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Spiffor
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CPA - Evil Clone brigade
Nov 2001 time: 06:29
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quote: Originally posted by Kidicious
Well then it is like I imagined. Privatization is only for privatizations sake and not form sake of competition. |
That's not true (and keep in mind that I strongly oppose the privatization of the French Rail, and that I despise the consequences of Germany's botched attempt).
The idea behind privatization is that a private company will undergo great lengths to keep the favour of the political institution that grants its licence. Although corruption can have a say in this, the basic idea is that the operating company will see its license challenged by other competitors every few years. As such, the private company must strive to keep a low price and a high quality, to be better than the would-be operators.
This idea relies on the prejudice that public companies are always complacent and mismanaging, while private companies are always on the edge and good-managing (or if they're not, they're rooted out). In truth, it is false. A public company can be well managed, and can have edges than a private company cannot have. Also, a private company can make money while utterly sucking.
But for the people who have been brainwashed into thinking that private enterprise will always be better than public ones in ventures where you sell something, privatization makes sense from a consumer-satisfaction point of view.
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Kidicious
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Diety of Kidiverse
Mar 2003 time: 21:29
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quote: Originally posted by Spiffor
That's not true (and keep in mind that I strongly oppose the privatization of the French Rail, and that I despise the consequences of Germany's botched attempt).
The idea behind privatization is that a private company will undergo great lengths to keep the favour of the political institution that grants its licence. Although corruption can have a say in this, the basic idea is that the operating company will see its license challenged by other competitors every few years. As such, the private company must strive to keep a low price and a high quality, to be better than the would-be operators.
This idea relies on the prejudice that public companies are always complacent and mismanaging, while private companies are always on the edge and good-managing (or if they're not, they're rooted out). In truth, it is false. A public company can be well managed, and can have edges than a private company cannot have. Also, a private company can make money while utterly sucking.
But for the people who have been brainwashed into thinking that private enterprise will always be better than public ones in ventures where you sell something, privatization makes sense from a consumer-satisfaction point of view. |
Well that is really a different situation. Right now there is pressure on Amtrak to maintain good service and low price, otherwise there will be political backlash. That's not the same as companies existing in a competitive market. It's hard for outsiders to know how efficiently a company is running without competition. With real competition a company has to operate efficiently or they are elimiinated automatically form the industry.
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Sandman
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Sinister Penguin
Aug 2001 time: 05:29
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quote: These look like policies that have been designed by someone who has a brain. How come the British rail is such an abysmal failure? I thought that was precisely because you allowed the companies to do whatever they pleased. |
Well, for a long time, the railway infrastructure was given over to a private monopoly called Railtrack. Presumably the fact that it had shareholders was supposed to make it better somehow. Railtrack allowed the track to decay - what would have been routine maintainance under British Rail they now called 'upgrading' - and there were some accidents due to unmaintained track. And so the whole network was thrown into chaos as frantic repairs were made.
The thing is, passenger numbers have been increasing, so just getting back to the standard of BR isn't enough - we should have been moving forward with the railways, instead of spending a decade and a half just trying to keep them from collapsing.
Railtrack has now been wound up, thankfully, and replaced by a nationalised company, Network Rail. The trains are still private, though. The Scottish network was recently given over to the bus company.
The government recently revoked the license of a train company in the South of England somewhere (due to poor performance), and took over the running of the trains itself until a new company could be found. The trains in that network are now amongst the most punctual in the UK, but the government is still insisting that it will put them into private hands again.
And this is only scratching the surface of the problems with the British rail system.
Mind you, at least the British government recognises that railways are an important national asset that can't just be allowed to go 'bust'. I'm doubtful that the Americans will care in the least as what little they have is allowed to go to ruin. Their loss.
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DanS
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Kickball Capital of the World
Jan 1970 time: 00:29
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quote: Amtrak was created because there are plenty of towns across America that were built around rail lines- not enough population density to justify highways or airports. It's not politically acceptable to make these towns "obsolete". |
In the lower 48 states, these towns wouldn't be destroyed by loss of rail passenger service. On the other hand, the freight rail system is highly developed throughout the US -- even to small towns -- and loss of freight rail access would be devastating for industry. But as stated, all of those rails are privately owned and only a very small subset run passenger service.
quote: As I pointed out. That, however, is not the problem, but an effect of the problem. |
Well, we've got a $117 gap between rail and bus (plus any operating subsidies that are going to be removed or reduced), which demonstrates the magnitude of the problem. Do you think it's possible for Amtrak to offer a $35 round trip ticket, or alternatively to make the gap a worthwhile purchase, given convenience, time-to-destination, etc.?
I'm skeptical.
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Spiffor
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CPA - Evil Clone brigade
Nov 2001 time: 06:29
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quote: Originally posted by DanS
Well, we've got a $117 gap between rail and bus (plus any operating subsidies that are going to be removed or reduced), which demonstrates the magnitude of the problem. Do you think it's possible for Amtrak to offer a $35 round trip ticket |
Maybe not $35, but already it could have considerably lower prices if there were more customers. To attract customers, having faster trains would be a good idea. So is handing out generous rebates to some categories of the population (young, unemployed, old...), so that they can fill in the train. It's better to have a cheapo seat than an empty seat.
quote: or alternatively to make the gap a worthwhile purchase, given convenience, time-to-destination |
Unless the stations in DC and NY (and in the cities inbetween) are very remote from the city centre, and badly connected to cabs / mass transit, I don't see how train would be less convenient than bus. As for the speed, it's not like there aren't economically viable fast trains out there. Competing European countries have developed their own fast-train design aimed at accomodating old tracks. So you won't need any hugehugehuge investment to have satisfyingly fast trains.
You'll need the political will to do so however. And you'll need to clean up Amtrak's pathetic management, it seems.
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