Liberalization in the Czech Republic: 3.9 Billion on Rails – A Revolution in Prague and Central Bohemia

Prague and Central Bohemia are preparing the largest-ever tender for the liberalization of rail transport, with planned investments of around EUR 3.9 billion.

In the first part of our series on the liberalization of passenger rail transport in the Czech Republic, we introduce the upcoming competitive tenders that will soon be launched in Prague and Central Bohemia. These steps are critical for ensuring more efficient and competitive public transport. A competitive tender for a new rail operator is expected to be announced later this year, aiming to improve service quality and enhance the accessibility of public transport across the region. The main goals include renewing the fleet, increasing passengers' comfort, and creating conditions for a more eco-friendly transportation system.

Středočeský kraj a Hlavní město Praha chystají velkou soutěž na železniční dopravce. Na území kraje i metropole by měly zajišťovat dopravu po dobu 15 a 30 let.//t.co/9L8PVvM7fs pic.twitter.com/N2GIjBAMzs

— PID (@PIDoficialni) April 30, 2024

Liberalization in the Czech Republic: Transparency in the Mega Tender Worth EUR 2.4 Billion

One of the largest tenders of this kind in the history of the Czech Republic is a contract worth approximately EUR 2.4 billion, which will last for 30 years. The long duration of the contract is due to the expected, highly costly investment by the operator in the modernization and renewal of the fleet, as stated on the website of the Central Bohemian Region. Given the scale of such a tender, Transparency International has been tasked with overseeing the entire process. According to Dopravní Noviny, Prague and the region have entrusted this anti-corruption organization with monitoring the process from the very beginning of the selection procedure. This ensures that the principles of transparency are maintained throughout all stages, including the final selection of the supplier.

Zdeněk Hřib, Deputy Mayor of Prague for Transport, told Pražská Integrovaná Doprava: "Given the size of the contract, we can expect a very competitive process. Therefore, we want to avoid any doubts about how this contract is awarded. Our goal is to set realistic technical and contractual conditions for the entire competition, ensuring they are not discriminatory and the process remains fully transparent."

The tender is expected to be announced by the end of 2024, with operators having six months to submit their bids. The results of the selection process should be known by the summer of 2025, and the selected operator will start operations in 2029. At that time, the current CityElefant electric units (series 471) on the Prague-Beroun route will be replaced with new, high-capacity electric units for nearly 400 seated passengers (EMU 400).

This 30-year contract will cover the Beroun-Prague-Kolín route, the Prague-Prague Airport-Kladno route, which will be newly built and modernized by the early 2030s, as well as the modernized Prague-Milovice-Mladá Boleslav route. This extensive project is expected to meet the growing travel demand.

The PID portal also reports that six major European railway vehicle manufacturers—Alstom, Siemens, Škoda, Stadler, Pesa, and CAF—were contacted during preliminary market consultations. Additionally, nine relevant transport companies from the Czech Republic, Austria, Poland, Slovakia, and Germany were approached. These include České Dráhy, Arriva, RegioJet, LeoExpress, ZSSK, ÖBB, Die Länderbahn, DB Regio, and PolRegio. According to ČT24, České Dráhy, RegioJet, Arriva, the Austrian ÖBB, and the Slovak ZSSK have already expressed interest in the preliminary consultations.

Liberalization Brings Benefits: A 15-Year Contract to Ensure More Comfortable Regional Travel

Another upcoming tender concerns the operator of some existing CityElefant 471 electric units and includes a 15-year contract for the operator of units with a capacity of approximately 240 seats. This contract is valued at around EUR 1.6 billion, bringing the total investment for Prague and Central Bohemia to about EUR 3.9 billion. The affected routes include Prague-Ústí nad Labem, Prague-Benešov, Prague-Tábor, and Prague-Lysá nad Labem-Kolín/Benešov. Here, the winning operator will begin operations in 2029, replacing older train sets with new electric units to provide higher-quality and more comfortable transport. The tender is expected to be announced by 2026.

The preparations for the liberalization of rail transport are attracting attention not only because of the scale of planned investments but also due to the ambitions to offer the public higher-quality and more accessible rail transport. These steps could significantly contribute to the overall development of regional transport, strengthen competition among operators, and open up Czech rail transport to innovations.