development in transport policy spain

8/12/2019 Development in Transport Policy Spain

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Spain's Transport PolicyAuthor(s): Gonzalo Cedrn and Gins de RusSource: Journal of Transport Economics and Policy, Vol. 28, No. 2 (May, 1994), pp. 211-214Published by: University of Bathand The London School of Economics and Political ScienceStable URL: http://www.jstor.org/stable/20053036.

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Developments in Transport Policy

Spain's Transport Policy

By Gonzalo Cedr?n and Gin?s de Rus

The transport sector in Spain has been characterised by intensive regulation affectingentry, prices, service characteristics and rules of operation. Despite the former legalframework that regarded the railways as the main transport mode, road transport hasexperienced spectacular growth which has changed the pattern of freight distribution andpassenger mobility. Air and maritime transport have experienced pressure throughCommunity regulation and international competition which has determined the directionof new policies concerning these transport modes.Modal split in Spain (see Table 1) shows the changing role of road, rail and sea infreight transport, and the sustained decline of railways in passenger transport. Althoughthe Spanish modal split follows a similar pattern to the rest of Europe, there are somedifferences worth mentioning.Surface passenger transport shows a similar weight for rail (7 per cent) and road (90per cent) in Spain and Europe. Nevertheless, when the distinction ismade between busesand private cars, intercity bus transport in Spain is 18 per cent, while the European averageis only 9 per cent.

The railways ' share of freight transport is only 6 per cent in Spain, a figure dramaticallylower than the European average of 18per cent, so the role of railways for freight transportin Spain appears considerably less significant than in the EU.In 1991 the remodelling of the Spanish Goverment affected theDepartment of Tourismand Transport, which merged with the Department of Public Works, leaving tourism as

a separate Ministry. The new Department, headed by a former member of theDepartmentof Economy, emphasised the basic role of the transport system (services and infrastructure) in assisting economic development.

The main objectives of the Government were to improve global competitiveness andmodernise the country. Transport contributes to this task as the link between economicagents, directly affecting costs and the efficiency of the whole economy, in addition to itsrole as an element of spatial and social cohesion.* The authors are, respectively, Director General, Instituto de Estudios del Transporte y las Comunicaciones(Ministerio deObras Publicas y Transportes), Spain, andProfessor, Departamento de Econom?a Aplicada,

Universidad de Las Palmas de Gran Canaria, Spain. The opinions presented in this paper are those of theauthors and not necessarily the official position of the Department of Public Works and Transport.

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May 1994 Journal of Transport Economics and PolicyTable 1

Modal Split inDomestic Transport inSpainYear Passengers Freight

Roadail Air Road Rail Maritime1950 39.36 59.92 0.72 26.77 33.05 40.181960 67.91 30.63 1.45 48.70 19.02 32.291970 83.41 14.67 1.92 62.62 10.46 26.931980 90.59 6.78 2.63 70.01 7.952.031990 89.63.30 3.07 77.07.95 16.98

Source: Department of Public Works and Transport

The key strategies of the Department of Transport to achieve this objective are thefollowing:Infrastructure

This is the more rigid part of the transport system, playing a strategic role and placingconditions on the capacity of transport modes. An adequate investment policy appearscrucial given the delays and deficiencies connected with transport infrastructure in Spain.Table 2 shows the lines of future investment in the transport sector (see M.O.P.T., 1993).Transport as a systemTransport policy should not be considered as a policy of various transport modes but asan interrelated set of infrastructure and industries providing different services, giving theuser the last word concerning modal choice. The equilibria in the sector should becompatible with respect for the environment.The European dimensionIn the Economic and Monetary Union with a single market for all European citizens, thereis no place for policies that distort competition and create inefficiencies. ThereforeSpanish transport policy should follow a more market-oriented philosophy, which iscompatible with conventional second-best interventions. In general national policiesshould be designed to coordinate with theCommunity Transport Policy, keeping thesubsidiarity principle as a key guideline.

