A Review of Cost-Benefit Analysis for Freight Projects. Sae Chi, Tom Frost and Ben Ellis NineSquared

Similar documents
Trade Supply Chain. Developing Rail and Sea Access. Peter Keyte PBPL

SUSTAINABLE SUPPLY CHAIN SOLUTIONS 2014

Presented to : I 710 Project Committee June 30, 2011

Moving Freight An update on road freight network access

THE CASE FOR INLAND RAIL

Project 24 Rail Transport Energy Efficiency and Sustainability. Project background Commenced July Completed December 2006

Submission in response to: New South Wales Draft Climate Change Strategic Plan and. Draft Plan to Save Energy and Money

NEW SOUTH WALES INTERMODAL FORUM. August 2017

ARTC INTERMODAL CONNECTIONS & ACCESS

TEU & GENERAL FREIGHT MOVEMENTS

Qube Holdings Limited. Presented to. Challenges & Efficiencies Presentation to AmCham May 2015 Maurice James Managing Director

The Case for Inland Rail. Summary of the 2015 Business Case

REGIONAL RAIL REVIVAL

Supply and Demand Analysis

Recent Australian OpenTrack Projects. January 2010

Modelling of Service Reliability Using OpenTrack

QUT Digital Repository:

Inland Rail: Infrastructure Leads Industry

Australia's transport is falling behind on energy efficiency

Michael Kilgariff Speech to the Queensland Infrastructure Summit Tuesday 8 December 2015

North-South Corridor Strategic Investment Outline

B-triple Road Network. NFF Submission

Illawarra Business Chamber/Illawarra First. Submission on NSW Draft Freight and Ports Plan

Hume Regional Development Australia Committee. Freight Directions in the Hume Region Summary Report

How can we encourage public transport use and alleviate Sydney s congestion problem?

Australian and Canadian Imports and Exports: Trade and Transportation by

RECOGNISING & RESOLVING WORKPLACE CONFLICT

Submission to Infrastructure Victoria Second Container Port Advice

SUBMISSION ON THE STRATEGIC INFRASTRUCTURE PLAN FOR SOUTH AUSTRALIA

AUSTRALASIAN RAILWAY ASSOCIATION SUBMISSION

PORT OF NEWCASTLE CONTAINER TERMINAL PRESENTATION FEBRUARY 2018

Regional First and Last Mile Pilot Project

AUSTRALASIAN RAILWAY ASSOCIATION SUBMISSION

Information Paper. Moorebank Intermodal Terminal Project. October 2011 Moorebank Project Office

ARTC Melbourne-Brisbane Inland Rail Alignment Study

Draft Newell Highway Corridor Strategy SUBMISSION June 2014

Collaborative Logistics Phase 1 Abridged Report July 2018

National Transport Commission Submission to Infrastructure Victoria

Speech by Michael Kilgariff Supply Chain Management Conference Tuesday 24 May 2016

Qube Holdings Limited

Road Freight Growth in Australian States and Cities

Mobility and System Reliability Goal

AUSTRALASIAN RAILWAY ASSOCIATION SUBMISSION

Fishermans Bend Integrated Transport Plan Peer Review John Kiriakidis, GTA Consultants 28/03/2018

RDA Priorities

GUIDE TO PROJECT EVALUATION. Part 3: Models and Procedures

ARTC. Melbourne-Brisbane Inland Rail Alignment Study Final Report July 2010 Appendix A Glossary

27th Australasian Transport Research Forum, Adelaide, 29 September 1 October David Gargett and David Cosgrove

Environmental Parameter Values [PV4]

Cardno is a leading provider in the mapping and management of underground utilities, and excavating within high-risk and sensitive environments.

27th Australasian Transport Research Forum, Adelaide, 29 September 1 October Paper title: Interstate rail track upgrading options to 2014

A best practice evaluation of traffic impact assessment guidelines in Australia and New Zealand

Tackling productivity How to reverse the trend in Australian productivity

VALUING GHG SAVINGS FROM ITS IMPLEMENTATION IN URBAN AREAS

Department of Infrastructure and Transport

Freight and Rail Stakeholder Webinar. January 7, 2014

SUBMISSION TO INQUIRY INTO THE ROLE OF RAIL IN THE NATIONAL TRANSPORT NETWORK

ARTC Melbourne-Brisbane Inland Rail Alignment Study

The Big Move: Next wave of projects and funding new infrastructure.

