ESCAP Traincost Point-to-Point Railway Traffic Costing Model

Transcription

1 ESCAP Traincost Point-to-Point Railway Traffic Costing Model Part B Joint UNESCAP UIC seminar on: Facilitation and Costing of Railway Services along the Trans-Asian Railway Bangkok 9-11 December 2015 Building 1

2 PART B: Traincost model description 1. Purpose and intended application of Traincost model 2. Description of model methods and components 2

3 1. Purpose and intended application of Traincost Traincost (version 2) developed for application throughout the ESCAP region Available online at: 3

4 1. Purpose and intended application of Traincost Model designed to assist costing of individual trains or OD traffic on vertically integrated railways Vertically integrated railways combine provision and maintenance of infrastructure with operations, unlike vertically separated railways and other modes of transport, where these functions performed by separate organizations In ESCAP region nearly all railways are vertically integrated (notable exception is Australia) - unlikely to change in foreseeable future Must be understood that traffic costing for a vertically integrated railway is a complex and difficult process (high level of fixed costs, complex interactions between operations and infrastructure maintenance, operational constraints affecting costs, etc) 4

5 1. Purpose and intended application of Traincost Costing of point-to-point railway traffic, why is it needed? Desire to improve profitability of railways necessarily requires assessment of profit (or financial contribution) at a disaggregated level, i.e. at level of individual OD traffics or trains, routes and traffic segments Railway accounting systems do not provide disaggregated data for individual route or traffic analysis Neither are historical costs of railway accounting systems suitable for profitability analysis Profitability of individual routes, trains and traffic segments must be assessed on basis of operational parameters which determine costs Cost models which are activity or operationally based (such as Traincost ) provide cost estimates for comparison with prevailing prices (freight tariffs or passenger fares) Resulting estimates of financial contribution for individual traffics or trains can be aggregated by route or traffic segment to establish route or traffic profitability Cost estimates can be re-assessed by varying operating parameters in order to improve route or traffic profitability 5

6 1. Purpose and intended application of Traincost Common uses of railway traffic costs Cost inputs for assessment of individual traffic, route and traffic segment profitability, or financial contribution; thus can provide inputs for Corporate Strategy, Marketing and Operating Plans O&M cost inputs for feasibility or pre-feasibility studies of investment in railway infrastructure or operating assets (such as locomotives and rolling stock) Modal cost comparisons (e.g. comparisons of the economic costs of road and rail for given traffic types over a range of distances) Capital cost inputs for capital budgets (infrastructure and operating asset investment) 6

7 2. Description of model methods and components Types of costs generated by Traincost model Model generates costs for a given OD per: train type per year train trip freight wagon or passenger carriage trip net tonne or TEU or passenger per net tonne-km or TEU-km or passenger-km Costs generated both in financial and economic terms Financial costs include taxes and government charges Economic costs exclude taxes and government charges (are calculated by applying Shadow Pricing Factors to financial costs) For purpose of traffic profitability analysis, cost items grouped within 3 categories: Short Run Marginal Cost (SRMC) Long Run Marginal Cost (LRMC) Fully Allocated or Fully Distributed Costs 7

8 2. Description of model methods and components Cost category definitions Short Run Marginal Cost (SRMC) - addition to total costs resulting from addition of small increments, such as one more tonne of freight, to total output. Includes only cost elements which vary in the short run (within 12 months), such as costs of train crews, energy or fuel consumption, locomotive and rolling stock maintenance, and variable track maintenance Long Run Marginal Cost (LRMC), or SRMC plus other costs which vary only in the longer term (more than 12 months) but are directly attributable to traffic being costed. Examples are capital costs of locomotives, wagons/carriages, and any infrastructure needed to support the costed traffic Fully Allocated or Fully Distributed Costs addition to LRMC of overhead or indirect costs which cannot be associated and do not vary directly with specific OD traffic. Examples are head office overheads, provision and maintenance of signalling systems and fixed costs of infrastructure maintenance. Methods of allocation to specific trains often controversial 8

9 2. Description of model methods and components Cost category relationships Notes: 1. Costs based on model run for intermodal traffic (Double stack container trains) 2. Indirect costs represent about one third of total FD cost 9

10 2. Description of model methods and components Traincost - is an activity based model - assumes trainloads maximized in line with railway operational constraints 10

