ABSTRACT
This chapter examines the economics of passenger railways, the features of different structures of passenger railway operations, how these structures have changed over time and how they are continuing to change. It also examines the drivers of passenger rail economics, to provide an overview of the factors which affect the success of particular structures. The chapter assesses recent changes to the structure of passenger rail markets around the world and the lessons which can be learned from these changes. Ownership models used for passenger railways range from full public ownership through to full private ownership, with various interim models in between these. A range of mixed ownership models have existed over time, for example the current UK model of public ownership of infrastructure and private operation of train services. Public ownership theoretically allows any profits to be reinvested in services, although in practice they may sometimes be used to fund other areas of government spending.
