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Prior to SONERAIL the concept of a socially necessary rail service was not clear as was the situation regarding the evaluation criteria to be used for assessing the effects of providing rail services.
The SONERAIL project has provided an important contribution towards these elements. A consistent definition of socially necessary rail services has been established. The SONERAIL Definition characterizes a socially necessary rail service as one where the social benefits are larger than the social costs. In this way the financial profitability will not influence whether a rail service is characterized as socially necessary. This definition is linked to the assessment of rail services through the benefit and cost elements considered.
An evaluation methodology for socially necessary rail services has also been provided as part of the outputs from the SONERAIL project. The SONERAIL Evaluation Methodology (SEM) consists of three main stages:
- comparison of benefits and costs in relation to the provision of individual rail services (cost-benefit analysis);
- ranking of services and confrontation with available subsidy budget (multicriteria analysis);
- identification and assessment of improvement strategies.
The main innovative elements in the SONERAIL methodology are:-
- integration of different appraisal techniques (cost-benefit analysis and multicriteria analysis);
- iterative procedure allowing for assessment of improvement strategies;
- flexibility regarding the type of rail service option to be assessed (marginal change in frequency as well as complete closure);
- possibility to consider alternative modes as valid options.
This methodology has been applied to a range of rail services (25) across Europe in order to examine how SEM works in practice. In addition, specific information about the social and financial profitability has been provided. The findings from the case study confirm that the data required in the analysis are or can be made available. Among the 25 rail services the majority (15) appeared to be socially profitable in monetary terms. The application results suggest that SEM represents a promising tool for evaluation of rail services.
As part of the SONERAIL project attention has also been given to the possible future changes in factors of importance for the provision of socially necessary rail services. The research suggests that a major component in enhancing the financial and social profitability of the rail services will be the scope for cost efficiency gains, because of the likely small increases in rail demand. Efficiency gains are in particular required due to a number of services which otherwise will continue to be socially unprofitable. Changes in overall subsidy levels remain the uncertain factor.
Recommendations regarding socially necessary rail services has been provided at three levels:
- action plans for case study services on the basis of assessing strengths, weaknesses, opportunities, threats (SWOT analysis);
- strategic suggestions regarding the evaluation and provision of socially necessary rail services;
- future research areas.
The main recommendation given is the scope for development of a full-scale application of SEM as an assessment tool for enhancing the decision making basis for subsidy allocation.
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