Competitive tendering for rail track capacity: The liberalization of railway services in Spain

Abstract

Congestion in infrastructure capacity is a barrier to entry to markets under liberalization. The Spanish rail infrastructure manager, ADIF AV, has implemented an innovative model to reduce such a barrier. ADIF AV optimized capacity by defining the schedule with the most efficient use of tracks, building packages with such track capacity and putting them for tender. Three railway undertakings, the incumbent and two newcomers, will compete in the high-speed market, increasing at least 55% the number of services. This model can be exported to other countries reforming the rail sector.