Procedures for Analyzing the Economic Costs of Railroad Roadway for Pricing Purposes. Volume 1. Procedures
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1976-01-01
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Edition:Volume 1 of 2
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Abstract:The primary objectives of the study are to develop procedures for determining the roadway (fixed plant) costs associated with specific railroad services (routes, equipment, service levels) for use in the pricing of such services, and to demonstrate how these procedures can be implemented as an element of a railroad costing system. The costing procedures developed depart substantially from averaging techniques based on historical roadway expense data as currently used by most railroads. Determination and allocation of a major portion of roadway variable costs, i.e. those associated with the renewal of the track structure, is accomplished by applying predictive life cycle relationships to the specific track/traffic conditions under consideration. These predictive relationships are derived from existing track research data combined with the experience of track maintenance forces on the Southern Pacific. Methods are developed to systematically obtain and analyze relevant track/traffic data for use with the costing procedures.
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