I take this particular argument seriously because it's a very real obstacle even when all other factors support railhttps://twitter.com/380kmh/status/872152288558764032 …
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A 3rd Sector railroad being a partly-state-owned corporation which pays for its operations through a mix of fare revenue and gov spending
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Another way is to get non-locals, who may never ride the service, to pay for it. Either state owned + funded, or cross-subsidized...
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...within a sufficiently large private company (eg. JR East or JR West cross-subsidizing unprofitable rural lines in their network)
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The last way to do this, and the least reliable, is to develop a rail service that specifically caters to non-locals; a tourist service
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This is unreliable because tourists can be a fickle bunch with varying attendance rates, but the bigger problem with this option...
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...is that you end up with a rail service that isn't much use for the daily needs of the people who live around it. It's largely decorative.
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All of these options have their drawbacks, and none of them can guarantee that an unprofitable rail service will continue.
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