Using cost-benefit analysis as a method of more efficient allocation

ORIGINAL ARTICLE
Bulletin of the Maritime Institute in Gdańsk
Using cost-benefit analysis as a method of more
efficient allocation of inland waterway E40 resources
Zastosowanie analizy kosztów i korzyści jako metody lepszego
wykorzystania zasobów drogi wodnej E40
M. Kalinowski, R. Koba, U. Kowalczyk
Instytut Morski w Gdańsku. Zakład Ekonomiki i Prawa
Article history: Received: 11.05.2016
Accepted: 03.08.2016
Published: 30.08.2016
Abstract:Currently in Poland, inland waterways shipping is playing a significant role in the transport system. However, the inland waterway transport is not involved in cargo distribution between sea ports and their hinterland, apart from some carriages in
Szczecin and Świnoujście. On the other hand, the European Union, as well as international organisations indicate clear benefits, which can be generated for the economy thanks to inland waterways development.
Providing that the IWW E40 is navigable and accessible, the sea ports in the catchment area of that route will gain an opportunity
of delivering cargo from the hinterland by an additional and more efficient transport mode. However, it is of key importance to
assess the benefits of the defined project, the E40 restoration project as well, through a cost-benefit analysis (CBA). The overall
objective of CBA is to facilitate and improve the allocation of resources, by demonstrating the benefits of an E40 waterway revitalisation project. The aim of CBA is to estimate the social value of the investment, maximize the effect in monetary terms and to
enable justified and wise decision making regarding the profitability of the project of the E40 revitalization.
The preliminary results show that in countries along the route of the international waterway E40: Ukraine, Belarus and Poland, the inland waterways system is not generally perceived as an important element of the transport system, being below
one per cent of the transport modes.
Revitalisation of the inland waterway E40, apart from the measurable socioeconomic benefits and costs, will evoke costs and
benefit, which cannot be expressed in numerical values, including servicing the hinterland of seaports located along the waterway by inland waterway, improving flood protection, improving the water supply of the population and business, creation
of new jobs, strengthening of international cooperation, etc.
The development of transport on the restored waterway should be facilitated by an appropriate pricing policy and usage fees.
Prices for the use of the waterway infrastructure should take into account the benefits of other users.
Keywords: inland waterways shipping, cost benefit analysis (CBA), external costs, waterway E40, revitalisation
Streszczenie:Obecnie w Polsce żegluga śródlądowa nie odgrywa istotnej roli w systemie transportowym. Praktycznie transport wodny śród-
139
lądowy nie jest zaangażowany w dystrybucję ładunków pomiędzy portami i ich zapleczem, z wyjątkiem niewielkich przewozów w Szczecinie i Świnoujściu. Tymczasem Unia Europejska i liczne organizacje wskazują na znaczące korzyści, jakich wykorzystanie i rozwój żeglugi śródlądowej przysparza gospodarce. Zapewnienie żeglowności i dostępności drogi wodnej E40
spowoduje, że porty morskie w zlewni tej drogi zyskają możliwość dostarczania ładunku z zaplecza dodatkowym środkiem
transportu. Istotne znaczenie ma jednak wykazanie korzyści rewitalizacji E40 poprzez analizę kosztów i korzyści (AKK). Ogólnym celem AKK jest ułatwienie i poprawa alokacji zasobów, poprzez wykazanie korzyści projektu rewitalizacji drogi wodnej
E40. Celem AKK jest oszacowanie społecznej wartości inwestycji, zmaksymalizowanie efektu w kategoriach finansowych oraz
umożliwienie uzasadnionego i mądrego podejmowanie decyzji co do opłacalności projektu rewitalizacji E40.
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Wstępne rezultaty analizy wskazują, że w krajach zlokalizowanych wzdłuż przebiegu międzynarodowej drogi wodnej E40, tj.
na Ukrainie, Białorusi i w Polsce system śródlądowych dróg wodnych nie jest postrzegany jako ważny element system transportowego. Jego udział w strukturze gałęziowej przewozów nie sięga nawet 1%.
Rewitalizacja śródlądowej drogi wodnej E40, oprócz wymiernych korzyści społeczno-ekonomicznych i kosztów, stworzy koszty i korzyści, które nie mogą być wyrażone w wartościach liczbowych, w tym obsługi zaplecza portów położonych wzdłuż szlaku wodnego w żegludze śródlądowej, poprawi ochronę przeciwpowodziową, poprawi zaopatrzenie w wodę społeczeństwa i
przemysłu, stworzy nowe miejsca pracy, wzmocni współpracę międzynarodową, itd.
Rozwój transportu na odrestaurowanej drodze wodnej powinien być ułatwiony przez odpowiednią politykę cenową i opłaty za jej użytkowanie. Ceny za korzystanie z infrastruktury dróg wodnych powinny uwzględniać także korzyści innych użytkowników.
