Expanding Rail Network: High-Speed Trains Erode Europe's Borders
A new partnership aims to eliminate current coordination hassles and weld fast rail lines into a seamless network from Barcelona to Bratislava.
Upgrades to the Eurostar train, which runs between London and Paris, were one boon for Europe's high-speed rail network last year.
Underscoring the good news, Eurostar reported on Jan. 9 that it carried a record 8.26 million passengers last year, with revenues up a healthy 15.4 percent to $1.18 billion. But Guillaume Pépy, the SNCF chief executive who also serves as Eurostar's chairman, says that railroad passengers can expect even better news over the next few years.
Following the Airline Playbook
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Last July seven operators banded together to form Railteam, an alliance that is working to create a seamless, high-speed network across a large swath of Western Europe. Functioning much like an airline alliance, Railteam is setting up a common reservation system that's set to begin operations in 2009. It is also helping member railways coordinate their schedules to reduce layover times. A frequent-traveler program will even be offered -- another page from the airlines' playbook.
For now, Railteam does not include operators in Italy, Spain, Portugal or Central Europe, where high-speed rail is less developed. But that could change in the next few years. Spain is set to complete a high-speed, Madrid-to-Barcelona link in 2009. And Pépy predicts that within 15 years it will be possible to travel by high-speed train all the way from Paris to Bratislava, Slovakia.
If railroads don't team up on their own, the European Union could force it on them instead. Last fall, lawmakers approved legislation that will require national rail networks to open their tracks to operators from other countries by 2010. Eventually, that might lead to SNCF trains serving German cities or Deutsche Bahn trains criss-crossing Bénélux.
Competition for Air Carriers
Could European airlines such as Air France-KLM, Lufthansa or Ryanair lose business as high-speed rail service expands? After all, the Eurostar now carries more than 70 percent of passenger traffic between London and Paris. And air service between Paris and Brussels has ended altogether now that trains connect those cities in 1 hour and 20 minutes.
On the other hand, trains are more energy-efficient -- a powerful draw in an era of growing carbon consciousness. And thanks to burdensome security checks and other hassles of air travel, trains are becoming an increasingly attractive alternative for business travelers between some major cities.
No question, that's a lucrative business for some operators: Eurostar, for example, charges as much as $866 for a roundtrip, first-class ticket between London and Paris, though discount coach tickets are sometimes available for prices as low as about $120 roundtrip. With such good money to be made, alliances by the SNCF and other national operators with next-door rivals could be just the first step to invading each other's home turf.
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