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OIG HSR Best Practice Operating Cost Report Draft Final

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OIG HSR Best Practice Operating Cost Report Draft Final HSIPR Best Practices: Operating Costs Estimation June 2011 Prepared for: Prepared by: Office of Inspector General Steer Davies Gleave US Department of Transportation 883 Boylston Street, 3rd Floor Boston MA 02116 (617) 391-2300 – www.steerdaviesgleave.com Under subcontract to Charles River Associates ACKNOWLEDGEMENTS This report was prepared for the USDOT Office of Inspector General by Steer Davies Gleave Inc., working under a subcontract to Charles River Associates Inc. for order number DTOS59-10-F-10085. The Steer Davies Gleave personnel who participated in this work include Jon Bottom, Leo Eyles, Masroor Hasan, Felicity Hulme, Lucile Kellis, Scott Prentice, Lars Rognlien and Tessa Wordsworth. Mark Kiefer, an independent consultant, also contributed to the writing. Masroor Hasan was the project manager and Jon Bottom was the project director. Martin Baynham-Knight of Steer Davies Gleave and Dan Brand, a senior advisor at Charles River Associates, reviewed the report and contributed useful suggestions. i ii CONTENTS GLOSSARY............................................................................................................................................................... 1 1 OVERVIEW OF OPERATING COSTS .................................................................................................................... 1 INTRODUCTION ....................................................................................................................................................................... 1 PROPORTION OF COSTS ............................................................................................................................................................. 3 TRAIN SERVICE OPERATING COSTS ............................................................................................................................................... 4 Train (“Rolling Stock”) purchase or lease costs .............................................................................................................. 5 Traincrew ....................................................................................................................................................................... 7 Energy ............................................................................................................................................................................ 8 Stations .......................................................................................................................................................................... 8 Train maintenance costs .............................................................................................................................................. 10 General and administrative costs ................................................................................................................................ 11 RAILROAD COSTS ................................................................................................................................................................... 12 Introduction ................................................................................................................................................................. 12 Operations ................................................................................................................................................................... 13 Preventative and reactive maintenance ...................................................................................................................... 13 General and administrative costs ................................................................................................................................ 14 Renewals ...................................................................................................................................................................... 14 Railroad ownership ...................................................................................................................................................... 14 How a railroad manager will set charges for access to their railroad .................................................................................... 14 2 HSIPR PROJECT DEVELOPMENT: GENERIC ISSUES ............................................................................................ 17 INTRODUCTION ..................................................................................................................................................................... 17 PRELIMINARY STAGE ............................................................................................................................................................... 18 INTERMEDIATE STAGE ............................................................................................................................................................. 18 FINAL STAGE ......................................................................................................................................................................... 20 COMMERCIAL CLOSEOUT ......................................................................................................................................................... 22 3 CASE STUDIES ................................................................................................................................................ 25 INTRODUCTION ..................................................................................................................................................................... 25 OPERATING THE TRAIN SERVICE ................................................................................................................................................ 26 Summary ...................................................................................................................................................................... 26 Van Horne Institute, Calgary to Edmonton HSR, 2004 ................................................................................................. 27 SNCF, California High-Speed Rail Corridor, 2009.......................................................................................................... 28 Halcrow – Sinergia, Brazil TAV, 2009 ........................................................................................................................... 28 European Mainland Case Study, 2010 ......................................................................................................................... 29 High Speed 2 (HS2), London to West Midlands, 2010 .................................................................................................. 29 Network Rail, New Lines Program, 2009 ...................................................................................................................... 30 ROLLING STOCK .................................................................................................................................................................... 31 Summary ...................................................................................................................................................................... 31 Van Horne Institute, Calgary to Edmonton HSR, 2004 ................................................................................................. 31 SNCF, California High-speed Rail Corridor, 2009 .......................................................................................................... 32 Halcrow – Sinergia, Brazil TAV, 2009 ........................................................................................................................... 32 European Mainland Case Study, 2010 ......................................................................................................................... 33 High-speed 2 (HS2), London to West Midlands, 2010 .................................................................................................. 33 iii Network Rail, New Lines Program, 2009 ...................................................................................................................... 34 STATIONS ............................................................................................................................................................................ 34 Summary ...................................................................................................................................................................... 34 Van Horne Institute, Calgary to Edmonton HSR, 2004 ................................................................................................. 35 SNCF, California High-speed Rail Corridor, 2009 .......................................................................................................... 35 Halcrow – Sinergia, Brazil TAV, 2009 ........................................................................................................................... 35 European Mainland Case Study, 2010 ......................................................................................................................... 35 High-speed 2 (HS2), London to West Midlands, 2010 .................................................................................................. 35 Network Rail, New Lines Program, 2009 .....................................................................................................................
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