Reality and opportunities for on-track competition in HSR

The very first cases of on-track competition are shyly deploying on the battlefield of the rail arena, trying to open niche long-distance markets behind the frontline of regional franchises. The high-speed (HS) segment remains untouched by competition, with the exception of Italy. The chapter aims to introduce the main cases of on-track competition in Europe. Despite them being limited, existing experiences (Section 2) help us understand the strategies adopted and outline the possible potential for on-track competition. We provide a schematisation of existing high-speed rail (HSR) models and their implications for potential competition (Section 3) and describe the case of NTV in Italy, the only experience of on-track competition on high-speed lines (HSLs) (Section 4). Conditions for competition to take place and its effect on prices is analysed in the literature (Section 5), in particular the effect of different services operated by NTV in Italy (Section 6). The text concludes (Section 7) with an analysis of possible barriers and of the potential for open-access competition, with a focus on strategies for competitive advantage (cost leadership, product differentiation and niche market focus) and their application by recent newcomers.