Ground Transportation 2026

Definitive global law guides offering comparative analysis from top-ranked lawyers

CHAMBERS GLOBAL PRACTICE GUIDES

Definitive global law guides offering comparative analysis from top-ranked lawyers

Contributing Editor Raymond A. Atkins Sidley Austin LLP

Global Practice Guides

Ground Transportation Contributing Editor Raymond Atkins Sidley Austin LLP

2026

Chambers Global Practice Guides For more than 20 years, Chambers Global Guides have ranked lawyers and law firms across the world. Chambers now offer clients a new series of Global Practice Guides, which contain practical guidance on doing legal business in key jurisdictions. We use our knowledge of the world’s best lawyers to select leading law firms in each jurisdiction to write the ‘Law & Practice’ sections. In addition, the ‘Trends & Developments’ sections analyse trends and developments in local legal markets. Disclaimer: The information in this guide is provided for general reference only, not as specific legal advice. Views expressed by the authors are not necessarily the views of the law firms in which they practise. For specific legal advice, a lawyer should be consulted. Content Management Director Claire Oxborrow Content Manager Jonathan Mendelowitz Senior Content Reviewers Sally McGonigal, Ethne Withers, Deborah Sinclair, Stephen Dinkeldein, Vivienne Button and Sean Marshall Content Reviewers Lawrence Garrett, Marianne Page, Heather Palomino, Alison Moore, Adrian Ciechacki and Michael Irvine Content Coordination Manager Nancy Tsang Senior Content Coordinators Carla Cagnina and Delicia Tasinda Content Coordinator Joanna Chivers Head of Production Jasper John Production Coordinator Genevieve Sibayan

Published by Chambers and Partners 165 Fleet Street London EC4A 2AE Tel +44 20 7606 8844 Fax +44 20 7831 5662 Web www.chambers.com

Contents

INTRODUCTION Contributed by Raymond Atkins, Sidley Austin p.4

UK Law and Practice p.8

Contributed by Backhouse Jones Trends and Developments p.18 Contributed by Backhouse Jones

USA Law and Practice p.24 Contributed by Hunton Andrews Kurth LLP Trends and Developments p.41 Contributed by Hunton Andrews Kurth LLP

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INTRODUCTION Contributed by: Raymond Atkins, Sidley Austin Sidley Austin is an elite global law firm. With approxi - mately 2,300 lawyers and 160 years of experience, it has established a reputation for innovative legal strategies to achieve powerful results for its clients in complex transactional, restructuring, crisis manage - ment, investigation, regulatory and litigation matters. Sidley’s perspective and reach are truly global, sup -

ported by 21 offices strategically situated in key com - mercial, regulatory and financial centres across the world. The firm’s lawyers and business professionals, fluent in more than 75 languages, possess the cultur - al awareness and cross-border legal acumen needed to bring clarity to a dynamic business landscape.

Contributing Editor

Raymond Atkins is a partner at Sidley who advises transportation companies on industry-defining transactions, regulatory proceedings and disputes. He represents some of the nation’s largest transportation

companies wherever their most consequential matters arise. Across these matters – whether transactional, regulatory or litigation-focused – clients rely on Ray’s clear advocacy, regulatory judgement and economic insight to help solve complex legal problems in ways that advance their business objectives. Clients turn to Ray for matters that require sophisticated advocacy and a deep understanding of the transportation industry’s regulatory and commercial landscape.

Sidley Austin LLP 1501 K Street NW Washington, DC 20005 USA Tel: +1 202 736 8889 Email: ratkins@sidley.com Web: www.sidley.com

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INTRODUCTION Contributed by: Raymond Atkins, Sidley Austin

The growth of every major economy has depended on safe, reliable and cost-efficient transportation networks. Roman roads helped integrate an empire; railways helped integrate continental economies; highways and transit systems now support global trade, labour mobility, energy transition and the daily functioning of cities. Over the past century, globalisa - tion has forced regional transportation networks to do more than serve local markets; they now have to con - nect into wider systems that move goods and people across borders. That pressure is more acute than ever in a digital economy. Technology has made it possible for buy - ers and producers to find each other in ways that were unimaginable 20 years ago. But until teleporta - tion becomes a reality, digital connection alone does not move goods. A customer in one country can be linked instantly to a producer in another, but that con - nection has little value unless the product can move safely, efficiently and at a commercially sensible cost. Today’s ground transportation networks perform the same basic function that Roman roads once did – connecting distant markets; they just have to do it at greater speed, scale and complexity. The law has not always kept up. Across jurisdictions, the core objectives are often familiar: attract invest - ment, promote safety, improve efficiency and support mobility. The ways jurisdictions pursue those objec - tives, however, vary widely. Local regulatory struc - tures, customs, permitting regimes, procurement models, ownership rules, labour requirements, safety standards and enforcement priorities can change the legal route entirely. This practice guide is intended to help market partici - pants understand those differences. For consumers, producers, operators, investors and public authorities, the question is not academic. The rules can deter - mine whether transportation networks function as open corridors to growth or as bottlenecks that slow projects, capital and commerce. Looking across jurisdictions, the same pressures appear again and again. Freight and passenger demand are changing. Infrastructure needs capital that public budgets often cannot provide. Decarboni -

