Is large technological investment really a solution for a major shift to rail? A discussion based on a Mediterranean Freight Corridor Case-Study

Abstract

The aim of this paper is to assess how the introduction of technological innovations into a capacity constrained rail corridor may increase its ability to capture market share from road transport. The Montpellier-Perpignan section, a bottle-neck in the Mediterranean corridor, is used as a case study for the effects of implementing new rolling stock that allows for freight trains up to 1500 m and a new ballastless track replacing existing one, resilient switched and crossings and monitoring systems that allow for a reduction in maintenance costs and closure times. The results of a cost-benefit analysis show positive net impacts, however the increases in capacity are only enough to maintain current market shares. Evidence suggests that a heavy investment in technology in existing lines is not the most effective way to increase rail market share.