2022-2023

VOCABULARY CHAPTER 5. FINANCING OF

TRANSPORT SERVICES
TRANSPORT ECONOMICS

FERNANDO GARCÍA FERNÁNDEZ

MÁSTER ICCP
Fernando García Fernández

1. Public Administrations (Administraciones Públicas): Public administration is the practice of

managing organizations, programs, and public policies to promote the public good, ensure
the efficient use of resources and improve the quality of life of citizens. As far as
transportation is concerned, it is in charge of ensuring and promoting those transportation
services of public necessity.
2. Transport companies (Compañias de transporte): Companies that provides services for
moving goods or people form one place to another.
3. Public Transport Services (Servicios de transporte público): Public transport services refers
to those transportation services that are accessible to everyone.
4. Private Transport Services (Servicios de transporte privado): These are services provided
by private companies or individuals on an exclusive personalized basis and not accessible to
everyone.
5. Public Service Obligation –PSO- (Obligación de Servicio Público –OSP-): Transport services
that are of necessity and of general interest to the population, which are partially or totally
financed by the state and whose price is lower than their real cost. In case of deficit, the
State compensates the losses of the company providing these services.
6. Fleet (Flota): It is a grupo of vessels or other vehicles organized to do something together,
such us provide transport services.
7. Indians route (Ruta de las Indias): Indians route was a network of maritime routes used fot
trade between Spain and ints colones in the Americas and Asia in the 16th century. In some
occasions was composed for more than 400 large ships.
8. Customs fees (Tasas aduaneras): Customs fees are taxes imposed by a government on
goods that are imported or exported across international borders.
9. Commuters Rail Services (Servicios ferroviarios para viajeros): This term refers to the
regular, scheduled train services to carry passenger between their homes and workplaces.
10. Chicago Convention (Convenio de chicago): It is an international agreement established in
1944 that regulated international civil aviation and established standards for air navigation
and safety.
11. Fleets Conference (Convención de flotas): A group of shipping companies in each country
that controls maritime transport by setting the companies that can operate and the rates.
12. Contingent (Contingentado): Contingent means that there are a certain number of
companies offering a service and no new companies can enter.
13. Contigent Quotas (cuotas contingentes): Contigent quotas are a fixed rate limit allowed for
a given transportantetion service for a given time, which is used to protect tranpotation
services and limit the competition.

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Fernando García Fernández

14. Quality Regulation (Regulación de Calidad): Criteria imposed on the company to ensure
quality of services.
15. Flag airlines (Compañias de bandera): Government subsidized company engaged in air
transportation services and in the connection between countries.
16. Bilateral agreements (Acuerdos bilaterales): Agreement between two countries to provide
transport service between both countries through their respective flag airlines.
17. Compulsory Tariff (Tarifa obligatoria): Mandatory fee. Administration imposes it and the
company cannot modify it.
18. Maximum Tariff (Tarifa máxima): The Administration sets a maximum value. An attempt is
made to protect the users of transport services in case of monopoly.
19. Minimum Tariff (Tarifa minima): The Administration sets a minimum value. It seeks to
protect some companies in free competition markets, so that there are no entrepreneurs
who operate below costs for
20. Forked Tariff/ Tarification fourchette (Horquilla de Tarifas): The Administration sets an
interval. It can be interpreted as a free rate within a
21. Guiding Tariff (Tarifa guía): They are established for guidance. They have the danger that,
they end up having the character of maximum or minimum according to the characteristics
of the market.
22. Free Tariff (Tarifa Libre): The Administration does not set it, it is fixed by the company.
(Conceptually "free tariff" implies a contradiction, although the term is very common).
23. Deficit financing (subvención): This term refers to the financing by the Public Administration
of transport companies that provide a public transport service. The administration provides
this payment to compensate for the deficit it generates. The disadvantage is that companies
could neglect the quality of service and the production since the deficit does not harm them.
24. Network subsidy (compensación): This term refers to a form of financing from the Public
Administration to public transport companies where a production target is set that the
company must reach. In case the company produces less and has a higher deficit, the public
administration will not pay the difference.

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