ECONOMIC FEASIBILITY OF OFF-TRACK ELEVATORS

The economics of a number of selected off-track elevator sites were examined on two alternatives; (i), the complete abandonment of the branch line with closure of all associated delivery points, (ii), maintenance of rail service only to points considered for potential off-track operation. This analysis was completed in October 1979 and subsequently an examination of seven additional branch lines was requested. The study focuses on the distribution of savings and costs with respect to government, railway, elevator company and producer. While drawing on previous work done on off-track elevators by the Commission on Grain Handling and Transportation (the Hall Commission) and the Prairie Rail Action Committee (PRAC), this study incorporates more recent information on the cost of rail, elevation, farm and commercial trucking. In addition, through the use of the Research Branch model on Producer's Haul and Elevator Receipts (PHAER) the study presents a more detailed analysis of grain distribution than contained in earlier studies. This is particularly true with respect to the off-track elevator. Considering the eleven subdivisions in aggregate, complete abandonment would result in the largest net savings of $12.8 million per annum as against the present system of branch line operation and the anticipated high branch line rehabilitation costs. With the operation of off-track elevators, net savings of $11.1 million would still be achieved. Nevertheless, the extra costs of trucking grain under complete abandonment are substantially less than the extra costs of all types associated with off-track elevators. This leaves open the alternative of a farm trucking subsidy.

  • Corporate Authors:

    Canadian Transport Commission

    Research Division, 275 Slater Street
    Ottawa, ONo K1A 0N9,   Canada 
  • Authors:
    • FLEMING, M S
    • YANSOUNI, P A
  • Publication Date: 1980-8

Media Info

  • Features: References; Tables;
  • Pagination: 81 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00319938
  • Record Type: Publication
  • Report/Paper Numbers: No. 10-80-01
  • Files: TRIS
  • Created Date: Nov 29 1980 12:00AM