Analyzing the Financial Relationship between Railway Industry Players in Shared Railway Systems: The Train Operator’s Perspective

Abstract

Capacity pricing and allocation play an important role in efficient management of railway corridors, especially shared ones. This paper analyzes how Train Operators (TOs) would respond to different track-access charges, as a first step to understand the relationship between Train Operators and Infrastructure Manger (IM) in railway systems with some level of vertical separation. By modeling a corridor whose users are long-distance high-speed trains and freight trains along the entire corridor, and commuter trains offering services around large urban areas in the corridor, this paper narrows down the focus on each individual operator, looking at the factors that drive each operator's ultimate service levels. Assuming an environment where the TOs are competing for capacity, financial goals and boundary conditions of each TO are derived, and a number of sensitivity analyses for various typical and extreme conditions are performed. This model allows to anticipate how TOs would respond to track-access charges, and can thus help the government, the regulators, and the IMs in the design of appropriate capacity pricing and allocation schemes.