Railway Accounts Department Examinations

Showing posts with label Line Haul Cost. Show all posts
Showing posts with label Line Haul Cost. Show all posts

Tuesday, May 1, 2018

LINE HAUL COST – LHC


LINE HAUL COST – LHC

Ø  Meaning:  Activity of actual haulage of the Wagon or consignment from the ORIGINATING to DESTINATION station.

Ø  Means expenses incurred in the haulage/transport between the First and Last Marshalling Yard in movement of Wagons/consignments.

Ø  LHC includes   -  A) Traction/Fuel cost  B) Other transportation cost (staff etc) & C) Track & Signaling cost

Ø  LHC excludes – A) Marshalling  B) Transshipment & C) Repacking

Ø  The importance of LHC is, it is one of the components for arriving total cost of transportation of passengers and freight.  Thus LHC plays a major role in revising the fares of Indian Railways.

Ø  It is calculated for every 1000 GTKM  (Gross Tonne Kilo Meter)

Ø  It is calculated separate for Traction & Diesel. Also calculate separate for Coaching and Goods.

Ø  LHC of various Zonal Railways shows no uniformity.  The huge variation may be on account of various reasons such as pricing of fuel/ traction, HRA of staff etc. 2012-13 year data of LHC of Zonal Railways is as follows.

2012-13 year data per 1000 GTKMs
Zonal Railway
LHC-Diesel
Remarks
Eastern Railway
Rs.444.41
Highest
East Central Railway
Rs.226.03
Lowest
Indian Railways as a whole
Rs.314.40
Average

2012-13 year data per 1000 GTKMs
Zonal Railway
LHC-Electrical
Remarks
East Central Railway
Rs. 425.17
Highest
North Central Railway
Rs. 109.28
Lowest
Indian Railways as a whole
Rs.167.05
Average

Ø  Such wide variations among Zonal Railways in respect of LHC should be investigated and the suitable corrective measures should be taken.
Ø  Costing analysis should be done duly comparing the LHC of various Railways to pinpoint the wastage/obsolete expenses.
Ø  In terms of Line Haul Cost (Summary of End Results 2015-’16), electric traction is cheaper by about 47% for freight traffic & 50% cheaper for coaching traffic, as compared to diesel traction. This is evident from table given below:-

LHC (In Rs.) per 1000 GTKMs (2014-15 year)
Freight
Coaching
Diesel
Electrical
Diesel
Electrical
265.09
139.65
373.51
186.08


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