In the present article, the authors, reviewing the studies conduct, estimate the demand function for passenger and cargo transportation by railway using Fitzory and Smith (1998) models and ARDL method. Theory studies show that in the passenger transportation sector, demand growth for passenger transportation, in the long-run is affected by gross domestic product (GDP) and price index of bus ticket, the long of railway line, income resulting from the proportion of passenger-KIn to fixed price. In other hand, demand for cargo transportation in the long-runs is affected by gross domestic product (GDP), price index of truck rent, income resulting from the proportion of Ton-KIn to fixed price. In any case about transportation railway, gross domestic product is variable effectives in transportation
demand function both passenger sector and cargo sector.
JEL Classification: R41.
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