European manufacturers are reportedly fully booked for years ahead with contracts worth billions of euros, leaving operators with limited options. Westbahn identified essentially only two major manufacturers from France and Germany, with an additional emerging supplier from Switzerland. This market imbalance forces rail operators to consider suppliers outside of Europe, leading to expensive trains, a lack of innovation, and long delivery times, affecting all railway undertakings and passengers.

Response to Criticism and Call for Competition

Westbahn rejected the criticism that introducing Chinese-built rolling stock represents a “breach of the dam” for Europe’s rail industry. The company stated that the entry of new suppliers offers an opportunity for shorter delivery times, technical progress, and fair prices. Westbahn also warned against political interference or protectionism, arguing that these could hinder innovation and efficiency. The operator believes that genuine competition strengthens the European rail industry and maintains its international competitiveness.

Impact of New Trains

Westbahn acknowledges that the four CRRC double-deck trains set to join its fleet are unlikely to transform the European market on their own. However, the company believes their introduction could serve as a catalyst for wider change and provide impetus for more competition, innovation, and future viability in the rail sector. Westbahn’s comments come amid increasing scrutiny of Europe’s rail procurement landscape, as operators struggle with high prices, limited manufacturing capacity, and slow delivery schedules.

Conclusion

Westbahn has voiced strong criticism of the oligopoly in the European rail industry, advocating for increased competition. The company’s decision to introduce new double-decker trains from CRRC is seen as a move to address issues of high prices, limited choices, and long delivery times. Westbahn believes that introducing competition and new suppliers can foster innovation and benefit passengers.

Company Summary

Westbahn: An Austrian open access operator that has criticized the European rail industry’s oligopoly and announced the introduction of new double-decker trains from CRRC.

CRRC: A Chinese manufacturer.