Integration of Infrastructure and Transport: an Assessment from Industrial Economics and Railway Perspectives
نویسنده
چکیده
This paper explores the arguments, both in favour of and against vertical integration in railways, taking into account liberalisation requirements according to EU-legislation. It draws on industrial economics insight and combines it with illustrations from the German railway business. Since privatisation, next to liberalisation and restructuring, is taken as a central means of strengthening the railways in inter-modal competition, the paper also provides a connection between structural choice and the role of public versus private ownership. On this basis, general criteria for structural choice in railways are derived and policy recommendations can be drawn. It is argued for the German case, that the integration of railway infrastructure and its main operating customers warrants higher productivity, quality, safety and innovation of the rail system. By contrast, the potential disadvantages can be captured by a suitable regulatory framework. In particular, under organisational and accounting separation as well as regulation of non-discriminatory network access, competitive forces can unfold while advantages of integration are preserved to the benefit of railway undertakings, their customers and shareholders. JEL-classifications: K23, L22, L33, L92
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