Railway Line Haul Cost Analysis

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Questions and Answers

What does LHC stand for in the context of railways?

Line Haul Cost (correct)

Last Haul Cost

Local Haul Cost

Logistical Haul Charge

Which cost is NOT included in the Line Haul Cost calculation?

Track & Signalling Cost

Provision & Maintenance Cost of Coaches and wagons

Traction Cost

Infrastructure Development Cost (correct)

In which year was the Line Haul Cost for Electric Freight the lowest according to the data provided?

2007-08 (correct)

2008-09

2005-06

2006-07

How is the Line Haul Traction Cost calculated?

Total Traction Expenses in Rs. divided by GTKM in thousands Signup and view all the answers

Which element is NOT part of the Line Haul Cost?

Employee Salaries Signup and view all the answers

For which services is the LHC calculated separately?

Coaching and Freight Services Signup and view all the answers

Which type of traction had the highest Line Haul Cost for Freight in 2008-09?

Diesel Signup and view all the answers

What is one of the five components of Line Haul Traction Cost?

Component of Repair & Maintenance Cost of Loco & OHE Signup and view all the answers

Which component is NOT listed as part of Line Haul Traction Cost?

Component of Raw Material Costs Signup and view all the answers

What does the acronym OHE refer to in the context of Line Haul Traction Cost?

Overhead Equipment Signup and view all the answers

Among the given options, which one contributes directly to the operating energy cost?

Fuel Signup and view all the answers

Which component of Line Haul Traction Cost relates to the wear and tear of assets?

Component of Depreciation Cost of Loco & OHE Signup and view all the answers

The components listed in Line Haul Traction Cost are associated with which type of expenditure?

Operating Expenditure Signup and view all the answers

Which item is explicitly excluded from the components of Line Haul Traction Cost?

Employee Training Costs Signup and view all the answers

Which of the following best describes a component related to interest?

Component of Interest Charges on Loco & OHE Signup and view all the answers

Which of the following components is involved in the financial planning of traction systems?

Component of Interest Charges on Loco & OHE Signup and view all the answers

What percentage of expenses under C-500 is allocated based on the number of locos in use?

50% Signup and view all the answers

How are the expenses under C-670 distributed?

In the ratio of expenses under C-500 Signup and view all the answers

Which method is used to allocate wages and allowances of Drivers according to sanctioned cadre?

Using the mean of the revised scale Signup and view all the answers

What is the basis for the allocation of expenses calculated under F331?

Average consumption per Km multiplied by engine Kms Signup and view all the answers

Which of the following ratios applies to G751 when determining allocated repair and maintenance expenses?

Engine Km earned from interchanged locos Signup and view all the answers

Which sub-head is associated with the maintenance of Overhead Equipment (OHE)?

E 410 Signup and view all the answers

What does the sub-head E 930 represent in the OHE Cost component?

Credit for Released Material Signup and view all the answers

Which category does the component of OHE – Operating Energy Cost – Fuel belong to?

H 300 Signup and view all the answers

Which of the following is NOT a sub-head under Other Operating Expenses?

E 410 Signup and view all the answers

What does component Abs.C represent under Depreciation Cost?

Depreciation for locomotives Signup and view all the answers

Which sub-head is responsible for Direct Supervision of Running Staff?

F 311 Signup and view all the answers

Which of the following reflects Credit of energy supplied to entities other than traction?

H 930 Signup and view all the answers

What financial aspect is NOT included in Interest Charges of Loco & OHE?

Interest on loans for infrastructure Signup and view all the answers

Which sub-head covers contingent expenses in the Other Operating Expenses section?

F 333 Signup and view all the answers

What does the sub-head E 420 represent within the OHE Cost component?

PSI Signup and view all the answers

What is essential to ensure regarding locos taken on lease from IRFC?

They should not form part of the capital at charge. Signup and view all the answers

Which statement is true regarding interest charges for Loco & OHE?

Interest is calculated at a rate determined by the Railway Board. Signup and view all the answers

What is the basis of Division's operating data?

Combined Train Reports filled by Driver & Guard. Signup and view all the answers

Which statement correctly identifies the purpose of Statement 8?

It provides traction-wise kilometerage data. Signup and view all the answers

How is line haul cost (LHC) calculated?

Using EXCEL Worksheets for Goods and Coaching Cost Studies. Signup and view all the answers

What does Statement 17 provide?

Engine Km data. Signup and view all the answers

What is the significance of the DRF allotment?

It determines the depreciation cost of locomotives. Signup and view all the answers

What does the acronym COBOL stand for in the context of computing?

Common Business Oriented Language. Signup and view all the answers

What should be accounted for properly in relation to IRFA?

