GTMs and RTMs

[VKSSL]

I'm fairly new to the railway industry, looking at it from more of an investment perspective (the Class I Rails - CN specifically), and trying to build a financial model.

As such, trying to understand the relationship between GTMs and RTMs, and whether they can be used as an indicator of capacity or whether GTMs are useful for measuring costs / expenses etc.?

Any information or insights welcome! Thanks

[BaltACD]

Presume you are referring to Gross Ton Miles and Revenue Ton Miles.

Operating trains over a segment of track creates Gross Ton Miles as both loaded and empty cars have weight that provide wear to the track structure.

Revenue Ton Miles are only created of the by the movement of product over a track segment in loaded cars.  A car carrying 100 tons of billed load moved one mile is 100 Revenue Ton Miles.  Presuming that the car carrying that load has a tare weight of 30 tons it is 130 Gross Ton Miles.

[timz]

Next question: if a truck brings a container to the railroad and the RR puts it on a flatcar, is the container itself revenue tons, or just its contents?

[BaltACD]

timz

Next question: if a truck brings a container to the railroad and the RR puts it on a flatcar, is the container itself revenue tons, or just its contents?

In as much containers and trucks are not weighed by the railroads before or after their journey, the boxes, loaded and empty will be assigned a 'estimated' weight - nominally the max allowed weight of the container or truck.  Most if not all Intermodal is handled on a per box basis and freight charges are not assessed on either the weight or type commodity.

In the 30+ years I have been away from direct handling of trailer/containers in the field or in revenue billing - The carriers "MAY" have some rates based on the size of the container/trailer.  With trailer normally coming in 27 foot, 40 foot and 53 foot varieties; and container coming in 20, 40, 48 and 53 foot varieties.

[timz]

So are the container-itself ton-miles included in Revenue Ton-Mile published stats?

[jeffhergert]

timz

So are the container-itself ton-miles included in Revenue Ton-Mile published stats?

 

I would say yes.  To the railroad, the container is the revenue load.  Even empty containers, at least the vast majority, are listed as "revenue empty" on the train lists.

Jeff

[VKSSL]

Thanks - any ideas as to  the relationship between GTMs and RTMs, and whether they can be used as an indicator of capacity or whether GTMs are useful for measuring costs / expenses etc.?