ECONOMIC QUESTIONS - ESTIMATION OF COSTS

THE COST OF CAPITAL VARIES BETWEEN COUNTRIES AND THERE IS CONSIDERABLE VARIATION IN THE RATE OF RETURN WHICH DIFFERENT COUNTRIES EXCEPT FROM PROJECTS. SOME OF THE DIFFICULTIES INVOLVED IN THE CALCULATION OF THE COST OF TRANSPORT OPERATIONS ARE REPORTED IN AUSTRALIA, CZECKOSLOVAKIA, GERMANY, GREAT BRITAIN, INDIA AND JAPAN. THE ASSESSMENT OF THE RATE OF RETURN DEPENDS ON THE AVAILABILITY OF FINANCE AND THE OPPORTUNITY COSTS OF CAPITAL. AN ALTERNATIVE METHOD OF FINANCING DEVELOPMENT IS THE TOLL ROAD. HOWEVER, POLITICAL ISSUES ARE INVOLVED AND ONLY SPAIN AND PORTUGAL QUOTES SPECIFIC EXAMPLES WHERE THIS METHOD IS BEING USED. THE PROBLEM OF TRAFFIC IN TOWNS WAS SPECIFICALLY MENTIONED IN THE SUBMISSIONS RECEIVED FROM JAPAN, BELGIUM AND GREAT BRITAIN. PARKING PROBLEMS ARE ALSO DISCUSSED IN GREAT BRITAIN. LONG-TERM PLANNING IS RECOMMENDED FOR ROAD CONSTRUCTION. AT THE TIME OF THE INITIAL ASSESSMENT OF A ROAD PROJECT, MANY COUNTRIES MAKE PROVISIONS FOR ITS FUTURE EXPANSION. THE FRENCH REPORT ATTACHES MUCH IMPORTANCE TO THIS ASPECT, AND STUDIES HAVE CONCENTRATED ON DETERMINING THE POINT AT WHICH IT BECOMES ECONOMICALLY SOUND TO CONSTRUCT A 4-LANE RATHER THAN A 2-LANE ROAD. MAINTENANCE COSTS, VEHICLE OPERATING COSTS AND TRAFFIC MANAGEMENT SCHEMES ARE DISCUSSED.

  • Supplemental Notes:
    • Quest 7-4, PP 34-43
  • Authors:
    • Durie, A C
  • Publication Date: 1967

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  • Accession Number: 00201538
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 4 1994 12:00AM