Financing Railways and Getting it Right

The Transportation networks of the world span many modes. Railways are a critical and climate-friendly component of these networks – supporting development through industrial and economic growth, trade, and mobility. Economic growth in developing countries will increase the demand for transport, therefore, good linkages between railways and other modes are needed. This often requires investment and changes in business modality to be successful. Additionally, railways must be well-managed to achieve their potential, by being customer oriented and providing quality services at a low price. In the absence of these attributes, customers will use other modes despite rail’s inherent advantages. Reforms in sector governance and structure are often needed for this to happen.