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Rail access charges and the competitiveness of high speed trains

Author

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  • Sánchez-Borràs, Marta
  • Nash, Chris
  • Abrantes, Pedro
  • López-Pita, Andrés

Abstract

This paper examines rail access charges for high speed trains on new high speed lines in Europe and the impact these have on the market position of high speed rail. It examines the latest evidence on the marginal infrastructure and external costs of high speed rail, finding that the best evidence is that these are both not more than 2Â [euro]/train-km. However, current legislation states that environmental costs should not be charged for unless they are charged for on competing modes. Mark ups based on Ramsey pricing principles might reasonably raise prices by 100-200%, given that infrastructure charges are only a part of the final price of rail. The paper then examines the actual prices charged in the main European countries operating high speed trains and the impact these are likely to have on traffic levels and mode split. It is found that mark ups often exceed even the optimal Ramsey levels, with a significant impact on rail volumes and market share. It is concluded that, whilst it is not surprising that governments wish to recover some of the construction costs of new high speed rail lines from users, they should consider carefully whether the level of charges is actually significantly reducing traffic on and benefits from these lines.

Suggested Citation

  • Sánchez-Borràs, Marta & Nash, Chris & Abrantes, Pedro & López-Pita, Andrés, 2010. "Rail access charges and the competitiveness of high speed trains," Transport Policy, Elsevier, vol. 17(2), pages 102-109, March.
    • Handle: RePEc:eee:trapol:v:17:y:2010:i:2:p:102-109
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    References listed on IDEAS

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    1. Stephen Gibson & Grahame Cooper & Brian Ball, 2002. "Developments in Transport Policy: The Evolution of Capacity Charges on the UK Rail Network," Journal of Transport Economics and Policy, University of Bath, vol. 36(2), pages 341-354, May.
    2. Peter Bickel & Rainer Friedrich & Heike Link & Louise Stewart & Chris Nash, 2005. "Introducing Environmental Externalities into Transport Pricing: Measurement and Implications," Transport Reviews, Taylor & Francis Journals, vol. 26(4), pages 389-415, November.
    3. Phill Wheat & Andrew S. J. Smith, 2008. "Assessing the Marginal Infrastructure Maintenance Wear and Tear Costs for Britain's Railway Network," Journal of Transport Economics and Policy, University of Bath, vol. 42(2), pages 189-224, May.
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    Keywords

    Access charges High speed trains;

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