Vertical or horizontal separation? - Alive2green

Introduction
• A number of policy initiatives are currently on the table for the South
African freight rail sector:
– Economic regulator
– Introduction of private participation
– Possible separation of track from operations
• The choice of structural model for rail has massive implications for the
complexity of economic regulation, and would merit more discussion
• Vertical separation of the track from freight operations is not the only
possible solution: horizontal separation of freight into a number of
competing, vertically integrated operators should also be considered
• Ideally all feasible alternatives should be considered before decisions
are made
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