Netherlands Railways

Nederlandse Spoorwegen (NS; ; en, "Dutch Railways") is the principal passenger railway operator in the Netherlands. It is a Dutch state-owned company founded in 1938. The Dutch rail network is one of the busiest in the European Union, and the third busiest in the world after Switzerland and Japan.

The rail infrastructure is maintained by network manager ProRail, which was split off from NS in 2003. Freight services, formerly operated by NS Cargo, merged with DB Schenker in 2000. NS runs 4,800 scheduled domestic trains a day, serving 1.1 million passengers. The NS also provides international rail services from the Netherlands to other European destinations and carries out concessions on some foreign rail markets through its subsidiary Abellio.

History

Early years

World War I caused an economic downturn in the Netherlands that caused the two largest Dutch railway companies, Hollandsche IJzeren Spoorweg-Maatschappij (HSM) and Maatschappij tot Exploitatie van Staatsspoorwegen (SS), to become unprofitable. The companies avoided bankruptcy by integrating their operations, which occurred by 1917. The cooperation was by economic and ideological reasons. The state provided support by buying shares in both companies. In 1938, the state bought the remaining shares and merged the companies to create NS; NS was not nationalised.

During World War II, NS was forced by the Germans to construct railways to Westerbork transit camp and transport almost a hundred thousand Jews to extermination camps. The company's only wartime strike was during the Dutch famine of 1944–45; NS opted not to strike a year earlier.

NS played a pivotal role in the post-war reconstruction of the Netherlands; only it could provide the required logistical services in a time when there was little alternative to rail transport. The company declined in the 1960s - like many other railways - and operated at a loss. There was increased competition from other modes of transport. In addition, national coal distribution from Limburg became less profitable; the discovery of a gas field near Slochteren led to coal losing market share to natural gas in power plants and homes. NS' response, the ''Spoorslag '70'' plan which increased service and introduced intercity service, failed to restore profitability. The company was deemed nationally important and received state subsidies.

Reforms and reversal

NS was reorganized following the neoliberal reforms of the 1980s and the 1991 EU Directive 91/440; the latter required railway infrastructure and transport activities to be managed independently. Although the state called the process "corporatization" (''verzelfstandiging''), it really only meant the withdrawal of subsidies. The changes were carried out by Rob den Besten, who became chief executive officer of NS after the retirement of Leo Ploeger.

NS' infrastructure division was split off into NS Railinfratrust. Plans to split the remainder of NS met with limited success due to trade union opposition; the new companies created were NS Reizigers , locomotive maintenance company NedTrain. Passenger transport was to be conducted on a commercial basis, but the state continued to subsidize non-viable routes. Internally, route managers assumed de facto control, The freight business, NS Cargo, merged with Deutsche Bahn; the resulting company operated as Railion in 2000 and then as DB Cargo. Performance deteriorated after the reforms, and the company suffered multiple unorganized strikes. The entire board of directors resigned in late-2001.

Another change in strategy followed. Karel Noordzij became CEO in 2002 and reversed many of the reforms to restore confidence in the company. The state no longer considered competitive passenger service to be viable, and began granting concessions with the goal of one concession per line. NS received a concession to run main line routes until 2025.

Recent years

The timetable change on 10 December 2006 saw the most routes to approximate the symmetry time in clock-face schedules to the one used in most other European countries. Previously, this was different at the minute (46 seconds) and led to problems with cross-border trains. the company's CEO is former minister Wouter Koolmees, after Marjan Rintel left to become CEO of KLM.

NS was heavily impacted by the COVID-19 pandemic, which caused massive drops in passenger numbers. The company received significant financial support from the national government in order to keep the company solvent. In 2022, the company made significant cuts in its timetable, running fewer and shorter trains, as a consequence of personnel shortages.

Controversies

NS has been involved in various controversies.
* Technical problems with the high-speed V250 trains, which started their services on 29 July 2013, and ended on 17 January 2014, led to the resignation of CEO Bert Meerstadt in June 2016 and a parliamentary investigation in 2016. The High Speed Alliance (HSA), an NS (80%) / KLM (20%) joint venture almost went bankrupt due to the late introduction of the trains in combination with a too high price for the concession which the company paid to the Dutch government. HSA was liquidated in 2017.
* In 2013, it was revealed that NS had been using a subsidiary in Ireland, NS Financial Services Company (NSFSC), to reduce its tax liability in the Netherlands. The procedure was determined to be lawful, but it was unfavorable for the Dutch taxpayers for a state-owned company to avoid national taxes. From 1998 the NS used the favourable tax climate in Ireland, which resulted in a profit for NS of more than €270 million but a loss to the Dutch state of €21 million in 2012 alone. The corporate tax rate in Ireland was 12.5%, in the Netherlands 25% at that time. NS used its Irish subsidiary to buy new trains, among others the high-speed V250 trains from the Italian firm AnsaldoBreda. The Dutch Minister of Finance, Jeroen Dijsselbloem, wrote to the parliament that NS would stop this tax evasion. Most rolling stock was transferred to the Netherlands-based NS Lease in December 2017. NSFSC was wound up in April 2019.
* In 2015 it became clear that a subsidiary of NS, Abellio, had shown unfair behaviour about a tendering for public transport in the province of Limburg. The company had obtained confidential information from a competitor, Veolia, through a former employee of Veolia who had been hired by Abellio subsidiary Qbuzz. On 5 June 2015, it became clear that CEO Timo Huges of the NS had given incomplete and incorrect information about the tendering procedure. According to Minister Dijsselbloem, Huges had acted "sloppy, inaccurate and in violation of the law." Consequently, Huges resigned from his position.

Coverage

The NS covers most of the country, with almost all cities connected, mostly with a service frequency of two trains an hour or more and at least four trains per hour between all of the largest five cities (Amsterdam, Rotterdam, The Hague, Utrecht and Eindhoven, Amersfoort, Arnhem, 's-Hertogenbosch, Dordrecht and Leiden). From December 2008 train frequencies were increased on the following services: Arnhem–Nijmegen (8 trains per hour) and The Hague–Rotterdam (12 trains per hour), Amsterdam Centraal–Hoofddorp (16 trains per hour). A night train service was added between Utrecht, Gouda and Rotterdam. Trains usually run between 5:00 a.m. and 1:00 a.m. although there is also a nightline which connects major cities in the Randstad throughout the night, as well as in weekends also some major cities in North Brabant.

In addition to its domestic services, NS is also a partner (along with Stena Line and its British railway company Abellio Greater Anglia) in the ''Dutchflyer'' service. NS has also entered into a partnership with KLM to operate services on the new HSL-Zuid under the name Intercity Direct towards Breda and Brussels. Intercity Direct is part of NS International; other services such as Thalys to France and Intercity-Express to Germany and Switzerland are also part of NS International.

Rail network

The ''hoofdrailnet'' is the official core internal passenger rail network of the Netherlands. Currently, NS has a concession until 1 January 2015 to provide all passenger services on this network, except that on some stretches there is an overlap with lines for which other operators have a concession. Some of the most notable of these stretches are those from Elst railway station to Arnhem Centraal railway station, where NS shares tracks with Arriva