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Management regulatory liberalization of the public service contracts in the rail industry

Author

Listed:
  • Marcel LITRÃ

    (CFR Passengers SA, Bucharest, Romania)

  • Sorin BURLACU

    (Lecturer PhD, The Bucharest University of Economic Studies, Faculty of Administration and Public Management, Bucharest, Romania,)

Abstract

Today, in Romania, we can state that may require regulatory intervention where public interest is expected to differ materially from the commercial interests of public service providers usually private companies. Yet, the literature states this situation as „market failure considering that the public interest may be compromised if the market fails to deliver government objectives such as national security, national cohesion and social policy objectives. In Europe governments determine what they think is needed to make the railways pay for the cost of doing so. These are obligations of the state that focus on regulating monopoly power rail and the development of competition, safety and environmental protection, and the establishment of technical standards. In this paper we propose to analyze the management of the public service contract through the current regulations in the field and to correlate trends in railway industry the specific situation in our country. So the question arises whether in the public service contract management railway industry can speak liberalization in terms of infrastructure or over regulatory monopoly is the only option.To obtain an objective response we conducted a series of comparative analyzes and SWOT considering the context of Romanian railway industry. Were defined and decontextualized concepts such as Public Service Obligation (PSO) and Public Service Contracts (PSC). Solutions have been proposed that promise social and economic benefits but were given the risks of these solutions. We remain dependent on the idea that past problems once again become current and not admit the old solutions especially after the global economic crisis

Suggested Citation

  • Marcel LITRÃ & Sorin BURLACU, 2014. "Management regulatory liberalization of the public service contracts in the rail industry," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2014(22), pages 73-84, June.
    • Handle: RePEc:rom:rampas:v:2014:y:2014:i:22:p:73-84
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    Cited by:

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    More about this item

    Keywords

    waste electrical and electronic equipment (WEEE); WEEE management; European Directives.;
    All these keywords.

    JEL classification:

    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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