rail transport economics

Rail transport economics involves analyzing the costs and revenues associated with operating train services. Major costs include infrastructure maintenance, rolling stock (trains), labor, and energy. Economies of scale often apply, meaning larger networks or higher traffic volumes reduce average costs. Pricing strategies must balance affordability with covering costs, while investments in infrastructure aim to improve efficiency and capacity. Competition with other modes like road or air influences pricing and service quality. Overall, effective rail economics ensure sustainable operations by managing costs, optimizing service, and aligning investments with demand.