Are Britain's Railways Costing Too Much?: Perspectives Based on TFP Comparisons with British Rail 1963-2002

This paper addresses several aspects of the rise in costs for British Rail in the post-privatization era, starting in 1997, particularly the relevance of a spike in costs following the 2000 Hatfield derailment. This paper attempts to construct total rail industry costs dating from the start of privatization and examine the post-Hatfield costs and productivity levels in the context of historic benchmarks and post-privatization productivity changes and changes in operating procedures. Among the findings is that annual cash costs have risen 47 percent in real terms during the period analyzed, 1999-2002, with about 42 percent of that rise accounted for by passenger and freight operator costs. The post-Hatfield costs are shown to be unprecedented compared against historical benchmarks, rising more steeply than during previous investment peaks. Analyzing the data to see whether improvements in quality and safety can explain the cost increases shows that train performance has actually deteriorated, but safety has increased. However, the data suggest that the safety gains are not cost beneficial and may be over-emphasized. Possible contributing explanations are considered, and future research is suggested.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/856156
• Authors:
  • Smith, Andrew S J
• Publication Date: 2006-1

Language

• English

Media Info

• Media Type: Print
• Features: Figures; References; Tables;
• Pagination: pp 1-44
• Serial:
  • Journal of Transport Economics and Policy
  • Volume: 40
  • Issue Number: 1
  • Publisher: University of Bath
  • ISSN: 0022-5258
  • Serial URL: http://www.jtep.com

Subject/Index Terms

• TRT Terms: Benchmarks; Benefit cost analysis; Econometric models; Privatization; Productivity; Railroad crashes; Railroad safety
• Identifier Terms: British Rail
• Subject Areas: Environment; Railroads;

Filing Info

• Accession Number: 01020994
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Files: BTRIS, TRIS
• Created Date: Apr 3 2006 7:36AM