Proposals for new train services, lines, or stations will all come with an associated ongoing cost to operate and maintain them. It is important that these costs are estimated early on so that there is a clear understanding of the potential scale of the profit or subsidy that would emerge relative to the estimated commercial returns from ticket sales and similar income.
Operating and maintenance costs are generally referred to as ‘Operational Expenditure’ or ‘OpEx’.
You can download this document to get advice on how to start build estimates for the operating costs of your proposals.
The short video below helps to explain how to use the advice in the document.
The Operating Expenditure tool
Where to get further information
Much of the data on the costs of operating railways and other guided transport systems in the UK remains commercially confidential to the franchise holders and concessionaires involved. DfT and Network Rail have access to generalised costs that can assist in the scoping of operating and maintenance costs for proposals that have reached a clear stage of definition.
You should already have completed the earlier stages in the Better Value Rail toolkit and have a good idea of the scope of your project before using this tool.
If you are already working with a Network Rail Sponsor you can ask them about access to additional advice.
While we make every effort to ensure that the content of this tool is accurate, this is not always achievable and therefore the data provided through this tool is provided without any guarantees, conditions or warranties as to its accuracy. Any cost ranges that are provided through the use of this tool are meant for indicative purposes and should not be used as any form of estimate.
Specific terms and conditions:
The Standard Terms and Conditions written below manage the use of this OPEX Tool as part of the Better Value Railway suite of tools. These terms will be applied fully and affect your use of this tool. By using the tool you agree to accept all terms and conditions written here. You must not use the tool if you disagree with any of these Standard Terms and Conditions.
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You are restricted from undertaking all of the following:
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- The cost or range of costs that this tool provides are outline and it is important that any cost information utilised for the development of proposition or business case is validated by Network Rail prior to its use.
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