Marginal costs, method to attract rail traffic

According to different studies, charging systems for additional trains based on marginal costs are evaluated at around 20% of the global costs on track access. By choosing this method, new additional trains could be introduced and thus increase train frequency. This brings indirect benefits to the community by creating jobs and facilitating the economic development. Moreover, infrastructure managers will be given the possibility to introduce new services starting with the next financial period.

The elements which constitute the foundation of the track access charging systems are related to the optimal use of the railway infrastructure, from the point of view of balance, operational priorities, economic efficiency, network operating and maintenance costs and contribution in dumping infrastructure development costs. A charging system based on marginal costs are based on several elements, such as using costs for dealing with the wear of railways, signalling costs, all costs for the for the additional planning of train operation or management costs, environment costs and unexpected costs.
Theoretically speaking, it could be argued that the charge dedicated to covering marginal costs has to promote the efficient use of the network. Under the circumstances, charges should take into account the costs generated by the additional trains introduced on the railway network. “This refers to the existing infrastructure and does not include the investment costs concerning the development or extension of the infrastructure. In case charges are higher than marginal costs, some transport services cannot be supplied unless they bring significant benefits to the company compared to the actual costs involved”, declared Torben Holvad, Economic Adviser of the European Railway Agency.
The charging system based on marginal costs will have two edges in case figures are not correctly calculated. If charges are underestimated, infrastructure managers will not be motivated to attract additional trains because they could generate costs that could not be covered by subsidies. On the contrary, if charges are too high, railway operators will not be motivated to launch new services on the railway transport market. Both variants lead to the same conclusion: benefits to the region are non-existent, as they don’t generate a positive economic activity.

[ by Pamela Luică ]
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