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Historically, passenger transportation by railway plays a significant role in national economies; therefore, the development of railway transport is always aimed at high-quality assurance of public transport operations. Passenger railway transportation, especially by local, suburban routes, is traditionally viewed not only as a business function, but also as a social government-supported one. For this reason, improvement of the management of expenses and incomes received from passenger transportation by railway aimed at passenger transportation efficiency as well as integration in international transport system is a matter of particular importance. The value of the run time and costs is considered as one of the most important indicators of the economic and social efficiency of passenger transport. To evaluate and optimize this value, the article proposes a mathematical model of costs incurred by a passenger and carrier for one train run, which evaluates the train length, traction and other components depending on the change in the number of passengers on the route. Studies show that in this way, it is possible to reduce passenger losses at separate Lithuanian railway routes by 4 times and to obtain a positive result at passengeroccupied routes. Having performed analysis and established trends of their changes and needs for transport vehicles, it is expedient to supplement the fleet of rolling stock with quickly and easily transformable passenger vehicles, e.g., with comfortable modular trains. It is especially appropriate when the number of passengers is low and transportation distances are not long. Membership in the European Union obligates the member states to adjust to the technical specifications for interoperability of trans-European railway corridors. The main aspect in establishing the scope and moment for introducing technical interoperability in the railway network is to determine the costs and benefit of such changes with regard to the solutions of all the concerned parties of the railway transport system. The article analyses the dependency between the expenses incurred by participants of the passenger transportation process and passenger comfort level. An integrated system of statistical indicators and a methodology that allows providing a vibration comfort evaluation in different train seats/births and levels and preparing proposals for improvement of passenger comfort and optimization of costs of participants of the passenger transportation process are selected. The improvement of passenger railway transportation process is associated with the implementation of a passenger service quality corporate management system. Its purpose is to establish and implement a customer-oriented and effective passenger service technology. Passenger transport expansion should be well-balanced with regard to the economic efficiency, environmental rationality, and social reasonability of this process. [ABSTRACT FROM AUTHOR]

The article discripes an influence of railway transport in to the economic and social live. The main advantages of railway transport in the frame of evironmentally friendly transport mode concept are presented and because of that, added value achieved. Also available disadvantages of railway transport discribing existinting bottlenacks in there, searching for the solutions thanks to implementation of internalisation processes. Taking in to account the impact of internalisation policy there are succesful observations towards improvement of fair competition between different transport modes. [ABSTRACT FROM AUTHOR]