Base Train Service is Cheap, Peak Service is Expensive (Pedestrian Observations)

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A few days ago, I calculated regional rail operating costs from first principles, as opposed to looking at actual operating costs around the world. Subway operating costs in the developed world bottom at $4-5/car-km (and Singapore, near the bottom end, has long cars), and I wanted to see what the minimum achievable was. I tweetstormed about it two days ago and was asked to turn it into a full blog post. It turns out there is a vast difference between the operating cost of base service and the operating cost of the peak. The cost of rolling stock acquisition and maintenance may differ by a factor of five, or even more for especially peaky operations. The reason is that there are about 5,800 hours of daytime and evening operation per year but only about 1,000 hours of peak operation. Acquisition and maintenance costs seem to be based exclusively on time and not distance traveled, so this is about a factor of five difference in cost per hour (or kilometer) of operation: $5/car-km for the peak, or $1/car-km for the base.

The cost of acquisition of trains is pretty easy to calculate, since a large number of orders are reported in trade magazines like Railway Gazette and Rail Journal. The cost of a single-level trainset should be taken to be $2.5 million per 25-meter-long car, a length typical of American and Nordic trains, though on the high side for the rest of Europe. This is based on German orders of high-performance EMUs from 2014, 2016, and 2017, rated per meter of car length. In the US, the cost of single-level EMUs is similar, but the trains are heavier and lower-performance: the LIRR and Metro-North M9 is $2.7 million per car, and SEPTA’s defective Silverliner V cost $2.3 million per car. Bilevels cost more, and, as I complained at the beginning of this month, Paris has some comically expensive bilevels, approaching $6 million per 25 meters of car length on the RER D and E. American one-off orders are expensive as well: Caltrain’s KISS order is $5.7 million per car for the base order and $4 million per car for the option; in countries that import trains from the usual factories rather than making manufacturers open new domestic plants, the KISS is cheaper, down to about $3.2 million per car in Sweden.

I consolidated this list of costs to one tweet: $2.5 million per 25-meter car if you’re good at procurement, $5 million if you’re bad. The rest of the analysis assumes agencies are good at procurement, so a car is $2.5 million. This is a capital cost, but it’s still a marginal cost of operations, since higher frequency requires more trains at the end of the day; it’s not like investments in physical plant, which may or may not be necessary depending on the precise infrastructure situation.

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Written by Long Branch Mike