Competition for the German regional rail passenger market 5 years after regionalization

The paper investigates the competition for regional passenger rail services in Germany from 1996 to 2000 by using data mainly provided by regional authorities. It analyses data on the level of network characteristics, contract life, the Länder (i.e. regions), competitive placing procedures, and their winners as well as achieved cost and services improvements. It finds that with competition being rare, the amount of competitively placed services declined until recently. Only about half of the regional authorities gained experience with competitive placings, which points at the expertise deficit of these bodies. A diverse picture on competitive placings' characteristics such as network size and contract life appears. State-owned carrier DB AG remains the dominant player as it could win the majority of the competitively procured services. Private companies have played a minor role in the game up to now. Accomplished reduction of subsidies and improved service quality respectively provide an indication of the potential for enhancing efficiency in this market.     

Managing Traffic by Privatization of Road Capacity: A Property Rights Approach

Abstract

Road congestion remains a serious problem, despite all the efforts to limit road use and to manage growing road traffic volumes. Economic approaches (such as pricing) are introduced based on traditional welfare economic theory. Although they are sometimes very successful, the magnitude of traffic issues also requires alternative and unconventional approaches. Perhaps a more innovative perspective is needed. The paper discusses an alternative economic approach starting from property rights theory. It is translated in transport systems in concepts of infrastructure capacity slot management, where slots are dynamically priced and exclusively allocated to individual users. Debates and practices regarding this approach in air traffic and rail traffic are further developed than in the field of road traffic. The paper aims to explore the potential benefits and disadvantages of the property rights approach for road traffic. Attention is paid to major institutional and technical conditions. The conclusion is that the approach theoretically has clear advantages and seems technologically feasible. Nevertheless, serious political and institutional issues have to be solved first.