A Review of Cost-Benefit Analysis for Freight Projects Sae Chi, Tom - - PowerPoint PPT Presentation
A Review of Cost-Benefit Analysis for Freight Projects Sae Chi, Tom Frost and Ben Ellis NineSquared A Review of Cost- Benefit Analysis for Freight Projects Sae Chi, Tom Frost and Ben Ellis 27-29 November, 2017 Australian Transport Research
Sae Chi, Tom Frost and Ben Ellis NineSquared
Australian Transport Research Forum 2017, The University of Auckland
Literature review Research gap and aim Background of each case that has been studied Impacts of the new facility Impacts to the existing rail and road facilities
1
How benefits are quantified Study findings Future research
2 Passenger task in AU (pax-km): 427 billion passenger- kilometres* Freight task in AU (tonne-km): 726 billion tonne-kilometres *
Note:
*Data from 2013-14: National Transport Commission. (2016). Who Moves What Where: Freight and Passenger Transport in Australia. Retrieved
from https://www.ntc.gov.au/Media/Reports/(D62E6EFC-36C7-48B1-66A7-DDEF3B04CCAE).pdf
* *Data for urban roads: Australian Transport and Infrastructure Council. (2016). Australian Transport Assessment and Planning Guidelines:
PV2 Road Parameter Values. Retrieved from https://atap.gov.au/parameter-values/index.aspx
Med rigid Art 5 axle B-double
Freight vs occupant VOT**
Freight VOT Occupant VOT
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Well-established and well-discussed Measures the net impact of a project Most commonly used to evaluate transport projects.
Scholars claim excluding reliability can impact the results Opinions differ between scholars
Freight projects are seldom discussed Some rail parameters are not provided
4
Conflicting views on freight reliability, and env. and ext. impacts The US study suggests improvement
CBA for freight projects are not as well documented as road and public transport projects
How are CBA conducted for freight projects in practice? Which benefits are included? How are the benefits quantified?
Review CBA conducted for existing/past land freight projects Investigate the CBA methodologies used in practice 4 Australian cases + 2 international cases
Types of guidance that need to be provided The methodology that need to be better established and documented A list of the parameters that need to be provided
5
1,700 km long rail corridor between Melbourne and Brisbane Consists of 13 projects across Victoria, New South Wales and Queensland 4 projects in Queensland will be delivered through PPP scheme
6
55 km long rail corridor between Kagaru and Rosewood Aligned with MBIR
Extending from the existing Fisherman Islands rail line for 37 km to the Interstate Standard Gauge Rail Line (ISGR) Upgrading the ISGR for 25 km from Larapinta to Kagaru Development of SFRC and Toowoomba Second Range Crossing Upgrading the QR Western Line (approx. 260 km)
7
870 km freight and passenger railway in the Baltic states, which consists of Estonia, Latvia and Lithuania
8
An initiative to improve the capacity and reliability of the freight network between Strathfield and Broadmeadow − Rail underpass − Development of 3rd track − 2 x passing loops
WVIF is proposed to be located southwest of Roanoke, Virginia in U.S.
