An Economic Analysis of Track Maintenance Costs

Publisher's full text
Per Johansson

The costs for maintaining different track units are analyzed using Swedish and Finnish railway data for the years 1994-1996 and 1997-1999, respectively. To derive insights on the logic of spending on track maintenance, the analysis is based on few a priori assumptions about underlying structures. We provide indications of scale economies in track maintenance with respect to traffic load and calculate a policy-relevant derivative value, i.e. the marginal cost of track use. The paper points to the type of data that has to be compiled in order to implement a recent Directive of the European Commission in a consistent way.

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