Success depends on to the degree to which the railway is expected to act like a commercial entity. Public enterprise railways almost always lack useful information on the profitability of specific activities and the magnitude of cross-subsidies. They are often production-oriented, with little concern for market requirements. Most require large subsidies. The reformed public enterprise is a useful option when privatization is not being considered.
Decentralization is another way to break up the railway monolith.
Where the transport need is essentially local, decentralization promotes greater accountability and sensitivity and provides opportunities for PSP via contract operation. Even if still publicly owned, the railway can contract for almost any activity with the private sector. This is often done for janitorial services, food catering, and medical services. Also open to contracting, though less common, are infrastructure, wagon, and locomotive maintenance. Such contracts, properly designed, can be made competitive and can incorporate incentives for good performance.