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Published On: Mon, Oct 17th, 2016

Prorail loosing hundreds of millions each year

The intention of the Government to increase the grip on Prorail is a risky surgery, says Dr. Wijnand Veeneman, expert market forces in infrastructure sectors to the Delft University of Technology.

Last weekend made the NOS announced that the Cabinet is planning to let an independent company Prorail no longer are with the State as sole shareholder. Instead, the Government wants to create an independent government organization by directly under the Ministry of Infrastructure. The Ministry would be so more scrutiny over, which was accused of maintaining bad budgets deficits amount to hundreds of millions of euros per year.

Oil Trains Emergency Order

Oil Trains Emergency Order. Photo:

Mentioned earlier Prorail that blame in a letter to then State Secretary not Mans. The deficits would result from insufficient indexing of price levels and complex station projects. In addition recognized Prorail that are not financial control in good order.

Cursed land ratio

Regardless of the exact details of what does or does not play, there is clearly fairly spoiled relations between the Ministry, and it now proposed Cabinet decision is partly motivated by the desire to which mutual power struggle in favor of the Ministry.

Rather let organisations from transport, including the Union Federation FNV, the NS and shippers organisation EVO, is critical of the possible annexation of Prorail.”Right in the track is cooperation between the carrier and the infra administrator essential”, according to their letter to the responsible Secretary of State Denis. They also indicate the necessary financial consequences. For example, for an independent governing body with no deduction to VAT.

It is so but highly in demand or with the incorporation of Prorail, the importance of the rail traveler, a functioning rail network without signalling and Exchange failures at fair costs, is served.

Lost attention to government institution

Travelers ‘ interests will not have priority in the short term, “says Dr. Wijnand Veeneman, expert market forces in infrastructure sectors to the TU Delft on request. For the next three years will the change of the legal position of the a lot of attention from the management. “That can not go to better services.”

For financial control helps it possible though. “When an independent governing body can push through the Ministry decisions, so the problem of financial control is is resolved.”

How it will go depends a lot on the way in which according to Veeneman very the governing body form is given and how politics with it. ‘ There is not so much to a company to control death, there is enough experience with it. “As an example the Amsterdam transport company CFP Veeneman, that for years directly under the municipality of Amsterdam fell and negative at the time. “Since the Lake is controlled by the urban region Amsterdam the CFP operates much better.”

Who decides on how many bills will be exchanged?

The crux is how the control of such a Government-funded company. When politics from one incident to another-on the track goes somewhere sometime there will always be something wrong with a signal, a bill or a contact line-and at each incident a new ukase, that it is impossible for such a company to function properly. “You must not imagine that the second Room will soon be going to meetings about the amount of bills of Exchange in the rail around station Utrecht? At the same time can very well go, if the political approval at the right time that a certain development. Then the drivers for the rest to the company within stipulated frameworks to his/her duties.”

Brown coal power

Veeneman for his question marks over political control from experience with NS Rail Carrier. “At one point had to that meet punctuality, so there was everything on. With the top not at that somewhere a platform was stopped where travelers were waiting, but then came the train to stop at a red signal away.”And when the NS especially on the financial results had to watch out for brown coal power from Poland was purchased, because that saved the costs. “One-sided control may lead to perverse outcomes that no one wants to, and certainly not in the interest of the passenger.”

Increasing control is therefore no guarantee for a better functioning. “It is how that check is completed, the discussion would be much more about have to go.”


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