Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

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Railway Reform: Toolkit for Improving Rail Sector Performance 5. Creating the Industry Structure ernments lack financial and administrative capacity 60 . In principle, the national public company might compete with private train operators for the concession, which could include local rail infrastructure. Box 5.5 presumes a model of a private train operating a concession under a network access contract on a joint-user network administered by the national railway company. This type of train operating concession should be re-bid periodically to ensure competition. • Option 4: government adopts a policy of separating rail freight services into an independent commercial public company. Freight services are split from passenger service, staff and freight train operating assets are transferred into a new incorporated structure with separate accounts, board of directors, and shareholders—independent of other parts of railway business. The company would operate under a network access contract with the main public passenger company. This separation recognizes differences between freight and passenger transport customers, service needs, and economic drivers, not to mention different political profiles that typically result in higher resource allocations for passenger services when both freight and passenger transport are under the same corporation. 61 60 Examples of different approaches include, for example, passenger rail concessions in Buenos Aires offered in concession by the national government (including the Metro) and the Rio de Janeiro metro and suburban rail services offered by the State government. 61 Option 4 presumes that the archetypal railway has a substantial passenger role, that the freight company should be separated, and that the network and passenger services remain corporately connected. However, if rail-freight services predominate, and passenger services are marginal, horizontal separation to constitute passenger services as a separate train operating company would leave a vertically integrated freight company as the core public railway, offering network access under contract to the passenger company. The World Bank Page 80
Railway Reform: Toolkit for Improving Rail Sector Performance 5. Creating the Industry Structure Box 5.5 Main policy options Archetypal railway system Illustrative Structural Options within the Public Infrastructure Framework (assumes mixed-use railway with a substantial passenger role) Main Railway Functions National main-line railway network Local railway networks National public railway department or authority Intercity passenger train services Freight train services Local passenger train services 1. Re-constitute as SOE/ SOC plus commercialization measures National public railway company (or SOE) 2. Decentralize regional/ suburban train operations to local authorities National public railway company (or SOE) National or a local public TOC operating under LGA contract 3. Concession regional and suburban passenger operations to private sector 4. Horizontal separation of public rail freight train operating company National public railway company (or SOE) Exclusive national public rail-freight TOC Private passenger TOC concessionaire(s) operating under service contract to central or local government authorities 5. Privatize freight train services on an exclusive basis Exclusive national private rail-freight TOC 6. Privatize freight plus 3 rd party access rights 7. Vertical separation of public infrastructure and operations National public railway network company (or SOE) Exclusive inter-city passenger public TOC (s) • • Competing private railfreight TOCS • 8. Concession intercity passenger operations National public railway network company (or SOE) Competitive bidding for intercity private passenger TOC concession (s) TOC: Train Operating Company SOE: State-owned Enterprise SOC: State-owned Company LGA: Local Government Authority The World Bank Page 81
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Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

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