Modelling total cost of ownership of rail infrastructure for outsourcing maintenance services

Abstract

In the recent years, outsourcing maintenance services has become a part of strategies for cost and risk management. Outsourcing reduces upfront investments in infrastructure, expertise and specialised maintenance facilities. However, decisions on this need to take into account the total cost of ownership rather than the usual practice of procurement cost. The primary objective of this paper is to develop models for prediction of total cost of ownership and estimation of contract price for outsourcing maintenance services of rail infrastructure. A total cost of ownership model is developed considering procurement, maintenance, inspection and risks associated with the operation of a rail network. © Springer 2010.