Cost Benefit Analysis Corridor PP22
11.46
From 2011 to 2012
TML was responsible for the regional and economic modelling in the EU Priority Project 22 study, which envisages a rail link between Germany and Greece. The study used various analysis methods to evaluate the added value of investments, cost-benefit ratios, and the effects of development scenarios.
EU Priority Project 22 envisages a rail link between Germany and Greece. This is the only rail link from south-eastern Europe to the heart of the EU that does not pass through countries outside the EU. The aim is to improve the link by introducing common quality standards. In this study, we analysed how the objectives of the TEN-T policy can be achieved and what the consequences of completing this corridor will be.
The study answered the following questions:
The main conclusion is that the Do Minimum scenario is the most promising one. That is, the investments made and planned are well spent. The investments on the northern section (Dresden - Constanta) have a positive rate of return and the already planned investments on the PP2 corridor should continue.
More extensive investment programmes such as the high-speed passenger line Dresden – Prague as well as the upgrading of the Munich - Prague section and the southern sections in Romania and Bulgaria do not appear to give a positive rate of return. Further studies on investments on these lines are recommended.
Transport & Mobility Leuven was responsible for the regional and economic modelling in this study.
EU Priority Project 22 envisages a rail link between Germany and Greece. This is the only rail link from south-eastern Europe to the heart of the EU that does not pass through countries outside the EU. The aim is to improve the link by introducing common quality standards. In this study, we analysed how the objectives of the TEN-T policy can be achieved and what the consequences of completing this corridor will be.
The study answered the following questions:
- What is the added value of the planned compared to ongoing investments?
- What are the best solutions for the connection between Germany and the Czech Republic, given that these countries have different opinions on the matter?
- What is the relative effect of further upgrading the southern part of the corridor (Arad - Athens) compared to the effect of the northern part (Germany - Constanta)?
- What are the main internal and external costs and benefits of developing corridor PP22?
- How do the different development scenarios compare in terms of costs and benefits (IRR, NPV & Benefits/Costs Ratio)?
- Which investments are recommended based on the expected costs and benefits?
The main conclusion is that the Do Minimum scenario is the most promising one. That is, the investments made and planned are well spent. The investments on the northern section (Dresden - Constanta) have a positive rate of return and the already planned investments on the PP2 corridor should continue.
More extensive investment programmes such as the high-speed passenger line Dresden – Prague as well as the upgrading of the Munich - Prague section and the southern sections in Romania and Bulgaria do not appear to give a positive rate of return. Further studies on investments on these lines are recommended.
Transport & Mobility Leuven was responsible for the regional and economic modelling in this study.
