Competence to arrange passenger rail transport delegated to municipalities and regions

The Government proposes that the President of the Republic approve amendments to the Act on Transport Services on 14 November 2025. These legislative amendments give municipalities and joint municipal and other regional authorities the option to arrange passenger rail services in their respective areas. The amended act will also provide for the grounds to be taken into account when making changes to the distribution of regional competence concerning local rail transport.

From now on, municipalities and other regional authorities will be able to propose the Ministry of Transport and Communications an initiative on making changes to the regional competence concerning rail transport. Central government would retain the competence to see to purchased transport services, unless a public authority requests that regional competence be modified.

The transfer of competence requires, among other things, that the regional authority has appraised how it can ensure that rail service operators have non-discriminatory access to suitable rolling stock for the planned service.

Through this proposal, the role of competent authority in government-operated rail transport services will be transferred to the Finnish Transport and Communications Agency Traficom. Competence for it currently lies with the Ministry of Transport and Communications. The only exception to this rule is the HSL metropolitan region, for which the said competence will remain with the Helsinki Regional Transport Authority. The regulatory body for the railway sector, which currently is attached to Traficom, will be transferred to the Finnish Competition and Consumer Authority. The purpose is to streamline government purchases of public transport services by centralising them under Traficom.

The amendment also serves to update the procurement procedures under the Act on Transport Services that regulate, among others, public service procurement in the railway sector. Procurement procedures are key to better competition and to creating equal operating conditions. These amendments are set to provide the competent authorities with more comprehensive and clearer procedures for procurement. They aim to secure the conditions for competitive neutrality in the public passenger traffic market.

Prime Minister Petteri Orpo’s Government Programme aims to boost competition in the rail traffic market and facilitate entry into it. Efforts will be made to increase competition by enabling regional authorities to organise passenger rail services, among others.

What's next?

The President of the Republic is expected to approve the bills on 14 November 2025. The new acts will enter into force on 1 January 2026.

Inquiries:

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

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