All submissions should be in writing and preferably ed to:

Transport, Health & Safety. Driving better public health outcomes

Brisbane Metro: Draft Design Report (DDR) Consultation Comments

PORT OF NEWCASTLE PLANNING FOR THE FUTURE. The Case for a Container Terminal at Newcastle Prof Roy Green, Chair, Port of Newcastle

Rail Freight Corridor North Sea Baltic (RFC NS-B)

VALUE OF RAIL The Contribution of Rail in Australia

Climate Change and Australian Coastal Shipping

linxcc.com.au LINX IS PART OF

GLOBELINK A STRONG PLAN FOR REAL CHANGE 1

ARTC Statement of Corporate Intent 2017/18

Urban Congestion The COAG Review

Rail Industry Stakeholder Survey October A survey by the Australasian Centre for Rail Innovation

Transport and Main Roads measuring congestion

Transportation Research Board. Keeping WA Moving. Alan Colegate Manager Strategy, World Road Association Technical Committee Australian Representative

Luis Martinez International Transport Forum

Draft. Submission to the NSW Draft Freight and Ports Plan. March 2018

Examining the Economic Trade-offs of Alternative Transportation Funding NC I-95 Economic Assessment

OUYEN INTERMODAL TERMINAL

Development of the I-70 Corridor of National Significance

Towards the Next Regional Transportation Plan. Freight Day University of Toronto Peter Paz, Manager of Regional Partnerships

Australian Logistic Council Dialogue. 1. Freight Data 2. Short Haul Rail. Gary Dolman Head of BITRE 21 April 2016

Morgans Investors Conference. 11 September 2008

SECTOR ASSESSMENT (SUMMARY): TRANSPORT AND INFORMATION AND COMMUNICATION TECHNOLOGY. 1. Sector Performance, Problems, and Opportunities

TRANSPORT, TRANSPORT TRENDS AND THE ECONOMY

Doubling Energy Productivity in Freight Transport

COMMUNICATIONS BASED SIGNALLING FOR THE AUSTRALIAN NON-URBAN NETWORK - THE OPERATIONS BENEFITS SUMMARY 1 INTRODUCTION 2 NOTATION

A FEASIBILITY STUDY FOR A STANDARD GAUGE SEPARATE RAILWAY LINE IN ESTONIA, LATVIA AND LITHUANIA. Arnis Kakulis AECOM, Director, Baltic Region

Findings to Date UBC LINE RAPID TRANSIT ALTERNATIVES ANALYSIS 1. UBC Line Rapid Transit Alternatives Analysis Findings to Date

A review of the roles being played by governments in road provision in Australia

Freight Transport a Modern Day Cinderella

Draft Submission to the Inquiry into National Freight and Supply Chain Priorities. August 2017

Helsinki-Tallinn Transport Link Feasibility Study of a Railway Tunnel February 2018

FREIGHT ON RAIL. Rail is part of the road congestion solution to the A14 2 nd March Philippa Edmunds

Road Controlling Authorities Forum

Stakeholder Consultation Outcomes

Presentation to DATA on VTrans 2040 / HB2. October 21, 2015

Metro Trains Melbourne Pty Ltd. Access Arrangement

Rail Baltica Global Project Cost-Benefit Analysis. 24 April 2017

NORTH STAR TO NSW/QLD BORDER PROJECT STUDY AREA SELECTION REPORT

TEXAS FREIGHT MOBILITY PLAN: DRAFT KEY POLICY RECOMMENDATIONS

Transcription:

A Review of Cost-Benefit Analysis for Freight Projects Sae Chi, Tom Frost and Ben Ellis NineSquared

A Review of Cost- Benefit Analysis for Freight Projects Sae Chi, Tom Frost and Ben Ellis 27-29 November, 2017 Australian Transport Research Forum 2017, The University of Auckland

Presentation outline 1 Background Literature review Research gap and aim Case Study Background of each case that has been studied Benefits Impacts of the new facility Impacts to the existing rail and road facilities Quantifying How benefits are quantified Conclusion Study findings Future research

