lect24 - Public/Private Roles in Rail Systems Japan (late...

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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 1 Public/Private Roles in Rail Systems Japan (late 1980s) Argentina (mid 1990s) British Rail (late 1990s) US Intercity Passenger London Underground PPP (2002) Puerto Rico - Tren Urbano (2004) Other US urban rail systems
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 2 Japan JNR was privatized in 5 geographical units with vertical integration - internal restructuring approach Surplus labor was not transferred Government takes the lead in new high-speed rail infrastructure JRs (East, Central, etc.) have to operate at a profit Government controls fare levels Viewed as a successful model
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 3 Argentina National, regional rail and subway system serving Buenos Aires with massive fare evasion excess labor and many "no show" employees inadequate maintenance no investment strong labor unions Restructured as 7 separate bid packages with vertical integration Public sector owns facilities and sets fares, schedules, investment requirements Contractor keeps fare revenue Ten-year concessions agreements Subsidy to be continued with awards based on minimum subsidy bid
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 4 Argentina (cont'd) Required at least 2 operators so competition threat remained World Bank funded buyout of excess labor Broad outreach to solicit interested bidders Lengthy bidding and transition process harmed the system Immediate (1-year) results: Improved quality, fare collection and ridership up by 30% Longer-term (5-year) results: At least one of four concessionaires performing poorly Non-cooperation on unified fare system Lobbying to change contract terms and duration Quantity and Quality of public monitoring function eroded Government late on payments
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 5 British Rail British Rail restructured into ~100 separate companies (vertical segmentation) including: Train Operating Companies (TOCs) Rolling Stock Leasing Companies
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lect24 - Public/Private Roles in Rail Systems Japan (late...

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