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AntonioFollowing privatization of the V Line, which was owned by Victoria, the system was rationalized. Lightly patronized country trains were replaced with buses.  However, the remaining system was improved.  New equipment, mostly RDCs was placed in service, and the schedules were improved.  Fares were increased but not enough to drive many patrons away.  Anytime the price of goods or services increases, especially without a corresponding increase in wages and salaries, people believe that they are less affordable.  As you probably know from my previous posts, I think the users should pay for the services that they use to the extent practicable.    Last year, whilst I was in Melbourne, I took the train to Balarrat.  There seemed to be more trains and the trip was quicker than I had remembered it.When the tram and commuter rail systems in Melbourne were privatized, the new operators implemented a variety of improved business practices.  For example, fare collectors on the trams were dropped, thereby saving millions of dollars.  In addition, the private operators bought new trams and commuter train equipment.  As I said in a previous post, the state still subsidizes the private operators.  Trams and trains cannot make it on their own under current market mechanisms.  But the system is much better than the state and municipal run systems.Melbourne has a potpourri of bus operators.  I don't recall the number, but it is a bunch of them.  Again, the new operators put a lot of new equipment in service.The national passenger trains (Indian Pacific, Ghan, and The Overland) are operated by Great Southern Rail, which in 1997 was the successful bidder for the Passenger Rail business of Australian National.  This made it the first government owned transcontinental passenger business to be privatized in Australia. Great Southern Rail originally consisted of a consortium of Australian and International financiers, operators and service providers. These partners all contributed solid financial backing.  In October 1999, Serco Asia Pacific bought out the other partners, placing the company in a strong position for future growth.Great Southern Rail is in the tourism business over and above being a rail transport operator. It  is customer focused and committed to growth of tourism in Australia.   Great Southern rail receives subsidies from the national government, but again it introduced sound business practices that reduced the amount of subsidy required while greatly improving the service.  I have ridden all three national trains in Australia.  They are first class.  If there is a true market for long distance trains in America, the Great Southern rail model would be the way to go.My business was electric utilities.  Prior to 1995 the State Electricity Commission of Victoria had more than 25,000 employees.  Following privatization, over a period of time, the number of employees in the privatized companies totaled just a hair over 7,000, if I remember correctly. The savings, of course, were passed onto the customers.I could tick off numerous other examples of the advantages of privatization and competitive market places, but neither you nor I probably have the time or interest to cover them all.
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