In this discussion is the concept of "allocated cost" being conflated with "overhead cost"? If so that will lead to confusion in analysis, since all allocated costs are not overhead. There are the variable allocated costs that would disappear from the overall account if a train does not run. The fixed costs will not. It would help to clearly identify what exactly is being talked about when the term "overhead" is used.
I'll admit to having trouble to figuring out what "overhead" may mean in Amtrak accounts.
From notes to this table in the 09/2009 monthly Performance Report:
National Railroad Passenger Corporation (Amtrak)
Financial Performance of Routes -
Fully allocated overhead, excluding Depreciation and Interest (see notes below)
September 2008 YTD
Route Performance Results Exclude Federal Support for
Operations, Depreciation, Interest and Capital Charge
-Total FRA Defined Costs represents Host Railroad MofW and Performance
Incentives, Fuel and Power, T&E Crew, OBS and Commissary costs, Car
and Locomotive maint. and Turnaround Costs, Commissions, Reservations,
Call Centers, Psgr Inconvenience, and Route Stations.
-Total Remaining Direct Costs include Shared Stations, MoE Supervision and
Training, Maintenance of Way, Yard Ops, Marketing and Distribution, Insurance,
Terminal Payments, Procurement/Purchasing, Police/Environmental and Safety,
and T&E Overhead.
-Total Non-Direct Costs includes Amtrak Infrastructure Maintenance and System costs.
Sort of OK, but I'd say Boardman's salary and other headquarters costs --
the General Counsel's office; Labor Relations; Governmental, Press, and
Public Relations; Strategic Planning and HSR WIshing; Accounting; and
other departments also belong in overhead to be spread across the board.
But I'm not seeing that stuff. Maybe it's in those last words "System costs."
That kind of overhead is one place where expanding -- longer trains,
more frequencies, more routes -- would mean less overhead per unit,
whether the unit is per passenger, per seat mile, whatever. Maybe it's
not enuff to matter in a multi-billion outfit.
Other headquarters overhead like Information Technology might be in
the mentions of Reservations and Call Centers -- the 2009 reports
didn't need to get into Wi-Fi, e-Ticketing, or other IT costs we already
take for granted.
And do I espy that
Route Stations are included in FRA Defined Costs,
while
Shared Stations fall into Remaining Direct Costs. It's a whimsy
to think that station costs could tip a route's performance. The shared
Charlottesville station used to serve 7
Crescents a week, and 3
Cardinals.
So the poor
Cardinal carried 30% of the station's costs? Along came
the
Lynchburger and the
Cardinal's share fell to 17.6%, I guess. Did that
make any difference to anything? Not much. For sure the
Lynchburger
didn't increase any station costs for the
Cardinal or the
Crescent. We
could use more trains like the
Lynchburger -- but we knew that. LOL.