sation and climate risk are reshaping assets and oper - ations. Technology is turning transportation into a data and software business. Cross-border movement, sup - ply-chain security, workforce constraints, safety and liability now overlap in ways that older legal regimes were not designed to handle. The result is a sector in which legal issues no longer move on separate tracks. A Sector Being Redefined by Global Pressures No single trend explains what is happening to ground transportation. The sector is being shaped by freight demand, urban mobility, climate policy, technology, private capital and changing public expectations all at once. Freight demand is shaped by manufacturing strategy, e-commerce, port flows, congestion and customer expectations for speed and visibility. Passenger trans - port is shaped by urbanisation, hybrid working, afford - ability and public policy. Road transport remains indis - pensable because it is flexible and reaches the first and last mile. Rail remains central where volume, dis - tance, infrastructure and service reliability support its use. Public transit, buses and metro systems remain essential to economic inclusion and urban mobility. The hard part is making those modes work togeth - er. Modal shift succeeds when networks, terminals, depots, logistics platforms and urban mobility systems connect in practice, not just in policy documents. That means reliable and efficient service across borders and levels of government. Infrastructure and Capital The investment challenge starts with capital. Ground transportation is fundamentally an infra - structure business, with assets that are expensive, long-lived and political. Highways and rail corridors, bridges, tunnels, stations, ports, depots, rolling stock, fleets, signalling systems, tolling systems and ener - gy infrastructure all require sustained investment. In many markets, public budgets are not enough, caus - ing an increased reliance on concessions, public- private partnerships, user charges, regulated access regimes, leasing platforms and private capital. Competition for capital is increasingly global. The same forces that connected global markets have

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INTRODUCTION Contributed by: Raymond Atkins, Sidley Austin

Technology, Data and Automation For much of its history, ground transportation was judged by a simple standard: can people and goods get from point A to point B safely, reliably and effi - ciently? That standard still matters and always will – but the systems that make that movement possible are changing. Ground transportation is becoming a data-rich and software-dependent sector. Fleet telematics, digital freight platforms, electronic transport documents, smart tolling, predictive maintenance, blockchain technology, AI-assisted routing, intelligent traffic management, connected vehicles and advanced signalling systems are changing how operators plan, price, monitor and prove performance. These tools can improve efficiency but raise hard questions about data ownership, privacy and cybersecurity. Automation is moving unevenly across jurisdictions and modes, but its legal implications are already real. Autonomous trucks, driver-assistance technologies, automated metros, remotely monitored operations and connected infrastructure all require regulators to revisit certification, safety cases, software updates, accident investigation, product liability, operator responsibility and insurance. The challenge is not sim - ply to encourage innovation. It is to regulate it without betting too heavily on immature technology, creating accountability gaps or freezing useful development before it can prove itself. Regulation, Cross-Border Movement and Supply- Chain Security The hardest issues often arise where systems meet Ground transportation is increasingly shaped by trade policy and geopolitical risk. Regulation defines who may operate, who may access infrastructure, what charges may be imposed, how safety obligations are monitored, and how public service obligations are funded. Cross-border freight depends on customs rules, cabotage restrictions, permits, sanctions com - pliance, insurance, driver or crew qualifications, tech - nical interoperability and the practical capacity of bor - der infrastructure. Regional supply-chain strategies have made land corridors more important, especially

also connected global finance. Infrastructure inves - tors, lenders and operators can compare opportuni - ties across regions, sectors, asset classes and legal systems. A ground transportation project competes not only with another rail line or highway concession, but also with airports, energy assets, digital infrastruc - ture, real estate and other infrastructure investments. Capital follows confidence. Private investment can transform regional transportation networks when it works alongside public funding and credible public policy. Because these assets are exposed to politi - cal, regulatory and market risk over long periods, investors look closely at procurement rules, pay - ment obligations, permitting timelines, land rights, change-in-law protection, tariff structures, termina - tion rights and compensation regimes. Jurisdictions that address those risks clearly will be better placed to attract investment and deliver the strong networks Ground transportation must reduce emissions with - out reducing the reliability and affordability on which commerce and daily life depend. For highways, that means electric vehicles, grid access, corridor and depot charging, renewable fuels and vehicle replace - ment. For rail, it means electrification, alternative pro - pulsion, diesel replacement, network capacity and the financing of long-life infrastructure. For public trans - port, it means fleet procurement, power supply and the practical challenge of cutting emissions without cutting service. their growing economies need. Energy Transition and Resilience Then comes decarbonisation Climate resilience is now its own legal and commer - cial issue. Transport networks must operate through heat, flooding, storms, wildfire and other physical risks, putting more weight on asset-hardening obli - gations, emergency planning, maintenance standards, insurance, and the allocation of delay and service- interruption risk. The legal question is no longer only how to build cleaner networks; it is also how to keep those networks operating when conditions become more volatile.

