The marginal cost of reinvestments in Sweden’s railway network


This study provides new estimates of the marginal cost of railway reinvestments using Swedish data on reinvestment costs, traffic, and other railway network characteristics for the period 1999–2014.

 The empirical analysis is based on a two-part model approach, where several factors can explain the reinvestment decision in the first part of the model and the size of the reinvestment in the second part.

We find a marginal cost estimate of SEK 0.03 per gross ton-kilometers for reinvestments, which is significantly higher than previous estimates. There are two main reasons for this difference. First, the present analysis is based on a more comprehensive reinvestment cost definition that now also includes signalling, electricity installations, etc. Secondly, it has now also become feasible to add information about station sections.

 Moreover, we test whether it is appropriate to add new explanatory variables or replace existing variables to better understand what drives decisions to undertake track renewals and the costs for doing so. The results appear to be sensitive in terms of reported errors and cumulative tonnage density, which means that inclusion of these variables better explains the variation in reinvestment decision and the size of the reinvestment. However, these results must be interpreted with caution due to the shorter period of observation and the limited number of track sections that are observed.



Cost Benefit Analysis (CBA) workshop in Stockholm

An open seminar and workshop in Stockholm will be held on 25-26 April 2018. The workshop deals with the use of CBA as a basis for decision-making in the public sector. The workshop is organized by, among others, Professor Jan-Eric Nilsson, VTI.



Ulf Sandberg has been presented with the TTI Lifetime Achievement Award 2018

VTI’s Senior Research Leader Ulf Sandberg has been presented with the TTI Lifetime Achievement Award 2018 for his work on research into tyres and road surface.


Steps need to be taken to increase traffic safety of automated cars

Several steps are necessary to ensure that automated and connected cars will lead to increased traffic safety – everything from ensuring that technology takes vulnerable road users into account, to new forms of driver training. This has emerged in a position...


FALCON examines challenges in the transport sector

VTI is one of several important partners in the major FALCON project*, whose purpose is to create knowledge and insight regarding the transport sector. In an initial subproject, VTI has produced a manual on transport, logistics and multimodality.


VTI joined research cooperation in China

In December 2017 VTI became a member of China-Sweden Research Centre for Traffic Safety (CTS).


Swedish German research collaboration on Electric Road Systems

The project “Swedish-German research collaboration on Electric Road Systems” (CollERS) has now officially started. The goal of the project is to increase the common knowledge around Electric Road Systems by cooperation between Germany and Sweden and to...


Electric Road Systems Conference 2018

After a successful first conference in June 2017, the Swedish research and innovation platform for electric roads is arranging the second dedicated International Conference on Electric Road Systems (ERS) June 13th and 14th 2018.