Methodical basis for comparative analysis of rolling stock modernization economic effectiveness

Abstract

The article is dedicated to the analytical and methodological issues related to the economic effectiveness appraisal of rolling stock modernization. It is a very current topic because rail carriers often take up decision on comprehensive modernization of the rolling stock, especially locomotives, passenger carriages and multiple units. There was pointed out in the article the necessity of conduction of rolling stock modernization feasibility studies considering three different assumptions: a) assuming the same annual transport efficiency and expecting benefits at the exploitation costs side, b) assuming the same exploitation costs of the new and modernized carriage and expecting benefits at the transport efficiency side, c) assuming varied exploitation costs and varied transport efficiency of the new and modernized rolling stock. Feasibility study should be conducted by the means of discounted cash flow method - increase version, because that method allows best to capture the benefits resulting from the rolling stock modernization.