RAILWAY PROFITABILITY AND STATION CLOSURES

Currently, there is considerable debate on railway ownership, with privatizations occurring in a number of countries. Against this background, the management of London Underground Limited (LUL) wished to comprehend the likely behaviors of possible future owners, particularly any following a strategy of profit maximization. This paper is concerned with the network or geographical implications of any such strategy. Two elements of the network were examined: first, branch termani; and second, suburban stations on core routes. Although it might be desirable to close branch termani, operational reasons such as the location of depots prevent this in some cases, but analysis was carried out for the remainder. Poorly-used suburban stations were also examined; a simplified linear programming approach was used to identify those stations where traffic levels were insufficient to cover operating costs and the disbenefits to through passengers. These calculations were carried out for a number of scenarios, including short- and long-term, and benefit and profit maximization. Although much of the network is sustainable in the short term, or under benefit maximizing conditions, it was shown that only about 50% is financially profitable in the long term.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/29485010
• Corporate Authors:

  Elsevier

  The Boulevard, Langford Lane
  Kidlington, Oxford  United Kingdom  OX5 1GB
• Authors:
  • Harris, N G
  • Callaghan, M J
• Publication Date: 1997-1

Language

• English

Media Info

• Features: References;
• Pagination: p. 41-47
• Serial:
  • Transport Policy
  • Volume: 4
  • Issue Number: 1
  • Publisher: Elsevier
  • ISSN: 0967-070X
  • Serial URL: http://www.elsevier.com/locate/issn/096707X

Subject/Index Terms

• TRT Terms: Business practices; Linear programming; Operating costs; Privatization; Profitability; Railroad stations; Railroad traffic; Railroad transportation; Routes; Suburbs; Subway stations; Subways
• Uncontrolled Terms: Branch termani (Railroad)
• Geographic Terms: London (England)
• Subject Areas: Administration and Management; Economics; Railroads; Terminals and Facilities;

Filing Info

• Accession Number: 00792609
• Record Type: Publication
• Files: TRIS
• Created Date: May 16 2000 12:00AM