The Army relies on commercial rail carriers for off-post rail movements, but it currently has three business models for on-post rail operations: government owned, government operated; government owned, contractor operated; and privatized. In this report, the authors evaluate the three business models and determine whether greater reliance on commercial rail assets could meet Army rail needs at a lower cost. As part of this research, they gathered data on Army rail requirements, costs, and performance at installations with deployable units and visited one installation of each type to obtain insights on the differences between the business models. The authors then developed an approach to compare the costs and risks of the three business models across installations. Finally, they estimated potential savings from privatization and determined possible risk factors, such as a decrease in responsiveness to short-notice deployments, loss of surge capacity, likelihood of accidents or violations of safety and environmental rules, and unexpected cost increases. The authors determined that, at installations with low rail activity rates where privatization may be cost effective, the Army must balance potential savings against the risks of privatization. Factors to be considered include the installations deployment requirements, whether it shares rail crews with other installations, whether it is served by a local monopoly rail carrier, and whether infrastructure investments that could offset potential cost savings will be required.
Army Installation Rail Operations: Implications of Increased Outsourcing
2017
68 pages
Report
No indication
English
Logistics, Military Facilities, & Supplies , Rail infrastructure , Army facilities , Outsourcing , Cost analysis , Risk analysis , Deployment , Gogo (government owned government operated) , Goco (government owned contractor operated) , Privatization , Business models , Army installation rail operations , Rail crews
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