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INTRODUCTION Contributed by: Raymond Atkins, Sidley Austin

Outlook Ground transportation is often not glamorous. Roads, rails, depots, tunnels, vehicles, workers, timetables and maintenance make up the foundation of world operations. It has never been the fastest-moving industry, and in some respects, that is the point. Its assets are physical, expensive, long-lived and central to public safety and daily life. The law governing the sector often reflects that history. In many jurisdictions, it remains fragmented across modes, agencies and levels of government. Over time, some of those aspects change and evolve, but others continue their steady course. That tension is one of the defining legal features of ground trans - portation. Technology, decarbonisation, private capi - tal, urbanisation and global supply chains are forcing old systems to answer new questions. At the same time, transport law often changes slowly because the systems it governs cannot fail. A jurisdiction may want innovation, investment and cleaner mobility, but regu - lators must also preserve safety, affordability, continu - ity of service and public confidence. That is why comparison matters. Jurisdictions share many of the same goals: safety, efficiency, invest - ment, resilience, access and accountability. They do not reach those goals in the same way. A compara - tive view helps operators, investors, public authorities and customers see where the rules are clear, where bottlenecks remain and where better approaches are emerging. Ground transportation will continue to do what it has always done: connect people, goods and markets. The question is whether legal systems can keep that engine strong as the world around it changes.

where manufacturing, ports and consumer markets are linked by road and rail. Security has also become a larger legal concern. Car - go theft, cyber-enabled fraud, hazardous materials, supply-chain tampering and misuse of digital freight systems require attention from carriers, brokers, ship - pers, terminal operators, insurers, technology vendors and public authorities. Contractual responsibility is increasingly tied to operational controls, information sharing and incident response. In other words, secu - rity is no longer just a question of who was holding the cargo when something went wrong; it is also a question of who controlled the data, the system and the risk. People, Safety and Liability While technology and cross-border aspects continue to innovate and evolve, others remain static First, the sector still depends on skilled people. Driver, crew, technician and maintenance shortages affect capacity and service quality in many markets. Rules on working time, rest periods, training, immigration, collective bargaining, transfer of undertakings and industrial action can have immediate operational con - sequences, particularly for essential services. Second, safety remains the foundation of trans - port law. Compliance is not confined to licensing. It extends across maintenance, inspections, hazardous materials, accident reporting, emergency response, insurance and liability. Major incidents often expose how many actors are involved in a single transporta - tion system: operators, infrastructure managers, man - ufacturers, public authorities, technology providers, insurers and customers. When something fails, the legal system has to decide not only what happened, but who was responsible for preventing it.

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The United Kingdom London

Ireland

Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies Backhouse Jones

Germany

Belgium

France

Contents 1. Market Overview p.11

8. Environmental Regulation and Decarbonisation p.14 8.1 Emissions Standards p.14 8.2 Electrification and Alternative Fuels p.14 8.3 Environmental Permitting p.14 8.4 Carbon Pricing and Reporting p.14 8.5 Environmental Review in Regulation p.14 8.6 Enforcement and Liability p.14 9. Safety and Technical Standards p.14 9.1 Safety Regime p.14 9.2 Accident Investigation p.14 9.3 Operator Obligations p.14 9.4 Technical Standards and Certification p.15

1.1 Market Developments and Outlook p.11 1.2 Investment and Infrastructure Activity p.11 1.3 Modal Shift and Supply Chain Developments p.11 2. Regulatory Framework p.11

2.1 Governing Legislation p.11 2.2 Regulatory Authorities p.12

2.3 Recent or Pending Reforms p.12 3. Licensing and Market Entry p.12

3.1 Operating Authorisations p.12 3.2 Qualification Requirements p.12 3.3 Cabotage and Cross-Border Operations p.12 3.4 Duration, Transfer and Revocation p.12 4. Infrastructure Ownership and Access p.12 4.1 Ownership Models p.12 4.2 Separation of Infrastructure and Operations p.13 4.3 Access Rights and Charges p.13 4.4 Toll Roads and Concessions p.13 4.5 Expansion and Upgrades p.13 5. Public Procurement and Concession Regimes p.13 5.1 Procurement Framework p.13 5.2 Tender Procedures p.13 5.3 Evaluation and Award Criteria p.13 5.4 Contract Duration and Termination p.13 5.5 Challenges and Remedies p.13 6. Financing and Investment Structures p.13 6.1 Infrastructure Financing p.13 6.2 Rolling Stock and Fleet Financing p.13 6.3 Leasing Structures p.13 6.4 Green and Sustainable Financing p.13 6.5 Government Support and Risk Allocation p.13 7. Competition and Antitrust p.13 7.1 Merger Control p.13 7.2 Access and Abuse of Dominance p.14 7.3 State Aid and Subsidies p.14 7.4 Vertical Integration p.14

9.5 Hazardous Materials p.15 9.6 Insurance and Liability p.15

10. Labour and Employment p.15 10.1 Sector-Specific Labour Rules p.15 10.2 Collective Bargaining p.15

10.3 Transfer of Undertakings p.15 10.4 Working Time and Safety p.15 10.5 Workforce Availability p.15 10.6 Industrial Action p.15 11. Rolling Stock, Fleet and Asset Regulation p.15 11.1 Approval and Registration p.15 11.2 Interoperability Standards p.15 11.3 Leasing and Repossession p.15 11.4 Maintenance and Inspection p.15 11.5 Emerging Technologies p.16 12. Digitalisation, Data and Cybersecurity p.16 12.3 Cybersecurity Obligations p.16 12.4 Smart Mobility Systems p.16 12.5 Data Ownership and Sharing p.16 13. International and Cross-Border Operations p.16 13.1 International Agreements p.16 12.1 Digital Platforms p.16 12.2 Data Protection p.16

