Revenue Per Ton Mile?

[Conrail Tweety]

NS 2010 Annual Report lists Revenue Per Ton Mile at $0.0523.

For this calculation, are all miles included, or just loaded miles?

Is the tonnage the cargo weight, or trailing tons, or the whole train?

Dennis

[E.M. Bell]

I would say that would be calculated as the profit made by moving one ton (load), one mile.

This would have to be an average, as different commodities move at different rates (tariff sheets are REALLY confusing) and then of course, certain shippers are most certainly getting discounts and such.

[Rader Sidetrack]

I would say that would be calculated as the profit made by moving one ton (load), one mile.

"Profit" is generally considered to be what is left over after all the bills are paid, to put it in simple terms.  The "revenue per ton mile" number referred to earlier would be based on [gross] revenue, meaning before paying any bills.

In rough numbers, NS "profit" is around 10% of the gross revenues, depending on the year and of courses other variables.

Here's a link to the NS 2010 annual report:

http://www.nscorp.com/nscorphtml/pdf/Investors/annual-report-2010.pdf

[steveiez]

Yes, it is based on rate x tonnage with miles. If I haul truck coal 10 miles and get paid 4 bucks per ton mile on 25 tons, that comes out to a gross revenue of 200 dollars. Ten miles uses 2 gallons x 4 dollars per gallon. From there, you figure insurance, driver pay, wear and tear on the truck.

Some shippers use a per hundred weight, but that is almost always on truck freight.

Enough math for tonight!