Ex. 10. A. Match the words and phrases on the left with their translation on the right.

1. transportation costs	a) топливные расходы
2. fuel costs	b) налогоплательщик
3. labor costs	c) государственная субсидия
4. below cost	d) расходы по перевозке
5. public (state, government) subsidy	e) объем продаж (сбыта)
6. taxpayer	f) страхование;
7. (railway) operator	g) частное предприятие
8. sales	h) грузить / выгружать
9. financing	i) затраты на рабочую силу
10. insurance	j) железная дорога
11. rent	k) водоналивное судно
12. private enterprise	l) ниже (себе)стоимости
13. water carrier	m)арендная плата
14. peak period / off-peak period	n) финансирование
15. to load / to unload	o) сезонный период /внесезонный период

B. Read the following sentences and translate them into Russian.

1. Reduced transportation costs stem from the use of more lightweight parts. 2. Airlines are suffering with higher fuel costs. 3. They have stopped manufacturing in the UK due to high labor costs. 4. Sales of computers dropped 30% and manufacturers were forced to sell their products below cost. 5. Subsidy is money that is paid by a government or organization to make prices lower, reduce the cost of producing goods, etc. 6. Delaying the project will give more time for research and save taxpayers’ money. 7. We need to secure additional financing for the project. 8. Do you have insurance for the house yet? 9. After she’d paid her rent, Jan had no money left for food. 10. Euro Disney is a much smaller private enterprise than its American counterparts. 11. The first water carrier to load at the new port was the “ Secil Angola ”. 12. The driver unloaded some boxes from the back of the truck.

Read the text and translate it using a dictionary if necessary.

Transportation Costs

Transportation costs depend mainly on distance and on the amount of goods or the number of people being carried. Reduced costs are generally achieved through the use of transportation modes that permit larger volumes or numbers to be moved. Savings are also realized by using maximum capacity of a particular mode or vehicle. For many movements of passengers and goods, however, the primary aim is not low cost but greater speed, convenience, or comfort. Such convenient modes as the private automobile or the taxicab, for example, are much costlier to use than a bus or train.

The cost of transportation includes both terminal costs and line-haul costs. Terminal costs are those incurred in assembling and distributing passengers and goods and loading them onto and unloading them from the vehicle. In the case of railroads they include the costs of building and breaking up trains. The transfer from one mode to another, or between land and water carriers at a port, also is a terminal cost. Line-haul costs are those incurred in the actual movement of goods or people between terminals. They are generally proportional to distance, or length of haul (and fuel costs), and to time (and labor costs).

Another distinction is between fixed costs and variable costs. Fixed costs include administration, sales, financing, insurance, rents, depreciation, and taxes. They are largely independent of particular transportation movements. Variable costs, such as for fuel, are those related to a particular transportation movement and depend on actual traffic volume.

Costs are partly related to the load factor, the proportion of the capacity of the vehicle* that actually carries the payload of cargo or passengers. Transportation operators try to achieve as high a load factor as possible by offering less frequent service during off-peak periods than during peak periods. In this way they can meet the increased demands of peak periods but not be saddled with** unused capacity at other times.

Shippers and travelers are charged rates and fares. These are as the value of service and the cost of service. The value of service is the maximum rate or fare that can be charged. If the charge is high, the traveler or shipper will find another transportation mode, another carrier of the same mode, another destination, another source of supply, another market, or cancel altogether.

If the carrier is a private enterprise, the total rates and fares charged must be sufficiently above the cost of service so as to give the carrier a profit. If traffic is carried at below cost, the loss must be made up by some form of public subsidy – that is, the government and the taxpayers share the transportation costs with the operators and the users.

Notes: *the proportion of the capacity of the vehicle – степень использования грузоподъемности транспортного средства;

**to be saddled with smth - быть обремененным чем-либо.