A Review of Ex-Post Evidence for Mode Substitution and Induced Demand Following the Introduction of High-Speed Rail

ABSTRACT

To date, relatively little is known about the nature of the demand for high-speed rail (HSR) soon after inauguration of the services, despite close to 50-year experience of HSR operation and 17 166?km of HSR network around the world. This is a real lacuna given the scale of HSR construction around the world, the amount of resources committed to it, the desired accessibility, economic and environmental effects associated with HSR development and the relatively poor track record of forecasting demand for HSR services. Focusing on mode substitution and induced demand effects, this review aims to fill the gap in knowledge about the ex-post demand for HSR services in order to facilitate a learning process for the planning of the future HSR network. Although there is not much evidence on the demand for HSR services and existing evidence is largely influenced by route-specific characteristics, a methodological limitation that must be acknowledged, the evidence presented allows a better characterisation of HSR as a mode of transport. The review shows that the demand for HSR a few years after inauguration is about 10–20% induced demand and the rest is attributed to mode substitution. In terms of mode substitution, in most cases the majority of HSR passengers have used the conventional rail before. Substitution from aircraft, car and coach is generally more modest.     

A Review of Pseudo Panel Data Approach in Estimating Short-run and Long-run Public Transport Demand Elasticities

Abstract

The distinctions between short-run and long-run public transport demand elasticities have been highlighted in the literature, but the identification of long-run travel demand has been constrained by existing research methodology and the unavailability of longitudinal travel survey data. The pseudo panel data approach using repeated cross-sectional data has been suggested as an alternative to conducting a longitudinal travel demand analysis when genuine panel data are not available. This paper comprehensively reviews the background and the current practices of pseudo panel data research, and introduces the challenges in applied research that need further investigation, particularly for public transport. A case study using the Sydney Household Travel Survey data is presented to demonstrate pseudo panel data construction and to identify the short-run and long-run public transport demand elasticities using a pseudo panel data approach. The research findings suggest that the public transport demand elasticity of price in Sydney is ?0.22 in the short run and ?0.29 in the long run.     

Assessment of large transport infrastructure projects: The CBA-DK model

This paper presents a newly developed decision support model to assess transport infrastructure projects: CBA-DK. The model combines use of conventional cost–benefit analysis to produce aggregated single point estimates, with quantitative risk analysis using Monte Carlo simulation to produce interval results. The embedded uncertainties within traditional CBA such as ex-ante based investment costs and travel time savings are of particular concern. The paper investigates these two impacts in terms of the Optimism Bias principle which is used to take account of the underestimation of construction costs and the overestimation of travel time savings. The CBA-DK methodological approach has been used to apply suitable probability distribution functions on the uncertain parameters, thus resulting in feasibility risk assessment moving from point to interval results. The proposed assessment model makes use of both deterministic and stochastic based information. Decision support as illustrated in this paper aims to provide assistance in the development and ultimately the choice of action, while accounting for the uncertainties surrounding transport appraisal schemes. The modelling framework is illustrated by the use of a case study appraising airport and runway alternatives in the capital of Greenland – Nuuk. The case study has been conducted in cooperation with the Home Rule Authorities of Greenland.     

Corporatisation and Performance: A Literature Review and an Analysis of the Performance Effects of the Corporatisation of Port of Rotterdam Authority

Abstract

The ongoing process of port reform has led to an increasing number of publicly owned but corporatised port authorities (PAs). The performance effects of corporatisation have been analysed, for example, for the airports industry, often showing positive effects. This paper reviews the literature on port reform and the relationship between port governance structures and performance. It also presents a first case study on the effects of corporatisation of PAs, namely for the Port of Rotterdam Authority, a publicly owned but corporatised port development company. In 2004, this organisation was transformed from a municipal department to an independently operating company. The performance indicators to evaluate the effect of this corporatisation include market share, turnover, operating costs, profits, and investments. These indicators are evaluated for two periods, one prior to the corporatisation (1997–2003) and the other afterwards (2005–11). The comparison of these two periods shows that corporatisation has led to significant improvements of all performance indicators. The findings derived from this case study are relevant for the ongoing discussion on port governance models.     