13.2 Foreign Investment Restrictions p.16 13.3 Sanctions and Trade Controls p.16

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UK CONTENTS

13.4 Customs and Transit p.16 13.5 Trade Policies p.16 13.6 Cross-Border Integration p.16 14. Dispute Resolution and Enforcement p.16 14.1 Competent Courts and Tribunals p.16 14.2 Arbitration p.16 14.3 Regulatory Appeals p.16 14.4 Customer Claims p.16 14.5 Limitation Periods p.16 15. Emerging Issues and Future Developments p.17

15.1 Autonomous and Connected Transport p.17 15.2 Hydrogen and Alternative Propulsion p.17 15.3 Climate Resilience p.17 15.4 Urban Mobility and Congestion p.17

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

Backhouse Jones is a specialist boutique law firm with an unrivalled reputation in the road transport and logistics sector. The firm advises the majority of the UK’s leading haulage, bus and coach operators, as well as the principal trade bodies representing the industry, acting for many thousands of operator li - cence holders and most of the Motor Transport Top 100. Its road regulatory team comprises ten lawyers and is supported by specialists in employment, com - mercial litigation and corporate law, enabling the firm to provide seamless advice across all aspects of the

Authors

James Backhouse qualified as a solicitor in 1992 and has specialised in road transport law at Backhouse Jones since 1994, continuing a family tradition dating back to 1930. Widely recognised as one of the UK’s leading

Andrew Woolfall qualified as a solicitor in 1993 and has specialised in transport law since 1995, joining Backhouse Jones in 2003. A Higher Courts Advocate (Criminal Proceed - ings), he represents operators and

road transport lawyers, he represents passenger and goods vehicle operators in Public Inquiries, appeals before the Upper Tribunal, judicial reviews, and cases before the Supreme Court, House of Lords and European Court of Justice. He has also advised government and industry bodies on policy and regulatory reform. Highly rated by Chambers, James is renowned for his regulatory expertise, insight and advocacy.

individuals in Magistrates’ Courts, in Crown Courts and at Public Inquiries across England, Wales and Scotland. His practice covers operator licensing, road transport compliance, transport crime, inquests and vehicle technical specification law. Andrew has acted in cases before the High Court and House of Lords, advised international companies on UK and EU operator licensing, and represented clients in drugs and smuggling seizures on the continent. Chambers has praised his meticulous preparation and ability to identify every angle in complex cases.

Jonathon Backhouse is a seventh- generation solicitor at Backhouse Jones whose family has advised the transport industry for generations, following the specialism established by his grandfather in 1930. Recog -

Mark Davies heads Backhouse Jones’s road regulatory team and is an experienced advocate specialising in road transport law for both passenger and goods vehicle operators. He regularly represents clients at Public

nised by Chambers for his extensive experience in the road transport sector, he advises operators in the passenger transport and logistics industries. His practice focuses on Public Inquiries, regulatory investigations, health and safety matters, and serious criminal proceedings, including cases involving corporate manslaughter, causing death by dangerous driving, and major health and safety prosecutions. Jonathon also leads industry training and webinars for operators.

Inquiries involving operator licensing, maintenance, drivers’ hours, bus reliability and environmental issues, alongside complex Crown Court proceedings. His recent work includes successfully defending directors facing serious criminal allegations and advising operators involved in major Health and Safety Execu - tive investigations. Mark is a trusted adviser to many of the UK’s leading transport operators facing high- stakes regulatory and enforcement action.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

Backhouse Jones The Printworks Hey Road Barrow, Clitheroe BB7 9WD UK Tel: 02354 828 300

Email: enquiries@backhouses.co.uk Web: www.backhousejones.co.uk

1. Market Overview 1.1 Market Developments and Outlook The freight road transportation sector has suffered heavily due to the Iran–US war causing fuel prices to rapidly escalate. The effect of this is the need to adopt essential cost-saving exercises. Unfortunately, this often results in a failure to comply with the regu - latory regime as diligently as necessary. As a conse - quence, we are seeing more instances of non-compli - ance and regulatory breaches. In addition to this, the financial impact on companies is causing one of the core regulatory requirements – financial standing – to be missed, which can lead to revocation of operator licences if not managed well. The transport sector is heavily impacted by the econ - omy and often one of the first sectors to suffer when the economy flatlines, which it has been doing now for some considerable time. A flatlining economy leads to the closure/insolvency of a significant num - ber of operators, which results in a consolidation of the market and ultimately better prices for those that remain. Having contracts reviewed before signing can ensure items such as fuel escalators are added, resulting in the impact of events being less severe and therefore more businesses surviving. Ultimately, when the economy starts to grow, those that are left in the market can benefit significantly and for a pro - longed period. Due to the timescales involved in the regulatory regime, access to the market can be slow, which can provide significant windows of opportunity to those already in operation.