IRFA debit Signup and view all the answers

Which monthly statements are prepared by the HQ's Statistical Branch?

Statements 1B, 2, 3A, 3B & 4A. Signup and view all the answers

What is the primary purpose of calculating Line Haul Cost (LHC) for railways?

To assess the costs associated with hauling trailing loads Signup and view all the answers

Which of the following elements contributes to both Freight and Coaching services when calculating Line Haul Cost?

Track & Signalling Cost Signup and view all the answers

How is the figure for Line Haul Traction Cost represented in railway statistics?

In Rs. per thousand GTKM Signup and view all the answers

In which year was there a significant increase in Line Haul Cost for diesel freight from the previous year?

2008-09 Signup and view all the answers

Which method is used to compile the data for Line Haul Costs published by the Railway Board?

Direct reports from individual railway divisions Signup and view all the answers

What aspect of the goods train is explicitly excluded from the calculation of Line Haul Cost?

Weight of engine Signup and view all the answers

Which element associated with Line Haul Cost encompasses expenditure outside direct operation costs?

Provision & Maintenance Cost Signup and view all the answers

What is the basis for dividing the expenses under account C-500?

In the ratio of locos used, total engine Km, and engine hours Signup and view all the answers

Which ratio is used for distributing the wages and allowances of Drivers in account F-312?

According to the sanctioned cadre on a specific date Signup and view all the answers

What type of distribution is applied to account G751 for repair and maintenance expenses?

Based on engine Km earned by interchanged locos Signup and view all the answers

How are expenses under account F320 allocated?

In the ratio of loco usage for both coaching and goods Signup and view all the answers

What is the distribution basis for accounts H311 and H318?

In the ratio of GTKM including weight of engine and departmental Signup and view all the answers

Which of the following components is NOT part of the Line Haul Traction Cost?

Insurance Premiums for Locomotives Signup and view all the answers

What is the primary financial impact of the Depreciation Cost of Loco & OHE on Line Haul Traction Cost?

It reflects the wear and tear associated with the assets. Signup and view all the answers

Which component contributes to both operational and capital expenses in the context of LHC?

Interest Charges on Loco & OHE Signup and view all the answers

Which of the following accurately represents the allocation basis for Component of Interest Charges on Loco & OHE?

Proportional to the value of locomotives owned Signup and view all the answers

What role does the Component of Other Operating Expenses play in calculating Line Haul Traction Cost?

It includes indirect costs not related to repairs. Signup and view all the answers

Which cost component primarily influences the efficiency of locomotive operations?

Component of Operating Energy Cost - Fuel Signup and view all the answers

In terms of financial planning for traction systems, which component would require detailed tracking of expenses?

Component of Repair & Maintenance Cost Signup and view all the answers

Which of the following options reflects an essential aspect of Operating Energy Cost - Fuel?

It varies with the distance and load carried. Signup and view all the answers

Which of the following aspects does NOT impact the total Line Haul Traction Cost?

Direct supervision of running staff Signup and view all the answers

Which sub-head pertains to modification costs within the OHE Cost component?

E 412 Signup and view all the answers

What does the sub-head F 331 primarily account for in Other Operating Expenses?

Lubricants Signup and view all the answers

Which sub-head is responsible for direct supervision of the OHE plant and equipment?

E 141-144 Signup and view all the answers

What is included under the component of LHC concerning depreciation for locomotives?

Abs.C Signup and view all the answers

Which option describes an expense associated with inter railway financial adjustments?

G 750 Signup and view all the answers

Which sub-head outlines typical miscellaneous expenses in the Other Operating Expenses component?

F 340 Signup and view all the answers

In the context of Operating Energy Cost, what does the sub-head H 930 represent?

Traction energy credits Signup and view all the answers

What does sub-head E 470 cover within the OHE Cost components?

Other plants and equipment for traction Signup and view all the answers

Which sub-head specifically describes the expenses related to the shed and yard staff?

F 322 Signup and view all the answers

What aspect of interest charges relates to the depreciation cost of OHE?

Abs.E Signup and view all the answers

What should be excluded from the 'capital at charge' calculation for depreciation of locos?

Locos taken on lease from IRFC Signup and view all the answers

Which statements accurately summarize the items considered for calculating interest charges of Loco & OHE?

Interest rates can vary depending on the funding source. Signup and view all the answers

Which report is generated to provide the total engine kilometers used over a month?

Statement 17 Signup and view all the answers

What is one of the first steps in calculating Line Haul Cost (LHC) according to the process described?

Collecting expenditure and operating statistics from divisions. Signup and view all the answers

What is the function of the statements generated by the EDP Centre/HQ?

To aid in the preparation of Annual Statistical Statements and LHC calculation. Signup and view all the answers

Which of the following represents a part of the operational cost distribution in terms of Line Haul Cost?

