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Slide 1

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Transport Economics
Introduction…read more

Slide 2

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Privatisation is the process by which a
former publicly owned organisation or
activity is sold off to the private sector.
This sale can take various forms,
An outright sale to another company
A management and/ or employee buyout
The public sale of shares in a new company
Privatisation in the
UK…read more

Slide 3

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Privatisation in the UK
By any measure, the scale of transport
privatisations in the UK has been extensive.
The early years of the privatisation
programme weren't very controversial.
The parts that were privatised were the
main activities that could quite easily be
operated in the private sector.
Later privatisations, especially rail
privatisation, were much more controversial
and provoked strong opposition from
within and outside the rail industry.
Rail Privatisation in
the UK…read more

Slide 4

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Rail Privatisation in the
This was achieved by the separation of
infrastructure from rolling
But this was certainly not a straightforward
It involved
The creation and then privatisation of Railtrack
A body to oversee and run infrastructure
The creation of 23 franchise areas around the
country Examples of
The sucessful winner of the "franchise"Transport
gained the
right to run the service for a period of time) in the
UK…read more

Slide 5

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Privatisations in Transport in
the UK
Prime Minister Year Company Type of Business
Margaret Thatcher 1982 National Freight Road Haulage
Margaret Thatcher 1983/4 Associated British Seaports
Margaret Thatcher 1984 Sealink Ferry Services
Margaret Thatcher 1986 National Bus Bus and Coach
Company Services
Margaret Thatcher 1987 British Airways Air Services
Margaret Thatcher 1987 British Airports Principle Airports
John Major 1996 Railtrack Rail Infrastructure
Tony Blair 2002 National Air Traffic Air Traffic Control
All of these companies were previously owned Arguments Against
by the government. Privatisation…read more

Slide 6

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Arguments Against
Here is a summary of the arguments against
Natural monopoly argument
Transport is an essential service that is
fundamental to economic and social well-being
Positive externalities are created by the
transport network
Lack of empirical evidence to support
Private monopolies replace public sector
There are only short term benefits to
Arguments For
privatisation Privatisation
The transport network will become fragmented…read more

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