Early on in the development of the railroad, engineers focused on the trade-off between construction and operating costs. Return on investment was key, but many factors influenced decisions. There was, and is, imperfect information about what was, and what was to come. Capital investments would be recorded over long periods of time, so there was the issue of time value of money - not a constant. Uncertain government policies, competition from other rails and other modes was unsure. Indian wars, the war between the states, lawlessness... The simplest trade-off between grade (operating cost) and constructions costs (length) was complex in and of itself. There was changing technology. Unsure natural resources.
Today, some things are simpler. There are fewer concerns of war, property rights are well defined and most lines are built. But, there is new competition from other modes, consolidations, line abandonment, changing regulatory policy, environmental concerns, equity, safety, inflation; maintenance and reconstruction rule (in USA).
Many others are involved besides engineers – must limit to engineering for now (Wellington). What is in the purview of the engineer? What concepts can be extended to other applications (not many of you will become railroad engineers)?
This course will focus on the classic location problem and its principal engineering components. We must define the location process and introduce the economic question and basic supporting techniques. Before that, we must learn a little of the industry and its history – what it is and what it does, as it were!
The student, upon successful completion of this course, will be able to demonstrate an understanding of the following topics, and be able to identify and apply tools useful in addressing problems related to these topics – tools which should also be applicable to other areas of transportation and engineering in general. (focus on cost…not income -- that is left for marketing/business class)