Vertical or horizontal separation? - Alive2green
Vertical or horizontal separation? - Alive2green
Vertical or horizontal separation? - Alive2green
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Geography is probably key<br />
H<strong>or</strong>izontal <strong>separation</strong> & efficiency<br />
• H<strong>or</strong>izontally separated operat<strong>or</strong>s are appropriately incentivised to<br />
invest in optimal maintenance levels – efficiency improving<br />
• Counter-balanced if the freight geography lends itself to bottlenecks<br />
and natural monopolies<br />
• Mexican example:<br />
– Mexico City is a key freight destination<br />
– It is landlocked and served by several rail freight c<strong>or</strong>rid<strong>or</strong>s linked to<br />
different p<strong>or</strong>ts<br />
– Only area of shared track infrastructure is directly around Mexico City –<br />
limits regulat<strong>or</strong>y burden<br />
– H<strong>or</strong>izontal <strong>separation</strong> is able to generate substantial competition f<strong>or</strong> freight<br />
• Geographical similarities to Johannesburg?<br />
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