1.2 Investment and Infrastructure Activity There has not been any significant change in the last 12 months, nor has there been market consolidation to any great extent, although mergers and acquisitions have been occurring. Infrastructure expansion has not

been at an unusual level, in our opinion. 1.3 Modal Shift and Supply Chain Developments

In spite of the net zero agenda, we have not seen a significant modal shift. Instead, operators are look - ing at alternative fuels and there has been a slow but steady increase in the utilisation of electric vehicles, even including larger electric vehicles for 44-tonne loads. However, they are still only suitable for quite specific types of operation, as traditional haulage is not able to deal with the associated charging times and poor distances. 2. Regulatory Framework 2.1 Governing Legislation The principal laws governing road transportation in the UK jurisdiction are: • the Goods Vehicles (Licensing of Operators) Act 1995 and its relevant subordinate legislation, such as that for driver hours; • the Public Passenger Vehicles Act 1981; • the Transport Act 1985;

• the Transport Act 2000; and • the Bus Services Act 2025.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

2.2 Regulatory Authorities The operator licensing regime is regulated by eight Traffic Commissioners across Great Britain, with licences administered from a central office in Leeds. Northern Ireland is slightly different and has a Presid - ing Officer who carries out a similar but not identical function. 2.3 Recent or Pending Reforms The Bus Services Act 2025 has brought further signifi - cant change to the powers of local authorities to run their own bus companies. Furthermore, franchising in the bus sector has undergone huge growth within the last two years. The implementation of the Public Ser - vice Vehicles Accessibility Regulations 2000 (PSVAR) and the Public Service Vehicles Accessible Informa - tion Regulations 2023 (PSVAIR) will have a significant financial impact on operators despite government funding schemes to help towards PSVAIR. In the haul - age sector, the introduction of domestic Driver CPC (Certificate of Professional Competence) models with greater flexibility is assisting operators and drivers to fulfil their obligations. To operate road services for freight transportation, organisations are required to hold an operator licence authorised by the Office of the Traffic Commissioner. In order to obtain this, they have to agree to undertak - ings and accept conditions which specify the manner in which they must conduct their operation. 3.2 Qualification Requirements Financial Requirements Transport operators are required to satisfy the statu - tory financial standing requirement. This can be dem - onstrated in one of two ways: • for companies with audited accounts, by meeting the required level of capital and reserves shown in the balance sheet; or • by maintaining the required amount of readily avail - able funds, held on average over the three months immediately preceding the date of assessment, as evidenced by bank statements. 3. Licensing and Market Entry 3.1 Operating Authorisations

While there are some variations and exceptions depending on the circumstances, demonstrating the required level of financial standing is a mandatory requirement for holding an operator licence. Technical Qualifications Operators are required to employ an individual who has the Transport Manager CPC qualification, which aligns with the European syllabus. 3.3 Cabotage and Cross-Border Operations Cabotage rules are enforced, and the circumstances in which operators may undertake cabotage opera - tions are limited. This applies both to UK operators carrying out cabotage within Europe and to European operators carrying out cabotage operations within the UK. 3.4 Duration, Transfer and Revocation Operator Licences Once granted, operator licences are valid for five years and must be reviewed every five years in order to continue operating. Critically, they are not transfer - able as part of an M&A transaction. This requires care - ful management to ensure that companies do not find themselves without a licence post-transaction and is a common error made by many large firms that do not understand the operator licensing regime. Licence Suspension or Revocation There are a wide range of circumstances in which licences may be suspended or revoked. However, in essence, failure to comply with the undertakings, conditions or foundation of the licence are the core reasons.

4. Infrastructure Ownership and Access 4.1 Ownership Models

National Highways in England (or its equivalent in Scotland, Wales or Northern Ireland) or the local authorities maintain the road infrastructure in the UK, depending on the nature of the road.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

4.2 Separation of Infrastructure and Operations No content provided in this jurisdiction. 4.3 Access Rights and Charges No content provided in this jurisdiction. 4.4 Toll Roads and Concessions

5.5 Challenges and Remedies Operators can challenge unsuccessful procurement outcomes, but generally only under judicial review. This is often expensive and time-intensive. 6. Financing and Investment Structures 6.1 Infrastructure Financing There are a number of specific funding schemes avail - able to support decarbonisation projects within the transport sector. One example is the ZEBRA (Zero Emission Bus Regional Areas) programme, which provides financial support for the acquisition of zero- emission buses and the associated infrastructure required to operate them, such as charging facilities. In general, however, private enterprise funds its own infrastructure. 6.2 Rolling Stock and Fleet Financing Commercial vehicle fleets are typically financed through independent finance or manufacturer finance. 6.3 Leasing Structures Operators from both the heavy goods and bus sectors use a range of finance options to run their vehicles, ranging from cash purchases to lease arrangements to hire purchase. 6.4 Green and Sustainable Financing There are green funding schemes financed by govern - ment such as the ZEBRA programme, as mentioned in 6.1 Infrastructure Financing . Funding schemes, however, are far less common in the haulage sector. 6.5 Government Support and Risk Allocation We are not aware of any guarantees or availability- based payment models.

