Page 120 - MA - May 2017

FROM THE RESEARCH DESK

Level crossing material X
Overhead cable material X
Mechanical maintenance material X

Electrical energy X X X X
Water X
Bodywork material X
Supply of services:
Premises maintenance X
Building maintenance X
Station maintenance X
Bodywork maintenance X
Mechanical maintenance x

Air conditioner maintenance X
Railway/port maintenance X X X X X X
Depreciation:
Head Office X
Terminals X
Self-cleaning toilets X
Air-conditioning system at Trento X

Trains /Ships / Buses X
Miscellaneous cost items:
Fuel for heating stations X
Surveillance services X X
Transport insurance X
Infrastructure insurance X
Rubbish disposal X
Inspections and certification X X X X X X X
Total costs attributed

Transport companies are service oriented organizations. Induction of various Cost and Management techniques
related to service sectors will not only enhance the efficiency and performance but also helps for the cost control/
cost reduction in this sector. Activity based costing (ABC) for cargo handling, berthing, pilotage, railways activity,
etc., should be performed at regular intervals and a management information system must be there to analyse the
performance for decision making to the management for achievement of better results by way of performance and
profitability.
ABC in service sector, especially the transportation, has become increasingly important for companies whose
markets are becoming more competitive. Since ABC is really about cost management, using it allows service
companies as well as manufacturing companies to reduce and control their costs in order to make correct pricing
and other decisions, and to increase their profitability. It is likely to continue to become more prevalent in the service
industry in the future.
# an exploratory initiative

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