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[quote]QUOTE: Originally posted by MichaelSol [quote]QUOTE: Originally posted by jeaton So the added crew cost per car for the 25 car train vs. the 100 car train is $86.46. Now if running the shorter trains actually reduces the turn around time on the car, we can quickly see some cost offsets. I don't have any handle on the price of a new car, so indulge me, but if the price is $100,000 per car, interest is 10.25% for 20 years the daily cost comes to about $32.72. If the numbers are correct, then the time the car spends on the train has to drop by a little more than 2 1/2 days or 5 days off a turn around. [/quote] I put equipment costs into the model. Very interesting results. Best regadrs, Michael Sol [/quote] MIchael, Can you work the model to run a comparison on the hot button issue regarding Montana grain transportation, namely how the rate differential is affected by BNSF continuing branchline service vs forcing those shipper to truck to the larger terminal? I assume that there would be a rate surcharge of some kind for cars heading to 10 mph territory to make up for the increase in cycle times for those cars, regardless of if they are eventually part of the shorter grain shuttle or the longer grain shuttle. I assume such a rate surcharge would still make rail shipment more attractive than truck shipment through that branchline corridor. Of course, if it's a situation where a shortline operator simply transloads the grain from the branchline hopper to the shuttle elevator (rather than those hoppers being a part of the larger consists), then it's a separate analysis. If it's a transload situation, the matter shifts to the grain shipper, who has to compare branchlining the grain to the larger facility vs trucking to the larger facility.
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