Railway reforms: do they influence operating efficiency?

This paper considers railway operations in 23 European countries during 1995–2001, where a series of reform initiatives were launched by the European Commission, and analyses whether these reform initiatives improved the efficiency of the railway systems. Efficiency is measured using Multi-directional Efficiency Analysis, which enables investigation of how railway reforms affect the inefficiencies of specific cost drivers. The main findings are that the reform initiatives generally improve technical efficiency but potentially differently for different cost drivers. Specifically, the paper provides empirical evidence that accounting separation is important for improving the efficiency in the use of both material and staff costs, whereas other reforms only influenced one of these factors.

Do reforms reduce the magnitudes of cost overruns in road projects? Statistical evidence from Norway

Although governments often respond to the prevalent cost overruns of transportation projects by reforming the agencies charged with overseeing the construction of projects, the transportation research literature has not provided statistical evidence as to whether such reforms assist in reducing cost overruns. This paper provides such evidence using the Norwegian road sector as a case study. The agency in question was reformed twice, from a monopolistic to a semi-monopolistic organization, and finally, to a fully competitive organization in which road construction was divided out into a separate company and privatized. In this work, we use statistical inferences to explore the related issues. The data set is composed of 1045 projects evenly distributed across the three organizational forms. The results demonstrate that the impact of the reforms has not been equal. The most important impact occurred in the final reform of full competition in which both the cost overruns and delays in construction among larger projects were greatly reduced. The second reform appears to have had a contrasting impact. For transportation research in general, we call for additional studies that will reveal the extent to which efforts carried out by governments (such as reforms) improve the efficiency of these sectors.