Evaluating alternative scenarios for high-speed rail investment in Greece

Introducing High-Speed Rail services along the two main corridors in Greece is expected to change the total scene of interurban transport. The present paper considers the effects of the high-speed rail investment plan against this background. It applies a three-fold evaluation process in order to assess the transport potential and the economic and other impacts of the investment. Alternative scenarios are considered with respect to construction period and pricing of the new high-speed services.     

An assessment of cost management regimes in British rail infrastructure provision

Over the last decade, British railway engineering efficiency has come under close scrutiny, with general perceptions of massive maintenance cost escalations and a general lack of control over these costs. This is exemplified by headline figures such as Roger Ford??s perceptions of a 50% rise in maintenance costs since privatisation (Mod Railw 638:8, 2001), or the more recent figure of a doubling in all rail costs since privatisation presented by Shaoul (Public Money Manag 26:151?C158, 2006). Little, however, has appeared in the academic literature on the subject. This paper considers these issues through an examination of British railway infrastructure costs over the period 1980?C2009, which has seen three different infrastructure management regimes in place??the nationalised BR (1980?C1994), the privatised Railtrack (1995?C2001) and the not for dividend Network Rail (2002?C2010). Infrastructure costs are examined in total for all operating costs (including maintenance but excluding renewals and depreciation), and under two sub categories, signalling and management costs. The results show that in the case of total operating costs, by the end of the period (up to 2010) these had returned to pre-privatisation levels. The results also show that costs increased significantly following privatisation due to imperfect competition in sub contractor markets, but large declines in the last 6?years have eradicated most of these costs increases, although still do not match the best achieved under full public sector management. Management costs associated with the infrastructure on the other hand have increased significantly.     

A meta-analysis of the impact of rail projects on land and property values

The literature on land and property values demonstrates a great deal of variability in the estimated change in values arising from rail investments. This paper conducts a meta-analysis on empirical estimates from 23 studies (102 observations) that analysed the impact of rail on land/property value changes. Variation in the estimated impacts is calculated and discussed in relation to key dimensions of study-design characteristics. The results show that a number of factors produce significant variations in the estimates. These include the type of land use, the type of rail service, the rail system life cycle maturity, the distance to stations, the geographical location, accessibility to roads, methodological characteristics, as well as whether the impacted area is land or property. On the other hand, we observe that changes in purchase price and rent values due to rail projects are statistically similar to each other, that there is no evidence of change in values over time nor due to the location of land/property within the city, and that including property characteristics and neighbourhood type in the estimation model do not change values significantly. Publication bias tests are also performed and show that although researchers tend to report both positive and negative results, they tend to be biased towards statistically significant estimates.     

The application of cost-benefit analysis to transport investment projects in Britain

This paper explains the need for the application of cost-benefit analysis to the evaluation of alternative projects for investment in the transport field and outlines briefly the historical development of the technique. The results of a comparative survey of a number of cost-benefit studies which have been carried out in Britain and some conclusions as to their thoroughness and comprehensiveness (or otherwise) are presented. The article concludes with a number of specific and detailed recommendations to remedy apparent methodological weaknesses. Six of these recommendations seem to merit particular attention:

1. The viewpoint of most studies should be extended so as to avoid confinement, for example, within an arbitrary local government boundary, and a wider range of “externalities” should be considered. Intangibles should be included explicitly in all such evaluation exercises.
2. The actual incidence of costs and benefits should be examined in order to indicate the directional impact of the project and its implications in terms of equity. The elimination of transfer payments and double-counting should be postponed until the latest possible stage in the evaluation.
3. Equity considerations should be investigated in any transportation plan, since most projects have considerable equity implications for particular areas or socio-economic groups.
4. Discounted cash flow techniques, which are still used only in a minority of transportation studies, should become standard practice. Most evaluations are based on a single-year rate of return, or at best on simple trend forecasting. More resources should be devoted to proper evaluation of alternative plans which give due importance to the cost and benefit streams through time.
5. Sensitivity analysis should be used in all transportation evaluations. Knowledge of the impact of different assignments, shadow prices, and discount rates are essential information for any decisionmaker.
6. Last, but not least, much greater communication should exist between analyst and decisionmaker than has existed in the past.

     

Evaluation,prioritization and selection of transportation investment projects in New York City

Over the last decade, a large number of high capital cost transportation projects have been proposed for the New York City Region. Many have resulted from addressing evolving capacity needs, changes in regional demographics and economics, meeting the improvements necessitated by operating century old subway systems and recognizing the impact of moving freight in a dense region. But the catalyst for bringing all of these projects to the attention of the public and all regional agencies was the tragedy of September 11, 2001. While these projects entail massive investments ($50–$60 billion), little analytical work has been carried out to measure the transportation and economic costs and benefits they entail and to categorize them accordingly. Competition among agencies to secure adequate resources to implement any of the desired projects makes such analysis necessary; yet there still remain political, vested economic interests and agency rivalry barriers to achieving this important planning objective. This paper reports the methodological approach taken by these authors for consistent and transparent project evaluation and then presents results from the ranking and prioritizing methodology. The policy underpinnings and implications of the analysis are discussed in a subsequent paper and thus only briefly touched upon here in the concluding section.     

