Railway Competition: Options for the Russian Federation
In its first steps toward reform of its huge and hugely important railway system, the Russian Federation has begun corporate restructuring of a kind favored by many students of railway reform throughout the world: some kind of separation of the entity controlling the infrastructure from the entity running the trains. This model, designed ultimately to create a competitive train sector operating on monopoly infrastructure, may not be the best reform path for the Russian railway. This paper considers the alternative arrangements that have been implemented in other countries and argues that the Mexican system, which maintains vertical integration but breaks up the system horizontally, may have better prospects both for effective implementation and for protecting shippers via geographic ("source") competition.
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