Finnish railway market

In Finland, long-distance train traffic and freight train traffic are market-based business and freely competitive. Rail traffic applies the Open Access model based on EU regulation, in which any competing operator can enter the railway market and there may be multiple operators on the same routes. Operators use their own rolling stock or that rented from commercial actors on the routes.

In addition to market-based traffic, unprofitable passenger train traffic is maintained in Finland by means of contract traffic financed by the state and cities.

Market-based traffic:
Approximately 84% of long-distance traffic (measured in terms of the number of passengers) consists of VR's train traffic funded by ticket revenues, in other words, market-based train traffic. Freight traffic is entirely market-based, and there are other freight operators in addition to VR.

Contract traffic:
The Ministry of Transport and Communications annually purchases passenger train services (regional trains in Southern Finland, night train and railbus traffic as well as individual IC/Pendolino services) for routes that are commercially unprofitable due to the low number of passengers. The Ministry decides on the service level for contract traffic.

HSL commuter traffic:
HSL has tendered commuter train services in the capital region and VR has won this tender. HSL procures the transport services and decides on their service level, ticket prices and sales.

Competition in rail transport

The aim of the current government programme is to increase competition in rail transport and make it easier for operators to enter the market.

In Finland, the rail traffic market for freight traffic was opened up to competition in 2007. The beginning of 2021 VR’s exclusive right in passenger service was ended, and since then, all interested operators have had free access to the railway network and the opportunity to enter the Finnish market based on the model of free competition in accordance with EU regulations. (Open Access).

VR takes a positive stand on competition and we are committed to promoting the objective of the government programme to increase competition. We want to be involved in developing a customer-oriented, sustainable and competitive railway market as a combination of free competition and regional contract traffic tenders.

Long-distance train traffic and freight traffic must be allowed to develop on market terms, which will allow competition to develop freely, in accordance with the free competition model based on EU regulations. This means that customers will have genuine freedom of choice and no public funding will be needed for traffic that operates on market terrms.

We want to be involved in developing a customer-oriented, sustainable and competitive railway market as a combination of free competition and regional contract traffic tenders.

For its part, VR has promoted the competitive neutrality of the market by focusing on the railway operator’s core business by giving up stations, private sidings, depot properties and road logistics.

There is also competition between different modes of transport

We operate in an open market in passenger train and freight train traffic, bus services and maintenance. There is also competition between different modes of transport; train traffic, for example, is constantly competing with bus traffic and passenger car traffic, as well as air traffic on longer routes.

Public contract traffic rolling stock company and regional contract traffic

The Ministry of Transport and Communications is preparing a major restructuring in the organisation of publicly funded passenger train services in Finland in the 2030s. The intention is to increase competition in passenger train services by enabling municipalities, joint municipal authorities and regions to arrange contract traffic for passengers in commuting areas.

VR supports the development of passenger train services by increasing regional contract traffic through public tenders. VR also actively promotes the establishment of a public rolling stock company for contract traffic.

Public rolling stock companies for contract are used in HSL's commuter traffic and Sweden, for example. VR’s rolling stock used in current contract traffic would be transferred to a state-owned public rolling stock company.