Government proposes possibility for municipalities and regions to arrange passenger train services

On 12 June 2025, the Government submitted a proposal to Parliament to amend the Act on Transport Services. The proposal would grant municipalities, joint municipal and other regional authorities the possibility to arrange passenger train services in their regions. It would also put in grounds to make changes to the regional competence on local rail transport.

Municipalities or other regional authorities would be able to propose a change to the regional competence of rail transport to the Ministry of Transport and Communications. Central government would retain the competence to acquire public service obligations, unless the authority requests a change to the regional competence.

Transfer of the competence would require the regional authority to have an action plan to ensure that rail service operators have unimpeded access to suitable rolling stock for the planned services, among other things.

This proposal transfers the competent authority to the Finnish Transport and Communications Agency Traficom. Currently, competence lies with the Ministry of Transport and Communications. The exception to this is the HSL region, for which the competence will remain with the Helsinki Regional Transport Authority. The regulatory body for the railway sector at Traficom will be transferred to the Finnish Competition and Consumer Authority. The purpose is to streamline the purchases of public transport services of the government by centralising them under Traficom.

The government proposal also amends the procurement procedures of the Act on Transport Services that regulate public service procurement in the railway sector. Procurement procedures are essential for better competition and the creation of equal operating conditions. These amendments would give the competent authorities more extensive and clear procedures for procurement. Their purpose is to ensure the conditions for neutral competition in the public transport market.

Prime Minister Petteri Orpo’s Government Programme aims to boost competition in the rail traffic market and ease entry into the market. It aims to boost competition by allowing regional authorities to subject their region’s passenger train services to a competitive tender on routes that are not profitable on market terms.

What’s next?

Parliament will begin to process the proposal with a referral debate in a plenary session. The proposal will then proceed to the committee. After the committee submits its report, the process will continue in a plenary session.

The proposal intends for these acts to enter into force on 1 January 2026.

Inquiries:

Tiia Orjasniemi, Ministerial Adviser, tel. +358 295 342 068, firstname.lastname(at)gov.fi

Elina Immonen, Director of Unit, tel. +358 295 342 159, firstname.lastname(at)gov.fi