Social cost-benefit analysis of various railway projects
21095
From 2021 to 2022
For TUC RAIL, social cost-benefit analyses were carried out for three rail projects to apply for funding from the Connecting Europe Facility. TML assessed the costs and benefits of these projects, including the removal of level crossings, the doubling of track capacity on line 161, and improvements to the safety system in the Kennedy railway tunnel, and evaluated their social value.
For TUC RAIL, we prepared social cost-benefit analysis (SCBA) for three railway projects, in accordance with the guidelines of the European Climate, Infrastructure and Environment Executive Agency (CINEA). These SCBAs were necessary to apply for Connecting Europe Facility (CEF II) funding. An SCBA values and updates all current and future costs and benefits that an investment project entails, including not only the costs and benefits for the users of the investment, but also the impact on the wider environment (e.g., emissions, noise).
The first SCBA evaluated the removal of a number of level crossings on the so-called CORE and Comprehensive networks. The SCBA shows that the removal of the nine level crossings on the Comprehensive network has a high social value. The benefits consist of avoiding maintenance costs at the level crossings, avoiding accidents, and realising time gains for both rail passengers and road traffic. The present value of these benefits is much higher than the value of investment costs in replacement infrastructure (including tunnels and bridges) and emission costs due to detour traffic. For the 16 level crossings on the CORE network, however, we find a social cost, mainly because these level crossings are on busier routes for road traffic. Thus, higher time costs arise for detouring road traffic.
The second SCBA examined the doubling of track capacity on line 161 between Watermael and Ottignies. The SCBA shows that this project has a positive social value. This means that the present value of benefits exceeds the present value of all costs. The positive value is mainly realised through an increase in consumer surplus, because the capacity expansion reduces waiting time for train passengers. Other positive effects of the project include a reduction in accidents and a decrease in CO2 emissions and other pollutants.
The third SCBA studied an improvement of the safety system in the Kennedy railway tunnel. This investment project has a negative net present value, meaning that the value of the project's costs exceeds that of its benefits. This is mainly due to the high investment cost because of the tunnel's fire safety: an improved safety system can guarantee continuity of traffic in case of an emergency.
