Austrian Railroad Vehicle Production Facing Liberalization of Procurement Regulations

Like with most European railroad administrations, the bulk of orders from the Austrian Federal Railways (ÖBB) are going to domestic producers. This preferential treatment of long tradition will be waived with the signing of the treaty on the European Economic Area (EEA). Over the next two years when the major part of European export markets will still be protected by similar agreements, capacities of domestic suppliers will be conveniently filled by ÖBB contracts worth AS 3.6 billion. This period will have to be used to strengthen Austrian firms' competitive position on foreign markets and to reduce their structural dependence of the ÖBB.