This paper analyses optimal pricing of rail infrastructure use, and optimality conditions for rail and road investment. It is demonstrated that under most circumstances rail charges should be below marginal costs and that investments in both modes should be reduced.
The Author analyses the reasons why the railways have more capacity than they can profitably use. Should this surplus capacity be reduced or should the State subsidise its continuance? He concludes that “it is standby capacity which need not exist for commercial or operating reasons and which the community has shown no pressing desire to retain”.
This article contains a brief survey of the way in which political and monopolistic factors influenced the development of the railway system in Rhodesia before the creation of Zambia. the problems that now face Zambia in view of the radical change in her political and economic situation have led to proposals to build a new rail outlet to the sea, which has been the subject of conflicting reports.
