Transport and Employment

Rail transport

Railways have had a crucial impact on the economic development in most countries. With some exceptions, however, their importance has been diminishing since the Second World War, owing to the growth of road and air transport. But the new challenges related to transport needs, energy markets and environmental impact are likely to revive their importance in the twenty-first century. The development of the high-speed railway network in Europe is a demonstration of this new elan. When comparing average distances travelled by goods in road, rail and inland waterways transport, longer distances were significantly more important in rail transport. The greater importance of longer distances in rail transport most probably reflects the transport of certain goods such as heavy raw materials in large countries. Over the past two decades, many important changes took place in the railway sector all over the world. Nationwide railway monopolies are subject to step-by-step erosion because governments can no longer carry the increasing financial burdens from non-profitable, state-owned activities.

Restructuring has been carried out in many countries and restructuring models with different characteristics can be found on all continents. One approach to railway reforms and increasing the role of the private sector is ‘concessioning’. Concessions involve continuing public ownership and oversight of infrastructure, but the transfer of operating responsibility and the delivery of services to the private sector. Railway restructuring has had a severe impact on the level of staffing of the companies involved. Consequently, there have been many complaints about excessive staff reductions, multi-skilling, contracting out, longer working hours, lack of training and inadequate levels of investment in the railways.