Railway Economics
This module covers the financial and economic background to the railway industry, and how it affects decision-making by railway managers. It also considers the nature of the costs of a railway company, and how these costs can change in different circumstances and over different timescales. This module also covers how income for a new or altered train service is predicted and how costs and benefits of investment projects are compared so as to select appropriate projects.
The objectives of the module are to help the student to understand:
- The possible organisational structures for a railway company;
- The types of organisations and their context;
- The organisational development of British railways;
- The roles of different players in the current UK rail industry organisation.
Module Syllabus
The module covers the following syllabus:
- the historical development of British railways, illustrating the changing organisation over time;
- reasons for privatisation and outcomes of the change;
- the different private, public and Government players in the current UK industry organisation, and their roles;
- other railway operators in the UK and Ireland.
- Why economics and business issues are important
- Railways as a business
- Railway Costs – cost structure, fixed and variable costs, cost allocation, the contractual matrix
- Railway Revenues – sources of revenue, forecasting demand, characteristics of the National Rail Passenger market in Britain, fares, revenue distribution
- Rail Investment - making the case, matching costs and benefits
- Risk
- The public interest in railways – the dimension of public interest, subsidy, franchise agreements, performance, regulation
- Railway Business and contract management
Module Learning Outcomes
On successful completion of the module students will be able to:
- Demonstrate an understanding of the various functional and technical roles within a railway industry;
- Evaluate possible options for the organisation and regulation of a railway industry;
- Analyse the recent developments of the UK national railway industry;
- Evaluate the role of the Government in the management and direction of the UK railway industry.
Railway Economics
This module covers the financial and economic background to the railway industry, and how it affects decision-making by railway managers. It also considers the nature of the costs of a railway company, and how these costs can change in different circumstances and over different timescales. This module also covers how income for a new or altered train service is predicted and how costs and benefits of investment projects are compared so as to select appropriate projects.
The objectives of the module are to help the student to understand:
- The possible organisational structures for a railway company;
- The types of organisations and their context;
- The organisational development of British railways;
- The roles of different players in the current UK rail industry organisation.
Module Syllabus
The module covers the following syllabus:
- the historical development of British railways, illustrating the changing organisation over time;
- reasons for privatisation and outcomes of the change;
- the different private, public and Government players in the current UK industry organisation, and their roles;
- other railway operators in the UK and Ireland.
- Why economics and business issues are important
- Railways as a business
- Railway Costs – cost structure, fixed and variable costs, cost allocation, the contractual matrix
- Railway Revenues – sources of revenue, forecasting demand, characteristics of the National Rail Passenger market in Britain, fares, revenue distribution
- Rail Investment - making the case, matching costs and benefits
- Risk
- The public interest in railways – the dimension of public interest, subsidy, franchise agreements, performance, regulation
- Railway Business and contract management
Module Learning Outcomes
On successful completion of the module students will be able to:
- Demonstrate an understanding of the various functional and technical roles within a railway industry;
- Evaluate possible options for the organisation and regulation of a railway industry;
- Analyse the recent developments of the UK national railway industry;
- Evaluate the role of the Government in the management and direction of the UK railway industry.