Rail Privatisation: A Platform for Success

Abstract

The Government's blueprint for rail privatisation offers scope for more competition and experimentation, and a progressive movement towards a freeing of the system, thereby minimising the likely disruption. It constitutes the art of the possible.

The Privatisation of the UK Railway Industry: An Experiment in Railway Structure

“…Markets, contracts and regulation would replace administrative fiat as the means of controlling railway activities. This arrangement was admittedly organisationally more complex, but the doctrine that such a structure would provide a better service went relatively unchallenged (Asteris ; Harris and Godward ). With the right contractual system in place, there would be ‘a common realisation that all parties will gain more from their joint success than from failure’ (Foster , p. 8).…”

The Uk Railway Privatisation : Failing to Succeed?

“…Markets, contracts and regulation would replace administrative fiat as the means of controlling railway activities. It was recognised that this arrangement was organisationally complex, but the doctrine that the private sector would provide a better service went relatively unchallenged (Asteris, 1994;Harris and Godward, 1997). With the right contractual system in place, there would be 'a common realisation that all parties will gain more from their joint success than from failure' (Foster, 1994, p. 8).…”

“…With the right contractual system in place, there would be 'a common realisation that all parties will gain more from their joint success than from failure' (Foster, 1994, p. 8). Furthermore, there was widespread agreement 'that separation from Government would free the railways from borrowing restrictions imposed by the Treasury' (Harris and Godward, 1997, p. 61;Asteris, 1994).…”

Rail Reform Strategies: The Australian Experience

“…Full privatisation can, in theory, offer a number of benefits over public ownership. Privately-owned firms are said to have greater incentives and ability than public enterprises to be cost-efficient, make productive investments, be innovative and customer focused (see for example, Asterisis 1994). Privatisation thus provides opportunities to change the leadership and culture of rail enterprises and transfer risk fully to the private sector.…”