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“Bottom line” business standards versus public service obligations: The case of the German federal railway
Abstract The publicly-owned German Federal Railway Corporation (DB) is technically very proficient but economically very inefficient. The financial burden that is revenue shortfall has imposed on the State has become nearly intolerable. There are external and internal reasons for the DB's financial problems. External factors include: competition from other modes, changes in demand for bulk goods, and a shift in national traffic flows from east-west to north-south. Internal causes are: low productivity growth, confused regulations about reimbursing costs for public service burdens and lack of freedom for management to pursue cost-lowering measures. The article describes four different periods of policy aimed at consolidating and modernizing the German Rail System. The latest set of proposals for a financial cure involve a transfer of the track and infrastructure to direct government responsibility and putting transport operations into a for-profit corporation. The debate still continues over precise details of a proposed remedy but the political interests involved will likely prevent a novel or clear-cut solution.
“Bottom line” business standards versus public service obligations: The case of the German federal railway
Abstract The publicly-owned German Federal Railway Corporation (DB) is technically very proficient but economically very inefficient. The financial burden that is revenue shortfall has imposed on the State has become nearly intolerable. There are external and internal reasons for the DB's financial problems. External factors include: competition from other modes, changes in demand for bulk goods, and a shift in national traffic flows from east-west to north-south. Internal causes are: low productivity growth, confused regulations about reimbursing costs for public service burdens and lack of freedom for management to pursue cost-lowering measures. The article describes four different periods of policy aimed at consolidating and modernizing the German Rail System. The latest set of proposals for a financial cure involve a transfer of the track and infrastructure to direct government responsibility and putting transport operations into a for-profit corporation. The debate still continues over precise details of a proposed remedy but the political interests involved will likely prevent a novel or clear-cut solution.
“Bottom line” business standards versus public service obligations: The case of the German federal railway
Gand, Heino (Autor:in)
Transportation Research Part A: General ; 18 ; 151-161
01.01.1984
11 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
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