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The role of freight transport in railway network investment evaluation

Author

Listed:
  • Juha Saranen
  • Olli-Pekka Hilmola

Abstract

Rarely are volumes of railway freight operations considered through Cost-Benefit Analyses (CBA) of infrastructure investments in European Union – despite the fact that freight volumes and shares in certain countries are high. The objective of this paper is to estimate the effect of specific railway network investment alternatives on the freight operator surplus. The results suggest that goods transportation cost should be included in the analysis, when evaluating railway investments. Not only would they play a pivotal role when choosing from among investment alternatives, but also a larger number of railway investments would be evaluated as socio-economically profitable.

Suggested Citation

  • Juha Saranen & Olli-Pekka Hilmola, 2009. "The role of freight transport in railway network investment evaluation," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 4(4), pages 455-470.
    • Handle: RePEc:ids:ijisen:v:4:y:2009:i:4:p:455-470
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