Competition Issues in Restructuring Ports and Railways, Including Brief Consideration of these Sectors in India
Russell Pittman, EAG 09-6, November 2009
One important issue facing reformers considering the restructuring of
the seaports and freight railways sectors of a developing country is
the creation of competition or, alternatively, avoiding the creation
or preservation of monopoly power. In seaports a crucial distinction
is often that between intraport and interport competition; in freight
railways, between competition among train operating companies over a
monopoly track and competition among vertically integrated railways.
In both cases it is useful to frame the issue as one of competition
at the component level within an open system versus competition between
closed systems. In both cases as well, the market definition paradigm
suggested by the Horizontal Merger Guidelines of the U.S. competition
agencies provides a useful framework for analysis.
Keywords: competition, ports, railways, market definition, India
JEL codes: L14, L23, L33, L91, L92, O14, O22, R48