A Study of the Efficiency of Regional Railway Services: The Case of Poland

Abstract

Regional railway transport is an alternative to individual transport that contributes to a reduction in external costs and is considered a public service obligation (PSO). A common way to measure the efficiency of regional railway transport is compensation for operational performance in train-kilometres. However, this metric does not accurately reflect the true efficiency of this kind of transport as it overlooks the main objective of engaging public funds. The goal is not merely to operate trains at the lowest possible cost, but rather to provide maximum societal benefits. Our analysis revealed a significant challenge in determining the actual efficiency of regional railway services. The nationwide railway company appears to employ cross-subsidisation of services to generate abnormal profits, thereby reducing its expectations in the face of potential competition and artificially improving its efficiency in areas where there is real competition. The current organisation of regional railway transport makes it difficult to assess its efficiency and, consequently, to select the optimal operator in economic terms.

Keywords

• public transport
• regional transport
• railway transport
• public service obligation