COMPETITION IS NOT A SUBSTITUE FOR REGULATION IN THE TRANSPORTATION INDUSTRY

THE NATIONAL TRANSPORTATION ACT, RECENTLY ENACTED, PURPORTS TO ENABLE THE RAILROADS TO BETTER COMPETE FOR AVILABLE TRAFFIC BY LIFTING VIRTUALLY ALL RESTRICTION ON THEIR OPERATIONS. THE MOST RECENT ANALYSIS SUGGEST THAT ONLY 20% OF THE TRAFFIC CARRIED BY THE RAILWAYS IS VULNERABLE TO TRUCK COMPETITION ON A SIMPLE COST BASIS; ANOTHER STUDY INDICATES THAT 40% OF RAILWAY TRAFFIC IS LABELLED COMPETITIVE. THIS LATTER FIGURE INCLUDES COMPETITION WITH WATER AND PIPELINE COMPETITION. THUS, THE POLICY OBJECTIVES OF THE ACT CAN ONLY BE ACHIEVED WITH RESPECT TO ONETHIRD OF THE TRANSPORTATION EFFORT. FOR THE OTHER TWO-THIRDS THE LACK OF REGULATION MAY PROVIDE BITTER EXPERIENCE. A HISTORICAL DEVELOPMENT OF THE RATE STRUCTURE FOR INTER-CITY FREIGHT TRAFFIC IS PROVIDED INDICATING THE PLACE THAT RAIL AND TRUCK TRANSPORTATION RATES PLAY IN REGIONAL ECONOMIC DEVELOPMENT AND OUTLINING THE VARIOUS RATE MAKING APPROACHES. /CGRA/

  • Supplemental Notes:
    • Vol 2, pp 1-19
  • Corporate Authors:

    University of Manitoba

    Winnipeg, Manitoba  Canada  R3T 2N2
  • Authors:
    • Stechishin, V M
  • Publication Date: 1969-8

Subject/Index Terms

Filing Info

  • Accession Number: 00201280
  • Record Type: Publication
  • Source Agency: CANADIAN GOOD ROADS ASSOCIATION
  • Files: TRIS
  • Created Date: Feb 12 1971 12:00AM