THE GEOGRAPHY OF TRANSPORT SYSTEMS



Vehicle Operation Costs

All vehicle j costs consist of fixed expenses bi (mobilization, handling at terminals, insurance etc.) and variable ai ones (fuel, wages, maintenance, amortization etc.), growing with the distance d. Thus, j type vehicle operation costs could be expressed as Ci = ai d +bi. In this example we assume the values as shown on the table below. All distance and monetary units are arbitral, but they reflect the main differences between each transport mode.

ai bi
2 100
50 25,000
250 500,000
750 8,00,000