News Summary

French rail company orders 2,000 trains too wide for platforms

Article: http://www.reuters.com/article/2014/05/21/us-france-trains-idUSKBN0E021720140521

1. Briefly summarize the issue. 

France's National Rail Company were planning to expand their regional network, however, the 2,000 trains that they ordered are too wide for many of the station platforms.
The reason for this mix up is that the National Rail Company were only given the dimensions of platforms that were built less than 30 years ago. Unfortunately, there are more than 1,200 platforms that were built more than 50 years ago that have a smaller dimensions and will be unable to accommodate for the new trains.

2. Relate the issue to one or more of the economic concepts we have discussed in class.

Transportation has been the biggest topic that we have been studying in class. We have mostly focused on the transportation of goods and the effects of the transaction costs. This article focuses on how the infrastructure of a country's transportation system is affected by various factors and the costs and risks of modernizing and adapting new transportation systems. 

3.  What led to this situation? Can you suggest a resolution to this 

As said above, the reason for this is that the Rail Company were given faulty dimensions. The construction work has already begun to reconfigure station platforms to give the new trains room to pass through. Repair work has already cost 80 million euros ($110 million) and is estimated to escalate further.