Life cycle cost as a criterion in purchase of rolling stock

Jan Raczyński,A Szeląg,A Żurkowski,H Gold,K Karwowski

doi:10.1051/matecconf/201818002010

Abstract

The key parameter in assessing the economic viability of purchasing and operating rolling stock is the total cost incurred by the ordering party, starting from the preparation of the rolling stock purchase plan to the end of its operation, including its disposal. The methodology for calculating these life cycle costs (LCCs) has been developed especially in recent years based on the experience of the next-generation vehicle deployment. In Poland first vehicles purchase using the LCC method was carried out in few recent years - by PKP Intercity and by Lodz Agglomeration Railway. Despite the use of simplified criteria for the economic efficiency of vehicles, optimal offers were selected. This article describes examples of rolling stock purchase based on the low cost of life of the vehicle and the economic and operational results that have been achieved after several years of operation. Further possibilities for optimizing these costs were also indicated. Examples showing the proportion between the cost of vehicle purchase, its technical maintenance and its operation, where the electricity consumption is the main factor are given.

Highlights

Investment decisions, in it concerning the purchase of rolling stock, require costs and the benefit evaluation of applying different, alternative solutions [2]
They can concern among others technical parameters of rolling stock, expected maintenance costs and operational cost, the reliability or sources of financing among others
This could mean that the average annual maintenance cost amount at 3.3% of the vehicle purchase cost

Summary

Introduction

Investment decisions, in it concerning the purchase of rolling stock, require costs and the benefit evaluation of applying different, alternative solutions [2]. They can concern among others technical parameters of rolling stock, expected maintenance costs and operational cost, the reliability or sources of financing among others. Technical parameters of rolling stock are determining investment costs They have a significant influence on the level and the deployment of maintenance costs in the life of vehicle [8]. Even the use of simplified criteria for assessing the economic efficiency of vehicles allowed for the selection of optimal offers

Vehicle life cycle costs

Cost costs of vehicle maintenance

Rolling stock operational costs

Taking into account life cycle costs in tenders

Findings

Summary