Amendments to Rail Transport Act: licensing and railway infrastructure charge to be specified

The Government proposes that the President of the Republic approve amendments to the Rail Transport Act and the Act on Transport Services. The amendments to the Rail Transport Act concern the investment-based raise to the basic railway infrastructure charge. The Act on Transport Services is to be amended with regard to licensing regulation.

This was the third time that the Rail Transport Act was amended since its entry into force on 1 January 2019. The amendments will improve the national implementation of EU legislation.

The requirements for the introduction of the investment-based raise to the railway infrastructure charge were changed to better meet the requirements of EU legislation. From now on, the raise can be taken into use only if it is necessary for the investment project and the project itself is expected to increase the effectiveness and cost-efficiency of the rail network.  As a rule, the raise can be no more than five times higher than the level of the current basic railway infrastructure charge and must be justified in writing. 

In addition, the tasks and responsibilities of the Finnish Transport and Communications Agency Traficom and other actors designated in the Rail Transport Act were updated. The changes were presented by the European Commission in connection with the review of the implementation of the Railway Safety Directive.

Clearer control of railway undertakings’ licences

The amendments to the Act on Transport Services are aimed at clarifying the licensing regulation and providing Traficom with better conditions to monitor that a railway undertaking complies with the requirements of its licence. 

All undertakings operating in cross-border rail transport must have a licence if they receive or transfer vehicles to a railway undertaking of another state. In addition, railway undertakings are required to notify Traficom whenever their owners or persons working in managerial positions change. This allows Traficom to verify that the new owners and management meet the necessary license requirements. If necessary, Traficom can require the new owners to apply for a new licence for the undertaking. 

Next steps

The President of the Republic is expected to approve the bills on 17 May 2024. The Acts will enter into force on 20 May 2024.

Inquiries

Risto Saari, Senior Ministerial Adviser, risto.saari(at)gov.fi, tel. +358 295 342 311
Emil Asp, Director of Unit, emil.asp(at)gov.fi, tel. +358 295 342 498