Abstract

Competitiveness of rail transport compared to road transport has been reducing, especially on regional railway lines. To improve this situation, the EU adopted various directives and regulations to increase efficiency of railway undertakings. In this paper we present an organizational and economic model based on European policies for local railway system. The organizational model is based on multi-criteria decision analysis. For the economic model we used an econometric approach to estimate the cost function and marginal costs in regional lines, which constitute the basis for railway charges. By implementing such an organizational model, the functioning of the railway network will improve. The research found that a change in the existing model of calculating costs of infrastructure use would bring economic effects for the railway infrastructure manager and the providers of transport. Using the proposed model we also found that it is reasonable to increase the flow of goods on unused regional railway lines because the railway infrastructure maintenance costs are inelastic with regard to transported gross tons.

Highlights

  • IntroductionThe EC Council adopted a Directive on EC Railway development in 1991 [1], which aims to adjust the railway systems according to the needs and requirements of the common market for the purpose of efficiency and competitiveness with other transport systems

  • During the past decade, the competitiveness of railway transport has been reducing

  • The market of transport companies developed in line with the Directive 95/18/EC regarding the issuing of transport licences in railway transportation [2], which regulate the conditions that the member states use to issue, renew or alter the licences for railway transport companies that operate or will operate within the Community

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Summary

Introduction

The EC Council adopted a Directive on EC Railway development in 1991 [1], which aims to adjust the railway systems according to the needs and requirements of the common market for the purpose of efficiency and competitiveness with other transport systems. The aim of this Directive is to provide access to the network of member states for international railway associations and transport companies. This way, the effective use of railway infrastructure and competitiveness of rail transport companies would increase. In the European transport policy [3] the Commission of EU laid down the so called "revitalization" package for railways as one of the fundamental objectives, based on internal market development, modernisation of services and optimal use of infrastructure

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