Vertical or horizontal separation? - Alive2green
Vertical or horizontal separation? - Alive2green
Vertical or horizontal separation? - Alive2green
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H<strong>or</strong>izontal <strong>separation</strong><br />
• Under h<strong>or</strong>izontal <strong>separation</strong>, each area is covered by only one<br />
operat<strong>or</strong> – establishes regional monopoly providers, with integrated<br />
above track/below track activities<br />
• However, some competitive constraints remain:<br />
– Competition f<strong>or</strong> concessions can be used to constrain pricing behaviour<br />
over the term of the concession<br />
– Competition to service key geographical destinations may be possible,<br />
depending on geography<br />
• The interchange points between different vertically integrated<br />
operat<strong>or</strong>s become the focus of regulat<strong>or</strong>y attention<br />
• Countries using some f<strong>or</strong>m of h<strong>or</strong>izontal <strong>separation</strong> in freight rail<br />
include the United States, Canada and Mexico<br />
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