Nederlandse Spoorwegen (Dutch pronunciation:) (English: Dutch Railways) or NS is the principal passenger railway operator in the Netherlands. NS provides rail services on the Dutch main rail network (hoofdrailnet). 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 the DB Schenker group in 2000.
NS runs 4,800 scheduled domestic trains a day, serving 1,1 million passengers.In addition, NS provides international rail services from the Netherlands to other European destinations and carries out concessions on a number of foreign rail markets.
NS runs 4,800 scheduled domestic trains a day, serving 1,1 million passengers.In addition, NS provides international rail services from the Netherlands to other European destinations and carries out concessions on a number of foreign rail markets.
Founding
The NS was founded in 1938 when the two largest Dutch railway companies, the Hollandsche IJzeren Spoorweg-Maatschappij (HSM) and the Maatschappij tot Exploitatie van Staatsspoorwegen (SS), formally merged. These two companies, however, had been intensively cooperating as early as 1917. There were both economic and ideological reasons for the cooperation.
As a result of the First World War, the Netherlands' economy had declined causing HSM and SS to fall from profitability. Given their national importance, allowing them to slip into bankruptcy was not considered acceptable. While remaining independent companies, HSM and SS improved overall efficiency by cooperatively integrating their operations. The Dutch government further supported HSM and SS by purchasing shares in both firms. In 1938, the government merged the two companies to form the Nederlandse Spoorwegen (NS). In the process, the government bought all remaining shares, yet never nationalised the company. Therefore, NS remained, and still is, a private company solely owned by the Dutch government.
NS as a state enterprise
As a result of the First World War, the Netherlands' economy had declined causing HSM and SS to fall from profitability. Given their national importance, allowing them to slip into bankruptcy was not considered acceptable. While remaining independent companies, HSM and SS improved overall efficiency by cooperatively integrating their operations. The Dutch government further supported HSM and SS by purchasing shares in both firms. In 1938, the government merged the two companies to form the Nederlandse Spoorwegen (NS). In the process, the government bought all remaining shares, yet never nationalised the company. Therefore, NS remained, and still is, a private company solely owned by the Dutch government.
NS as a state enterprise
During the Second World War the NS remained an independent company, but was forced to do the Germans' bidding; the NS was forced to construct the railway lines to camp Westerbork and help in the deportation of almost a hundred thousand Jews to extermination camps. The NS went on a strike once during the war, in the winter of 1944-45, after it had declined to participate in one a year earlier.
The NS played a pivotal role in the reconstruction of the country. There was little alternative transport in the country besides the train, while there was a huge demand for logistical services which the NS could provide.
While the 1950s were generally a good time for the company, it started to decline in the 1960s, like most other railways around the world. Not only did the NS suffer from the competition of the car and other modes of transport, it also suffered from a loss of income when natural gas started to replace coal as the main fuel in powerplants and homes after a gas field was found near Slochteren. The NS had been involved in the transport of coal from the mines in Limburg to the remainder of the country.
The NS responded with an aggressive strategy named Spoorslag '70. This strategy meant, among other things, that the NS substantially increased the number of trains per hour and also introduced the Intercity services. However, it was quite clear that this would never return the company to profitability. Nevertheless the company was declared to be of national importance, meaning that it would receive large amounts of subsidies every year.
Reforms of the 1990s
The NS played a pivotal role in the reconstruction of the country. There was little alternative transport in the country besides the train, while there was a huge demand for logistical services which the NS could provide.
While the 1950s were generally a good time for the company, it started to decline in the 1960s, like most other railways around the world. Not only did the NS suffer from the competition of the car and other modes of transport, it also suffered from a loss of income when natural gas started to replace coal as the main fuel in powerplants and homes after a gas field was found near Slochteren. The NS had been involved in the transport of coal from the mines in Limburg to the remainder of the country.
The NS responded with an aggressive strategy named Spoorslag '70. This strategy meant, among other things, that the NS substantially increased the number of trains per hour and also introduced the Intercity services. However, it was quite clear that this would never return the company to profitability. Nevertheless the company was declared to be of national importance, meaning that it would receive large amounts of subsidies every year.
