Does unbundling ensure efficient railway transportation? The separation of railway operators and infrastructure is supposed to ensure efficient railway transportation. However, the experience with the unbundling of the railway operation in the Czech Republic suggests that unbundling does not...

Soft budget constraint (SBC) syndrome theory aptly explains the inefficient operations of the Czech railway industry with reference to České Dráhy (CD). The theory states that the existing organizational structures need to be destroyed to bring about creative competition in the Czech railways...