Analysis of investment and operational costs in the life cycle of railway rolling stock: Implications for key stakeholders and management strategies
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Abstract
The objective of this study is to explore the challenges and complexities related to investment costs (CapEx) and operational costs (OpEx) in the life cycle of railway rolling stock. It focuses on the four key actors within this cycle, considering their dual roles as buyers and sellers. The analysis is also based on the interconnectedness of these actors in relation to the Life Cycle Cost (LCC) of the asset (rolling stock), and how their strategic decisions in terms of investment and operational costs are influenced by their economic and financial power, as well as their technological expertise and maturity.
The study investigates the preference between having potentially more expensive OpEx compared to cheaper CapEx and explores how this preference may be influenced by long-term financial goals and the ability to manage operational costs throughout the rolling stock lifecycle. In addition, it examines the reasons behind the general trend of reducing CapEx and shifting costs to OpEx and considers how this strategy may be related to optimization of initial resources and flexibility to adapt to future variations in operation. It also investigates why operational costs are often underestimated in strategic decisions, highlighting the importance of comprehensively considering both upfront and life-cycle costs.
The method for conducting the study has been divided into three phases. The first phase of the study involved a review of existing literature, as well as an exploration of academic sources, technical reports, regulations, and relevant publications to gain an understanding of developments, challenges, and trends in the industry. The second stage focused on the analysis of case studies of rolling stock offers. The third phase involved consultation with experts in the field of railway rolling stock.
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