Project: Application of a ZETA-TECH Costing Model to Operations of
English, Welsh & Scottish Railway, Ltd.
Client: English, Welsh & Scottish Rwy.
EW&S asked Zeta-Tech to assist in determining an equitable assessment of track usage charges to EW&S trains by the track owner, Railtrack P.L.C. To do this, ZETA-TECH applied its proprietary cost allocation model, the Weighted System Average Cost (WSAC) model. WSAC provides a quantitative way to determine the share of common track maintenance costs attributable to each user of a shared railway facility. The model is sensitive to a number of factors, including:
This model was applied to the operations of EWS to determine, on a route-specific basis, the payments due to the track owner (Railtrack) for use of the track. Zeta-Tech also assisted in negotiations with Railtrack, made presentations to the Office of the Rail Regulator, and assisted EWS in determining the best negotiating strategy.