Authors : Beyhan Kiliç

Volume/Issue : Volume 9 - 2024, Issue 4 - April

Google Scholar : https://tinyurl.com/yxvbwcaj

Scribd : https://tinyurl.com/ektz6d3m

DOI : https://doi.org/10.38124/ijisrt/IJISRT24APR2453

Abstract : The most controversial issue regarding a high- speed railway investment is the huge capital cost, and the main question is whether its benefits will be worth the huge investment costs. High-speed railways have long planning processes and face great risks. Therefore, a holistic approach has been required under conditions of uncertainty. The purpose of this paper is to unify the methods for determining the huge rail investment costs. This paper investigated the economic analysis of high- speed railways as a part of a new silk iron road corridor, in terms of both passenger and freight railway transport between Europe and Asia. In this context, a benefit-cost evaluation of the Ankara-Sivas high-speed railway as a part of the backbone railway line of Turkey's Edirne- Kars high-speed railway corridor has been carried out. A holistic methodological method is presented for evaluating the benefit-cost analysis of both high-speed and freight railways. The economic analysis results show that in cross-continental countries, network effects must be taken into consideration when evaluating the high- speed railway's benefit-cost analysis.

Keywords : High-Speed Railway; Benefit-Cost Analysis; Rail Freight; Railway Economics.

References :

