When people talk about "lift costs" at either end of an intermodal move - looking for clarification

[RailRoader608]

When people talk about lift costs are they talking about the actual cost of lifting containers on and off trains? Or is lift cost used more as short hand for all the accompanying terminal time and expense at either end of a move? 

I know those big gantry cranes can't be cheap but surely the costs associated with them pale in comparison to drayage costs, switching costs, etc. 

[Bill Stephens]

Lift costs are just that: The cost of lifting the container or trailer on and off the railcar. Drayage costs, the trucking move to and from the customer to the intermodal terminal, is a separate cost.

I'm told the lift cost can be $25 to $50 at either end of an intermodal move. Drayage costs hinge largely on how far the move is from the terminal, along with factors like drayage supply and demand at a particular location.

[RailRoader608]

bstephens

I'm told the lift cost can be $25 to $50 at either end of an intermodal move.

 

I've seen the same thing but that seems awfully high. Unless they're using lift costs as a profit center I wonder what costs are baked into that number - amortizing a $2,000,000 crane over 20 years and paying a crane operator $50/hr (inclusive of benefits) would still get that number lower than $25-50/lift awfully quick. 

[BaltACD]

RailRoader608

 

bstephens

I'm told the lift cost can be $25 to $50 at either end of an intermodal move. 

I've seen the same thing but that seems awfully high. Unless they're using lift costs as a profit center I wonder what costs are baked into that number - amortizing a $2,000,000 crane over 20 years and paying a crane operator $50/hr (inclusive of benefits) would still get that number lower than $25-50/lift awfully quick. 

The terminal footprint and track structure to support operation of cranes doesn't come free.  You can't make a lift without having something to set it down on - be that a rail car, truck chassis or a storage location in the terminal and the employees to make it all happen.  There is no free lunch.  The total efficiency of a terminal will lower the cost of a individual lift/set down procedure.