OSCAR Railway Costing - Cost Categories

Cost Categories

The costs output by the OSCAR model are classified into four categories:

  1. direct variable costs: costs that fluctuate with the operations of the railway. such costs would include fuel, train crew, traffic cost, yard & terminal cost, rolling stock and infrastructure maintenance.
  2. variable operating costs: include the direct variable costs with depreciation attributed to the shipment (freight or passengers).
  3. total long term variable costs – include the variable operating costs and the cost of capital, or borrowing costs.
  4. total costs: include the long term variable costs plus fixed costs and profit.

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