Railway usage charges based on marginal maintenance costs

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Abstract

The study reported here focused on finding a charging model for using regional railway lines. Due to geographical and technological characteristics, such lines are neglected and unused yet have great potential, especially for freight transport. The goal of the research was to calculate marginal maintenance costs of regional rail lines using an econometric cost function model. The econometric model was estimated using the least-squares method. The charges were calculated based on marginal costs and gross tonne kilometres (grt.km) and a comparison was made with the existing model for calculating charges. The grt.km calculation resulted in a charge lower than that calculated using the existing model, resulting in positive economic effects for carriers. The results of the proposed model are also in line with European transport policy objectives that strive to increase rail freight transport and redirect the flow of goods from road to rail, thus significantly lowering external costs.

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APA

Rosi, B., Sternad, M., & Jagrič, T. (2018). Railway usage charges based on marginal maintenance costs. Proceedings of the Institution of Civil Engineers: Transport, 171(1), 3–10. https://doi.org/10.1680/jtran.15.00058

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