First Railway Directive

The First Railway Directive 91/440/EC (with amendments, also called the "First Railway Package") is an EU directive that sets out an EU law framework and requirements for railways in the EU to allow open access operations on railway lines by companies other than those that own the rail infrastructure. The legislation was further extended by further directives to include cross border transit of freight.

The subsequent directives 2001/12/EC, 2001/13/EC and 2001/14/EC, which built upon the initial legislation, are collectively known as the First Railway Package. In September 2010, the process of merging the directives into a single piece of legislation was begun, with the addition of modifications to strengthen the regulatory framework. The Second Railway Package and the Third Railway Package aimed to push integration further.

In many countries in Europe the railway systems developed as separate privately owned companies operating regional networks with permission to construct and operate a line being granted or instructed by government legislation, or by royal decree or license. During the 20th century the railways became organised and run through a country wide organisation often through nationalisation. These entities in general had total or virtual monopolies.

These national companies were vertically integrated organisations and it was difficult or impossible for private or regional enterprises to run their own trains on the national networks, or to compete in other EU country's railway systems. Thus in 1991 EU Directive 91/440 was created to make it a legal requirement for independent companies to be able to apply for non-discriminatory track access (running powers) on a European Union country's track.

The aims of the directive are to create a more efficient rail network by creating greater competition. To achieve this aim member states are required to ensure that organisations operating the infrastructure (track, signalling etc.), and those operating services (trains) are separate and run on a commercial basis. Additionally railway companies from all member states are allowed to run services on any other member states rail infrastructure, both for passenger transport and goods. The free competition provided by the mandate is optional for regional and urban passenger trains.

...
Wikipedia