Working Papers,
Swedish National Road & Transport Research Institute (VTI)

Abstract: Switches and crossings are critical assets in railway systems and their maintenance and renewal costs can be substantial. This paper evaluates the economic impact of cumulative loads on such assets and the effect of different contract designs for railway maintenance. Results from survival analyses are combined with a life cycle costing model to analyse costs for maintenance, train delays, and renewals. The findings provide insights into improving the timing of asset renewal as well as the impact of different reimbursement rules in the design of maintenance contracts. The estimated optimal lifetimes of different types of switches and crossings are similar to their technical lifetimes, yet there a couple of exceptions. The estimated effects of the reimbursement rule provide unique results on the risk premiums allowed in order to achieve a break-even between different maintenance contract designs.

Keywords: Switches and crossings; Maintenance; Renewal; Lifecycle costs; Contract design; Reimbursement rule

JEL-codes: H57; R42

Language: English

33 pages, November 15, 2023

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