Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments (2017) / Chapter Skim
Currently Skimming:
Pages 56-75
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 56... ...
56 S t e p 6 6.1 Goal Step 6 tasks use the outcomes of Steps 4 and 5 to quantify applicable first-order benefit metrics. 6.2 Tasks Quantify and Value First Order TEE Benefits The TEE measures and metrics to be quantified were addressed in Step 4.
|
From page 57... ...
Confusion/Ambiguity Marginal Valuation Bases and MeasurementIssues Sources of Double Counting Travel/ transit time changes (in minutes or hours) -- build and do-minimum Measurement issues: Most easily developed for truck freight (highway)
|
From page 58... ...
58 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments Unique Valuation of Subcomponents without Double Counting The monetization of travel or transit time and delay measures can be considered in three distinct parts (building on Table 8) : • The utilization of labor as a resource (carrier perspective)
|
From page 59... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 59 One approach to valuation is to recognize the inventory (logistic) factors that have an impact on shipper supply chain costs (Figure 10)
|
From page 60... ...
60 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments where C, T, Q are all unit cost, time, and output or throughput respectively (unit = per hour, per day) and in the BCA context, this translates to Equation 6: (6)
|
From page 61... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 61 Data Sources. Two main data sources can be used to estimate operating costs (as a measure of benefit)
|
From page 62... ...
62 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments – Freight car maintenance. – Other equipment costs.
|
From page 63... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 63 Owens et al.
|
From page 64... ...
64 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments Tools for Truck Freight. The literature on VOR for truck freight is quite rich as observed in the range of reliability ratios.
|
From page 65... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 65 When using the reliability measure, keep the following factors in mind. • VOR and reliability ratio: The numerical value range of the ratio emphasizes the value of understanding the corridor, its usage and O-D connectivity, and its place within the overall regional network in terms of catering to shipper and industry needs and traded sectors or commodity chains of the economy.
|
From page 66... ...
66 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments Rail Specific steps must be taken to isolate the investment-specific effects across alternatives on track or locomotive maintenance on the benefit side. A simple way to estimate is to use an estimate of distance traveled and a cost-per-mile estimate.
|
From page 67... ...
TEE Metric(s) Quantification Metrics (Same Mode or Diverted Flow)
|
From page 68... ...
TEE Metric(s) Quantification Metrics (Same Mode or Diverted Flow)
|
From page 69... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 69 Induced demand sketch plan adjustments can be made on the cost side by relying on travel cost elasticities in order to forecast changes in travel speeds. The elasticities applied to generalized costs can be used for developing revised travel costs.
|
From page 70... ...
70 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments the purview of USACE (channel deepening/widening and inland navigation lock and dam projects)
|
From page 71... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 71 6.3 Models, Tools, and Methods Acceptable models, tools, and methods are discussed extensively in Chapter 2 of the technical report. Each of the tools discussed have their pros and cons, the specific metrics they include or exclude, the methods they use, and the philosophy associated with calculations and treatment of transfers.
|
From page 72... ...
72 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments Highway Rail Inland Waterways Deep-Draft Marine Air HERS RailSim (Systra) more suited for passenger rail Ohio River Navigation Investment Model (ORNIM)
|
From page 73... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 73 A related issue is the potential for double counting in first-order and higher-order metrics; only truly additional gains that are induced from transportation cost changes should be included. Causality is important, but so is the magnitude of gains.
|
From page 74... ...
74 Guide for Conducting Benefit-Cost Analyses of Multimodal, Multijurisdictional Freight Corridor Investments • NCFRP Report 22 (2013) for understanding costs for different modes (http://onlinepubs.trb.
|
From page 75... ...
Quantify and Value Applicable First-Order public and private Metrics and Information Needs 75 6.6 Common Mistakes Common mistakes occur when the project team: • Does not use a level of effort that is commensurate with the value achieved. • Does not consider existing and new users or completely fails to discuss new users.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.