Reforms of the 1990s
In the early 1990s, the government started to question the subsidies given to the NS. Not only were there questions regarding the way the NS spent the subsidies, but, after the neo liberal reforms of the 1980s, it was also considered not done to award generic subsidies to companies. The government decided on the verzelfstandiging of the NS. (Although technically, this is not the case, but instead refers here to withdrawal of the subsidies.) The idea was that not only rail transport was economically viable, but that there could be competition as well.
There were two external circumstances which allowed for this to happen. Firstly, the European Union passed Directive 91/440, which prescribed, among other things, the (formal) separation of the national railways into two separate companies, one which deals with the infrastructure, and the other which deals with the transport activities. Secondly, the old CEO of the NS, Leo Ploeger, retired, which allowed the government to name a new CEO which would execute the government's plans. The new CEO was Rob den Besten.
The plans entailed that the government would remain responsible for the rail infrastructure, while the NS would provide the (passenger) transport on a commercial basis. Where the services would prove to be economically inviable the government would subsidise that route. The division which was responsible for the infrastructure would later be turned into NS Railinfratrust.
To facilitate the government plans for the commercial operation of the NS, den Besten planned to split the NS into many smaller independent divisions. The idea was that these smaller divisions would be better able to respond to the market. The plans, however, received massive opposition from the unions, which meant that the only divisions created were NS Reizigers, and locomotive maintenance company NedTrain. There were also other internal changes in the company. The routemanagers got de facto control over the operation, but they were dependent of a different organ in the company.
The freight sector NS Cargo became part of the Deutsche Bahn after its merger with Railion in 2000, now known as DB-Schenker rail.
These reforms were never much of a success and left the company in an uncontrollable state. Result was that the company started to decline rapidly, and that the employees started many unorganised strikes. Following this, the complete board of directors felt it necessary to resign in late 2001.
In 2002 Karel Noordzij was named as new CEO of the NS with the mission to restore the confidence in the company. In essence, he did this by reversing most the reforms of the late 90s and restoring the company to the old state. Meanwhile, the government had changed its opinion of the railways, it no longer considered competition on (passenger) transport a viable goal. Thus, the government started to commission railway operators to run routes on the network. The NS was granted (by the national government) the concession to run on the main lines, whereas other companies received a number of the concessions on the secondary lines. The goal is to give individual concessions for the individual lines, but (at least) until 2025 the NS holds the concessions for main lines.
There were two external circumstances which allowed for this to happen. Firstly, the European Union passed Directive 91/440, which prescribed, among other things, the (formal) separation of the national railways into two separate companies, one which deals with the infrastructure, and the other which deals with the transport activities. Secondly, the old CEO of the NS, Leo Ploeger, retired, which allowed the government to name a new CEO which would execute the government's plans. The new CEO was Rob den Besten.
The plans entailed that the government would remain responsible for the rail infrastructure, while the NS would provide the (passenger) transport on a commercial basis. Where the services would prove to be economically inviable the government would subsidise that route. The division which was responsible for the infrastructure would later be turned into NS Railinfratrust.
To facilitate the government plans for the commercial operation of the NS, den Besten planned to split the NS into many smaller independent divisions. The idea was that these smaller divisions would be better able to respond to the market. The plans, however, received massive opposition from the unions, which meant that the only divisions created were NS Reizigers, and locomotive maintenance company NedTrain. There were also other internal changes in the company. The routemanagers got de facto control over the operation, but they were dependent of a different organ in the company.
The freight sector NS Cargo became part of the Deutsche Bahn after its merger with Railion in 2000, now known as DB-Schenker rail.
These reforms were never much of a success and left the company in an uncontrollable state. Result was that the company started to decline rapidly, and that the employees started many unorganised strikes. Following this, the complete board of directors felt it necessary to resign in late 2001.
In 2002 Karel Noordzij was named as new CEO of the NS with the mission to restore the confidence in the company. In essence, he did this by reversing most the reforms of the late 90s and restoring the company to the old state. Meanwhile, the government had changed its opinion of the railways, it no longer considered competition on (passenger) transport a viable goal. Thus, the government started to commission railway operators to run routes on the network. The NS was granted (by the national government) the concession to run on the main lines, whereas other companies received a number of the concessions on the secondary lines. The goal is to give individual concessions for the individual lines, but (at least) until 2025 the NS holds the concessions for main lines.
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