Railway Finance Research Articles

Agents, brokerage and Argentinian railways 1880–1905

This article examines the role of agents and how their brokerage activities influenced the composition, shape and size of Baring’s business networks in Argentinian railways during 1880–1905. Baring was heavily involved in Argentine sovereign and railway financing and relied on trusted agents, who acted as important conduits of information, to manage their business empire. We explore 2700 pieces of correspondence in the form of letters and telegrams to illustrate Baring’s network over time. Studying the case of Argentinian railways, the correspondences reveal the longevity of Baring’s network and agents’ brokerage roles over time in response to changing local and global economic currents. Through this rich qualitative data and network analysis, we contribute to understanding agent’s brokerage and network change over time. By highlighting the role of invisible actors in the form of agents, the article contributes to understanding infrastructure finance, financial globalisation and more generally, the global history of capitalism.

Systematic literature review: Financing system in railway transportation

Trains are one of the least polluting modes of mass transportation. The creation of railway infrastructure aims to promote connection and mobility to spur economic growth. The purpose of this research is to provide an overview of railway funding around the world. The method is based on examining the literature on railway funding over the last 20 years. This research aims to provide an overview of railway funding issues and solutions and answers to challenges using research trends. This study's approach consists of three steps: bibliometric analysis with mapping through the keywords "rail" and "finance" from the Scopus account to get Scopus literature on railway financing, mapping using Vosviewer, and analyzing. The review included 506 articles published between 2008 and 2022 with the keywords "financing" or "finance" and "rail" "engineering" and "economic." The findings demonstrated that the high cost of infrastructure development and railway operations necessitated alternative creative financing to avoid taxing the state. Railway investment is significant, but revenue will be substantial in the future. Thus the PPP financing scheme is one of the alternative methods for acquisition, operating, and maintenance financing in railway transportation.

Deciphering Property Development around High-Speed Railway Stations through Land Value Capture: Case Studies in Shenzhen and Hong Kong

Property development around transit stations has been viewed by many governments as a considerable way of financing public transportation. However, despite mounting evidence of the positive relationship between transport investment and proximate land value, the stakeholder relationship in enabling complex property–transit development has received relatively scarce attention. In this study, we analyze the railway financing strategies in two cities (Shenzhen and Hong Kong) connected by the first cross-border high-speed rail (HSR) network in China. Using a holistic power approach, this study presents power direction, power strength, and power mechanism as the critical factors for each case. The results reveal that different stakeholder relations arising from different social and institutional contexts have led to varying land value capture practices. The findings of this study contribute to sustainable railway financing in three phases: First, it unravels the relationship between railway financing and property development under the context of an intercity railway program, with the intervention of state power. Second, it sorts out critical elements in the implementation of the land value capture mechanism, especially institutional factors such as the role of the transit agency. Third, it directs a flexible development of the land value capture theory to cope with foreseeable problems such as land resource scarcity, institutional complexity, and interest divergence.

IRFC – the beginning of a green era

Learning outcomes The learning outcomes of this paper is as follows: to review the basic differences between the two evolving bonds, i.e. green vs masala bonds in the Indian capital market; to comprehend the factors that need to be considered in deciding the type of bond to be issued; to assess complexities, such as process, timing, risk and location in relation to the issue of the green bonds; and to understanding the rudiments of bond economics, such as pricing, all-in-cost and yield-to-maturity of bonds and make a comparison of all-in-cost of the Reg-S bond and green bond to Indian Railway Finance Corporation (IRFC). Case overview/synopsis In September 2017, IRFC, a public sector undertaking registered as a Non-Banking Finance Company with Reserve Bank of India under the administrative control of the Ministry of Railways, was planning to raise US$500m 10-year green bonds from investors in Asia, Europe and the Middle East. The green bond proceeds were proposed to be used for low carbon transport and in this way, contribute significantly to the green initiatives of the Indian Railways. Many companies in India had issued regular bonds without labeling them as green but had used the proceeds of the bond for climate-aligned assets. Therefore, a bigger challenge before the IRFC management was the economics of green bond for getting a nod from the Board of Governors to go ahead. Some preliminary estimates on cost of green bonds were received from few bankers but to see that the terms of green bonds are met eventually, the Director (Finance) developed his own estimate of the cost of the new bonds. The Managing Director and Director (Finance) of IRFC were trying to figure out the economic advantage of green bonds besides its social benefits. Complexity academic level MBA Programme Executive Training. Supplementary materials Teaching notes are available for educators only. Subject code CSS 1: Accounting and Finance.

