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Assessing the Cost Impact of Competitive Tendering in Rail Infrastructure Maintenance Services: Evidence from the Swedish Reforms (1999 to 2011)

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  • Kristofer Odolinski
  • Andrew S. J. Smith

Abstract

This is the first paper in the literature to formally study the cost impact of competitive tendering in rail maintenance. Sweden progressively opened up the market for rail maintenance services, starting in 2002. We study the cost impacts based on an unbalanced panel of thirty-nine contract areas between 1999 and 2011, using econometric techniques. We conclude that competitive tendering reduced costs by around 11 per cent. Importantly, this cost reduction was not associated with falling quality; quite the reverse. We thus conclude that the gradual exposure of rail maintenance to competitive tendering in Sweden has been a success. © 2016 LSE and the University of Bath

Suggested Citation

  • Kristofer Odolinski & Andrew S. J. Smith, 2016. "Assessing the Cost Impact of Competitive Tendering in Rail Infrastructure Maintenance Services: Evidence from the Swedish Reforms (1999 to 2011)," Journal of Transport Economics and Policy, University of Bath, vol. 50(1), pages 93-112, January.
    • Handle: RePEc:tpe:jtecpo:v:50:y:2016:i:1:p:93-112
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    Cited by:

    1. Zdenka Bulkova & Jozef Gasparik & Vladislav Zitricky & Borna Abramovic, 2023. "Tendering Of Rail Transport Services In Slovakia," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 23, pages 391-410.
    2. Andersson, Matts & Hultén, Staffan, 2016. "Transaction and transition costs during the deregulation of the Swedish Railway market," Research in Transportation Economics, Elsevier, vol. 59(C), pages 349-357.
    3. Odolinski, Kristofer & Nilsson, Jan-Eric, 2017. "Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?," Economics of Transportation, Elsevier, vol. 10(C), pages 8-17.
    4. Odolinski, Kristofer, 2016. "Contract design and performance of railway maintenance: Effects of incentive intensity and performance incentive schemes," Working papers in Transport Economics 2016:20, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 13 May 2019.
    5. Odolinski, Kristofer & Nilsson, Jan-Eric, 2016. "Estimating the marginal maintenance cost of rail infrastructure usage in Sweden; does more data make a difference?," Working papers in Transport Economics 2016:27, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 13 May 2017.
    6. Odolinski, Kristofer & Wheat, Phill, 2018. "Dynamics in rail infrastructure provision: Maintenance and renewal costs in Sweden," Economics of Transportation, Elsevier, vol. 14(C), pages 21-30.
    7. Odolinski , Kristofer, 2016. "The impact of cumulative tons on rail infrastructure maintenance costs," Working papers in Transport Economics 2016:28, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    8. Odolinski, Kristofer & Wheat, Phillip, 2016. "Dynamics in rail infrastructure provision: maintenance and renewal costs in Sweden," Working papers in Transport Economics 2016:23, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 11 Dec 2017.
    9. Odolinski, Kristofer, 2016. "Estimating the impact of traffic on rail infrastructure maintenance costs: The importance of axle loads," Working papers in Transport Economics 2016:21, CTS - Centre for Transport Studies Stockholm (KTH and VTI), revised 14 Nov 2018.

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