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    <managingEditor>tris-trb@nas.edu (Bill McLeod)</managingEditor>
    <webMaster>tris-trb@nas.edu (Bill McLeod)</webMaster>
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      <title>USE OF LIFE-CYCLE COST ANALYSIS IN TRANSIT CAPITAL OVERHAUL/REPLACE DECISIONS--AN APPLICATION TO THE PATH RAILCAR FLEET</title>
      <link>https://trid.trb.org/View/290607</link>
      <description><![CDATA[As fleets of rail cars age and become increasingly costly to maintain, two options are available to transit properties: conduct a major overhaul or replace with new cars.  In a 1984 study for the Port Authority (of New York and New Jersey) Trans-Hudson Corporation (PATH), an in-depth engineering evaluation and life-cycle cost analysis was conducted for a portion of the PATH fleet.  Ten- and twenty-year overhaul programs for existing cars were compared with a new car purchase in a life-cycle cost framework.  The results of the analysis showed the new car purchase option to be most cost-effective under most combinations of assumptions on future conditions.  PATH subsequently made a decision to buy new cars, and these are now in operation.  Described in more detail in this paper is the analysis conducted for PATH, including cost estimate procedures, inflation and discount rate assumptions, and methods for estimating residual value.  The results of extensive sensitivity testing are discussed, including the issue of what can and cannot be generalized to other studies.  Use of life-cycle cost analysis was found to be effective and useful in this application and was seriously considered by PATH and Port Authority management in their decision making.  Applications to other systems should be encouraged.  These will be enhanced through further research and development of methodologies for estimating operating and maintenance costs.]]></description>
      <pubDate>Tue, 31 Jan 1989 00:00:00 GMT</pubDate>
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