Economic model for pricing of average domestic rail freight rate in Iran and average Operation tariff by Iranian Railway State Company (RAI)

Pricing of Domestic Freight Rail and the Operating tariff of the Iranian Railway State Company (RAI) is one of the main and important issues in the survival of the companies that own the freight wagon and the balance of the cost and revenues of RAI. Due to the fact that the total cost price of domestic freight rail transportation is more than the applicable prices in the market, this type of pricing will not be accepted in the market and if it is insisted on, it will reduce the volume of rail freight transportation. Experience has shown that in practice domestic rail freight prices follow the average level of road freight fares, and in practice this proportion has been maintained with a limited range of fluctuationsof coefficents over the past years.Based on the method of price adjustment based on effective competition in the market and comparison with the average price of freight road transport and determining the relevant coefficients, the economic model of general pricing of domestic freight rail freight and the average price of operation of RAI as the most important issue in the business of the RAI And private Owners of freight Wagons, based on the current structures of actor interactions, have been developed and proposed for the first time.The results show that if the coefficients of the economic model are selected at the average level of the previous fluctuation range of coefficients, these two pricing will be accepted in the market.