Abstract

 It is necessary to estimate accurately transportation costs (capital and operational) for Egyptian National Railway (ENR) when developing transport tariffs in order to calculate the necessary subsidy to decrease the gap between revenues and actual expenses. To realize this goal, three models proposed to estimate the operating costs for ENR for long distances passenger, short distances passenger and freight transport services, taken into consideration the inflation rate in prices. These models must be compatible with the actual operating which reflects the average rates for both performance and consumption and they are also simple and easy to be applied based on financial and economical concepts. They are represented in operating units (passenger. kilometers) for passenger trains or (ton. kilometers) for freight ones

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