From these overall strategies of Spanish transport policy, the following are the specificpolicies that the Spanish Government will pursue in the immediate future:Road transportRegarding freight transport, government intervention will try to improve the level ofprofessional training investing in sectoral education. The Department of Transport willalso give incentives for the smallest firms to concentrate in units with a more adequate

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Spain's Transport Policy G. Cedr?n and G. de Rus

Table 2Projected Investment in Infrastructure in Spain (1993-2007)Pesetas billion (1992 prices)

Total Plan Nationalbudget Other sourceoffinance

Total Averageper year



Intercity Transport 10,379 692Road5,415 361Railways 2,91594Ports 800 53Airport 1,0007Combined transport 121Environment 128 9

7,2635,1701,914

10178

484345128

3,1162451,0018001,00020

50

20816675367

13

Urban Transport 3,440 229 2,752 18388 46Intermodal plans inmetropolitan areas 2,215 148 1,658 111577Modal,105 74 1,025 680Environment 75 50151

Others5 31 36 2Total Investment 13,819 921 10,015 667 3,80454Source: Department of Public Works and Transport

dimension. Nevertheless, the main focus will be on liberalisation of the industry in orderto increase the efficiency and competitiveness of Spanish companies.

In passenger transport, the policy is for full liberalisation of charter services andcompetition for scheduled traffic. Recent bidding for tendered routes has produced goodresults from the point of view of the Government, and theDepartment of Transport is keento follow this policy by introducing minor changes.

Leaders of the transport industry complain of adverse selection procedures through expost revision of the conditions of the bidding process, as the winning bid is unable tooperate with theproposed costs. Other observers (seeDe Rus, 1989) consider that theduration of the franchises is too long to allow effective competition (8 to 20 years ispossible, according to the Spanish Transport Act) and the system should improveconsiderably to favour thegeneral interestof users insteadof being mainly an effectivebarrier to entry for the benefit of the incumbents.

Both in passenger and freight, the purpose of the Goverment is to increase theintegration of the road network through transversal links and to reduce transport costswith new capacity so that journey length and congestion are reduced.

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May 1994 Journal of Transport Economics and Policy

RailwaysThis mode should experience a radical change in the next few years. Recently, RENFEhas introduced a new internal organisation with differentiated management units (UGDs)and some kind of commercial behaviour, with UGDs operating independently and usingtransferprices between them (seeCarbajo andDe Rus, 1991).

Railway transport policy has been directed towards improving both economic andfinancial perfomance. It is important to distinguish between commuter, regional and longdistance services. Commuter services will receive special treatment to improve its qualityin order to alleviate congestion in the metropolitan areas. Regional services shouldgradually depend on regional governments, and long-distance transport will be reshapedthrough upgrading present services at an increasing speed, using local technology (Talgo),and with the extension of the high-speed train in selected corridors.

Air transportAir transport is experiencing changes as a consequence of gradual European deregulation.In thismode of transport, theSpanish policy follows theEU guidelines with 1997 as theend of the process with free entry in practically all traffic. The Department of Transportwill consider the possibility of using public service obligation in routes with Baleares,Canarias and Melilla.

Airport policy will look at the specialisation of small airports in regional traffic toimprove financial performance generally. Airports at Madrid, Valencia, Palma de

Mallorca, Bilbao, Tenerife and Gran Canaria will increase their operating capacity.Maritime transportMaritime transportshows a substantialdecline in theCommunity. The situation is similar

in Spain, and the recently created second register inCanarias will not have a significantimpact. The considerable increase in productivity and the link with other European

partners are the only ways to survive in the extremely competitive environment thatcharacterises this industry. Ports should improve financial performance and specialise asdistribution centres, changing equipment to satisfy the intermodal transport requirements.

The future of Spanish transport policy will combine the idea of freedom in modalchoice with the concept of sustainable mobility. Transport infrastructure investment willprovide adequate capacity for the future needs of the economy, and a more marketoriented policy will allow better allocation of resources. Public intervention will deal onlywith safety and environmental issues, and economic regulation will apply only to thoseindustries in which international experience does not favour free market solutions.

ReferencesCarbajo J. and G. de Rus (1991): Railway transportpolicy inSpain . Journal of Transport Economics and

Policy, pp.209-15.De Rus, Gin?s (1989): Las empresas p?blicas de transporte en Espa?a . Papeles de Econom?a Espa?ola, no.

38. pp.349-82. Madrid.M.O.P.T. Secretaria General de Planificaci?n Concertaci?n y Territorial (1993). Plan Director de

Infraestructuras 1993-2007.

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development in transport policy spain

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