Conclusion: benchmarking and regulation in transport

Benchmarking is a valuable tool in the regulator’s toolkit which can be used to incentivize companies to operate efficiently across the different transport modes. It is most obviously useful in the regulation of natural monopoly and in case of direct award of contracts for transport operations. With competition for the market, benchmarking has a role in identifying the optimal size and length of contracts, as well as the effectiveness of financial incentives. The development of modern benchmarking techniques makes it more possible to allow for differences in environment and in the nature of output. However, some challenges remain, such as allowing for the impact of different quality of service and ensuring the availability of appropriate data in terms of quantity and quality. More generally, an efficiency-enhancing policy strategy requires an appropriate institutional design to avoid regulatory capture. International cooperation, with the development of international datasets, has an increasing role to play.