There are few toll road concessions in the UK. The pricing is per road and per organisation. Thankfully, there are very few such schemes – they are generally for tunnels or bridges, as well as the M6 Toll Birming - ham by-pass. 4.5 Expansion and Upgrades No content provided in this jurisdiction. 5. Public Procurement and Concession Regimes 5.1 Procurement Framework The European procurement rules apply to public transport and infrastructure contracts in the UK, and public procurement has to follow specific protocols under those rules. 5.2 Tender Procedures Competitive tenders are mandatory except in de minimis matters or emergencies. The procedures vary hugely depending on what is being tendered or fran - chised, with each local authority developing its own system. 5.3 Evaluation and Award Criteria Criteria typically applied in awarding concessions or operating contracts relate to: • price; • quality of service; • decarbonisation measures and ESG; and • the compliance status of an operator, for instance, poor compliance history. 5.4 Contract Duration and Termination No content provided in this jurisdiction.

7. Competition and Antitrust 7.1 Merger Control

As with all sectors, the Competition and Markets Authority observes significant consolidation events and investigates accordingly.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

7.2 Access and Abuse of Dominance No content provided in this jurisdiction. 7.3 State Aid and Subsidies No content provided in this jurisdiction. 7.4 Vertical Integration Regulators in the transport sector do not have a spe - cific jurisdiction on this. 8. Environmental Regulation and Decarbonisation 8.1 Emissions Standards In relation to heavy goods vehicles, emissions stand - ards are the same as those across Europe. The current standard is Euro 6; Euro 7 is due to be launched by the end of 2026. 8.2 Electrification and Alternative Fuels In the haulage sector, there are incentives to encour - age the adoption of electric vehicles. For example, many urban areas operate Clean Air Zones (CAZs), where emissions charges apply to higher-emission vehicles, while qualifying zero-emission vehicles are exempt from these charges. In addition, some private- sector organisations and supply chains have intro - duced procurement policies or contractual require - ments that encourage or require the use of low- or zero-emission fleets. At present, we are not aware of any nationwide fund - ing scheme specifically supporting the purchase of low- or zero-emission vehicles in the haulage sector comparable to those available for buses. As alluded to earlier, however, in the bus sector, a number of funding programmes are available to sup - port both the acquisition of zero-emission buses and the associated infrastructure required to operate them. These schemes are primarily focused on electrification and include initiatives such as the ZEBRA programme. 8.3 Environmental Permitting Which environmental approvals are required for infra - structure development is dependent on the nature, scale and location of the proposed works. In general,

the relevant planning permissions and environmen - tal consents required under planning legislation must be obtained. Furthermore, approval from the relevant electricity network operator or distribution network operator will be required where a new or upgraded electricity connection is required, along with any tech - nical assessments. 8.4 Carbon Pricing and Reporting On larger-scale contracts, both privately and govern - ment based, ESG and other carbon metrics are dis - closable as part of a tender process. 8.5 Environmental Review in Regulation No content provided in this jurisdiction. 8.6 Enforcement and Liability For breach of environmental laws, the fines are unlim - ited. 9. Safety and Technical Standards 9.1 Safety Regime For the haulage sector, the safety frameworks govern - ing road transportation are: • the government’s “Securing loads on HGVs and goods vehicles” guidance; and • the Health and Safety at Work etc. Act 1974. For the safe operation of vehicles on the road, the governing framework is set out in the Road Vehicles (Construction and Use) Regulations 1986, as enforced by bodies such as the police, the Driver and Vehicle Standards Agency (DVSA) and the Health and Safety Executive (HSE). 9.2 Accident Investigation The police, HSE and/or DVSA investigate major acci - dents or incidents. 9.3 Operator Obligations When an accident occurs, operators are required to stop, report the matter to the police and, in many cir - cumstances, also report the accident to the DVSA. The operator may also be obliged to report the acci - dent directly to the Office of the Traffic Commissioner.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

9.4 Technical Standards and Certification Vehicles operated in a fleet must be maintained in a roadworthy condition and comply with the Road Vehi - cles (Construction and Use) Regulations 1986. Where applicable, they must also hold a valid MoT certificate. In the case of buses and coaches, a new vehicle, or a vehicle that has been substantially modified, must obtain a Certificate of Initial Fitness, or an equivalent approval under the relevant vehicle approval regime, before it can be used in service. The certificate is issued by the DVSA following inspection, although the application process is typically undertaken by the vehicle manufacturer or body builder before the vehi - The transportation of hazardous materials by road is regulated by the UN Agreement concerning the Inter - national Carriage of Dangerous Goods by Road (ADR). 9.6 Insurance and Liability All vehicles used on the highway must have an appro - priate certificate of insurance ensuring both the vehi - cle and driver meet the legal obligations to insure against third-party risk. 10. Labour and Employment 10.1 Sector-Specific Labour Rules There are no labour laws specific to transport workers. 10.2 Collective Bargaining Sector-wide collective agreements are not common, but employer-wide collective agreements are com - mon in large organisations. 10.3 Transfer of Undertakings cle is delivered to the operator. 9.5 Hazardous Materials From an employment perspective, the same employ - ment protections apply when concessions change hands. 10.4 Working Time and Safety There are specific rules governing driver hours and working time. These are the Road Transport (Working Time) Regulations 2005 and the assimilated tacho - graph rules, as well as the domestic hours rules and working time regulations. For coach operators going

