On the track to competition. Preliminary results of competitive tendering of Norwegian railways

This report presents current experiences with use of competitive tendering in Norwegian railways and the particular case of the competitive tendering of the Gjøvik railroads (“Gjøvikbanen”). The report concludes that many of the objectives of the tendering process were achieved. Competitive tendering has resulted in lower costs, better services, increasing patronage and improved opportunities for public management. The gains have been achieved without the employees' working conditions deteriorating. At the same time new challenges have arisen. The future of “Gjøvikbanen” will largely depend on the condition of the infrastructure, but the relationship between the Norwegian National Rail Administration and the operator, NSB Gjøvikbanen AS, is hardly addressed in the existing contract if operation.