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IJSTR >> Volume 9 - Issue 6, June 2020 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



RAB REGULATION OF TARIFF FORMATION ON RAILWAY TRANSPORT

[Full Text]

 

AUTHOR(S)

Kateryna Andriushchenko, Oleksandr Rozhko, Oksana Lavruk, Kateryna Teteruk, Natalya Ushenko

 

KEYWORDS

rate-setting, railway service restructuring, competitive conditions

 

ABSTRACT

The transport complex operation in freight transport is closely interlinked to the state of country’s economy. The peculiarity of RAB mechanism is investments volume being determined by the needs for the rolling stock’s development and update. RAB-regulation is designed to encourage companies to modernize the infrastructure and improve the expenses efficiency. The main principle of tariffs RAB-regulation is the following: the capital invested in a regulated infrastructure company should at least have impact, which would be enough to attract new investments and enterprise development, as well as comply with the investment risk level. The goal of this work is to develop an algorithm for determining the economic feasibility of introducing RAB regulation of tariff setting at railway enterprises. The methodological approach to assessing the economic feasibility of price liberalization is offered to assess the feasibility of changes implemented in the studied sectors of activity, which is based on identifying the need for fixed assets, estimating the allowed limits for tariff growth, calculating baseline parameters for baseline strategies.

 

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