Background why freight? 2 Passenger task in AU (pax-km): 427 billion passengerkilometres * Freight task in AU (tonne-km): 726 billion tonne-kilometres * Freight vs occupant VOT ** B-double Art 5 axle Med rigid Freight VOT Occupant VOT Note: * Data from 2013-14: National Transport Commission. (2016). Who Moves What Where: Freight and Passenger Transport in Australia. Retrieved from https://www.ntc.gov.au/media/reports/(d62e6efc-36c7-48b1-66a7-ddef3b04ccae).pdf * * Data for urban roads: Australian Transport and Infrastructure Council. (2016). Australian Transport Assessment and Planning Guidelines: PV2 Road Parameter Values. Retrieved from https://atap.gov.au/parameter-values/index.aspx

Background Literature review 3 Cost-Benefit Analysis (CBA) Well-established and well-discussed Measures the net impact of a project Most commonly used to evaluate transport projects. Academic studies in freight CBA Scholars claim excluding reliability can impact the results Opinions differ between scholars CBA Guidelines Freight projects are seldom discussed Some rail parameters are not provided

Background Research aim 4 Gaps Conflicting views on freight reliability, and env. and ext. impacts The US study suggests improvement of CBA for freight CBA for freight projects are not as well documented as road and public transport projects Aim Review CBA conducted for existing/past land freight projects Investigate the CBA methodologies used in practice 4 Australian cases + 2 international cases Questions How are CBA conducted for freight projects in practice? Which benefits are included? How are the benefits quantified? Study Contributions Types of guidance that need to be provided The methodology that need to be better established and documented A list of the parameters that need to be provided

Case Study

Cases Inland Rail 5 Melbourne-Brisbane Inland Rail (MBIR) 1,700 km long rail corridor between Melbourne and Brisbane Consists of 13 projects across Victoria, New South Wales and Queensland 4 projects in Queensland will be delivered through PPP scheme

Cases SFRCS and DFRC 6 Southern Freight Rail Corridor Study (SFRCS) 55 km long rail corridor between Kagaru and Rosewood Aligned with MBIR Dedicated Freight Rail Corridor (DFRC) Extending from the existing Fisherman Islands rail line for 37 km to the Interstate Standard Gauge Rail Line (ISGR) Upgrading the ISGR for 25 km from Larapinta to Kagaru Development of SFRC and Toowoomba Second Range Crossing Upgrading the QR Western Line (approx. 260 km)

Cases GRBP 7 Global Rail Baltica Project (GRBP) 870 km freight and passenger railway in the Baltic states, which consists of Estonia, Latvia and Lithuania

Cases NSFRCP and WVIF 8 Northern Sydney Freight Corridor Program (NSFCP) An initiative to improve the capacity and reliability of the freight network between Strathfield and Broadmeadow Rail underpass Development of 3rd track 2 x passing loops Western Virginia Intermodal Facility (WVIF) WVIF is proposed to be located southwest of Roanoke, Virginia in U.S.

Cases Summary 9 Types of projects: 5 rail freight + 1 internodal facility Location of projects: 4 Australian + 2 international Size of the capital: AU$5+b AU$65+m Influences to CBA: The nature of costs The nature of benefits

Benefits and Quantifying

Benefits of the proposed rail/intermodal facility 10 Type of benefits included Reduced environmental and external costs unit price Reduced crash rate Reduced operating cost unit price Reduced freight travel time Induced freight volume DFRC Yes Yes Yes MBIR Yes Yes Yes Yes Yes Yes NSFCP Yes Yes Yes Yes Yes SFRCS Yes Yes GRBP Yes Yes Yes Yes WVIF Yes Yes Yes Freight availability and reliability

Benefits for surrounding rail facilities 11 Type of benefits included Delaying constructions to replace the existing rail facilities Improved reliability of passenger services DFRC Yes MBIR Yes Yes NSFCP SFRCS GRBP Reduced maintenance costs Reduced travel time Yes

Benefits for surrounding road facilities 12 Type of benefits included Reduced road congestion Reduced maintenanc e costs Reduced crash rate Reduced environmen tal impacts DFRC Yes Yes Yes Yes Yes MBIR Yes Yes Yes Yes NSFCP Yes Yes Yes SFRCS Yes Yes GRBP Yes Yes Yes WVIF Yes Yes Yes Yes Reduced travel time

