Capacity pricing schemes to implement open-access rail in Tanzania
Name
esd-wp-2014-19.pdf
Size
549.31 KB
Format
Adobe PDF
Checksum (MD5)
234c86a813a8f28f0cc87674792d1766
Author(s)
Pena-Alcaraz, Maite
Perez-Arriaga, Jose Ignacio
Sussman, Joseph M.
Date Issued
June 2014
Publisher
Massachusetts Institute of Technology. Engineering Systems Division
Series/Report no.
ESD Working Papers;ESD-WP-2014-19
Abstract
We analyze alternative capacity pricing schemes (access charges) to implement an open-access railway system in Tanzania. We show that the implementation of variable access charges widely used in the railway industry may result in levels of traffic lower than the traffic operated by an integrated railway company. We propose the use of fixed access charges to avoid this problem and discuss the main advantages and disadvantages to implement them in the context of multiple freight train services in Tanzania.
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