two case studies on road vs. rail freight costs

two case studies on road vs. rail freight costs - FINAL...

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FINAL REPORT Prepared For: Pacific National Blue Street North Sydney, NSW Two Case Studies on Road vs. Rail Freight Costs Prepared By: CRA International Level 7, 107 Pitt Street Sydney NSW 2000, Australia Date: 25 May 2006 CRA Project No: D09396-00 Authors: Mike Smart, Simon Game
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Two Case Studies on Road vs Rail Freight Costs 25 May 2006 Final Report Page i DISCLAIMER CRA International and its authors make no representation or warranty as to the accuracy or completeness of the material contained in this document and shall have, and accept, no liability for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from this document or any omissions from this document, or any other written or oral communication transmitted or made available to any other party in relation to the subject matter of this document. The views expressed in this report are those of the authors and do not necessarily reflect the views of other CRA staff.
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Two Case Studies on Road vs Rail Freight Costs 25 May 2006 Final Report Page ii TABLE OF CONTENTS 1. PURPOSE. ................................................................................................................. 1 2. METHODOLOGY. ...................................................................................................... 1 2.1. USAGE COSTS. ............................................................................................................... 2 2.2. AVAILABILITY COSTS. ...................................................................................................... 3 2.2.1. Costs of providing capacity . ......................................................................................... 4 2.2.2. Estimating quantum of capacity provided. .................................................................... 5 2.2.3. Presentation of availability costs . ................................................................................. 6 3. DATA SOURCES. ...................................................................................................... 7 4. RELEVANT TRENDS AND CONSTRAINTS. ............................................................ 9 5. INFORMATION COMMON TO THE CASES. .......................................................... 10 5.1. ASSUMPTIONS. ............................................................................................................. 10 5.2. ROAD INFRASTRUCTURE COSTS . ................................................................................... 11 5.3. INFRASTRUCTURE CAPACITY . ........................................................................................ 11 6. CASE STUDY 1: SYDNEY – BRISBANE . .............................................................. 12 6.1. DISTINGUISHING FEATURES OF FREIGHT ON CORRIDOR . ................................................. 12 6.2. FORESEEABLE DEVELOPMENTS ON CORRIDOR THAT MAY AFFECT COST RELATIVITY . ........ 14 6.3. USAGE COSTS. ............................................................................................................. 14 6.4. AVAILABILITY COSTS. .................................................................................................... 16 6.5. SENSITIVITY ANALYSIS. ................................................................................................. 17 7. CASE STUDY 2: PENOLA – PORTLAND. ............................................................. 21 7.1. DISTINGUISHING FEATURES OF FREIGHT ON CORRIDOR . ................................................. 21 7.2. FORESEEABLE DEVELOPMENTS ON CORRIDOR THAT MAY AFFECT COST RELATIVITY . ........ 23 7.3. USAGE COSTS. ............................................................................................................. 23 7.4. AVAILABILITY COSTS. .................................................................................................... 24 7.5. SENSITIVITY ANALYSIS. ................................................................................................. 26 8. CONCLUSIONS. ...................................................................................................... 28 8.1. SYDNEY – BRISBANE . ............................................................................................. 28
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Two Case Studies on Road vs Rail Freight Costs 25 May 2006 Final Report Page iii 8.2. PENOLA – PORTLAND . ............................................................................................ 29 8.3. GENERALISATIONS. ................................................................................................ 30
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Two Case Studies on Road vs Rail Freight Costs 25 May 2006 Final Report Page 1 1. PURPOSE This report is intended to provide the Productivity Commission with quantitative data comparing the economic costs of performing specific freight tasks by road and by rail. This comparison is made by means of case studies for particular types of freight on two corridors: intermodal freight between Sydney and Brisbane and forestry products between Penola, S.A. and Portland, Vic. Emphasis is given to costs that vary directly with mass-distance, to external costs, and to non-traffic-sensitive costs relating to the provision of the necessary transport capacity. 2. METHODOLOGY Raw data on cost, capacity and usage is sourced primarily from accounting records and engineering estimates. These figures are derived both from public sources and private sources accessible to Pacific National (PN). This data set is then used to generate
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two case studies on road vs. rail freight costs - FINAL...

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