Separability and Subadditivity in Australian Railways

22 Pages Posted: 8 Feb 2007

Date Written: January 2007


From the mid 1990s, Australian public railways were required to provide access to their track infrastructure to third parties seeking to operate trains, and some railways were split into their below-rail (track and signalling infrastructure) and above-rail (rolling stock and locomotives) components to facilitate access. Driving the reform was the notion that it would allow competition to develop in above-rail operations. This paper assesses the policy decision, using a unique dataset for Australian railways to ascertain their separability and the subadditivity of the above-rail task.

Keywords: Australian railways, subadditivity, separability, competition

JEL Classification: L11, L52, L92

Suggested Citation

Wills-Johnson, Nick, Separability and Subadditivity in Australian Railways (January 2007). Available at SSRN: or

Nick Wills-Johnson (Contact Author)

DBP ( email )

PO Box Z5267
St Georges Terrace
Perth, 6831

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