Armenian Railways: Five Year Business Plan
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RevenuesThe Transportation CJSC collects and reports operating revenues in three categories: passenger, freight and other. We understand that “other” operating revenue stems from services that local station staff provide to freight customers, so it is allocated to the freight line of business. The table below summarizes the allocation of Transportation CJSC revenues. Allocation of Revenues between Passenger & Freight Lines of Business
Rollingstock CostsThe fees the Transportation CJSC pays to the Rollingstock CJSC cover both operating costs and cost of asset ownership for rollingstock. The activity measures upon which the fees are based and the level of the fees determine the cost attributable to passenger and freight business units.20 These fees are based on operating activity measures that railways normally collect and on the fleet requirement (expressed in ownership hours) for each type of activity. Locomotives are used for both passenger and freight, so their measures must be collected by line of business. Other equipment types are used for only one service (e.g., coaches for passenger, wagons for freight), so require no split. The measures upon which the fees are based and how they allocate expenses between passenger and freight are shown in the table below for the 2000 Base Case. Rollingstock Fees Separated between Passenger & Freight Lines of Business (Based on 2000, Base Case)
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