Did Spanish railways fail? Some comments around the «paradox of the Spanish railways

Abstract

This paper aims at offering an answer to the so-called «paradox of the Spanish railways» or, in other words, to the apparent conflict that exists between the high level of the social savings of the Spanish railway system and the low density of use and the poor financial returns of the railway companies (which have usually been explained by an overinvestment in the system). The paper analyses evidence on both aspects and concludes that, on the basis of the available information, it is not possible to accept the hypotheses of either overinvestment or economic failure of the Spanish railway system. However, it might still be possible to speak of failure in the case of the State's intervention, although that subject needs further research.