The Underappreciated Connection between Rail Restructuring Strategies and Financing

摘要

The railways industry is a capital-intensive industry requiring very largerninitial and ongoing investment streams. Proposals to restructure the traditionalrnstate-owned monopoly railway in a particular country are often designed tornaddress concerns not only regarding inefficient operations and monopoly stagnationrnbut also the long-term unreliability of government financing, especially ofrnthe expensive infrastructure. In this regard, the connection between the particularrnrail restructuring strategy chosen by a country and the ability of the restructuredrnentity to attract financing, especially private financing, merits a closer look.