Railway Finance in Europe

Abstract Governments make substantial contributions to the finance of railways in Europe. This paper first considers the possible justifications for subsidies – namely normalisation of accounts, public service obligations, economies of density, relief of externalities on other modes, wider economic benefits and option values. It then considers the alternative ways of giving subsidies in the form of contributions to infrastructure costs, investment grants and subsidies to services. It concludes that there are good reasons for subsidising railways – in particular a first best argument for subsidising infrastructure will usually exist and a failure to do so will lead to fewer services being operated than are economically justified – but there is a need to ensure subsidies are used efficiently. Ways of achieving this include the setting of clear objectives and financial constraints, decentralisation of decision taking to focussed sector management, regulation and benchmarking of infrastructure costs and the introduction of competition for and in the market. Together these should reduce or eliminate the link between subsidies and inefficiency observed in earlier times.

Strategy for China Intercity-railway Operation Management Model Based on Varied Investors

Abstract Looking back in history, Chinese railway construction has an obvious feature with governmental action. Nowadays, lack of funds will be a bottleneck for China's large-scale and regional intercity railway projects proposed. It is absolutely imperative to reform the existing Chinese railway investment and financing system for attracting more private investors from various sections of society to participate in the construction of the railway projects. In this paper, how to adjust the model of exclusive operation management to adapt to the reformation is studied. In this paper, three types of the model frame structure are proposed and there are several issues are studied for these models, including comparison of the advantages and disadvantages between them, design of working procedures of them, description of applicable conditions of them respectively. Based on the analysis and summary of the experiences and lessons of railway varied investment and operation-management reform at home and abroad, it is recommended in this paper that priority strategy should be given to the entrustment model of railway operation-management for a project supported by varied investors under the surroundings of China socialist market system.

Railway Finance and National Credit: A Study of Chengdu-Hankou Railway Protect Crisis as a Center

The Revolution of 1911 leading to the collapse of the Qing Dynasty started with the Railway Project Crisis (1911, May) in Sichuan Province, the studies of which have focused on the political and economic game of railway project and reserved capital between both factions, i.e. constitutionalist and revolutionaries, and the Qing Government, but there are a few of researches from the financial point of view, especially, from the perspective of national financial credit as the starting point. In the final analysis, the game interaction between national capital and private capital aims to control the railway monopoly resources. The awakening of national self-awareness of rights, the struggle of local-central power and profits segmentation as well as the magnification of the consciousness of ethnic group all were connected through the new thing of railway finance. The join force from each faction was formed under the private capital financing, with the slogan of breaking the agreements and railway project protection, the vested interest groups were attacked under the shelter of state-owned capital. Because of the private capital financing network represented by the stock by rent extraction, the struggle was abnormally fierce and tough. Construction of railway via foreign debts, in fact, originated from Zhang Zhidong, who referred to the German and Japanese experiences of construction of railway via foreign debts, with the purpose of retaining our sovereignty. That can be seen from his repetition in his memorial. Sheng Xuanhuai, a trader directly inheriting the cause, knew the nature and rights of private capital unclearly. Especially, he nationalized the special financial capital, i.e. Sichuan people’s stock by rent extraction in the simple and crude way, and lacked of in-depth understanding and macroscopic view. Even so, from the perspective of actual long-term rights and interests of the shareholders, the railway state-owned policy by the Qing Government is similar to the policy of original merchant-operated railway. The problem is that at this point, the Qing Government lost credit because of fake constitutionalism in politics and Zhaoxin stock bankruptcy in economics, but applied the foreign railway financial form mechanically to the Chengdu-Hankou railway with loss of political and economic credit. In the face of the private financial groups in the tight-knit network as well as the fierce and persistent struggle, it is no wonder that the Qing Government had “ineffable surprise”. The historical event enlightened that: the form of railway finance is not confined to the state-owned or private-owned or government-merchant joint management forms, the key is that the government providing the state-owned capital should have enough credit in politics and economics, fully consider the benefits of private capital, and give necessary attention and response to reasonable political demands. In this sense, undoubtedly, the credit is the first importance for railway finance with long earning cycle.

