Identification of variables proposed for inclusion into a regional railway corridor transportation economic regulatory framework: A case of the Southern African Development Community North–South Corridor

Abstract

Background: Economic regulation involves provision of rules, systems or alteration of the allocation of resources and/or distribution of income in a manner preferred to that which could have occurred in the absence of such upheld regulations. As railway transportation continues to be recognised as an essential contributor to the economic development of many economies, because of its comparative advantage in surface transportation of bulk and heavy cargo, the competition from the road trucking and its market dominance stands as an increasing threat. Objective: This article recommends economic factors that can be assessed for significance as variables for inclusion into a regional railway corridor transportation economic regulatory framework for enhancing competitiveness of rail operations in the Southern African Development Community (SADC) using the case of the North–South Corridor (NSC). Method: An appraisal of economic theories and global practices are the basis used for recommending the economic factors. The different forms of corridor freight competition, the importance of property rights within the context of roles and responsibilities of railway corridor stakeholders, and the parameters determining the level of freight service are also appraised in arriving at the recommended variables. Results: Identified variables are: corridor governance; commercial obligations of corridor parties; corridor rail service design; countering existent forms of corridor competition; and property rights allocation. Conclusion: It is concluded that appropriate optimisation of the determined variables will enhance railway corridor economic efficiency and facilitate for the measurement of railway corridor economic competitiveness by attracting investment, pricing for freight services, predictability of operations, quality of freight service, safety and security, increasing freight market share and competition against road freight transportation.