An approach to mark-ups through capacity charges

Abstract

Charges related to rail infrastructure capacity in the European rail network show great diversity and are not sufficiently transparent. This paper develops a simple and transparent methodology that takes the main aspects related to rail infrastructure capacity into consideration to give an approximated value of the maximum capacity charge (initial mark-up). The method can be used (as a basic calculation tool) to develop a uniform (and thus, interoperable) charging system. According to the hypothesis formulated, the result of the method’s application to typical railway services was from higher to lower initial mark-up: suburban trains, intercity trains, regional trains, express freight trains, conventional freight trains. After this preliminary valuation is reached, the railway under- takings’ willingness to pay and the socioeconomic aspects of transport come into play for setting the definitive mark-ups, thereby establishing the final charging level.