11 2. Description of model methods and components Approach to treatment of fixed costs Principal items of fixed cost (costs which do not vary with traffic): Fixed elements of infrastructure maintenance cost, including daily track inspection, fencing and vegetation control, signalling and communications system maintenance, and building maintenance (can represent up to 80% of total infra maintenance cost) Station and train control staff costs (Number of staff and salaries/wages mostly invariant with traffic level) Fixed costs have to be allocated to individual trains or traffic using an appropriate allocation basis (whereas variable costs may be directly calculated for individual traffics and trains) Traincost allocates fixed costs in direct proportion to the number of trains operated per year e.g. if container trains comprise 20% of all trains operating between a given origin and destination, container traffic will be allocated 20% of fixed costs 11

12 2. Description of model methods and components UNIT OPERATING AND MAINTENANCE COSTS (DERIVED FROM INDIAN RAILWAYS STATISTICAL STATEMENTS ) S/N UNIT COST ITEM Southern Railway TRAIN TYPE Container and Passenger trains other freight trains South Western Railway TRAIN TYPE Container and Passenger trains other freight trains Units: INR Weighted average costs Chennai-Bengaluru TRAIN TYPE Container and other Passenger trains freight trains 1 Train crew cost per train hour 1 1,416 11,901 2,014 8,147 1,633 10,386 2 Unit cost of diesel fuel, per litre Unit cost of electricity, per kwh Unit cost of loco maintenance, per loco-km (diesel) Unit cost of loco maintenance, per loco-km (electric) Unit cost of wagon maintenance, per wagon year 3 91,718 65,326 82,160 7 Unit cost of carriage maintenance, per car year 3 703,946 1,192, ,323 8 Variable cost of track maintenance, per GTK Fixed cost of route inf. maintenance, per track-km per year 4 208, , , , Station staffing cost per route-km per year 5 4,703 4,703 2,655 2,655 3,961 3, Train marshalling cost, per wagon 6 12 Train marshalling cost, per carriage 6 Assembly of unit operating cost data for input to model Unit costs for the Chennai-Bengaluru line Source: 13 Level crossing barrier guard cost, per year 7 14 Terminal handling expenses, per TEU or per tonne 15 Cost of cargo delivery to final destination, per TEU or per tonne 16 Diesel fuel consumption, litres per '000 gross tonne-km Electricity consumption, kwh per '000 gross tonne-km Administrative overhead rate (admin.overheads/operating costs) 93.3% 93.3% 63.6% 63.6% 82.5% 81.3% 1 Freight train crew comprises a driver, assistant driver and train guard. Passenger train crew comprises driver, assistant driver, train guard and 40 security, ticket inspecting and cabin attendant staff. Includes labour overhead costs (pension, education allowance, health allowance) and paid non working time. 2 Unit costs per kilolitre and per kwh given in Statistical Statement 27A. "Fuel consumption by classes of fuel". 3 Unit cost of diesel and electric locos per engine km in Mechanical and Transportation workshops given in Statement 26B "Cost of Repairs and Maintenance of Rolling Stock". Cost per 4 wheel passenger carriage on line and and per 8 wheel freight wagon owned given in same statement. 4 Statement 7 "Working Expenses", supplemented by Statement 9 (A): "Mean Kilometres Worked, Number of Stations and Gradients" and Statement 16: "Tonne Kilometrage Pertaining to Steam Diesel and Electric Locomotives". Per way maintenance costs assumed to be split 50:50 between fixed and variable costs. 5 Statement 40 (II) d Number and Cost of Staff, Group C Other Staff 6 Will be minimal on the costed route as trains run mostly as fixed formation rakes. Minimal shunting is performed with the train locomotives. 7 There are no manned level crossings on the costed route 12

13 2. Description of model methods and components Model components Traincost model comprises five (5) Excel worksheets: Sysdata, which calculates common unit cost and operating data for input to the other four worksheets Containers which generates financial and economic O&M costs for container trains General freight which generates financial and economic O&M costs for trains carrying breakbulk commodities, e.g. palletized cargo Bulk freight generating financial and economic O&M costs for trains carrying various types of bulk freight, e.g. coal, mineral ores, crushed stone, sand, etc. Passengers - generating financial and economic O&M costs for passenger trains, both locomotive hauled and DMUs or EMUs 13

14 nk www. unescap.org/our-work/transport info.: escap-ttd@un.org you 14