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Airlines, shipping, rail and buses

Rail freight operator financial model, built free.

A three-statement Excel model for a rail freight operator (above rail), built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Hauls bulk, intermodal and general freight with its own locomotives and wagons, earning per-tonne haulage rates or take-or-pay contracts and paying access to the track owner.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.

Annual · 10 years · Low detail
Rail freight operator sample model.xlsx
The Summary sheet of the sample rail freight operator model

Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.

How it works

How the model works for a rail freight operator.

  1. How it earns revenue1 parts
    Haulage, access and fare revenue
  2. What drives its costs3 formulas
    Rail operating costs · All rail corridors
    Rail operating costsVariable operating costs (NTK × unit cost)Fixed corridor costs
    Operating expenses · Across the business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
    Operating expenses · Across the business
    Total average FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
  3. What it invests in3 formulas
    Infrastructure assets and capex programme · Across the business
    Infrastructure capexSustaining capexGrowth capex
    Infrastructure assets and capex programme · Across the business
    Infrastructure depreciationDepreciation of existing assetsDepreciation of sustaining additionsProject 1 depreciation (from commissioning)Project 2 depreciation (from commissioning)Project 3 depreciation (from commissioning)from from commissioning
    Infrastructure assets and capex programme · Across the business
    Closing net book valueOpening net book valueInfrastructure capexInfrastructure depreciation
  4. How it is funded3 formulas
    Debt
    RepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweep
    Debt
    Closing balanceOpening balanceDrawdownsRepayments
    Debt
    Interest expenseOpening balanceAll-in interest rateshare of the year
  5. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

19 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Operating expensesHeadcount build by function
  • Corporate costsFixed cost base indexed to CPI
  • Working capitalFull working capital
  • Income taxCorporate rate with tax losses
  • Corporate fixed assetsStraight-line over remaining life
  • DebtAmortising term loan
  • Dividends and distributionsPayout of net profit
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Interest-rate hedgingHedged share at a fixed rate
  • Infrastructure assets and capex programmeSustaining capex plus growth projectsOwned or long-lease infrastructure — runways, terminals, berths, track, rolling stock, stadiums — with its capex programme, depreciation by asset class and optional revaluation.
  • LeasesLease register
  • Key-metric summaryLast-twelve-month and run-rate metrics
  • Discount rate (WACC)CAPM at target gearing
  • Terminal valuePerpetuity growth on normalised cash flow
  • Rail volumes and patronageBase volume × growthFreight tonnes (and tonne-km) or passenger journeys on each corridor.
  • Haulage, access and fare revenueVolume × rateRevenue from hauling freight, charging for track access or carrying passengers.
  • Rail operating costsCost per net tonne-km or journeyTrain crew, fuel, rolling-stock maintenance and access charges for train operators, and track maintenance and train control for network owners.
Key numbers

The numbers it tracks.

  1. 01tonnes and net tonne-km
  2. 02revenue per NTK
  3. 03operating ratio
  4. 04EBITDA margin
  5. 05fleet utilisation
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
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Every transport and infrastructure model

Looking for a rail freight operator financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.