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Restructuring Of The National Rail Case Study

726 Words3 Pages

4.f. Restructuring of the National Railways Restructuring is a popular topic for the most of the national railway companies around the world since their routes are usually not financially viable. For illustration, if we consider Amtrak, it would be forced into bankruptcy and insolvency by the withdrawal of Federal capital and operational support. The US railway system can be substantially improved with a well-planned restructuring process. This restructuring may provide an opportunity to establish performance-based and accountable funding mechanisms for railway expenditures, more achievable goals for Amtrak and can define more efficient roles for the stakeholders. However, past experience shows that it is difficult to achieve consensus among …show more content…

However, for each option, funding mechanisms should be developed that includes cost sharing mechanisms between the Federal Government and the other stakeholders. Federal funding mechanisms and sources should be identified to operate and maintain the restructured system, additionally, cost sharing between the beneficiaries of the railway system should be maximized. The equal and sustainable railway system in the US can be created that provides improved public benefits for Federal and non-federal appropriations if the key reform elements are necessarily …show more content…

Recently, Turkey restructured its national railways by separating the managing, expanding and maintaining duties from the service providing duty. After restructuring, the National Railway Company is only managing and maintaining the infrastructure, another company that is created plus private investors (in the future) is providing services in the railway system. This means that the railway system opened to the competition to all private investors, however, the results are not clear yet. Moreover, the railway infrastructure is controlled by the State company since costs related to public policy objectives should be funded by the State. Likewise, in Great Britain, the railway service providers are not owned by the government, nevertheless, these companies receive government funding to operate unprofitable routes related to passenger

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