The merits of accelerated depreciation for promoting investment in clean transport technologies: A simulation study in the Australian rail freight industry

This article ascertains the viability of promoting accelerated depreciation for newly acquired locomotives and other rolling stock as a means of encouraging technological investment in more efficient and environmentally friendly assets. The study uses a tax-adjusted asset replacement model to evaluate the merits of accelerated depreciation, and then compares the outcomes with alternative incentive schemes. It also examines what would occur if various schemes were used simultaneously.     

Evaluation of the policies in British local transport plans with regard to the promotion of rail freight

Over the last couple of decades there has been a trend in Western Europe and North America towards making the railway industry more able to compete successfully with road for freight haulage through deregulation and/or structural change. This trend has been drive, partly, by a concern to produce more commercially viable railway industries, but also by concerns to reduce the environmental impacts of road haulage through modal shift. The latter in particular has led to the development of public policies supportive of rail freight, particularly at the national or international levels. This paper reports on qualitative research that analysed public policy aimed at promoting rail freight in Britain but, unusually, the focus was on local rather than national policy. The research was an investigation of the approach of local authorities to the encouragement of rail freight as evidenced through their Local Transport Plans. The paper concludes that in Britain there has been a significant amount of local policymaking for rail freight and that although national policy matters are of overriding importance, the role of local policy is significant and can be developed further.     

High-speed rail service: Issues for the Detroit-Chicago corridor

Several issues concerning the implementation and operation of high-speed rail service in the Detroit-Chicago corridor are identified and discussed in this paper. The primary concern is whether such a service is likely to be attractive enough to induce the private sector to provide it. While the outlook for private operation appears pessimistic, consideration of a broader range of potential benefits (e.g., direct and indirect employment) may justify public involvement and investment.     

Evaluating security of rail transit systems: A metric system approach

Crime and fear of crime is a major problem plaguing U.S. transit systems, particularly those serving large urban areas. This paper presents a normative framework for assessing rail transit security following a system-wide metric approach. The security metric can also be used to assess the marginal improvement in security as a result of improving or adopting alternative policing and monitoring strategies. The model consists of five tasks: surveying rail transit security systems, developing a rail transit security metric, assigning efficiency ratings to rail security functions, developing a composite index for the efficiency of the overall security system, and applying a probability matrix to temper the results. Efficiency ratings can be translated into probability of occurrence figures that can be used in a decision tree context to improve rail transit security.     

High speed rail market projection: Survey design and analysis

This paper summarises work done to assess the market potential and likely financial performance of a planned high-speed rail link connecting Sydney, Canberra and Melbourne, under a variety of scenarios concerning the services offered and the possible market responses of the competing transport modes in the corridor. In the Australian context, such a link has the characteristics of an essentially new transport mode since existing rail services are extremely poorly developed. The expectation was that generated demand could be a substantial part of the overall ridership. A programme of market research was commissioned by the private consortium considering the project, designed to support forecasting models capable of predicting both diverted and generated travel on the new service. A major survey of current travellers was conducted in 1988, followed by an extensive collection of stated preference evidence about the factors affecting the travel decisions of both existing travellers and those who had not recently made any journeys in the corridor. The paper focuses mainly on the design and organisation of the surveys, on the analysis approach, and on the methods used to generate forecasts for simulated populations and scenarios.     

Modelling the resilience of rail passenger transport networks affected by large-scale disruptive events: the case of HSR (high speed rail)

This paper deals with modelling the dynamic resilience of rail passenger transport networks affected by large-scale disruptive events whose impacts deteriorate the networks’ planned infrastructural, operational, economic, and social-economic performances represented by the selected indicators. The indicators of infrastructural performances refer to the physical and operational conditions of the networks’ lines and stations, and supportive facilities and equipment. Those of the operational performances include transport services scheduled along particular routes, their seating capacity, and corresponding transport work/capacity. The indicators of economic performances include the costs of cancelled and long-delayed transport services imposed on the main actors/stakeholder involved—the rail operator(s) and users/passengers. The indicators of social-economic performances reflect the compromised accessibility and consequent prevention of the user/passenger trips and their contribution to the local/regional/national Gross Domestic Product. Modeling resulted in developing a methodology including two sets of analytical models for: (1) assessing the dynamic resilience of a given rail network, i.e., before, during, and after the impacts of disruptive event(s); and (2) estimation of the indicators of particular performances as the figures-of-merit for assessing the network’s resilience under the given conditions. As such, the methodology could be used for estimating the resilience of different topologies of rail passenger networks affected by past, current, and future disruptive events, the latest according to the “what-if” scenario approach and after introducing the appropriate assumptions. The methodology has been applied to a past case—the Japanese Shinkansen HSR network affected by a large-scale disruptive event—the Great East Japan Earthquake on 11 March 2011.     