Benefits from other changes 13 Type of benefits included DFRC MBIR NSFCP SFRCS GRBP WVIF Increased track access revenues Yes Yes Impacts of modal shifts from private vehicles - reduced operating and maintenance costs Yes

Quantifying benefits 14 National Guidelines for Transport System Management in Australia Volume 3: Appraisal of initiatives Environment and external costs for rail and road Austroads Guide to Project Evaluation Part 4: Project Evaluation Data Environment and external costs for road Road congestion costs Value of time Road vehicle operating costs Crash costs Principles and Guidelines for Economic Appraisal of Transport Investment and Initiatives Value of freight time Proportion of business peak hours

Quantifying benefits 15 Economic effects of a Brisbane- Melbourne inland railway Value of freight time Melbourne Brisbane Inland Rail Alignment Study Environment and external costs for rail Crash rate of rail Rail maintenance costs Value of time including freight time

Quantifying benefits 16 Railway Safety Performance in the European Union 2013 Rail crash rate Update of the Handbook on External Costs of Transport Environment and external costs for rail Crash costs Road congestion cost Addendum to the 1997 Federal Highway Cost Allocation Study Final Report Environment and external costs for road Road congestion cost Crash costs Pavement costs

Conclusion

Study findings 17 INCONSISTENCIES IN ACADEMIC STUDIES Inconsistencies in academic studies in terms of the types of benefits and quantifications of those LACK OF GUIDANCE Lacks guidance in: scope of the analysis, the types of impacts that need to be captured and WEBs INCONSISTENCIES IN PRACTICE The review of past freight CBA found inconsistencies between analyses WEAKNESS OF FREIGHT CBA CBA of freight projects highly rely on analysts judgement; importance of demand forecasts

Future research 18 Analysis approach may need to differ from road projects Standardised methodology and clear guidance 0 A list of impacts that need to be considered in CBA and traffic forecasts Further research into developing common parameters

Key references 19 Guidelines Australian Transport and Infrastructure Council. (2016a). Australian Transport Assessment and Planning Guidelines: PV2 Road Parameter Values. Retrieved from https://atap.gov.au/parametervalues/index.aspx Australian Transport Council. (2006a). National Guidelines for Transport System Management in Australia Volume 3: Appraisal of initiatives. Retrieved from http://transportinfrastructurecouncil.gov.au/ publications/ Tan, F., Lloyd, B., & Evans, C. (2012). Guide to Project Evaluation Part 4: Project Evaluation Data. Sydney, NSW. Transport for New South Wales. (2013). Principles and Guidelines for Economic Appraisal of Transport Investment and Initiatives. Retrieved from http://www.transport.nsw.gov.au/sites/defa ult/files/b2b/publications/tfnsw-principlesand-guidelines-for-economic-appraisal-oftransport-initiatives.pdf Academic Paper Boardman, A., Greenberg, D., Vining, A., & Weimer, D. (2014). Costbenefit analysis : concepts and practice (4th ed.). Harlow, Essex: Pearson Education Limited. Chi, S., Bunker, J. M., & Teo, M. (2017). Measuring impacts and risks to the public of a privately operated toll road project by considering perspectives in cost-benefit analysis. Journal of Transportation Engineering, 143(12). 10.1061/ JTEPBS.0000088 Jakob, A., Craig, J. L., & Fisher, G. (2006). Transport cost analysis: a case study of the total costs of private and public transport in Auckland. Environmental Science & Policy, 9(1), 55 66. https://doi.org/10.1016/j.envsci.2005.09.001 Janic, M. (2008). An assessment of the performance of the European long intermodal freight trains (LIFTS). Transportation Research Part A: Policy and Practice, 42(10), 1326 1339. https://doi.org/10.1016/j.tra.2008.06.008 Protopapas, A., Warner, J., & Morgan, C. (2012). Evaluation of methodologies in benefit-cost and economic impact analyses for freight rail projects. Transportation Research Record, (2288), 83 90. https://doi.org/10.3141/2288-10

Contact Nine-Squared Pty Ltd Level 6, 243 Edward Street Brisbane QLD 4000 GPO Box 21 Brisbane QLD 4001 Australia www.ninesquared.com.au Sae Chi schi@ninesquared.com.au