Burma Development 1953 Vol1 Part11.pdf - Nathan Associates

The summary of these costs and charges then is asfollows:Interest and AmortizationOperation, Maintenence, and Over¬headToll Charges at Twante Canal375,000tons/year(K)7,20,60033,98,03082,500INLAND WATERWAYS 347500,000tonsjyear(K)9,41,33044,43,8301,10,000The transport distance is 417 miles and the numberof ton-mUes would be 156,375,000 and 208,500,000respectively for the two cases under investigation. Thecorresponding costs would be:Cost per tonCost per ton-mile375,000 tonsjyear 500,000 tonsjyear(K) (K)11-203 10-99000269 0-0264e. Transport by PipelineThe oil pipeline from the fields at Yenangyaungand Chauk to Rangoon and Syriam was destroyedduring the war. An exact survey of the damage wasnot made; however, it is considered that at least 50 %of the Une can be assumed to be destroyed as well asaU plant and equipment, the majority of the buildings,and other facilities. Therefore, for the purpose of thisstudy, two estimates of the costs of the pipehne wereprepared. One estimate is based on the assumptionthat it would be necessary to rehabihtate 50 % of thehne, 95 % of the houses and buildings and all of theplant, equipment and bridges. The second estimateevaluates the costs of the new construction of theentire hne and of all appurtenant faciUties.tion of amortization charges and maintenance coststhe foUowing useful-Ufe periods and maintenancerates were used:Useful- Annual maintenlife ance, per centyears of first costsHouses, buildings and quarters 50 1Pipeline and fittings 25 1Plant and equipment 15 3Since greater maintenance costs are to be expected onthe rehabilitated hne than on an entirely new one, theannual maintenance costs of the latter were assumedat about 90 % of the maintenance costs of the rehabili¬tated Une.In estimating the annual operating costs and thecosts of management and administration it was con¬sidered that the personnel costs would remain thesame, whether the daUy pumping rate would be 7,500bbl. or 10,000 bbl., but that the pumping costs wouldvary directly with the quantity of material pumped.On this basis the summary of annual costs and chargesfor the rehabilitated pipeline and for a newly con¬structed one would be as follows:Interest and amortiza¬tionOperation, maintenanceand overhead375,000 tonsjyear 500,000 tonsjyearRehab,line(K)29,12,80028,85,280Newline(K)42,70,91028,19,850Rehab,line(K)29,12,80031,94,400Newline(K)42,70,91031,28,970f. Cost of Transport by Pipeline(1) First CostsThe summary of the two estimates is as follows:Foreign Local TotalCosts Costs Costs(K) (K) (K)Rehabilitation of exist¬ing pipeline (cost permile Kl,28,390) 2,37,04,150 1,63,53,670 4,00,57,820Construction of a newpipeline (cost per mileComparison of Costs of Riverine Transport ofPetroleum and of Transport by Pipeline375,000 tonsjyear(K)Cost per ton500,000 tonsjyear(K)(2) Annual Costs and Charges and Costs per TonIn estimating the annual costs and charges theinterest rate as well as the rate of compound interestof sinking amortization fund was 5% on foreignexpenditures and 4% on local costs; in the determina¬h. ConclusionsThe preceding analyses were made of the two mosteconomical types of petroleum transport, by bargefleets and by pipehne, and were determined on asequitable a basis as possible. The comparison of