Local government and PKP pr's partnership enterprises - intermediate or target model?

Abstract

There are few reasons why the railway reform failed in Poland. The most important reasons are lack of transport policy of the state, lack of stable financing systems and disproportions in government budget's expenditures on road and railway infrastructure. The state of polish railway is dramatic: the quality of railway infrastructure become worse and worse; lack of investments in railway rolling stock; breakdown of passanger transport; very little or even lack of financial engagement of the State. The conception of increased local government responsibility for local carriers was correct but not well-thoughtof. We don't know how many local government - PKP PR's enterprises shuld be established and how big should their territory range be. Additionally, the financing system based on local government's own incomes is not stabile. The Author postulates: return to budget subsidies for the regional carriers; reduction of the rates by PKP Polish Railway Lines JSC by around 15%; creation of a new subsidy for the railway infrastructure by the government. The structure of PKP PR should be also put in order, new divisions should be created there, whre local governement doesn't decide about the creation of enterprises. Finally - all the railway segment should be privatised.