into Europe or hauliers and other operators going beyond Europe, there is also the European Agreement Concerning the Work of Crews of Vehicles Engaged in International Road Transport (AETR). 10.5 Workforce Availability With regard to the road transport sector, there is a driver shortage; hence, wages have increased signifi - cantly within the last five years. The adverse conse - quence of this is that drivers who historically might have not been considered adequate are now being given opportunities to drive, which potentially creates high risk. This applies across the board in the bus, coach and haulage sectors. 10.6 Industrial Action Strikes and other industrial actions in essential trans - port services are regulated in exactly the same way as all businesses. 11. Rolling Stock, Fleet and Asset Regulation 11.1 Approval and Registration No content provided in this jurisdiction. 11.2 Interoperability Standards With respect to interoperability standards, the UK meets the European standards and they are repeated in the Road Vehicles (Construction and Use) Regula - tions 1986. 11.3 Leasing and Repossession In terms of repossession rights for leased vehicles, this is a contractual obligation, and the lessor is enti - tled to repossess under the contract if the lessee is in breach. 11.4 Maintenance and Inspection For road transport operators, whether they operate heavy goods vehicles (HGVs), Public Service Vehi - cles (PSVs) or Passenger Carrying Vehicles (PCVs), guidance regarding what is expected can be found in a DVSA publication titled “Guide to maintaining roadworthiness”. Vehicle inspection frequencies are dependent on usage, mileage and age.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

11.5 Emerging Technologies No content provided in this jurisdiction.

13.3 Sanctions and Trade Controls In terms of sanctions regimes and cross-border trans - port operations, Border Force identifies breaches by inspection of import and export documentation. 13.4 Customs and Transit No content provided in this jurisdiction. 13.5 Trade Policies No content provided in this jurisdiction. 13.6 Cross-Border Integration No content provided in this jurisdiction. Transport-related disputes are heard in civil courts across England and Wales. Depending on the nature, complexity and financial value of the claim, proceed - ings may be brought in either the County Court or the High Court. 14.2 Arbitration Arbitration clauses are common in concession, access Regulatory decisions or fines can be challenged in the Upper Tribunal and then in the Court of Appeal and, ultimately, the Supreme Court. 14.4 Customer Claims No content provided in this jurisdiction. 14.5 Limitation Periods Contractual claims and tort claims have a limitation period of six years from the date of breach and/or loss. Personal injury claims have a shorter limitation period of three years from the date of accident or the date of knowledge of the injury. For injury suffered whilst under the age of 18, claims must be brought within three years of the claimant’s 18th birthday – ie, by their 21st birthday. Mass tort claims are permitted within our jurisdiction, although they are not common. 14. Dispute Resolution and Enforcement 14.1 Competent Courts and Tribunals and procurement agreements. 14.3 Regulatory Appeals

12. Digitalisation, Data and Cybersecurity 12.1 Digital Platforms There is no regulation of digital freight platforms. 12.2 Data Protection Standard GDPR regulations apply to operational data. There are no specific laws or obligations other than those either submitted to contractually or under the GDPR rules. 12.3 Cybersecurity Obligations There are currently no cybersecurity requirements in the road transport sector; however, best practice is that operators have robust cybersecurity measures and systems in place. A large, well-known haulier had to cease trading due to a cyber attack as the financial hit was unsurvivable. 12.4 Smart Mobility Systems AI-driven traffic management is not regulated as far as we are aware. 12.5 Data Ownership and Sharing All operators own their own data; however, there will be occasions where contractually, the customer also owns the data. In the bus sector and occasionally the coach sector, the local authority will own all of the data, and for rail replacement services, Network Rail will own the data. 13. International and Cross-Border Operations 13.1 International Agreements CMR agreements apply with regard to international transport. 13.2 Foreign Investment Restrictions As far as we are aware, there are no restrictions on foreign investment in ground transport infrastructure.

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UK Law and Practice Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

15. Emerging Issues and Future Developments

15.3 Climate Resilience No content provided in this jurisdiction. 15.4 Urban Mobility and Congestion

15.1 Autonomous and Connected Transport The operator of an autonomous vehicle will always be legally responsible for its operation. However, in the absence of a human driver, determining accountabil - ity for an incident or accident may be more complex. Unlike conventionally driven vehicles, where the driver is typically responsible for the safe operation and con - dition of the vehicle, autonomous vehicles may give rise to the question of where liability rests – with the operator, manufacturer, software developer, mainte - nance provider or another party. This presents legal challenges and is an area likely to evolve in discussion and debate in the coming years. 15.2 Hydrogen and Alternative Propulsion Hydrogen is potentially a very important fuel for the haulage and coach sectors in a future which increas - ingly targets zero carbon dioxide emissions. Hydrogen is, however, currently subject to different regulatory controls from other fuels, and in spite of strong advocacy from powerful supporters, currently its use as a vehicle fuel is in its infancy in the UK. Fur - thermore, availability of hydrogen as a fuel is challeng - ing in 2026; it does not benefit from the infrastructure advantages that diesel and electricity have.

