Cost Analysis of Potential North Dakota Subterminal Systems

The purpose of this study was to analyze the cost structures associated with subterminal facilities. An economic-engineering approach was used to determine the construction and operation costs of four different sizes of subterminal facilities operating at three different plant capacities. Profitability of subterminals was determined mainly by the volume of grain handled. If a subterminal marketed enough grain, it was able to incur both decreasing average fixed and average variable costs. The larger subterminals were found to be more profitable than the smaller facilities indicating the existence of economies of size in both the fixed and variable cost components. Profitability can be dramatically increased given the availability of internal financing for the construction cost and nondepreciable fixed costs.

• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=192
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/58934
• Corporate Authors:

  North Dakota State University, Fargo

  Agricultural Experiment Station
  Fargo, ND  United States  58102

  Upper Great Plains Transportation Institute

  North Dakota State University
  1320 Albrecht Boulevard
  Fargo, ND  United States  581052
• Authors:
  • Chase, Craig A
  • Helgeson, Delmer L
• Publication Date: 1983-2

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Research Report
• Features: Appendices; References; Tables;
• Pagination: 58p

Subject/Index Terms

• TRT Terms: Costs; Economic analysis; Grain terminals; Profitability
• Geographic Terms: North Dakota
• Subject Areas: Economics; Freight Transportation;

Filing Info

• Accession Number: 01789149
• Record Type: Publication
• Report/Paper Numbers: UGPTI Publication No. 44, DP-44
• Files: NTL, TRIS
• Created Date: Nov 22 2021 11:04AM