Allocation based on the kilometerage travelled by different types of locomotives. Signup and view all the answers

Which guideline is highlighted for calculating interest on loans from the World Bank and IRFC?

Guidelines are provided by the Railway Board. Signup and view all the answers

Which statement most accurately describes the role of the Statistical Inspector in the LHC calculation process?

He collects data from various divisions for further analysis. Signup and view all the answers

What does Statement 16 specifically denote in the context of LHC?

Kilometerage statement categorized by traction type. Signup and view all the answers

Study Notes

Line Haul Cost

Line Haul Cost is the total cost for railways to transport 1000 GTKMs of trailing load.
It is calculated separately for coaching and freight services, and for electric and diesel traction.
Only the revenue portion of GTKM (excluding engine and departmental vehicles) is considered in the calculation.
The calculation comprises four elements: traction cost, track & signalling cost, other transportation cost, and provision/maintenance cost of coaches and wagons.

Line Haul Traction Cost

Expressed as Rs. per thousand GTKM.
Calculated annually for freight and coaching services, and for electric and diesel traction.
Figures are published by the Railways Board's Directorate of Statistics and Economics in separate booklets.
"Through Goods Train" figures are considered for LHC (Goods).

Line Haul Cost Figures (2005-09)

Data for Freight and Coaching services is provided for each year, with figures specifically for Electric and Diesel traction.
The data includes yearly costs in Rs. per thousand GTKM.

Components of Line Haul Traction Cost

Five components are noted: repair & maintenance cost of loco & OHE, operating energy cost (fuel), other operating expenses, depreciation cost of loco & OHE, and interest charges on loco & OHE.

Demand Heads for Booking Expenditure (LHC)

The document details various expenditure categories relevant to LHC, providing a breakdown of costs related to general supervision, repair and maintenance, and operating expenses for various aspects like rolling stock, traffic, and fuel.

Sub-Heads of "R & M Cost of Electric Loco"

Different sub-heads are listed under "R&M cost of Electric Loco" component, detailing the various aspects of repairs and maintenance.

Component of OHE (Overhead Electrical Equipment) Cost

This component encompasses the cost of OHE maintenance, normal and repair work, modifications, and provisioning of other equipment related to overhead electrical equipment necessary for train operation. Included are credits of material released.

Component of Operating Energy Cost (Fuel)

The costs associated with electricity consumption for powering train operations are detailed. Different categories and numbers are provided for each element.

Component of Other Operating Expenses

This section details the various expenses required for running train operations. Sub-categories like supervision, running staff, and different staff categories like cleaners and examiners are highlighted. Further subcategories include expenditure on lubricants and operating stores with additional details on misc. expenses and Inter-Railway Financial adjustments.

Depreciation Cost of Loco & OHE

This is broken down into depreciation for locomotives and depreciation for OHE.

Interest Charges of Loco & OHE

Similar to the depreciation component, interest charges for locomotives and OHE are also bifurcated.

Items to Check for Depreciation Cost

Essential items like "capital at charge" for Zone, loco and OHE, allotment of DRF (Depreciation Reserve Fund) and distribution of DRF are highlighted as crucial items of verification for depreciation cost.
The document also emphasizes the need to ensure lease charges from IRFC (Indian Railway Finance Corporation) are accounted for separately and not misidentified as capital at charge.

Items to Check for Interest Charges

Details of capital at charge for loco & OHE, interest calculation methodologies, and guidelines for loans from the World Bank and IRFC are covered.

Calculation of Line Haul Cost

Monthly expenditure and operating statistics, gathered from the summary of combined train reports (CTR) are used in calculating the Line Haul Cost.
Data, collected by "Statistical Inspector," is used to prepare several statements regarding kilometerage, goods, and coaching data.
Final output is prepared using COBOL and Excel-based worksheets, which are compiled for the Railway Board.

Check Points for Line Haul Cost

Procedures and important factors for auditing line haul cost (such as expenses associated with coaching and freight division, usage of existing data as a benchmark, etc.) are spelled out in the text.

Items Requiring Attention & Correction

Critical elements requiring immediate attention are outlined, such as issues related to passenger GTKM calculations based on normal load, potential errors in accounting for AC coach weight, operational energy loss/waste, and possible discrepancies in the inclusion of inspection and transportation costs.
The text further calls out a need for improved record keeping for lease charges of equipment and their associated interest.

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Description

This quiz explores the components and calculations of Line Haul Costs in railway transport, focusing on both coaching and freight services. It covers definitions, cost elements, and traction costs for electric and diesel systems, including historical data from 2005 to 2009. Test your understanding of this vital aspect of railway economics.