Congestion pricing, low-emission zones or urban access restrictions are regulated by the local author - ity, which has the power to propose and implement such measures.

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UK Trends and Developments

Trends and Developments Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies Backhouse Jones

transport sector. Operating from offices in Clitheroe, the firm advises on all areas of road transport regu - lation, including operator licensing, Public Inquiries, transport compliance and enforcement. Recent work includes advising operators on Clean Air Zones, the Windsor Framework, Direct Vision Standard compli - ance, Border Force enforcement, and supply chain disruption arising from geopolitical events. The firm is recognised for undertaking more Public Inquiries before the UK Traffic Commissioners than any other practice. practice focuses on Public Inquiries, regulatory investigations, health and safety matters, and serious criminal proceedings, including cases involving corporate manslaughter, causing death by dangerous driving, and major health and safety prosecutions. Jonathon also leads industry training and webinars for operators.

Authors

nised by Chambers for his extensive experience in the road transport sector, he advises operators in the passenger transport and logistics industries. His

18 CHAMBERS.COM

UK Trends and Developments Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

Mark Davies heads Backhouse Jones’s road regulatory team and is an experienced advocate specialising in road transport law for both passen - ger and goods vehicle operators. He regularly represents clients at Public

Inquiries involving operator licensing, maintenance, drivers’ hours, bus reliability and environmental issues, alongside complex Crown Court proceed - ings. His recent work includes successfully defend - ing directors facing serious criminal allegations and advising operators involved in major Health and Safety Executive investigations. Mark is a trusted adviser to many of the UK’s leading transport operators facing high-stakes regulatory and enforce - ment action.

Backhouse Jones The Printworks Hey Road Barrow, Clitheroe BB7 9WD UK Tel: 02354 828 300

Email: enquiries@backhouses.co.uk Web: www.backhousejones.co.uk

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UK Trends and Developments Contributed by: James Backhouse, Jonathon Backhouse, Andrew Woolfall and Mark Davies, Backhouse Jones

Regulatory Scrutiny Traffic Commissioner priorities remain focused on ensuring goods and passenger carrying operators are reputable, competent and adequately funded within their own businesses, with robust maintenance and driver compliance systems that support safe opera - tion and fair competition. Recently, there has been a practical shift as operators now need to demonstrate active control over risk management, rather than sim - ply ticking a box with a policy gathering dust. The change in focus is about monitoring and manag - ing the risk, and, when something does go wrong, undertaking analysis regarding why the breach occurred, who reviewed the process, what rectifica - tion measures took place, and the process for ongoing evaluation. Furthermore, the road transport sector – which has been somewhat behind the curve in terms of digitali - sation– is now rapidly moving from paper-based com - pliance to automated processes with clear evidence of management control. However, despite technologi - cal advancements, the overriding principles within the operator licensing framework for Traffic Commission - ers remain the same: good repute, professional com - petence (achieved by engaging one or more qualified transport managers), financial standing, and evidence of a safe and compliant operation. Economic Pressures Whilst financial standing has always been a regulatory requirement, the current economic climate is placing additional strain on many operators. Higher fuel and energy costs, rising insurance premiums, labour mar - ket pressures with wage inflation, increasing vehicle replacement costs (particularly associated with net zero alternatives), political uncertainty and growing customer expectations are all contributing to tighter operating margins. For many smaller owner-operator hauliers, commercial challenges have proved too great, with financial pressures leading to insolvency – often affecting businesses that have operated suc - cessfully for generations. Against this backdrop, maintaining the required level of financial standing has become increasingly chal - lenging for some operators. Financial standing is a

The road passenger transport and logistics sector is a critical enabler of the UK economy, underpinning the movement of people, and enabling local and national economies to thrive, businesses to grow and new opportunities to be created. Its significance, however, is often under-recognised, and as a consequence it does not always receive the support from government that such a critical part of the real economy deserves. It really would be a single point of failure for the UK economy if it were ever to fail comprehensively as a sector. To illustrate the size of the regulated market in Great Britain, recent statistics from the Office of the Traffic Commissioner confirm there are 66,222 goods vehicle operators (HGV/LGV) and 5,280 Public Service Vehi - cle (PSV) operators (bus, coach and minibus). These equate to almost 380,000 authorised vehicles (goods) and around 90,000 PSV vehicles. Whilst the heavy goods licensing population is large and of economic importance, it is important to high - light that the regulators (Traffic Commissioners) only deal with a relatively small number of operators that fail to comply with their compliance and risk manage - ment obligations. The challenge for Traffic Commissioners is to uphold safety at the highest level, maintain public confidence in the licensing system and ensure a level and fair playing field across thousands of businesses, many of which operate under tight margins and face mounting operational pressures. It is not surprising, therefore, that operator licence compliance – whether that be for the heavy goods or passenger carrying sectors – is continually evolving, with Traffic Commissioners driving forward enforcement priorities. As regula - tors, the Traffic Commissioners are efficient and very fast to intervene where evidence suggests there are real issues of concern. Substantive hearings, known as Public Inquiries, normally occur within about six months of an issue arising, with the vast majority determining their outcome at the first hearing. For many operators, the current climate presents an interesting juncture, with pressure mounting from sev - eral different angles.

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