Page:The Reshaping of British Railways (Beeching Report).pdf/84

 In total, 28 per cent. of the wagons forwarded during the week carried some 6 per cent. of the traffic in loads of up to 4 tons, the balance of the traffic being carried with an average wagon load of over 12 tons.

Pattern of Relative Profitability

Whilst Tables I, II and III show the receipts, direct costs, and margin on the traffic as a whole, analysed in turn by terminal conditions, wagon loading and distance, these figures tend to obscure the range of results which emerges when the figures are further analysed by combinations of the three factors. The general pattern of profitability of the test week's traffic, as operated at the present time, can be more clearly seen from Tables IV, V and VI.

The tables show the volume of traffic for each heading, the overall margin, + or -, of receipts compared with direct costs, and also in brackets alongside each figure of margin, the percentage ratio of receipts to direct costs.

In all tables which show traffic analysed according to terminal conditions, the headings are arranged in descending order of terminal cost, commencing with road/road—normally the most expensive conditions—and ending with siding/siding at lowest end of the scale. The tables show clearly the gradual trend of improvement in results as the three factors at work—terminal conditions, wagon loading and distance—become more favourable.

Table IV, which analyses the traffic and the results by terminal conditions and distances, shows that the only group of traffic making a contribution above direct costs is that where private sidings are involved at both ends.

At the other extreme, traffic which is dealt with by road at both ends of the transit fails, by a substantial margin, to cover its direct costs. This is primarily attributable to high terminal costs in conjunction with poor wagon loading.

A broadly similar pattern is found for other combinations of terminal conditions where road conveyance is involved.

Table VI shows the results analysed by terminal conditions and wagon loading. The groups of traffic conveyed in wagon loads of up to 6 tons failed to cover direct costs, whatever the terminal conditions. Traffic loaded between 6 and 12 tons per wagon produced little or no margin, except where sidings were used at both ends.

Conclusions

This particular Survey and series of analyses relates to the wagon-load general merchandise and minerals traffic taken as a whole and does not reveal the characteristics and relative profitability of particular commodities or flows of traffic, some of which may show individual patterns materially different. Moreover, it does not follow that all consignments of traffic within a particular group shown in the analyses conform to the overall results disclosed. Nevertheless, a number of facts emerge fairly clearly, and certain broad conclusions can be drawn. They are:—

Traffic involving the higher cost terminal facilities (e.g. road conveyance or station) produces poor wagon loading and usually fails to cover its direct costs.