Financing High Speed Rail Infrastructure

At the European and international level, the development of high-speed rail is among the main priorities.  However, the substantial investment required for such large-scale infrastructure projects cannot be expected to be fully financed by governments alone. Therefore, a more comprehensive understanding of financing options and models is pivotal in this context. This issue of Network Industries Quarterly explores diverse financing models available for rail infrastructure and examines how policymakers can balance risk, capital mobilisation and long-term sustainability. Michele Gesualdi’s contribution, entitled ‘Financing High-Speed Rail: Models, Trade-offs and the Path to Bankability’, shares that there is no single financing model for high-speed rail, with public delivery, PPPs and regulated asset base frameworks each suited to different institutional and fiscal contexts. Carbon finance emerges as a funding tool, and political commitment remains the key determinant of whether projects are delivered in an efficient, sustainable and fair manner. In his contribution, entitled ‘Learning to Share Risk: Lessons from PPPs in High-Speed Rail’, Prof. Juan Montero explains that after three decades of experience, high-speed rail PPPs have proven viable not by maximising risk transfer but by allocating risks to the parties best able to manage them. The public sector retains systemic risks and provides substantial support while private partners deliver construction and operational performance, even if at a higher financing cost than public procurement. Last, Russell Pittman, in his piece entitled ‘Financing Freight Railway Infrastructure: An Underappreciated Third Option?’, explains that the “competitive rules joint venture” model offers a potentially low-risk, scalable approach to rail reform that combines the European model’s intramodal competition and access charging with the Americas model’s reliance on private infrastructure investment, thereby providing both shipper choice and a sustainable source of capital.

Editors of this issue:

Juan Montero & Elodie Petrozziello

The Single European Sky SES2+ – quo vadis?

The first Single European Sky package (SES1) was adopted in 2004 with the aim of addressing the fragmentation of European airspace. It was followed in 2009 by the second Single European Sky package (SES2), which had a new focus on the performance of air navigation services providers (ANSPs). 15 years later, the EU proceeded to a recast in the form of an SES2+ Regulation. In this, the Commission enshrined both its performance-based approach and a parallel approach focusing on Europe-wide network functions, not least because digitalisation had given rise to new technological possibilities. This issue of Network Industries Quarterly aims to untangle the SES2+ Regulation and assess its potential for moving forward.

In her contribution entitled ‘Shaping the future of European ATM: lessons from a decade of deployment,’ Mariagrazia La Piscopia sets the context for the deployment of SES technological innovation. Tânia Simoes Cardoso, in her article entitled ‘Modernising Europe’s Air Traffic Management System: The Future of Innovation and the Role of EUROCONTROL,’ situates technological changes in ATM in the larger context of the transformation of the European aviation system. In a third contribution entitled ‘A mindset dedicated to the evolving aviation imperative to harness SES 2+,’ Achim Baumann assesses the SES2+ Regulation from the perspective of airspace users. Two articles follow from the ANSP perspective, authored by Ivan Arnold and Daniel Ivan (entitled ‘Network governance and the law: How to govern the execution of Network Functions?’) and Ivan Arnold (entitled ‘The New Service Delivery Model in the Single European Sky: a paradigm-shift in Air Traffic Management?’). In his contribution, ‘The art of modernising European air traffic management,’ Andreas Boschen explains the needs to both master technology and adapt to transforming frameworks. In his concluding contribution entitled ‘European ATM in a pivotal moment,’ Matthias Finger situates SES2+ in the broader historical context of the SES project and vision.

Editor of this issue: Matthias Finger

Shaping the Future of European Rail: Regulation, Digitalisation, and Fair Competition

The European rail sector is experiencing a rapid transformation thanks to digitalisation. At the same time, policymakers and industry stakeholders navigate the challenges of regulation, digitalisation, and fair competition. From redefining ticket distribution and embracing multimodal mobility to ensuring balanced oversight and fostering innovation. These are central themes for shaping the future of rail travel across Europe.

This issue of Network Industries Quarterly focuses on the role of digital platforms in shaping transport in Europe. In his contribution, entitled “Regulating Railway Ticket Distribution: What is at Stake?”, Prof. Juan Montero provides a clear picture of the context of the progressive change that rail transport has undergone. Elodie Petrozziello’s contribution, entitled ‘The Multimodal Digital Mobility Services Initiative – From the Train to the Platform,’ provides an overview of the potential legal and policy frameworks. Federico Catania, in his piece entitled ‘Beyond the tracks: digital ticketing, fair competition and the future of European rail’, flags the benefits of competition and of using intermediary platforms, both for passengers and transport operators. Last, Sophie Lombard, in her piece entitled ‘Improving client experience through ticketing: current state of play and way forward’, navigates among the existing obligations for rail service providers and calls for a balanced regulatory approach, avoiding demanding obligations on operators.

Editors of this issue:
Juan Montero & Elodie Petrozziello