Capacity constrained accessibility of high-speed rail

This paper proposes an enhanced measure of accessibility that explicitly considers circumstances in which the capacity of the transport infrastructure is limited. Under these circumstances, passengers may suffer longer waiting times, resulting in the delay or cancellation of trips. Without considering capacity constraints, the standard measure overestimates the accessibility contribution of transport infrastructure. We estimate the expected waiting time and the probability of forgoing trips based on the M/G^B/1 type of queuing and discrete-event simulation, and formally incorporate the impacts of capacity constraints into a new measure: capacity constrained accessibility (CCA). To illustrate the differences between CCA and standard measures of accessibility, this paper estimates the accessibility change in the Beijing–Tianjin corridor due to the Beijing–Tianjin intercity high-speed railway (BTIHSR). We simulate and compare the CCA and standard measures in five queuing scenarios with varying demand patterns and service headway assumptions. The results show that (1) under low system loads condition, CCA is compatible with and absorbs the standard measure as a special case; (2) when demand increases and approaches capacity, CCA declines significantly; in two quasi-real scenarios, the standard measure overestimates the accessibility improvement by 14–30 % relative to the CCA; and (3) under the scenario with very high demand and an unreliable timetable, the CCA is almost reduced to the pre-BTIHSR level. Because the new CCA measure effectively incorporates the impact of capacity constraints, it is responsive to different arrival rules, service distributions, and system loads, and therefore provides a more realistic representation of accessibility change than the standard measure.     

The federal rail transit policy: Rhetoric or reality?

Almost two years ago the U.S. Department of Transportation issued a formal statement of policy on rail transit. The aim of the policy was to articulate more clearly some of the basic principles and philosophy which would guide Federal participation in urban rail transit investment. The paper examines the principal tenets of the policy and assesses its influence on local rail transit development.     

Testing the decentralization effects of rail systems: Empirical findings from Israel

Many sustainable urban development approaches are based on mass public transportation ventures, especially railway development, which has been considered a panacea for the unfavorable effects of suburban development. But rail transit also improves accessibility to the fringes, thus encouraging an exodus to the suburbs. This paper explores suburbanization and sprawling effect of commuter rail transit on the rural exurbia of the Tel Aviv metropolis by analyzing its effect on residential location decisions. The findings indicate that the suburban rail system was a determinant factor in the location choice of households which migrated from the inner parts of the Tel Aviv metropolis, since it allowed them to maintain strong commuting connections to their residential origin. This suggests that rail transit, along with its potential to strengthen the inner cities, also accelerates suburbanization and counter urbanization.     

European passenger rail reforms: A comparative assessment of the emerging models

This paper provides a comprehensive framework for analysing and comparing the various institutional models and regulatory arrangements that have recently emerged from the restructuring of European passenger rail industries. The framework identifies seven key dimensions that can be used to describe these models and arrangements. It shows how these dimensions are connected with one another in a complex web of interactions. Empirical material gathered on the passenger rail industries of five EU Member States, i.e. Belgium, France, Germany, the UK, and Sweden is used, as well as extrapolation to highlight the costs and benefits (incentive properties) associated with alternative arrangements and contract features and to show how certain dimensions can be traded-off against one another to optimize the industry's performance.     

Transit system evaluation: Guideway bus vs. light rail transit

This paper describes a set of specialized spreadsheets that model the cost and performance of transit system options including light rail transit, guideway bus, express bus, and ride sharing. These spreadsheets are demonstrated by comparing a guideway bus (GWB) transit system and a light rail transit (LRT) system proposed for construction in an active rail corridor. The comparisons for assumed levels of transit ridership include guideway geometry, travel time, headways, vehicle requirements, grade crossing protection, and capital and operating costs. The planned GWB system runs on an exclusive dual guideway in the rail right-of-way, and the alternative LRT system operates on the existing rails with new bridges and track as needed for a dual guideway system. The analysis compares the two options for mode splits between 0.5% and 50%. Results show that while both options have approximately the same travel time, the GWB system costs approximately 30% less than the LRT system. The cost difference results primarily from lower GWB vehicle purchase and operating costs. The spreadsheets are available through the McTrans Center at the University of Florida, Gainesville, Florida.     

Economic appraisal of European transport projects: The state-of-the-art revisited

Substantial investment has been made at national and European level in transport infrastructure over the past 50 years and is likely to continue in the future. The need to appraise transport projects in economic and social terms has developed alongside this in both scope and complexity. The state-of-the-art in the economic appraisal of transport projects is reviewed, progress is assessed and future challenges are identified. The review addresses the general framework, treatment of major impacts, presentation of outputs and issues such as uncertainty. It draws on national practice in Western European countries, which varies substantially reflecting a range of cultural and economic differences. Some points of commonality exist and the principle of monetizing direct transport impacts is generally accepted. Progress has been made towards the measurement of environmental impacts, but the assessment of the wider impacts remains under-developed. Increased sophistication and complexity has brought increasing data and presentation requirements, where computerized decision support methods have potential. Many challenges exist for the future of appraisal and the review is concluded with a discussion of some key issues. At the heart of these is the continuing debate over the relative roles of national and European government in decision-making and resource allocation.     

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.