ASi" kUCTURE FlOR DEVELOPMENT

permit them to drop uneconomic lines. An exception and- maitain them adequately and that have suffito
rail service deregulation should be made for cap- cient funding to do so. This is of particular importive
shippers without access to altemative modes. tance for network components for which it is diffi-
Vertical separation of track and facilities from iail cult to charge users-that is, the vast majority of the
services-with the latter operated under contract by national, rural, and urban networks that do not lend
entities other than the owners of the rail infrastruc-. themselves to provision through toll roads. ReZformture-is
a strategy being considered or adopted in ing the management of these roads involves assignsome
countries, including Argentina, Chile, Cote ing clear responsibility for operation and mainted'lvoire,
and Mexico. Such separation requires well-: nance to appropriate authorities. It also means
defined access rules and agreements for investment designing a system of economic road-user charges
and maintenance and may not be workable in coun- (ideally, including the axle-load-based costs intries
with modest institutional capacity.
Qicted by different users), instituting a financing
The countries in transition are already beginning scheme that links users' payments to maintenance
to tailor their stocks of railway assets to serve the fu- expenditure (in order to create accountability of
ture needs of a restructured (and geographically road agencies to users), and introducing a mecharedirected)
industrial sector. These countries also nism for users to influence expenditures on road
need to increase freight taiffs to cover costs and to maintenance. The recently restructured road authorimprove
the energy efficiency of their'locomotive ities of. Sierra Leone and Tanzania provide good
fleet. L
models. Botlh include representatives of users (such
as chambers of commerce, automobile associations,
URBAN TRANSPORT. Urban transport services can haulers, and other citizens' groups) as well as engibe
supplied by private operators or under conces- neers and government officials.
sions. Provision of bus and taxi transport in urban As discussed in Chapter 2, periodic road mainteareas
is an activity in which entry and exit are rela- nance (for which performance standards can be
tively simple, and competition can fiourish across more easily defined and monitored than for routine
all country groups. In addition to regulation to ad- maintenance) is increasingly executed more effidress
safety and environmental concens, some con- ciently by the private sector under contract than by
trol over route structure and the allocation of bus public employees. Rural agricultural feeder roads
services to specific routes may be appropriate. Gen- can be maintained in part by local organizations and
eral restrictions on entry or fares are usually unnec- communities. The most successful experiences comessary.
Urbanrail services lend themselves to leases, bine local control of maintenance with some 'govconcessions,
and contracts for service provision. emrnent funding or provision of materials. In low-
A comprehensive urban transport strategy re- income countries, attention should be directed to
quires that all available modes be examined, includ- promoting cost-effective labor-based approaches for
ing subways or other rapid transit, private cars, and road maintenance, and to construction. Privately finonmotorized
transport (which may call for pedes- nanced toil roads can be developed for certain road
a tian sidewalks and bicycle lanes). Strategic choices inks, particularly *najor intercity links where traffic
alout the relative roles of personal vehicle transport flows are high.
and public transport require a hll assessment of
costs and benefits, induding economic, financial, POTS AND AIm'oz. Ports and air transport raise
and environmental impacts and effects on land use. many of the same policy issues-and opportuni-
Traffic management policies have high priority be- ties-as railways. Although competitive provision
cause better-moving traffic provides major benefits of facilities (port infrastructure and airport runways
in terms of efficiency, safety, and the reduction of en- and gates) is not ,onomically efficient (because it
vironental pollution. These policies require en- involves large fixed costs that are sunk), equipping
forcemnent capacity in order to be effective. Eco- and operating such facilities is a contestable activity
nomic pricing of fuels and urban land (especially Leases and concessions are appropriate options for
parking space) and management of demand operating ports and airports. The competitive provithrough
the prcing of road access to urban areas are sion of berths within ports is also feasible.
policies with increasing relevance to countries with When ports and airports are subject to competigrowing
urban congestion.
tion from other traffic modes or from neighbonrng
facilities, prices for port and airport services can be
RoADs. The key issue for policy concerning dervgulated. To ensure the high-quality, reliable serroads
is to develop institutions that will manage vice required for international trade, it is equally im-
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