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

Abstract: The purpose of this report is to assess the likelihood of expansion of supply from established or new operators in the Swedish passenger rail market, what may be hindrances to such developments and to analyze possible alternative measures to remove entry barriers or at least reduce their influence. Three major obstacles for expanded supply are identified. Firstly, the only a few passenger railway services Swedish are profitable. Secondly, all potential challengers emphasize the general uncertainties and high cost of acquiring rolling stock for the purpose of servicing new lines. Thirdly, several operators that have tried entering suggest that the process of allocating track capacity is time consuming and bureaucratic. For these hinders the report suggests that increased track charges are motivated and that this measure can alleviate some of the pressure on capacity. For the availability of rolling stock several measures are suggested, the most important perhaps being, the state giving guarantees for value loss.

Keywords: Railway; regulation; infrastructure capacity; rolling stock

JEL-codes: L43; L51; L92

34 pages, February 2, 2012

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CTS2012-6.pdf  

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