Public and Private Provision of Railway Services: A Case Study from Slovakia

Jurikovič Martin and Zdeněk Tomeš ()
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Jurikovič Martin: Department of Economics, Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic

Review of Network Economics, 2017, vol. 16, issue 2, 187-201

Abstract: This article analyses a case study of passenger rail transport in Slovakia when operation of a commuter line to the capital city was changed from a public operator to a private one. This change brought about significant changes in the organisation of services. The private operator RegioJet introduced new rolling stock, a regular and more frequent timetable, peak and off-peak pricing, and additional on-board services. The results were remarkable, with passenger ridership increasing by 156% in 3 years. The article aims to compare the performance of public and private operators on this line in order to identify the reasons for the increased ridership. A customer survey was conducted and passengers were asked questions about their former and present travel behaviour. Based on data from the survey, a logit model was estimated in order to identify the factors behind increased usage and satisfaction. The results indicate that all passengers most highly valued the speed and comfort of the rail services. The new passengers valued highly reliability and quality of the improved service. These factors appealed especially to women, students, and car owners who were newly attracted to rail commuting.

Keywords: competition; ownership; rail usage; railway; subsidies (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1515/rne-2017-0037

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