Analysis of Commuter Rail Costs and Cost Allocation Methods

Volpe National Transportation Systems Center, Technical Reference Centerhttps://doi.org/10.21949/15270521983PDFTech ReportDornan, Daniel L.Peat, Marwick, Mitchell & Co.John A. Volpe National Transportation Systems Center (U.S.)United States. Department of Transportation. Urban Mass Transportation Administration. Office of Technical AssistanceUnited States. Department of Transportation. Urban Mass Transportation Administration. Office of Service and Methods DemonstrationUnited States. Department of Transportation. Urban Mass Transportation AdministrationUnited StatesAnalysisCase studiesCost allocationCostsMaintenance managementOperating costsRailroad commuter serviceSubsidiesVariable costsWork rulesRailroadsUMTA-MA-06-0049-83-3;DOT-TSC-UMTA-83-28The report addresses the issues of commuter rail service costs and the compensation methods used to allocate railroad expenses to the commuter service function. The report consists of six sections. Section 1 describes the study purpose, scope, methodology, and assumptions. Section 2 details the cost structure of rail services as reported by all major railroads to the Interstate Commerce Commission and the primary factors influencing these cost categories for commuter rail operators. Section 3 describes the primary methods of allocating the costs of railroad operations between freight and commuter services. Section 4 presents case study analyses of seven selected commuter rail systems operating in the United States. Each system is described briefly in terms of route structure, service characteristics, labor arrangements, operating statistics, operating revenues and costs, and expense compensation methods. This information provides a quantitative basis for Section 5, which compares the cost effectiveness of these seven commuter rail systems and assesses the cost allocation methods used. Section 6 presents the report's findings and conclusions.138