1. K. Hoterováa, Z. Dvořáka P. Blaho, “Objectification of criteria for critical infrastructure elements in the rail transport sub-sector”, Transportation Research Procedia, vol. 40, pp 1349-1355, 2019.
2. A. Kortazar, G. Bueno, D. Hoyos, “Environmental balance of the high-speed rail network in Spain: A life cycle assessment approach,” Research in Transportation Economics, vol. 90, Dec. 2021.
3. I. Watson, A. Alı, A. Bayatı, “Freight transport using high-speed railways”, Int. J. Transp. Dev. Integr., vol. 3, no. 2, pp. 103-116, 2019.
4. M. Strale, “High-speed rail for freight: Potential developments and impacts on urban dynamics”, The Open Transportation Journal, vol. 10, no. 1, pp. 57-66, 2016.
5. M. Borsati, D. Albalate, “On the modal shift from the motorway to high-speed rail: evidence from Italy”, Transportation Research Part A: Policy and Practice, vol. 137, pp. 145-164, July 2020.
6. G. Gao, J. Chao, Pd. Larson, “Express freight transportation by high-speed rail: The case of China”, in Canadian Transportation Research Forum 52nd Annual Conf., Winnipeg, Manitoba, pp. 28-31, May 2017.
7. D. Pearce, “Cost-benefit analysis and environmental policy”, Oxford Review of Economy Policy, vol. 14, no.4, pp. 84-100, 1998.
8. Y. Cheng, B.P.Y. Loo, R. Vickerman, “High-speed rail networks, economic integration and regional specialization in China and Europe”, Travel Behavior and Society, vol. 2, no.1, pp. 1-14, Jan. 2015.
9. M. Doriack, "Cost-benefit analysis of the German high-speed rail network," Undergraduate Economic Review, vol. 12, no. 1, art. 4, 2015.
10. P. Beria, R. Grimaldi, D. A. G. Bel, “Delusions of success: costs and demand of high-speed rail in Italy and Spain”, Transport Policy, vol. 68, pp. 63-79, April 2018.
11. (Oct. 7, 2022). California High-Speed Rail Benefit-Cost Analysis. [Online]. Available: https://www.hsr.ca.gov/wp-content/uploads/docs/ about/business_plans/BPlan_2014_Sec_7_CaHSR_Benefit_Cost_Analysis.pdf
12. G. D. Rus, V. Inglada, “Cost-benefit analysis of the high-speed train in Spain”, Ann Reg Sci, vol. 31, no. 2, pp.175-188, May 1997.
13. X. Zhang, “Does high-speed railway strengthen the ties among nearby regions? Evidence from China”, Asian Transport Studies, vol. 7, no. 10039, 2021.
14. G.D. Rus. "The BCA of HSR: Should the Government Invest in High-Speed Rail Infrastructure?," Journal of Benefit-Cost Analysis, De Gruyter, vol. 2, no. 1, pp 1-28, Jan. 2011.
15. B.V. Wee, “Rail infrastructure: challenges for cost-benefit analysis and other ex-ante evaluations,” Transportation Planning and Technology, vol. 30, no. 1, pp. 31-48, Feb. 2007.
16. H. Almujibah, J. Preston, “The total social costs of construction and operation a high-speed line using a case study of the Riyadh-Dammam corridor, Saudi Arabia,” in Frontiers Built Environment. vol. 5, no. 79, June 2019.
17. M. A. Berawi, A.R.B. Berawi, I. S. Prajitno, N. Nahry, P. Miraj, Y. Abdurachman, E. Tobing, A. Ivan, “Developing the conceptual design of high-speed railways using value engineering method: Creating optimum project benefits”, Int. Journal of Technology, vol. 6, no. 4, 2015.
18. (Oct. 7, 2022). Trans-European Railway High-speed Master Plan Study. [Online]. Available: https://unece.org/DAM/trans/main/ter/terdocs/TER_High-Speed_Master_Plan_Study.pdf
19. O. Ghanem, K. M. Alam, X. Li, “The potential effects of new high-speed corridor towards planning new towns: Reflection on a case study,” in IEIS Proc. of the 6th Int. Conf. on Industrial Economics System and Industrial Security Engineering, Singapore, 2019.
20. (Oct. 7, 2022). The Silk Railroad. [Online]. Available:  https://www.osw.waw.pl/en/publikacje/osw-studies/2018-02-28/silk-railroad
21. (Oct. 7, 2022).  Research for TRAN Committee:The new Silk Route - opportunities and challenges for EU transport. [Online]. Available:  https://www.europarl.europa.eu/RegData/etudes/STUD/2018/585907/IPOL_STU(2018)585907_EN.pdf
22. (Oct. 7, 2022). Railway freight transport statistics. [Online]. Available:  https://ec.europa.eu/eurostat/ statistics-explained/index.php/Railway_freight_ transport_statistics#Geographical_location_plays_a_key_role_in_the_shar.
23. G.D. Rus. (Oct. 7, 2022). Economic evaluation of the High-Speed Rail. [Online]. Available:  https://www.researchgate.net/publication/259558449_Economic_Evaluation_of_the_High_Speed_Rail
24. G. Byokdyk, Engineering Economics: A Complete Guide, 5STARCooks, 2020.
25. J. Averous, Practical Cost Control Handbook for Project Managers, Fourth Revolution Publishing, 2020.
26. S.C. Patra, Mathematical Techniques for Economic Analysis, Himalaya Publishing House, 2010.
27. C.S. Park, Fundamentals of Engineering Economics, 4th Edition, Pearson, 2019.
28. N. Stojadinovic, M. Bugarinovic, “Structure of access charges for use of railway infrastructure for passenger and freight trains,” 5th Int. Scientific Conf. Theoretical and Practical Issues in Transport, Pardubice, Feb. 2010.
29. D. Gattuso, G. C. Cassone, “AGW for efficient freight transport in container yard: models and costs,” Transportation Research Procedia, vol. 31, pp.108-120, Jan. 2018.
30. B.W. Wee, “Rail infrastructure: Challenges for cost-benefit analysis and other ex-ante evaluations,” Transportations Planning and Technology, vol. 30, no. 1, pp. 31-48, Feb. 2006.
31. J. Campos, G.D. Rus, “Some stylized facts about high-speed rail: A review of HSR experiences around the world,” Transport Policy, vol. 16, no. 1, pp. 19-28, Feb. 2009.
32. P. Coto-Millan, V. Inglada, P. Casares, “Social profitability threshold of the high-speed railway: A benefit-cost analysis”, Journal of transportation technologies, vol. 1, no. 4, pp. 107-115, 2011.
33. R. Tao, S. Liu, C. Huang, C.M. Tam, “Cost-benefit analysis of high-speed rail link between Hong Kong and Mainland China”, Journal of Engineering, Project, and Production Management, vol. 1, no. 1, pp. 36-45, 2011.
34. (Oct. 7, 2022). Trafik İstatistik Bülteni. [Online]. Available:  http://www.trafik.gov.tr/kurumlar/trafik. gov.tr/04-Istatistik/Aylik/aralik21.pdf
35. (Oct. 7, 2022). Turkey’s Multilateral Transportation Policy. [Online]. Available: https://www.mfa.gov.tr/ turkey_s-multilateral-transportation-policy.en.mfa
36. (Oct. 7, 2022). Middle Corridor-Policy Development and Trade Potential of the Trans-Caspian International Transport Route. [Online]. Available:               https://www.adb.org/sites/default/files/publication/705226/adbi-wp1268.pdf