Mathematical Models
Railway costing is typically performed using mathematical models. Using unit costs from current operating data and current accounting and operating information, it is possible to develop costing information for the railway. This costing information may be used to estimate the operating cost of a new line and to determine whether it is economically viable. Alternatively, the model could be used to estimate the cost effects of changing speed limits along a route. The savings that can be achieved with a railway costing model are endless. For example, by knowing the costs of doing business, a railway can appropriately determine the tariffs to be charged.
In addition, railway costing models typically handle passenger and freight traffic, making them applicable in more situations, including mixed traffic situations.
some commercial variations of railway costing models have been implemented, including the OSCAR railway costing model developed by CPCS Transcom Limited. CPCS is an international infrastructure development firm and has successfully used this model in dozens of its projects worldwide.
The Cartage railway costing model was developed by Vectorail, a global supplier of railway costing solutions with more than forty years of experience in the field.
Read more about this topic: Railway Costing
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