Introduction Transport Code First phase Regulatory burden reduced
The Transport Code is one of the government's chief initiatives. The main purpose of this ambitious project is to create a growth environment for business digitalisation and to promote transport business by deregulation. The code will reform the regulation of all transport modes, so that the regulation itself will not become an obstacle to digitalisation, automation and new innovations.
The essence of the project is customer orientation. The data on traffic systems will be shared between customers, service providers and authorities as openly as possible to promote additional value.
The thinking behind the Transport Code is based on the concept of 'mobility as a service' – which, according to the Ministry of Transport and Communications, means:
"that through technology, information and innovations, transport services will be made a customer-oriented service, in which the boundaries between transport modes disappear and transport chains will be smooth."
Or, as explained by the Transport Safety Agency:
"when mobility is offered as a service, passengers get the transport services that they need, travelling doorstep to doorstep, with only one ticket and fare. There is seamless interoperability between different modes of transport, and since all data moves with the passengers and the logistics in a smooth transmission between transport modes, passengers have the flexibility to change their plans during the trip."
The project covers all transport modes and aims to bring the provisions of the different transport services under one act and to promote the interoperability of the different transport modes in that way. Due to the code's broad scope, its preparation has been divided into three phases. The preparation of the first phase started in November 2015, and on September 22 2016 the government submitted the bill to Parliament while the preparation of the second phase began.
The first phase focuses mainly on road transport. Unlike other transport modes, the transport of passengers and goods by road is heavily regulated by domestic legislation and one of the purposes of the code is to bring the legislation closer to that of other modes of transport by simplifying the traffic licence system. Issuing traffic licences will be centralised to the Transport Safety Agency, which also acts as a general supervisory authority.
According to the bill, the biggest changes proposed will be to the inflexible and old-fashioned taxi system, particularly as limits on the number of taxi licences will be removed. There are also other proposed changes with the purpose of making it easier to access the taxi sector and to develop new services and increase competition. Pricing will become more flexible, but the Transport Safety Agency will be able to step in and specify a maximum price should prices rise unreasonably.
The code proposes to significantly reduce the regulatory burden of the public transport of passengers and transport of goods. Additional domestic regulations will be removed when EU legislation is implemented. Mandatory transport provider training for entrepreneurs will be abolished. The transport licence weight requirement will be raised from 2,000 kilograms (kg) to 3,500kg, so that service providers carrying goods weighing over 2,000kg but less than 3,500kg on a vehicle (typically a van) must register with the Transport Safety Agency. Professional qualifications for lorry and bus drivers will be lightened and clarified.
The smooth use of transport services, when mobility is offered as a service, requires that data be compatible with all service providers. Therefore, the bill commits service providers to making available their essential data via open interface.
The Transport Code is planned to enter into force on July 1 2018.
For further information on this topic please contact Matti Komonen at HPP Attorneys Ltd by telephone (+358 9 474 2207) or email ([email protected]). The HPP Attorneys Ltd website can be accessed at www.hpp.fi.
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