Railway economics for operators

This article reports a recent presentation by Richard Bowker, former chairman of the UK's Strategic Rail Authority, on the subject of economics as applied to the railway industry. The UK's railways were originally built by private entrepreneurs but nationalised in 1948 in a period of interventionist economics; then privatised in the 1990s. Railway income comes from two sources: fares or charges, and taxes. Passenger use is driven by demand and fares are regulated to prevent companies maximising revenue from inelastic demand, principally commuters. The government contributes half the income, to relieve road congestion and enable economic growth. Private investment requires a commensurate reward. Railway projects are appraised in terms of cost/benefit ratio. Privatisation benefits included long-term investment and customer focus: but public intervention has also been necessary in a public-private partnership. Traffic growth in the future is seen as a problem and significant investment will be needed. (A)

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/00268356
• Authors:
  • GLOVER, J
• Publication Date: 2006-7

Language

• English

Media Info

• Pagination: 47-49
• Serial:
  • MODERN RAILWAYS
  • Volume: 63
  • Issue Number: 694
  • Publisher: Ian Allan Publishing, Limited
  • ISSN: 0026-8356

Subject/Index Terms

• TRT Terms: Benefit cost analysis; Demand; Economics; Financing; Investments; Public private partnerships; Railroad transportation
• Geographic Terms: United Kingdom
• ITRD Terms: 226: Cost benefit analysis; 285: Demand (econ); 255: Economics; 244: Financing; 227: Investment; 172: Public private partnership; 1173: Rail bound transport; 8119: United Kingdom
• Subject Areas: Economics; Planning and Forecasting; Railroads; I10: Economics and Administration; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01043767
• Record Type: Publication
• Source Agency: Transport Research Laboratory
• Files: ITRD
• Created Date: Mar 9 2007 8:21AM