× Didn't find what you were looking for? Ask a question
  
  
Top Posters
Since Sunday
p
60
56
C
18
I
13
n
13
a
12
11
C
11
s
11
11
m
11
10
New Topic  
wrote...
Posts: 728
Rep: 0 0
A year ago
Discuss some of the elements of rail road industry's cost structure
Read 15 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 901
Rep: 3 0
A year ago
The rail industry cost structure is based upon fixed costs (such as right of way) and variable cost (such as labor).

The fixed costs: The right of way is the track and land that the track is on. The purchasing of land, and then the construction of track is a significant capital expense for the rail company. Once that right of way is established it must be maintained. This too is of significant costs. The rail company also has significant investments in the various types of rolling stock and in the locomotives. The terminal facilities (train stations) and the associated freight yards represent significant investment and maintenance costs.

The variable costs: The two main variable costs for the rail industry are the labor and fuel. Much of the rail road labor force is highly skilled and expensive. While rail is more fuel efficient than trucks, fuel still accounts for a significant portion of the variable cost.
1

Related Topics

New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  99 People Browsing
Your Opinion
Who's your favorite biologist?
Votes: 44

Previous poll results: Do you believe in global warming?
Related Images
 720
 440
 82