@article{Fagan:207284,
      recid = {207284},
      author = {Fagan, Mark and Barcham, Rapahel},
      title = {Open Access for Heavy Haul Railroads: A Questionable  Strategy for Social Welfare Gains},
      address = {2010-03},
      number = {1430-2016-118684},
      pages = {15},
      year = {2010},
      abstract = {Heavy haul freight railroads carrying bulk materials such  as coal or iron ore are characterized by several unique  challenges relating to investment in construction and  maintenance as well as achievement of optimal operating  efficiency. This paper examines heavy haul railroads around  the world in a comparative context that highlights  differences relative to operating parameters, degree of  integration with upstream and downstream nodes in the  supply chain and regulatory regimes. Emphasis is placed on  analysis of the extent and impact of mandated access on  heavy haul railroads. The authors find that successful  heavy haul railroading requires an intense focus on asset  productivity and effective coordination of the supply  chain. This leads to a bias for bundled above and below  rail operations as well as integration with mine and port  operators; where this is not possible, multiple railroad  operators must have well-aligned incentives. On the other  hand, mandated access appears to yield few benefits beyond  lower rates, which are primarily a wealth transfer rather  than a social welfare gain. In addition, the costs of  coordinating access are material, leading to a neutral  result at best, or more likely a loss of social welfare.  This suggests that regulation of heavy haul railroads  should incentivize coordination and integration, and that  mandated access to generate competition does not produce an  increase in social welfare.},
      url = {http://ageconsearch.umn.edu/record/207284},
      doi = {https://doi.org/10.22004/ag.econ.207284},
}