The Spanish Rail, Standard Deviation and Innovation

By: Hans Bool
Submitted: 2007-01-17 16:23:56
Print this article | Tell a friend | For publisher | Social Bookmarking
Rating:
 

Infrastructure is a term to describe all those nearly invisible activities that are needed to support other productive economic functions. A railway system – although not really invisible – is needed to connect other economic activities in this case called (public) transport.

Infrastructure is a quality kind of service. This means that the level of the infrastructure is variable irrespective of the supportive function it provides. Those rails enable transport – up to a certain level. The word “Standard” describes this level best. For example in “the standard of living,” but also the standard in the sense of standardization. The success of Internet is also due to standardization, and not because of (regional) exceptions and mismatches.

It is normally a service that is centrally governed. It makes no sense for other infrastructural services like the army and education to manage these differently in any town, province or state. An (overall) educational system for example would raise exchange problems if one regional school system was not accepted by the neighboring region and visa versa. The problems this would give speak for themselves…

If not centrally governed -– like the Spanish Railway system -– it will give different kind of problems, one of them being interoperability. In Spain there are three different railway systems according to the size of the gauge (small, normal international standard and a broad standard). It goes without saying that these different standards will make the exchange of connections more difficult and time consuming (not only in the operation).

The Iberian peninsula – already a peninsula – has been more isolated from the rest of Europe because of this own standard (deviation).

Yet, this (not complete) unique situation has some advantages. Innovation for example is one of them. The Talgo ...

  • TALGO stands for "Tren Articulado Ligero Goicoechea Oriol" (Goicoechea-Oriol light articulated train), Goicoechea and Oriol being the founders of the company. Its name gives the key to its success: this system is much lighter than any other, thus cheaper to operate. Since the introduction of the "Talgo Pendular", the train tilts naturally inwards on corners, making it more comfortable for the passengers. (wikipedia)

(this Talgo) ... is an innovative train design in which the gauge axles are variable. In this way these trains operate both in Spain as in France giving the Spanish manufacturer a “natural” Competitive advantage.

© 2006 Hans Bool

Hans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days. You can apply for a free demo account

Article source: Expert Articles

Most Recent Articles in Economics category

  • Developments Prior to the Currency Debates - By: Rupert Mackenzie
    During the 18th century England was nominally on a bimetallic standard (consisting of silver and gold), however, the mint price of silver was intentionally undervalued to keep it out of circulation and thus a de facto gold standard functioned: banknotes issued both by the Bank of England and country banks were convertible into gold upon request.
  • Investors Moving Money to European Banks Fearing U.S. Economy and Major Bank Failures - By: Brett Schoneman
    "Many investors are placing part of their hard-earned money out of harms way into foreign banks that do not have exposure to the U.S. sub-prime mortgage crises," says Kevin Wessell, CEO of Offshore Company. Mr. Wessell is also the author of "Build Your Financial Castle" and a nationally renowned asset protection seminar speaker.
  • The success of Africa's exports - By: Paul McIndoe
    While Africa faces tremendous challenges on the road to integration into the world trading system, many African export sectors have actually outperformed world market growth.
  • The 10 Movers and Shakers in Turkey's Banking Sector - By: James Kara Murat
    In Turkey there are many sectors active and dynamic and the banking sector is one of them. The dynamism of the banking sector is a result of the lifting of certain restrictions
  • The Biggest Banking Mergers & Acquisitions in Turkey - By: James Kara Murat
    Turkey is making some economic reforms in order to become part of the European Union. As a result, the Turkish banking industry has seen many changes.
  • Barcelona economy - By: Kirsty Connell
    Barcelona has a highly diversified economic structure. Find out the facts which lead to the growth of Barcelona economy.
  • Indian Retailers Accelerate Evolving Pace - By: Gaurav Doshi
    Retail industry in India is gradually edging its way towards becoming the next boom industry with contributing more than 10% to Country’s GDP and around 8% employment. Several Indian and global players are developing strategies to enter such a fast paced and growing market. Also the whole retail industry is taking new shape, the traditional market giving way for the more organized market in the form of departmental stores, hypermarkets, supermarkets and specialty stores.
  • The Real State of the Economy - Good or Bad? - By: Stephen Morgan
    There is something about the US Economy at the moment that I for one don’t get. Now it may be that being a brit, I am a little slow on the uptake; this has been known to happen every now and then but at the moment I cannot fathom several things out.Firstly, the UK economy, despite the Chancellors proud claims, is not in exactly the best of shapes but in the US, the Government is technically, if not practically bankrupt.
  • India Emerging As A Global Healthcare Destination - By: Christine Macguire
    Health is vital for ethical, artistic, material and spiritual development of man. It is very certain that of all the gains, the gains of health are the highest and the best. Traveling abroad for treatment has been an age-old practice.
  • India-Srilanka Free Trade Agreement(FTA): The Success and Road Ahead - By: Dr Suvrokamal Dutta
    The Free Trade Agreement between India and Srilanka came into full existence from 1st March 2000.This FTA basically deals with the modalities of the Duty Free Import of the Goods manufactured in Srilanka. Which exempt specified goods imported under Indo-Srilanka Free Trade Agreement from the Import Duty up to 100%.