Valuation of transport time savings and improved reliability in freight transport CBA

The purpose of this chapter is to show how freight transport time savings (VTTS) and reduced variability in transport time (VTTV) are valuated in cost-benefit analysis (CBA) and to discuss alternatives. The chapter suggests a structure of the benefit components where VTTS compromises the reduction in (a) transport resources required for a given service VTTS (T), (b) capital tied up in goods while transported VTTS (G) and (c) goods users' opportunity costs VTTS (O). VTTV (T) and (b) users' opportunity costs VTTV (O).

Normative and behavioral approaches are applied to determine VTTS and VTTV. The VTTS definition differs between countries: Sweden, Norway, Germany and the United Kingdom calculate VTTS (T) based on market prices, the Netherlands use an all encompassing VTTS derived from SP data. Sweden and Norway are the only countries that use VTTS to denote only VTTS (G). Only the Netherlands, Sweden, and Norway apply preliminary VTTV in their CBA.

Different VTTS and VTTV constructions make the transfer of results difficult. It is found that the savings in transport resource costs VTTS (T) can be calculated with help of engineering formulae. Provided that the VTTS can be limited to VTTS (G), where market-based approaches can be used, and VTTS (O). The incorporation of VTTV in CBA requires further development of the valuation methods. The use of information of the trade-off between transport costs and inventory costs is one promising approach. Hopefully lessons can be learned from the Dutch and Norwegian SP studies for VTTS and VTTV. A better understanding of the opportunity costs is needed.

MEET US


7
Dec

Shipping and the environment – research meets reality

Centre for Transport Studies (CTS) in co-operation with Ports of Stockholm invite you to the seminar Shipping and the environment – research meets reality.

LATEST NEWS


2017-10-26

Simulation of cut-in by manually driven vehicles in platooning scenarios

A study in a VTI-driving simulator has showed that a platoon will be able to handle a cut in from a manually driven car. The results of this study have recently been presented at two conferences in Japan.


2017-10-16

ERPUG Forum

The five-year anniversary of European Road Profile Users' Group (ERPUG) Forum will take place at Ramboll head quarter, Copenhagen, Denmark October 19-20, 2017.


2017-09-29

Self-driving buses in Sweden next year?

A self-driving, fossil-free bus. This idea might become reality through a forthcoming collaborative project involving the Swedish National Road and Transport Research Institute (VTI), Linköping University and several other participants. The project group aim...


2017-09-29

New climate-proof solutions for hard surfaces in cities

High-density road infrastructure that emphasise maximum durability and minimum maintenance create inflexible systems, which put increased stress on urban trees and lead to increased risk for flooding. Over the past five years, the ‘Climate-proof solutions for...


2017-09-29

VTI is preparing for automated vehicles

Automation of traffic systems will lead to major changes. The European Union’s (EU) CoEXist research project began in June 2017 with the aim of preparing cities and road operators for the introduction of self-driving vehicles. The Swedish National Road and...


2017-07-05

Vehicle Driver Monitoring: sleepiness and cognitive load

To prevent road crashes it is important to understand driver related contributing factors, which have been suggested to be the critical reason in 94 per cent of crashes. The overall aim of the project Vehicle Driver Monitoring has been to advance the...