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close this bookStructures Suitable for Emergency Storage in Tropical Countries (NRI)
close this folderPart II: Users' guide to relief foot! stores
View the documentIntroduction to users' guide
View the documentStorage operations
View the documentStorage costs
View the documentWhat size of structure to order
View the documentChoosing emergency stores
View the documentSuppliers' data
View the documentWooden pallet manufactures
View the documentResponsibilities for purchasers and users of temporary stores

Storage costs

Costs of emergency storage are considered in two ways. 'Capital' costs for imported stores include packing, freight, insurance, customs' clearance and erection costs as well as the ex-works price of the structure. These 'once and for all' costs can be spread over the life of the structure and with the appropriate addition for interest are then called 'annual' costs. If warehouses are utilized for their whole working life, their annual costs (see Table 6) are much lower than tarpaulin annual costs, for example. But for a short emergency of, say, one year's duration this is not so. The 'break-even' point will depend on factors unique to each individual emergency. Where a warehouse has a turnover of relief food once every two months and the emergency lasts for 4-6 years, then depending on management, the price of relief food, the losses saved, etc., the annual costs for warehouse storage can be lower than tarpaulin storage. (For more details of costs see Appendices 9 and 10).

Table 6: Procurement period, capital and annual costs per tonne for different structures