Conclusion
Lessons learned from the Moroccan experience in restructuring state-owned railways are as follows.
- Typically, crisis is the best driver for reforming the railways. Government agreed to embark on a restructuring process only after a few years of financial crisis forced it to confront the fiscal implications of railways operations and management.
- Restructuring is a long process; in Morocco it took six to ten years. Restructuring required continuity in senior management and tenacity for implementation because it involved multiple stakeholders and a complete change of vision of railway activities. By contrast, almost instant and visible results must happen early on to establish credibility and get buy-in for further reforms; generally, this means rapid cost cutting.
- Government must make a huge financial contribution to expunge past debts. Government must make a clear commitment and abide by it—Morocco used the Contrat-programme tool.
- Government ministries and bodies must agree on and actively support the general restructuring strategy, but avoid meddling in railway enterprise management or ‘tactical’ implementation of the restructuring program.
- Restructuring champions are necessary, preferably inside the railway enterprise; in Morocco, a strong and dedicated general manager was substantially instrumental in the success. Champions keep the momentum going because railway management and staff must be convinced that restructuring is being undertaken to strengthen the railway, not to undermine it.
<< Previous | Next >>
PDF Print Version