Assessing the Costs of a Haulage Regime

18 Pages Posted: 11 Mar 2008

Multiple version iconThere are 3 versions of this paper

Date Written: February 2008

Abstract

The provision of third-party access to rail infrastructure in WA's Pilbara region has been a contentious issue over the past decade. The most recent endeavour proposed by the State Government involves a haulage regime, whereby incumbents would be required to haul the wagons of third parties seeking access to the line. This paper explores the likely costs of such a regime on the host railways, by examining the impacts of voluntary haulage regimes on US Class One Railways, where they are well-established. It finds that haulage regimes are a cost effective means for US railways to reduce their haulage costs, and that they thus might play a role in the Pilbara. However, consideration of whole-of-system costs, congestion and appropriate pricing are key issues. This paper explores these issues, and proposes a simple pricing mechanism which would ensure fair, efficient haulage with only very limited regulatory involvement.

Keywords: Railway access, regulation

JEL Classification: L51, L92

Suggested Citation

Wills-Johnson, Nick, Assessing the Costs of a Haulage Regime (February 2008). Available at SSRN: https://ssrn.com/abstract=1104964 or http://dx.doi.org/10.2139/ssrn.1104964

Nick Wills-Johnson (Contact Author)

DBP ( email )

PO Box Z5267
St Georges Terrace
Perth, 6831
Australia

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