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A methodology has been developed for assessing the profitability of passenger carriers in the event of a complete or partial replacement of the old rolling stock with new one. The evaluation has taken into account the energy costs, the cost of servicing the train stock, repair costs, the cost of infrastructure charges, the number of days for the movement of trains. A correction coefficient was introduced for bringing the analysed costs closer to the real ones reported in the accounting documents of BDZ-PP Ltd. It was found out that when the rolling stock is completely changed, company’s expenses are expected to decrease by BGN 82 million per year. The most significant share is due to a decrease in energy resources – 51%, followed by repair – 39%, train staff – 17% and infrastructure fees – 16%

Methodology for profitability assessment in the case of old rolling stock replacement with new trains in Bulgarian State Railways