THE MARGINAL PROFITABILITY OF TRAIN SERVICES IN LONDON.

Authors

NIGEL G. HARRIS

Document Type

Journal Article

Publication Date

1996

Subject Area

economics - profitability, land use - impacts, mode - rail

Keywords

Railways, Railroads, London (England), Economic impacts, Economic factors

Abstract

London has railways run by three operators, but the level of train service offered varies considerably between them. This paper explores why, by using publicly-available data to examine a number of possible explanatory hypotheses. Even accounting for differing corporate objectives, demand levels, and the possibility of operational constraints, there does not appear to be a sound reason for the differences in service. It is therefore suggested that British Rail, the operator of most mainline rail services, has not been profit-maximising in the recent past. Ironically, the creation of a separate track authority, raising marginal track costs, may have moved mainline surburban services nearer to their financial optimum.

Rights

Permission to publish the abstract given by Elsevier, copyright remains with them.

Comments

Transport Policy Home Page: http://www.sciencedirect.com/science/journal/0967070X

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