Finding a better renewal time and improved contract design for switches and crossings

Kristofer Odolinski (), Arne Nissen and Abderrahman Ait-Ali
Additional contact information
Kristofer Odolinski: Swedish National Road & Transport Research Institute (VTI), Postal: Dept. of Transport Economics, P.O. Box 55685, SE-102 15 Stockholm, Sweden, https://www.vti.se/en/employees/employees/kristofer-odolinski
Arne Nissen: Trafikverket (The Swedish Transport Administration)

No 2023:11, Working Papers from Swedish National Road & Transport Research Institute (VTI)

Abstract: Switches and crossings are critical assets in railway systems and their maintenance and renewal costs can be substantial. This paper evaluates the economic impact of cumulative loads on such assets and the effect of different contract designs for railway maintenance. Results from survival analyses are combined with a life cycle costing model to analyse costs for maintenance, train delays, and renewals. The findings provide insights into improving the timing of asset renewal as well as the impact of different reimbursement rules in the design of maintenance contracts. The estimated optimal lifetimes of different types of switches and crossings are similar to their technical lifetimes, yet there a couple of exceptions. The estimated effects of the reimbursement rule provide unique results on the risk premiums allowed in order to achieve a break-even between different maintenance contract designs.

Keywords: Switches and crossings; Maintenance; Renewal; Lifecycle costs; Contract design; Reimbursement rule (search for similar items in EconPapers)
JEL-codes: H57 R42 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2023-11-15
New Economics Papers: this item is included in nep-cta, nep-des, nep-reg and nep-tre
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:vtiwps:2023_011

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