Administering the Railway



Introduction

In many countries, railway transport activities have been organized as part of the state administration. Public transport services for passengers and state-owned industries' transport needs are politically sensitive. This led to establishing state railway departments and historically, many governments have been deeply involved in managing the daily activities of railway entities.

However, in recent decades, transports markets have transformed by road transport deregulation, urbanization, containerization, and the evolution of new global trading patterns. These have forever changed rail transport entities' role and competitive positions, therefore, the relationship between state and railway must be adapted to reflect this new reality. Today, allowing the railway to function as a commercial entity is best practice for organizing railway activities. As a result, state railway administrations are evolving into state-owned enterprises, into private enterprises operating under concession agreements, or as partial private/ public corporations. This section analyzes options to segregate decision making and oversight duties between government and state-owned railway enterprises.

State-owned railway performance depends on a complex web of agents and actors—company management, board of directors, various ownership entities, national government ministries and regulatory bodies, local government bodies, and shipper organizations, to name a few. Not surprisingly, accountability for railway entities' performance can be difficult to assign precisely, so developing a structure that will ensure efficient decisions and good corporate governance is challenging.

    













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