ESCAP: “Traincost”, Point-to-Point Railway Traffic Costing Model – Users’ Manual

ESCAP: “Traincost”, Point-to-Point Railway Traffic Costing Model – Users’ Manual

Thursday, January 23, 2014

There is a growing recognition, within most of railway organizations in the ESCAP’s region, of the importance of measuring the costs of operating individual traffics in order to estimate their contribution to corporate profitability. However, not all have access to the costing systems or models which produce satisfactory results and are at the same time easy to apply and update.

The transformation, currently in progress, of many of the region's railways from government institutions to market responsive transport operators with clear commercial objectives has also revealed a need for estimates of point to point traffic costs as a basis for making decisions about the acceptance or rejection of individual traffics, for which fare or tariff levels are established by market forces. Unless the costs of conveying specific traffics are known, at least in a broad sense, it cannot be concluded whether they will be self-sustaining (i.e. yield a healthy surplus of revenue above cost) or will require financial support through subsidies or grants. The ESCAP-developed point-to-point rail costing model provides the basic tools for making such assessments.


Point to Point Railway Traffic Costing Model - Users Manual 2014Download
Traincost Model-January 2014Download