BENEFIT-COST ANALYSIS IN RAIL BRANCH-LINE EVALUATION

Section 5 of the Department of Transportation Act of 1966, as amended by the Local Rail Service Assistance Act of 1978, requires that a "methodology for determining the ratio of benefits to costs of projects" be included in state rail plans. This paper discusses some of the key issues that should be addressed in these methodologies. First, common errors are identified that occur in branchline benefit-cost analyses that are submitted to the Office of State Assistance Programs of the Federal Railroad Administration. Techniques for avoiding these errors are suggested. A basic analytical framework for the evaluation of branch-line projects is presented that is then extended to cases in which projects are expected to (a) affect related transportation services and (b) produce improvements in the quality of branch-line service. Problems that arise from the relocation of capital and labor are also discussed.

Media Info

  • Media Type: Print
  • Features: Figures; References;
  • Pagination: pp 29-34
  • Monograph Title: Surface Freight: Rail, Truck, and Intermodal
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00325462
  • Record Type: Publication
  • ISBN: 0309030730
  • Report/Paper Numbers: N763
  • Files: TRIS, TRB
  • Created Date: Feb 18 1981 12:00AM