Melbourne–Brisbane Inland Rail Alignment Study - Australian Rail ...

Annual Revenue ($million 2008 dollars)
Improved Inland Rail services and lower operating costs are expected
to compensate for a higher access price – If there is some pass through
of access cost increases from train operators to freight customers, then the
premium over current coastal access charges which could be charged by the
inland railway is shown below:
140
120
100
80
60
40
20
Revenue maximising price rise
100% passthrough = 126%
75% passthrough = 177%
50% passthrough = 278%
–
-100 0 100 200 300 400 500 600 700 800
Percentage change to access price (%)
Annual non-bulk, intercapital revenue per annum at the revenue maximising
access price is estimated as:
Annual Revenue ($million 2008 dollars)
140
120
100
80
60
40
20
–
$– $3.09 $6.17 $9.26 $12.35 $15.43 $18.52 $21.60 $24.69
Price ($)
Revenue maximising price
per ‘000 gtk
100% passthrough = $6.94
75% passthrough = $8.52
50% passthrough = $11.67
$27.78
The revenue maximising access price is greatly impacted by elasticity
assumptions – Undertaking this analysis using higher elasticities (as implied by
ARTC demand modelling) results in higher access revenue available to the track
operator because the service characteristics are valued much more highly (see
Appendix B for further detail).
8. Operating cost of infrastructure
ARTC • Melbourne–Brisbane Inland Rail Alignment Study – Final Report
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