9 Types of projects: 5 rail freight + 1 internodal facility Location of projects: 4 Australian + 2 international Size of the capital: AU$5+b – AU$65+m Influences to CBA: The nature of costs The nature of benefits
10 Type of benefits included Reduced environmental and external costs unit price Reduced crash rate Reduced
cost unit price Reduced freight travel time Induced freight volume Freight availability and reliability DFRC Yes Yes Yes MBIR Yes Yes Yes Yes Yes Yes NSFCP Yes Yes Yes Yes Yes SFRCS Yes Yes GRBP Yes Yes Yes Yes WVIF Yes Yes Yes
11 Type of benefits included Delaying constructions to replace the existing rail facilities Improved reliability of passenger services Reduced maintenance costs Reduced travel time DFRC Yes MBIR Yes Yes NSFCP SFRCS GRBP Yes
12 Type of benefits included Reduced road congestion Reduced maintenanc e costs Reduced crash rate Reduced environmen tal impacts Reduced travel time DFRC Yes Yes Yes Yes Yes MBIR Yes Yes Yes Yes NSFCP Yes Yes Yes SFRCS Yes Yes GRBP Yes Yes Yes WVIF Yes Yes Yes Yes
13 Type of benefits included Increased track access revenues Impacts of modal shifts from private vehicles - reduced operating and maintenance costs DFRC MBIR NSFCP Yes SFRCS Yes GRBP Yes WVIF
14 Austroads Guide to Project Evaluation Part 4: Project Evaluation Data
Environment and external costs for road Road congestion costs Value of time Road vehicle operating costs Crash costs
National Guidelines for Transport System Management in Australia Volume 3: Appraisal of initiatives
Environment and external costs for rail and road
Value of freight time Proportion of business peak hours
15 Melbourne – Brisbane Inland Rail Alignment Study
Environment and external costs for rail Crash rate of rail Rail maintenance costs Value of time including freight time
Economic effects of a Brisbane- Melbourne inland railway
Value of freight time
16 Update of the Handbook on External Costs of Transport
Environment and external costs for rail Crash costs Road congestion cost
Railway Safety Performance in the European Union 2013
Rail crash rate
Addendum to the 1997 Federal Highway Cost Allocation Study Final Report
Environment and external costs for road Road congestion cost Crash costs Pavement costs
17 INCONSISTENCIES IN ACADEMIC STUDIES LACK OF GUIDANCE INCONSISTENCIES IN PRACTICE
Inconsistencies in academic studies in terms
those The review of past freight CBA found inconsistencies between analyses Lacks guidance in: scope of the analysis, the types of impacts that need to be captured and WEBs
CBA of freight projects highly rely on analysts’ judgement; importance of demand forecasts
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Analysis approach may need to differ from road projects Standardised methodology and clear guidance A list of impacts that need to be considered in CBA and traffic forecasts Further research into developing common parameters
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Australian Transport and Infrastructure Council. (2016a). Australian Transport Assessment and Planning Guidelines: PV2 Road Parameter Values. Retrieved from https://atap.gov.au/parameter- values/index.aspx Australian Transport Council. (2006a). National Guidelines for Transport System Management in Australia Volume 3: Appraisal of initiatives. Retrieved from http://transportinfrastructurecouncil.gov.au/ publications/ Tan, F., Lloyd, B., & Evans, C. (2012). Guide to Project Evaluation Part 4: Project Evaluation
Transport for New South Wales. (2013). Principles and Guidelines for Economic Appraisal of Transport Investment and Initiatives. Retrieved from http://www.transport.nsw.gov.au/sites/defa ult/files/b2b/publications/tfnsw-principles- and-guidelines-for-economic-appraisal-of- transport-initiatives.pdf
Boardman, A., Greenberg, D., Vining, A., & Weimer, D. (2014). Cost- benefit analysis : concepts and practice (4th ed.). Harlow, Essex: Pearson Education Limited. Chi, S., Bunker, J. M., & Teo, M. (2017). Measuring impacts and risks to the public of a privately operated toll road project by considering perspectives in cost-benefit analysis. Journal of Transportation Engineering, 143(12). 10.1061/ JTEPBS.0000088 Jakob, A., Craig, J. L., & Fisher, G. (2006). Transport cost analysis: a case study of the total costs of private and public transport in Auckland. Environmental Science & Policy, 9(1), 55–66. https://doi.org/10.1016/j.envsci.2005.09.001 Janic, M. (2008). An assessment of the performance of the European long intermodal freight trains (LIFTS). Transportation Research Part A: Policy and Practice, 42(10), 1326–1339. https://doi.org/10.1016/j.tra.2008.06.008 Protopapas, A., Warner, J., & Morgan, C. (2012). Evaluation of methodologies in benefit-cost and economic impact analyses for freight rail projects. Transportation Research Record, (2288), 83–90. https://doi.org/10.3141/2288-10
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