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Regions threaten ČD with fines

Complaints seek accountability for late trains, broken contracts

By Michael Heitmann
Staff Writer, The Prague Post
November 21st, 2007 issue

The next time you stand on a platform wondering if the train is on time and zpoždění (delay) appears on the panel above you, it may cost České dráhy (ČD), the state-owned railway company, dearly.
State officials of the Olomouc district in Moravia have threatened to seek 5.5 million Kč ($302,696) in sanctions from ČD in reparation for late-arriving passenger trains. More than 200 trains have pulled into the district over 15 minutes late during the first nine months of this year. The situation on the railways has become critical, Olomouc district councilor Petr Polášek told journalists earlier this month.
“In some cases, trains have been canceled over huge delays, [or] they have not left the station at all,” Polášek said. “We’re sorry, but we had to react. We’ve received many complaints about the railways, and not a single one concerning bus transport.”
The district will pay ČD more than 300 million Kč for basic transport services this year.
The Olomouc district has not yet informed ČD of their intentions and instead is trying to create a media frenzy, said ČD spokesman Ondřej Kubala, who called the district’s demeanor “improper.” ČD invests more in the railways than it receives back in income, with the district’s contribution falling short by $5.5 million, Kubala said.
“In other words, České dráhy is subsidizing transport in the district with 100 million Kč. This situation cannot go on,” he said.
The Olomouc district has counted 60 trains running late per month, which is two trains a day out of a total of 600, Kubala said. In most cases, the delays are related to construction on the main railway corridors, which requires trains to be redirected on other routes, he added.
The state’s massive investment in rail network renewal and enhancement was causing delays, but that’s not ČD’s fault, Kubala said.
Lukáš Hübner, president of the Association of Railway Customers, said he supports the district’s decision.
“If the railway operator signed a binding agreement but is then unable to provide those services at the specified quality, it’s time for sanctions,” he said. “In the case of the Olomouc district, it has been made clear that it is not fining ČD for the late departure of trains caused by acts of nature, the reconstruction of main lines, accidents at crossings and the like.”
“It is true that the [number of trains] per kilometer is low and that it’s almost impossible to finance any renewal of its rolling stock, but ČD signed that contract voluntarily.”
Provided the trains are in good repair, “it is possible to have trains run safely and on time, even with the current [old] carriages,” Hübner added.
The customers’ association has warned, however, that Olomouc’s action could actually have a negative impact on the quality of train travel, with train operators less willing to hold connecting trains in the future under the threat of penalties.
Connecting trains would have to leave on schedule, leaving passengers who miss their connection, killing time at obscure stations until the next scheduled train arrives. In response, the railways could deliberately lengthen official journey times, Hübner said.
The districts of Olomouc and Liberec, north Bohemia — which said it might fine ČD 4.4 million Kč for not providing modern carriages as promised — have already set a precedent.
“We consider fines to be an appropriate measure in order to achieve high quality,” said Veronika Kindlová, spokeswoman for the Ústí nad Labem region. “The management of a company is to be held responsible for its finances, even if its shares are owned by the state, as is the case with České dráhy.”
While some observers have questioned the point of fining companies that are dependent on public funding, Kindlová refuted that criticism.
“The fines are not paid to the state administration, but to the kraj [region] — a regional administration that controls its own budget,” she said.
What regions such as Ústí nad Labem want is for the railways to live up to standards set by other countries in Europe.
“On some lines, trains do not reach the speed that is common in other parts of Europe,” Kindlová said. “The trains often cannot make use of their full potential.”

Michael Heitmann can be reached at mheitmann@praguepost.com


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