Week 3: The Rail Location Problem/Economic Analysis

Objective: To determine the most economical combination of construction and operating expenses.

Hey defines excellence in engineering as an economic combination of traffic, distance, curvature, rise and fall, and gradient. The concepts described as related to the location process apply equally to new construction, realignment, and major rehabilitation. This is particularly important given the maturity of the rail and highway transport systems (e.g., few new rail lines are being constructed today).(however, click here for link to Yucca Mountain, the proposed national nuclear waste repository that may require a 400 mile rail "spur"

The following web page describes a commercial use of remotely sensed data and a 3D analysis package to address the complex issue of transportation facility location. It is quite relevant to today's lecture. Click here for reference


Location

  • Location influences cost and other impacts (environmental, socio-economic, operational, etc.)

    Factors

    Controlling factors that depend upon terrain

    Preliminary Location

    Final Design

    Economic Analysis

    For a profitable line, choose the line with the highest p ...

    To account for time value of money, and to put costs and expenses into the same units, must use an anualized cost...

    For a subsidized line, do a benefit/cost analysis, and choose the one with the highest B/C ...

    Can also use present worth ...

    To compute present value of building the line, compute present value of components individually or use a weighted average of anticipated useful life ...