Social Media Use during Unplanned Transit Network Disruptions: A Review of Literature

Abstract

This paper explores social media's role in managing unplanned transit networks disruptions. Although literature exists more broadly on the use of social media in transit, this paper presents the first literature review in this setting. When disruptions occur, commuters require reliable, up-to-date information. Its provision reduces anxiety and allows informed choices. Social media is beneficial given it provides real-time information but it can only supplement (not replace) conventional approaches. Information reliability was critical. Research in the field of disaster management illustrates the importance of publicly contributed information. Known as “crowdsourcing”, it is part of the emerging field of crisis informatics which for the first time was linked to unplanned transit disruption management. The results highlight that social media's real-time nature can reduce disrupted travel demand; however, its utilisation can be resource-intensive. A framework presented illustrates how social media utilisation varies according to the operational characteristics of a disrupted network. Social media use as an information delivery tool is still in its infancy and an unwillingness to embrace it is an impediment to sustained growth. Crowdsourcing is one approach that could resolve the issue of transit agency resourcing whilst satisfying the increased demand and expectation for real-time information.     

Impact of Everyday Weather on Individual Daily Travel Behaviours in Perspective: A Literature Review

Despite the hundreds of billions of dollars being spent on infrastructure development -- from roads, rail and airports to energy extraction and power networks to the Internet -- surprisingly little reliable knowledge exists about the performance of these investments in terms of actual costs, benefits and risks. This paper presents results from the first statistically significant study of cost performance in transport infrastructure projects. The sample used is the largest of its kind, covering 258 projects in 20 nations worth approximately US$90 billion (constant 1995 prices). The paper shows with overwhelming statistical significance that in terms of costs transport infrastructure projects do not perform as promised. The conclusion is tested for different project types, different geographical regions and different historical periods. Substantial cost escalation is the rule rather than the exception. For rail, average cost escalation is 45% (SD=38), for fixed links (tunnels and bridges) it is 34% (62) and for roads 20% (30). Cost escalation appears a global phenomenon, existing across 20 nations on five continents. Cost estimates have not improved and cost escalation not decreased over the past 70 years. Cost estimates used in decision-making for transport infrastructure development are highly, systematically and significantly misleading. Large cost escalations combined with large standard deviations translate into large financial risks. However, such risks are typically ignored or underplayed in decision-making, to the detriment of social and economic welfare.     

Substantial Changes and Their Impact on Mobility: A Typology and an Overview of the Literature

During the past 40 years, mobility patterns have enduringly changed several times as a result of the occurrence of a number “substantial changes”. Examples of such substantial changes are the rapid emergence of affordable air travel, the oil crises, and profound ICT developments. To most researchers and policy-makers in transportation, it seems more than likely that the next 40 years will also witness a number of substantial changes, some of which might even have larger impacts on mobility than the ones described above. However, literature on substantial changes and their impact on mobility are difficult to access as it is spread across different research fields and suffers from ambiguous use of terminology. As a result, overview of the literature on substantial changes and their findings is missing and discussions on the impacts on future mobility of potential substantial changes are hampered. To overcome these problems, this paper (1) proposes a typology of substantial changes and (2) ties together and reviews the scholarly literature that has focused on identifying the impacts of past substantial changes on mobility patterns. In this paper, we show how the proposed typology on substantial changes can be applied to contemplate on substantial changes and on their impacts.     

Sustainability Assessment of Transport Infrastructure Projects: A Review of Existing Tools and Methods

Abstract

Attempts to integrate sustainability in the decision-making process for transport infrastructure projects continue to gain momentum. A number of tools and methodological frameworks are available — such as rating systems, traditional decision-making techniques, checklists, and different evaluation frameworks and models. While these tools are highly valuable, some practical issues remain unsolved. There is also a need for more standardized tools to appraise the sustainability of transport projects. This paper is a presentation of a review on the current assessment tools of sustainability applied to transport infrastructure projects. The preliminary part of the paper is an explanatory and comparative analysis of the tools and methods in terms of their effectiveness to appraise sustainability. The analysis is a critical evaluation of the current state of the art to identify the limitations of existing approaches, point out new areas of research, and propose a sustainability appraisal agenda for the future.     

Does Bus Rapid Transit Influence Urban Land Development and Property Values: A Review of the Literature

Abstract

Despite the proliferation of bus rapid transit (BRT) systems over the past few decades across developed and developing world cities, the impacts across these systems on the urban spatial development and property markets have not been comprehensively studied. The current paper attempts to fill this gap in the literature by reviewing the methodologies, underlying theories, and findings presented in the individual academic studies on BRT land-use and price impacts, mostly drawing on those that have focused on Latin American and Asian systems. The review shows that the land-use and value impacts have been less uniform across systems compared to such operational performance metrics as speed and travel time improvements. While predominantly relying on cross-sectional modeling techniques, the approaches used to evaluate land-use changes induced by the transit systems are not uniform either, with only some studies explicitly measuring changes in types of land use as opposed to simply land or rental price. The study also concludes that more rigorous evaluation is needed as to whether the BRT systems have improved accessibility for the populations that inhabited the corridors previously or whether, instead, the desired land value increases have in fact resulted in significant population displacement.