CASE STUDY

GREAT NATIONAL TRAINS

CASE HISTORY:
In contrast to many other countries, the railway system in Pecoland remains nationalised, and
services are operated by Great National Trains (GNT). The Chairman of the GNT Railways Board
reports to senior civil servants in the Ministry of Transport. However, Pecoland also has a rail
regulator who has the power to make recommendations directly to the Minister of Transport in
relation to all issues relating to the operation and performance of GNT. The Rail Regulator's role
is to ensure that the rail service in Pecoland is delivered in a safe and efficient manner, and in a
way which provides high levels of satisfaction to all rail users.
ISSUES AT HAND:
Due to the relatively small number of passagers who use them, the number of services on some
rural routes has decreased significantly in recent years. Nevertheless, these reductions lead to
intense resistance from local residents who depend on trains to carry them.
FACTS:

 Passenger Co operates passenger rail service between the main towns and cities and
slower services to remote locations.

 Now that the lines are electrified between all the major cities of Pecoland, the majority
of Passengers Co's locomotives are electric. Some freight co's trains operate on diesel
engines, but recently invested in a range of less environmentally destructive electric
motors. Around 50% of GNT 's overall revenue is generated by passenger co.
ALTERNATIVES:
Even representing the needs of the different classes of external actors. GNT's problems in
controlling its subsidiary companies' results. Reliability and timeliness are obviously problems
with both freight and commuter trains, and the priorities and KPIs for all subsidiary entities
need to be mirrored.
However, provided that passenger service sales are greater than cargo (50% vs 40% of overall
revenue), the emphasis would be greater on guaranteeing the performance of passenger
services in time than cargo services. Nevertheless, if freight trains are delayed as they have to
wait for commuter trains to use a part of the railway of their preference, then the suitability of
a KPI that tests the punctuality of freight services may be decreased.

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RECOMMENDATIONS:
Essential, however, is to represent the longer-term implications of organizations' efforts to
make more rational choices, as a core goal of collaborative coverage. GNT should also show the
long-term advantages of investing in modern engines in its comprehensive research.
However, there appears to be already many non-financial GNT KPIs which indicate that GNT
appreciates already the partnership between the non-financial and financial results. This
reiterates that there will not be many additional KPIs to incorporate standardized reporting;
however, a few could be needed in relation to 'human resources' if that is not currently
protected by all of the existing KPIs.

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