Railway finance during the interwar period in colonial Korea: focusing on the issuance of bonds by the Chosen Railway

Railway finance during the interwar period in colonial Korea: focusing on the issuance of bonds by the Chosen Railway

Indian railroading: floating railway companies in the late nineteenth century

This article provides a case study of four late nineteenth‐century share flotations of Indian railway companies. It highlights an important gap in the historiography of Indian railway finance, which has focused on the period up to 1875. The role of N. M. Rothschild as lead underwriter and its relationship with the India Office, managing agents, and investors is analysed. This gives an evolving picture of mutual dependence between the City and Whitehall in the financing of the British Empire's largest investment programme. Gentlemanly capitalists are shown to combine the self‐reinforcing roles of arranger, investor, and informal government advisor.

British Imperial Transport Management

This article traces the development of The Gold Coast Sekondi–Kumase Railway during its first eight years, from 1903-1911. The author, in order to present a more balanced assessment, focuses on statistical details concerning the railway. Specifically examined are the railway's design and construction, personnel and administration, finance and accounting procedures, capital investments and costs associated with servicing its debt. Because of the geographical and logistical challenges of building a railway in a tropics-based agricultural environment, the author gives particular emphasis to the managerial and accounting techniques available at the time. From an analysis of financial records, the author found that the Sekondi–Tarkwa–Obuasi–Kumase line showed improvements in its day-to-day operations during its first decade, despite the railway's numerous flaws and problems. The railway's receipts and finances exhibited a certain level of efficiency in its operations that resulted in substantial cost savings over time. The author shows that, in many respects, the railway's financial results were not so unlike those of its railway contemporaries in more industrialized parts of the world.

‘A very poor bag of physical assets’: the railway compensation issue 1921–47

The paper considers a variety of historical opinion about the amount of compensation paid to railway shareholders at the time of nationalization in 1947. It examines their argument that the terms amounted to virtual confiscation. The development of Labour Party and trade union thinking about the proper basis of compensation is outlined up to 1946, and attention is focused on the government's decision to purchase at Stock Market prices. World War II transformed railway finances, but it is argued that a longer-term assessment of the economic performance of the industry points to the conclusion that its prospects and its value were over-estimated in 1947.

Railway Finance and the Crisis of 1866: Contractors' Bills of Exchange, and the Finance Companies

Railway Finance and the Crisis of 1866: Contractors' Bills of Exchange, and the Finance Companies

Transport: Notes and Comments

Two surveys of the future of British transport were published in March of this year: ‘The reshaping of British Railway’ and ‘The transport needs of Great Britain in the next twenty years’. The second of these sets out, in general terms, the relationship between transport needs and economic growth. This article, therefore, does not attempt to go over this ground again: its purpose is to provide background material to some of the issues raised by the two reports. It discusses, first—since this is the main point of current discussion—the social costs of the closures proposed. Secondly, it looks at the forecasts of the total demand for freight transport. Thirdly, it considers the particular problem the railways have, in that they are competing with transport owned and controlled by the user himself. Fourthly, the article sets out some comparisons of railway finances in various European countries. At the end of the article there is a collection of transport statistics.

Some Aspects of Railway Finance

Some Aspects of Railway Finance

Federal Regulation of Railway Management and Finance

Federal Regulation of Railway Management and Finance

Legislative Regulation of Railway Finance in England.

Legislative Regulation of Railway Finance in England.

Legislative regulation of railway finance in England. By ching chun wang, director of kin‐han railway, China. Urbana: University of Illinois, 1918. 196 p

National Municipal ReviewVolume 8, Issue 1 p. 71-71 Book Reviews Legislative regulation of railway finance in England. By ching chun wang, director of kin-han railway, China. Urbana: University of Illinois, 1918. 196 p John P. Fox, John P. FoxSearch for more papers by this author John P. Fox, John P. FoxSearch for more papers by this author First published: January 1919 https://doi.org/10.1002/ncr.4110080115AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinkedInRedditWechat No abstract is available for this article. Volume8, Issue1January 1919Pages 71-71 RelatedInformation

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Report of the Committee on Indian Railway Finance and Administration

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The Collateral Trust Mortgage in Railway Finance

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