News Summary Bog #3 Due 5/21/14- "Spain set to start privating routes"

This news blog was especially difficult to do, especially considering that there haven’t really been any great news articles that can relate to any class topics we have discussed recently. Saying that, the article I selected is called, “Spain set to start privatizing routes.” This article deals with Renfe (, which is the leading rail operator in Spain (owned by the government). It is a leader in both freight and passenger models, but they have recently decided to allow for private competition in order to quell some of the debt acquired by Renfe. The move had been noted as a possibility when Renfe had already begun to take steps in this direction by dropping their prices, and also splitting up their company into multiple divisions.

            The best this can relate to what we’ve talked about in class has to be our discussions on freight transportation. Renfe does work with freight, and this move clearly could have an impact on prices, and potentially, how materials are imported into Spain. If the price continues to drop as a result of competition, that could open up Spain for a greater potential market to come.

            What set this up was the slippery slope of the economic crisis. Renfe was debt-ridden as a result of this, and in order to save their company and the rail industry in Spain, the government clearly felt this was the best option. There was also mention that this move had been anticipated, so measures had been taken previously that weren’t yielding the results they need, so this was their next move.

http://www.thelocal.es/20140516/renfe-spain-set-to-privatize-first-train-routes-railway