Abstract

By the end of 2014 most of the concessions for the regional passenger rail transportation hold by Trenitalia - the state-owned incumbent - will expire in many Italian regions. Some Regional Presidents stated that they would not renew the existing contracts with Trenitalia but would rather set up competitive tenders for the provision of the passenger rail service. Given the potential and significant changes that the adoption of a competitive procurement framework may introduce in the sector, this paper reviews the existing regulation of the Italian public rail transportation service and proposes innovative regulatory solutions. A specific focus will be given to the design of the tendering procedures in order to promote an effective competition for the service provision.