TECHNICAL AND ECONOMIC FEASIBILITY OF THE PROJECT

Some simple calculations are enough to preliminarily estimate the degree of attractiveness for railway siding construction at your plant.  You will need to define an annual range of cargo dispatch and receipt (classified according to cargo categories) and determine type of carriages, quantity of single batch and approximate mileage for each cargo type. Approximate cost of motor and railway cargo transportation may be easily calculated on the basis of the above data.

Annual difference in transportation expenses will to the first approximation point out the degree of practicability of railway siding construction. If it turns to be substantial you may continue calculations and estimate the cost of track construction (again to the first approximation). You may address to a specialized company for such a calculation upon submission of the object details according to the standard application form for construction of new railway siding >>>

Comparison of construction calculations with annual savings from railway transportation will show you the approximate project pay-off period.  The above data will help to decide upon either compilation of a more detailed project feasibility report or its inexpediency. Specialist of our company will help you to make preliminary calculations and compile a more detailed feasibility report.

Below are the examples confirming the differences in transportation expenses for motor car and railway transportation of different types and amounts of cargo at different distances.

Example 1

Transportation of a batch of mixed feed in the amount of 560 m3 (350 tons) at a distance of 534 kilometers. (Moscow Kursk)

Calculation of railway rates:

6 hopper cars with loading capacity of 93 m3 is required for transportation

Carriage duty equals to 31052.88 rubles per 1 car including VAT

Supply and cleaning of 1 car makes approximately 5000 rubles including VAT  

Total amount for carriage: 31052.88*6= 186317.28 rubles.

Total amount for supply and cleaning of cars: 6*5000=30000 rubles.

Total: 216 317.28 rubles.

Calculation of air carriage:

40 trucks with loading capacity up to 14m3 are required for transportation

Freight rate for 1 truck equals to 40 rubles per kilometer, including VAT (estimated cost for 1 kilometer back-to-back).

Total: 40*534*40=854 400 rubles.

Difference in transportation cost makes 638 082.72 rubles.

 

Example 2

Transportation of a batch of cement in the amount of 780 tons at a distance of 534 kilometers. (Moscow Kursk)  

Calculation of railway rates:

12 all-purpose open-top cars with loading capacity of 69 tons are required for transportation

Carriage duty equals to 19023.96 rubles per 1 car including VAT

Supply and cleaning of 1 car makes approximately 5000 rubles including VAT

Total amount for carriage: 19023.96*12= 228287.52 rubles.

Total amount for supply and cleaning of cars: 12*5000=60000 rubles.

Total:  288 287.52 rubles.

Calculation of air carriage:

39 trucks with loading capacity of 20 tons are required for transportation

Freight rate for 1 truck equals to 40 rubles per kilometer, including VAT (estimated cost for 1 kilometer back-to-back).

Total: 39*534*40= 833 040.00 rubles.

Difference in transportation cost makes 544 752.48 rubles.

  

Example 3

Transportation of a batch of granite crushed stone in the amount of 650 tons at a distance of 303 kilometers. (Kaluga Sergiev Posad)

Calculation of railway rates:

10 all-purpose open-top cars with loading capacity of 69 tons are required for transportation

Carriage duty equals to 11 900.30 rubles per 1 car including VAT

Supply and cleaning of 1 car makes approximately 5000 rubles including VAT

Total amount for carriage: 11 900.30*10= 119 003.00 rubles.

Total amount for supply and cleaning of cars: 10*5000=50 000 rubles.

Total: 169 003.00 rubles.

Calculation of air carriage:

33 trucks with loading capacity of 20 tons are required for transportation

Freight rate for 1 truck equals to 40 rubles per kilometer, including VAT (estimated cost for 1 kilometer back-to-back).

Total: 33*303*40= 399 960.00 rubles.

Difference in transportation cost makes 230 957.00 rubles.

 

Example 4

Transportation of a batch of mixed feed in the amount of 640 m3 (400 tons) at a distance of 191 kilometers. (Moscow Tula)

Calculation of railway rates:

7 hopper cars with loading capacity of 93 m3 is required for transportation

Carriage duty equals to 18260.5 rubles per 1 car including VAT

Supply and cleaning of 1 car makes approximately 5000 rubles including VAT

Total amount for carriage: 18260.5*7= 127823.50 rubles.

Total amount for supply and cleaning of cars: 7*5000=35000 rubles.

Total: 162823.50 rubles.

Calculation of air carriage:

46 trucks with loading capacity of 14 m3 are required for transportation

Freight rate for 1 truck equals to 40 rubles per kilometer, including VAT (estimated cost for 1 kilometer back-to-back).

Total: 46*191*40= 351 440.00 rubles.

Difference in transportation cost makes 188 616.50 rubles.