Foto: RegioJet

Jančura is prepared to file a complaint with the European Commission against the decision of the regions to cooperate exclusively with ČD for another 10 years.

In contrast to the current situation in the Czech Republic, when a passenger arrives at most London railway stations and wants to travel to other British cities and towns, usually they can choose between different railway carriers that offer different levels of luxury and different ticket prices. However, that is something that seems like science fiction on Czech railways.

At most stations in the Czech Republic you will find only trains of the state-owned virtual monopoly, České dráhy. So far there are only three smaller private carriers that have broken this monopoly on several small railways throughout the country—Veolia Transport Česká republika in the Karlovy Vary, Hradec Králové and Olomouc regions, Jindřichův Hradec Local Railways (Jindřichohradecké místní dráhy) in South Bohemia and OKD, Doprava in the region of Moravia and Silesia.

Private carriers, especially RegioJet, a daughter company of Student Agency, wanted to break the monopoly further and operate other railways in different regions. However, ČD announced Dec. 2 that it had fixed contracts with all Czech regions for another 10 years, meaning that no private carrier is going to obtain any of the regional railways. These contracts should bring Kč 80 billion (€3.112 billion) to ČD from the regional budgets over the course of the next decade.

“České dráhy offered regions that they would ensure basic transport services within the range of 81.5 million train kilometers. The regions will pay Kč 7.9 billion annually for that in the next years—of which Kč 2.7 is the yearly state contribution. Therefore it can be estimated that in 10 years the regions will pay approximately Kč 80 billion for ensuring railway transport,” said ČD deputy CEO for passenger transport Antonín Blažek.

České dráhy also says that thanks to these contracts they can obtain Kč 4 billion from EU funds. The company claims that it wants to invest this money, plus Kč 11 billion from depreciation and profit, along with billions from its own sources—amounting to around Kč 20 billion—towards the renewal of trains.

Private carriers ignored

However, this agreement between the regions and ČD met with strong disapproval from Student Agency’s owner Jančura, who claims that the regions could save Kč 20 billion if they did not ignore private carriers and organized tenders. RegioJet was not the only interested party. There were also companies like Arriva vlaky, Veolia, ČSAD Jablonec nad Nisou and Viamont that wanted to operate regional railways.

Jančura has already launched a negative and bitter campaign against the Social Democrats (ČSSD) due to the party’s control of the Czech Regions. On the Student Agency web pages you can see banners saying, for example, “Regional politicians robbed you of billions,” or “In the 20 years since the fall of communism there is one of the most horrible cases of corruption happening in the regions and this case is well hidden from the eyes of the public.”

Jančura also wants to file a complaint with the European Commission (EC). He says that the regions have broken the law and that the EC should cancel the signed contracts between them and ČD. RegioJet’s commercial director Jiří Schmidt admits that according to the European law the regions were not obliged to organize tenders for operating regional railways. However, he refers to the standpoint of the EC from 2006, according to which such an order must be placed in conformity with the treaty establishing the European Community so that “rightful conditions of competition are valid for all economic subjects which are interested in the order.”

Schmidt also claims that according to the EC standpoint the submitter, Czech regions, cannot place such an order directly to one applicant if there are other interested persons who have demonstrably informed the submitter of their interest. “We sent letters to all regional governors and informed them that we are interested in this order. However, they either told us that they do not want to communicate with us, or they did not react at all,” Schmidt told CBW.

He says that if his company could operate the regional railways it would offer modern trains, cheaper tickets and additional services to passengers. “Our tickets would be cheaper by 10–15 percent. We would offer, for example, Internet or daily newspapers on our trains; we would guarantee the keeping of train schedules,” Schmidt concluded.

ČD is not afraid of the EC

Czech railways spokesman Petr Štáhlavský told CBW that his company is not afraid of the possible complaint to the EC as he is persuaded that all regions had legal standpoints from renowned legal offices, “which clearly confirm that the regions acted in conformity with Czech and EU laws. Otherwise they would not take such a step.” Štáhlavský added that the contracts were not approved only by regional governors, but by regional councils, which combine representatives from the entire political spectrum.

Štáhlavský said that ČD submitted offers for ensuring transport services across the territories of all regions, not only several selected rail routes. “I am personally not aware of any other company which would provide such a complex offer for all railways,” he said.

Pardubice Regional Governor Radko Martínek says he is not afraid of the EC as the regions have a court ruling according to which the regions were not obliged to organize tenders. “We acted precisely in accordance with this directive,” Martínek told news server www.tyden.cz.

Czech Railways CEO Petr Žaluda sharply counterattacked Jančura and said that in fact Jančura does not want to operate trains, but only to engage in litigation. “It is the same as if he established a company called Golden Trains, submitted an offer to regions and told them that it is a guaranteed offer. I will earn Kč 10 million, so believe me,” Žaluda proclaimed.

Žaluda also claims that Jančura would not be able to ensure transport services in the regions as he is interested only in selected railways. “Who will do the rest? … I suppose that the regions do not want to remain without transport services,” he concluded.