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Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

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<strong><strong>Rail</strong>way</strong> <strong>Re<strong>for</strong>m</strong>: <strong>Toolkit</strong> <strong>for</strong> <strong>Improving</strong> <strong>Rail</strong> <strong>Sector</strong> Per<strong>for</strong>mance<br />

Table of Contents<br />

Chapter 1: Introduction ........................................................ 1<br />

1.1 Target Audience .............................................................2<br />

1.2 The Role of Transport in Economic Development ......................2<br />

1.3 <strong><strong>Rail</strong>way</strong> Costs and Cost of Alternatives ..................................3<br />

1.4 Environmental and Land Use Benefits....................................5<br />

1.5 What Is <strong><strong>Rail</strong>way</strong> <strong>Re<strong>for</strong>m</strong>? Why Do It?......................................6<br />

1.6 What Can Be Expected From a <strong>Re<strong>for</strong>m</strong> Ef<strong>for</strong>t?..........................7<br />

1.7 How Long Will <strong><strong>Rail</strong>way</strong> <strong>Re<strong>for</strong>m</strong>s Take? ...................................7<br />

1.8 Structure of this Resource .................................................8<br />

Chapter 2: <strong>Rail</strong> Markets and Technology ..................................11<br />

2.1 Introduction ................................................................ 12<br />

2.2 Transport Market Characteristics ....................................... 12<br />

2.2.1 Passenger services ............................................... 12<br />

2.2.2 Freight services ................................................. 15<br />

2.3 What <strong><strong>Rail</strong>way</strong>s Do Best.................................................... 17<br />

2.4 <strong><strong>Rail</strong>way</strong> Technology and Terminology .................................. 18<br />

2.4.1 Infrastructure .................................................... 18<br />

2.4.2 Rolling stock ..................................................... 26<br />

Chapter 3: <strong><strong>Rail</strong>way</strong> Economics and Pricing................................31<br />

3.1 Economic Features of <strong><strong>Rail</strong>way</strong>s ......................................... 32<br />

3.2 <strong><strong>Rail</strong>way</strong> Cost Structures .................................................. 33<br />

3.2.1 Infrastructure network costs................................... 33<br />

3.2.2 Train operating costs............................................ 35<br />

3.2.3 Corporate overhead costs ...................................... 35<br />

3.2.4 Summary: costs and comparative advantage................ 36<br />

3.3 Costing <strong><strong>Rail</strong>way</strong> Services and Traffics.................................. 36<br />

3.3.1 Common costs .................................................... 36<br />

3.3.2 Joint costs......................................................... 37<br />

3.4 Financial Contribution Analysis ......................................... 37<br />

3.5 Commercial Management Actions....................................... 40<br />

3.6 <strong><strong>Rail</strong>way</strong> Pricing ............................................................ 40<br />

3.6.1 Freight pricing.................................................... 41<br />

3.6.2 Passenger service pricing ....................................... 42<br />

The World Bank<br />

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