RACO clarifies obligations regarding costs in the case of line closures
Berne, 26.06.2017 - Infrastructure managers need to reassess cost distribution for line closures in recent years. The Railways Arbitration Commission (RACO) has recently issued a ruling which clarifies the basic principles regarding costs incurred in the event of line closures.
In September 2015 RACO initiated an investigation regarding costs borne in the event of line closures, examining the legal provisions in force since 1 July 2013 according to category of closure and the associated rules on distributing costs between infrastructure managers and railway undertakings.
In its ruling, RACO defines the following principles, which must be taken into account in any future division of costs:
- The infrastructure managers should bear the additional costs incurred by railway undertakings for replacement services and diversions.
- Minor additional costs, operating expenditure and reduced revenue should be borne by the railway undertaking. However, such costs are an exception.
- Costs incurred by the railway undertaking and the question of what constitutes ‘insignificant’ should be determined case by case by the infrastructure manager. A flat rate division is not allowed.
RACO’s ruling obliges infrastructure managers to reassess costs awarded since July 2013 in the light of these principles.
RACO’s decree was issued on 12 May 2017 and is legally binding.
Address for enquiries
Patrizia Danioth Halter, Chair, RACO, Tel. +41 58 463 24 60
Publisher
Rail Transport Commission RailCom
https://www.railcom.admin.ch/en/welcome/
