earticle

영어

Vertical Separation means the functional division by the owner of fixed facilities such as sites, lines, and signals from the transportation service operation using them. The separation has produced some limitations and challenges to reform. The cases of Japan and China show many policy implications. The advantages which accrue from vertical integration are: first, the harmony of construction and management results in not producer-oriented but customer-oriented operations that enhance consumer service and investment efficiency. Second, the enhancing of competitiveness of the railroad industry provides a chance to prepare a logistic hub and gate for East Asian railroad transportation by utilizing south and continental railroad system. Third, the development of station complexes may contribute ultimately to retaining railroad fares due to expanding diverse service projects and create station-centered culture. Finally, this reform also contributes to strengthening national competitiveness by enhancing responsiveness to the expansion of the world railroad market and global trends in the railroad industry.