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Rail operation-infrastructure separation: the case of Kobe rapid transit railway


  • Mizutani, Fumitoshi
  • Shoji, Kenichi


Vertical separation in the rail industry is common in Europe, but evaluation of the policy has been insufficient. The main purpose of this paper is to explain one method of operation-infrastructure separation as practiced in the case of Kobe Kosoku, a unique rail infrastructure owning company in Japan, as well as to discuss practical coordination problems related to structuring separation. Our overall conclusion is that vertically separated systems do not have significant advantages over vertically integrated systems in terms of the maintenance costs of infrastructure. In fact, the results of our analysis of infrastructure maintenance costs indicate that vertically separated systems might not be significantly different from vertically integrated ones.

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  • Mizutani, Fumitoshi & Shoji, Kenichi, 2004. "Rail operation-infrastructure separation: the case of Kobe rapid transit railway," Transport Policy, Elsevier, vol. 11(3), pages 251-263, July.
  • Handle: RePEc:eee:trapol:v:11:y:2004:i:3:p:251-263

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    References listed on IDEAS

    1. Cantos Sánchez, P., 2001. "Vertical relationships for the European railway industry," Transport Policy, Elsevier, vol. 8(2), pages 77-83, April.
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    Cited by:

    1. Nash, Chris & Nilsson, Jan-Eric & Link, Heike, 2011. "Comparing three models for introduction of competition into railways – is a Big Wolf so Bad after all?," Working papers in Transport Economics 2011:19, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    2. Fumitoshi Mizutani, 2005. "Regulation and Deregulation in the Japanese Rail Industry," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 3(4), pages 10-15, 01.
    3. Matthias Finger & Pierre Messulam (ed.), 2015. "Rail Economics, Policy and Regulation in Europe," Books, Edward Elgar Publishing, number 15711.
    4. Phang, Sock-Yong, 2007. "Urban rail transit PPPs: Survey and risk assessment of recent strategies," Transport Policy, Elsevier, vol. 14(3), pages 214-231, May.
    5. Emmanuel, Bougna Tchofo & Crozet, Yves, 2014. "Beyond the “bundling vs unbundling” controversy: What is at stake for the French railway?," Research in Transportation Economics, Elsevier, vol. 48(C), pages 393-400.
    6. repec:eee:transa:v:105:y:2017:i:c:p:106-122 is not listed on IDEAS
    7. Fumitoshi Mizutani & Shuji Uranishi, 2013. "Does vertical separation reduce cost? An empirical analysis of the rail industry in European and East Asian OECD Countries," Journal of Regulatory Economics, Springer, vol. 43(1), pages 31-59, January.
    8. repec:ces:ifodic:v:3:y:2005:i:4:p:14567569 is not listed on IDEAS

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