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You can't privatize what can't make money in itself. By that I mean, rail is beneficial to the entire economy of a country. This profit is not something a rail
by sschueller 11mo ago
You can't privatize what can't make money in itself. By that I mean, rail is beneficial to the entire economy of a country. This profit is not something a rail company can benefit from but a country can. Serving low traffic areas are a loss business but vital for a country to grow.
Same for fiber infrastructure, running fiber into a desolate town may not be profitable but giving the chance for some kid in that town to build the next unicorn from his home benefits the entire nation. Not all talent is in the cities.
- hshdhdhj4444 11mo agoItaly has seen tremendous success with privatizing High Speed rail. I think the difference is that the infrastructure (tracks and stations) is still owned by the state and leased out competitively to private train operators. It’s kind of like the airline model.
- magicalhippo 11mo agoThey've been doing that here in Norway as well for regular trains. The result is that the train operators get f'ed in the a by poor track maintenance and old trains. It has been so bad that when the trains run people joke it's "train for bus". Also us customers can no longer buy one ticket that gets us from A to B but often have to contend with 2-3 different operators.
- tsukikage 11mo ago> the infrastructure (tracks and stations) is still owned by the state ...so, a bit like Network Rail, then?
- naasking 11mo ago> Italy has seen tremendous success with privatizing High Speed rail. I think whether privatization helps or hurts depends a lot on how corrupt or inept the government is, ie. the more corrupt or inept, the more privatization can probably help.
- bryananderson 11mo agoItaly has not exactly privatized high speed rail. The public rail operator Trenitalia is by far the largest high speed rail operator in the country. And it’s great. What Italy has done is open the rails to access by private companies in addition to the public one, most notably high speed operator NTV/Italo. Arguably this competition has helped spur on the public operator to greater heights. But it’s not the same at all as what Britain did (privatizing the public operator itself).
- enaaem 11mo agoIn the Japanese model the rail company also owns land around the station, so they capture more of the value of rail transport. Rail in the UK does not capture all the value it delivers, so subsidies would be a pragmatic solution.
- epolanski 11mo agoWhy should I, a taxpayer, subsidize rails? It's sarcasm, many drivers don't realize that the public subsidizes them too, but have such silly arguments.
- thesuitonym 11mo agoNo, it's actually a good question. If the rails are private, why should the public subsidize them? For clarity's sake, I think railways should be public, and paid for with a combination of taxes and fares.
- epolanski 11mo agoI think rails should be public, like skies and roads, and train companies should pay for their usage.
- kccqzy 11mo agoThat sounds like an excellent idea. However I think rail transport depends more heavily on quality infrastructure. If a state doesn’t maintain its roads well and allow potholes to develop, it is probably rare for that to cause a fatal accident (I’ve heard of potholes causing damage to cars but not deaths). But improperly maintained rails lead to derailments and deaths.
- ndsipa_pomu 11mo agoPotholes do regularly result in cyclists' deaths.
- 11mo ago
- epolanski 11mo agoIn many European countries trains do make money. The model should be that rails are public and are leased to private operators. The private companies pay for the maintenance and such, and then are free to do what they prefer.
- skippyboxedhero 11mo agoThat is the UK. The big issue has been: * Government is unable (for various reasons, the primary one being massive levels of corruption) to invest in expanding capacity. Demand on certain routes is multiples of the capacity that exists. * The trains are owned by private companies, this was a bad idea. * Operating companies have had to put prices up because of all the things outside of their control. Government has been happy to let them take the blame, it has allowed things to be moved into public ownership, more power, more control. * No-one is making any money because the idea is for no-one to make any money. Making money is dirty so operating companies make no profit, and prices are sky-high.
- iggldiggl 11mo ago> In many European countries trains do make money. Only if you discount the infrastructure subsidies, I think.
- corimaith 11mo agoRailway privatization is resolved in East Asia where they are also major real estate developers that plop luxury malls and apartments ontop stations. See the HK MTR as an example, which is far better than the average European subsidized metros. The real problem, as always is NIMBYism and the western aversion to luxury malls and mass consumerism, which ends of in a self-reinforcing cycle of increasingly miserable public sphere as nobody wants to engage with it or make it better.