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CTS - Centre for Transport Studies Stockholm (KTH and VTI)
CTS - Centre for Transport Studies Stockholm (KTH and VTI) CTS - Centre for Transport Studies Stockholm (KTH and VTI)
Working papers in Transport Economics

No 2014:17:
Assessing the cost impact of competitive tendering in rail infrastructure maintenance services: evidence from the Swedish reforms (1999-2011)

Kristofer Odolinski () and Andrew S.J. Smith ()

Abstract: This is the first paper in the literature to formally study the cost impact of competitive tendering in rail maintenance. Sweden progressively opened up the market for rail maintenance services, starting in 2002. We study the cost impacts based on an unbalanced panel of contract areas between 1999 and 2011, using econometric techniques. We conclude that competitive tendering reduced costs by around 12%. This cost reduction was not associated with falling quality as measured by track quality class, track geometry or train derailments. We conclude that the gradual exposure of rail maintenance to competitive tendering in Sweden has been beneficial.

Keywords: Railway; Infrastructure; Maintenance; Tendering; Contract; Cost; (follow links to similar papers)

JEL-Codes: H54; L92; (follow links to similar papers)

17 pages, September 4, 2014

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This paper is published as:
Odolinski, Kristofer and Andrew S.J. Smith, (2016), 'Assessing the cost impact of competitive tendering in rail infrastructure maintenance services: evidence from the Swedish reforms (1999-2011)', Journal of Transport Economics and Policy, Vol. 50, pages 93-112



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