Newsletter TOC CCPRP NICPRE NEC 63
NICPRE QUARTERLY
A newsletter from the National Institute for Commodity Promotion Research and Evaluation on program evaluation and related issues
Vol. 11 No. 1
First Quarter 2005

CONTENTS

Wheat Export Market Development: A Case Study of Facility Investment for Direct Shipment to Mexico

Tables

Next Meeting



NEC-63
Fall 2005

October 13-14, 2005

Savannah,
Georgia

Nutrition, Obesity and
Commodity Promotion

Tables and Figures

Table 1. Infrastructure and Operating Fixed Costs for the Case-selected 100-car Unit-train Load-out Facility

Baseline Infrastructure Investment Cost
Rail Trackage and Switches $ 1,000,000
Conveyance and load-out systems $ 400,000
Cleaning equipment $ 100,000
Storage facility upgrades $ 250,000
Switch Engine $ 150,000
Truck scale up-grade $ 100,000
Total $2,000,000

Annual Fixed Operating Costs

Baseline Cost
Salary and Benefits $ 145,050
Insurance $ 17,500
Maintenance $ 25,000
Property Tax a $32,000
Supplies and Miscellaneous $34,000

a Property tax based on buildings and track improvements only.
Source: Based on Actual Costs from a Unit-train Load-out Project in Oklahoma.


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Table 2. Baseline Assumptions and Profitability Analysis for a
100-Car Unit-Train Load-out Facility

Baseline Assumptions
Total Investment $ 2,000,000
Annual Grain Volume 8,600,000 bushels
Transportation cost/market premium $ .10/bushel
Discount rate 10%
Percentage of Grain Cleaned 5%

Profitability Analysis
Net Present Value (total) $ 364,573
Net Present Value (per bushel) $ .042
Benefit to Cost Ratio 1.08
Internal Rate of Return 14.86%
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