A critique of the initiative for public private partnership in passenger train operations

Abstract

In this paper, we critique the initiative for public private partnership in passenger train operations, started by the Ministry of Railways in July 2020. First, we examine each of the clusters in terms of parameters having implications on market and design coherence. The parameters include category of service (based on running time), train kms per week, train hours per week and average speed. Second, we present the salient features of bid parameters and conditions as per the documents released by the Ministry of Railways. Third, we assess the public private partnership initiative and bid conditions on parameters such as drivers for the initiative, market coherence, design coherence, bidding process and timeline, bid criteria, concession period, issues of competition, financial capacity, entry costs, train set features, fare and ticketing, terminals, schedule and stoppages, haulage and other charges and operations & maintenance. We also draw lessons from our understanding of the public private partnership experience of container train operators, where applicable. Finally, we suggest a way forward for the stakeholders in this public private partnership initiative.