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LCC analyses in public transport

Keeping life-cycle costs under control: Better investment decisions in public transport

Investment decisions relating to rolling stock have an impact that lasts for decades. Decision makers who focus on initial acquisition costs risk overlooking significant follow-on expenses and subsequently making suboptimal investment choices. Through LCC analyses, we identify the solution that offers the best economic value over its entire life cycle. By considering all relevant costs throughout the asset lifetime, we provide a reliable basis for decision-making in procurement, modernisation, maintenance and operation.

The largest costs arise during operation

The most significant costs are usually incurred not at the time of purchase, but during operation or maintenance of the asset. Nevertheless, investment decisions are often based on incomplete information or data that is difficult to compare.

Typical challenges:

Focus on acquisition costs rather than total life cycle costs
Uncertainty regarding long-term operating and maintenance expenses
Difficulties in comparing different offers and technical solutions
High risks associated with inadequate procurement decisions

As a result, options that appear economically attractive in the short term can prove costly and inefficient over the long run. The Enotrac team supports you with proven methodologies and extensive technical expertise, enabling you to address these challenges systematically and make well-informed, sustainable investment decisions.

Our services in the LCC sector

We support you throughout the entire decision-making process, from the initial assessment to implementation.

Preparation of LCC analyses (for new and existing fleets)
Identification and quantification of key cost drivers
Scenario and sensitivity analyses (impacts on total costs)
Application of TCO (Total Cost of Ownership) models for optimisation
Support in the evaluation and comparison of tenders
Definition of LCC and RAM requirements for procurement projects (including validation procedures)
Analysis and optimisation of life-cycle costs (maintenance, energy)
Optimisation of maintenance strategies
Assessment and planning of mid-life refits and modernisation programmes
Cost-benefit comparisons between refurbishment and new procurement

Why Enotrac is the right partner for your LCC analysis

Enotrac specialises in delivering structured, transparent and practical life-cycle cost analyses for the rail and bus sectors. We take a holistic approach, covering every stage of the process – from analysing the initial situation and identifying all relevant requirements and cost factors to developing robust and transparent LCC models. Our analyses go beyond conventional cost models. They are built on an expertise of vehicles, subsystems, infrastructure, maintenance processes and their interaction on day-to-day operations.

This enables us to accurately assess costs and identify the costs drivers that have the greatest impact on economic performance over the asset’s lifetime. Through targeted scenario and sensitivity analyses, we make risks, uncertainties and alternative strategies transparent and measurable. Based on these insights, we develop practical recommendations and provide a sound basis for decisions relating to procurement, maintenance optimisation and operational strategy.

Your benefits:

You gain insight into the true total costs, enabling you to compare complex proposals and make well-informed investment decisions. At the same time, you can identify key cost drivers at an early stage, optimise operating and maintenance costs over the long term and reduce financial risks throughout the entire asset life cycle.

FAQ – Frequently asked questions and answers about life-cycle costs

LCC (Life Cycle Costing) is a methodology used to calculate all costs associated with a system throughout its entire life cycle. This includes costs from procurement and commissioning through to operation and decommissioning.

It takes into account not only acquisition costs, but also operating, energy, maintenance and disposal costs.

The aim is to understand the true total costs and to make well-informed, economically sound long-term decisions.
LCC (Life Cycle Costing) and TCO (Total Cost of Ownership) are often used interchangeably but they differ in scope.

TCO considers the total costs of an asset over its useful life. This includes the costs of acquisition, operation, maintenance and end-of-life disposal.

LCC goes one step further and, in addition to TCO, also considers the costs of risks and the financial benefits of opportunities that arise throughout the asset’s life cycle.
An LCC analysis is always worthwhile when decisions have long-term cost implications. Typical use cases include:

Procurement of rolling stock or bus fleets

Modernisation or retrofitting of existing systems

Comparison of offers based on different approaches

Strategic investment and fleet planning

LCC is particularly relevant when operating and maintenance costs account for a large proportion of the total costs.
An LCC analysis is carried out in several structured steps:

Definition of the system and its requirements

Identification and categorisation of all relevant costs

Modelling of life-cycle costs

Identification of the key cost drivers

Conducting scenario and sensitivity analyses

Deriving recommendations for action

The result is a transparent, robust and comparable basis for decision-making on investments and optimisations.
Depending on the specific application, different LCC models are used:

Deterministic models: Operate on the basis of fixed assumptions and clearly defined cost

Stochastic models: Take account of uncertainties and probabilities (e.g. failures, service life)

TCO-based models: Focus on operating costs and the operator’s perspective

Scenario and variant models: Compare different options (e.g. technologies, suppliers)

The choice of model depends on data availability, complexity and the objectives of the analysis.

Talk to our experts

Cécile Charlier

Project Manager / Project Engineer

Rolling Stock Division

cecile.charlier@enotrac.com +41 33 346 66 03
André Jenni

Head of Team Consulting

Rolling Stock Division

andre.jenni@enotrac.com +41 21 623 83 05

Further services for Maintenance & Modernisation

Subseite-Dienstleistungen

Reference projects

Extension of the service life of HGe 4/4 II locomotives and articulated control cars

Zentralbahn is facing a strategic decision regarding the long-term future of its proven HGe 4/4 II locomotives and articulated control cars. To support a well-founded decision on continued operation, targeted modernisation, or potential replacement, Zentralbahn has commissioned Enotrac to undertake

Cost estimate for the refit of tram trains for the Karlsruhe Transport Authority

Enotrac, an independent engineering consultancy was commissioned by Verkehrsbetriebe Karlsruhe VBK to provide a cost estimate for the electrical system refit of their GT6/8-70D/N low-floor light rail vehicles.