Guide to COST-BENEFIT ANALYSIS of investment projects - Ramiri

As shown in Figure 3.1, only under exceptional circumstances (a combination of low construction costsplus high time savings) could a new HSR line be justified with a level of patronage below 6 millionpassengers per annum in the opening year; with typical construction costs and time savings, a minimumfigure of 9 million passengers per annum is likely to be needed.3.1.3 Ports, airports and intermodal facilities3.1.3.1 Project objectivesProjects in these sectors aim to increase accessibility and promote transport intermodality as well ascompleting the national and international transport networks. Moreover, in many cases, theseinfrastructures are expected to support local economic development and employment through support toproductive activities and the satisfaction of the transport needs of the local population.3.1.3.2 Project identificationThe first step in evaluating the project is to clearly specify whether it is a new construction, extension orupgrading of an existing one and to describe its scope, objectives and technical and physicalcharacteristics. In order to be fully exploited, ports, airports, inter-modal facilities and nodal centres needto have appropriate connections with the inland networks (road, rail, inland waterways). The projectidentification should therefore include all the relevant investments needed to guarantee the correctfunctioning of the entire system.MAIN ENGINEERING FEATURES TO BE CHECKEDPhysical features (for example):- Airports: number and total length of runways;- Ports: number and total length of piers or quays;- Inter-modal facilities: storage area, parking terminals.Technical characteristics of the major structures (for example):- Airports: sections of runways;- Ports: structural arrangement of the quays;- Inter-modal facilities: capacity.Equipment (for example):- Airports: equipment for computerised traffic control;- Ports: cargo handling facilities, storage areas, roads and rail tracks, operational building, electronic equipment for cargohandling;- Inter-modal facilities: cargo handling facilities, storage areas, logistics services.Levels of services (for example):- Airports: maximum capacity of runways, passengers and tons moved;- Ports: servicing time, number of ships;- Inter-modal facilities: servicing time, reliability.3.1.3.3 Feasibility and option analysisIn order to verify the feasibility of the project, the key issue is the quantification of the present volume ofpassenger and/or goods traffic, based on daily and seasonal trends and forecasts for the future pattern oftraffic flows.Traffic projections should, as far as possible, subdivide freight flows by type of commodity and handlingcharacteristics (containers, liquid and solid bulk, etc.,) and passenger flows according to purpose of trip(business, tourism and leisure). Indeed, the different flows might have quite different growth rates as wellas behavioural parameters (value of time, elasticities). Quite often ports, airports and intermodal andlogistics facilities compete with other similar infrastructure. The strategies of competing nodes should beexplicitly considered in the estimate of future demand.Alternative technical solutions to be explored could include the upgrading of existing facilities, forinstance by adding a new berth, or the use of new technologies, like innovative air traffic control devices.The advantages and drawbacks of each solution are to be carefully compared.82