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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 />

5.3.3 Alternative paths to competition ............................. 75<br />

5.4 The Third Building Block: Separability ................................. 76<br />

5.4.1 Horizontal separability ......................................... 76<br />

5.4.2 Vertical separation .............................................. 77<br />

5.5 Assembling the Building Blocks: Options <strong>for</strong> Industry Structure.... 78<br />

5.5.1 The public infrastructure framework ........................ 79<br />

5.5.3 The private infrastructure framework ....................... 83<br />

5.5.4 <strong>Re<strong>for</strong>m</strong> motives and re<strong>for</strong>m choices .......................... 85<br />

5.6 Dealing with Non Core Activities........................................ 86<br />

5.6.1 Social and recreational services to employees.............. 87<br />

5.6.2 <strong><strong>Rail</strong>way</strong> materials and manufacturing enterprises ......... 90<br />

5.6.3 Business support services....................................... 92<br />

5.6.4 Extended businesses............................................. 93<br />

5.6.5 Use of professional advisers ................................... 95<br />

Chapter 6: The Roles of Government ......................................97<br />

6.1 Government, <strong><strong>Rail</strong>way</strong>s, and the Public Interest ...................... 98<br />

6.2 National Transport Strategy ............................................. 99<br />

6.3 <strong><strong>Rail</strong>way</strong> Industry Structure..............................................101<br />

6.4 Purchase of Transport Services ........................................102<br />

6.5 Industry Regulation ......................................................102<br />

6.6 Transnational <strong><strong>Rail</strong>way</strong> Agreements and Treaties....................103<br />

6.7 Administrative Apparatus ...............................................105<br />

Chapter 7: Administering the <strong><strong>Rail</strong>way</strong>s .................................. 107<br />

7.1 Introduction ...............................................................108<br />

7.2 New Relationships Between the State and <strong><strong>Rail</strong>way</strong>s................108<br />

7.2.1 Adapting to new market conditions .........................108<br />

7.2.2 Governance principles <strong>for</strong> state-owned railways..........109<br />

7.3 Implementing New Governance Principles ...........................110<br />

7.3.1 Segregation of duties ..........................................110<br />

7.3.2 Setting up the legal and regulatory framework ...........110<br />

7.3.3 Contractual relationships between government and<br />

railways ...................................................................111<br />

7.4 The State as Owner ......................................................113<br />

7.4.1 The ownership role .............................................113<br />

The World Bank<br />

Page viii

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