Słowa kluczowe:żegluga śródlądowa, analiza kosztów i korzyści (AKK), koszty zewnętrzne, droga wodna E40, rewitalizacja
Introduction
Inland waterways shipping is part of the national economy’s
system and also an element of the transport subsystem. Inland
waterways companies in the framework of their activity, fulfil the
transport needs of other sectors of the national and European economy – by exporting transport services. Following the transition
period of the national economy system in Poland, the demand for
transport services picked up in line with the rise in economic development and the opportunity for exports also increased.
The share of inland waterway transport in cargo transport in
terms of ton-kilometres in Poland is much lower than in majority of European Union countries and lower than the entire
Union’s average. In the EU in 2013, the share of inland waterways transport in total surface based carriages in terms of ton-kilometres totalled 6.7% overland transport carriages expressed in volumes per tons (excluding deepwater shipping and
air and pipeline carriages). The prevailing waterway transport
was performed by the Netherlands – 38.9%, then Romania
and Belgium with 20% share each.
International waterway E40 connects the Baltic Sea with the
Black Sea (Fig. 1). It starts in Gdansk and later in the Polish section, runs along the river Vistula and the Bug River, to Terespol
to the Polish – Belarusian border. In the Belarusian section it
leads across the river Muchawiec, Channel Dnieper - Bug river,
Pina and Pripyat to the Belarusian – Ukrainian border and in
the Ukrainian part of waterway E40 from Pripyat and Dnieper
River up to Kherson and the Black Sea.
Source: Based on Map of the AGN network, White paper on Efficient and Sustainable Inland Water Transport, Inland Transport Committee, UNECE New York and Geneva 2011 own
elaboration of Maritime Institute in Gdansk – Department of
Economics and Law.
140
Substantial benefits can be generated for the economy thanks
to inland waterways development. However, there is a problem with calculating those costs and adequate enumeration
BMI, 2016; 31(1): 139-147
of ship costs and charges for using the equipment and infrastructure during shipping operations. The European Union
proposal is to establish the charges based on marginal costs.
The article includes a proposed methodology of cost and benefit calculation and optimisation of transport process related
to the inland waterway E40.
It is worth mentioning the benefits from the waterway infrastructure for other branches of the economy and social
sectors even if some of them are difficult or impossible to be
estimated.
Examples of external benefits brought by inland waterways
Independently from the technical aspect, resulting from the
fact that the infrastructure of inland waterways also serves
several important functions related to flood protection, retention of water, energy, tourism, recreation, public utilities, etc.,
inland waterway transport is considered as one of the cheapest
and the most environmentally friendly modes of transport. It
is characterized in particular by:
♦♦ lowest energy consumption, where the ratio of energy
consumption for transport work is 1/10),
♦♦ low emission of air and water pollutants,
♦♦ low external costs,
♦♦ low accident rate1.
The economic aspect is determined foremost by transport
costs. It can be assumed that inland shipping on inland water way E40 consumes the least amount of energy to perform a specific transport work. For example, in order to do
the work of 100 tonne-kilometres, 1.3 units of energy are
required, while doing the same work by railway transport
requires an average of 1.7 units of energy and road needs
up to 4.1 units.
This means that by consuming a given unit of energy, 1 ton of
Program rozwoju infrastruktury transportu wodnego śródlądowego w Polsce, Część 1. Analiza funkcjonowania transportu wodnego
śródlądowego oraz turystyki wodnej w Polsce. Ecorys, Warszawa, Rotterdam 2011.
1
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ORIGINAL ARTICLE
Fig. 1. The catchment area of international waterway E40
141
Fig. 2. Comparison of transport work done by different transport modes
(in energy units) – diesel consumption per 100 tonne-kilometres
Source: Own elaboration of Maritime Institute in Gdansk – Department
of Economics and Law based on data of Institut für Energie- und
Umweltforschung Heidelberg GmbH
Fig. 3. Comparison of transport distances of 1 tonne of cargo by different
transport modes with 1 energy unit
Source: Own elaboration of Maritime Institute in Gdansk – Department
of Economics and Law based on data of Institut für Energie- und
Umweltforschung Heidelberg GmbH
cargo can be transported by inland waterway transport over a
distance of 370 km, while rail can transport over a distance of
300 km and road at a distance of only 100 km.
ce by road transport. Inland waterway transport is a means of
transport emitting less pollution, less noise, there is also lower
frequency of accidents and thus their costs.
According to the data (German institutions and EU), external
costs of inland waterway transport is many times lower than
in other modes of transport. External transport cost of 1,000
t / km is less than 19 euro compared with similar performan-
A comprehensive summary of the cost advantages of inland
shipping to other modes of transport points to the economic benefits of direct and indirect (external) costs of shipping.
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Tab. I. External costs of different means of transport
Foreign trade and transport market potential
In the structure of cargo transport by inland waterways in the
European Union countries, 28% of cargo shipments consists
of coal, then 14% coke and oil products. Also a relatively large
share in total carriages have products of agriculture and chemicals, and machineries and transport means as well. These
cargoes potentially could be transported by inland waterway,
if the navigability of waterway E40 is restored fulfilling the requirements of international waterway standards.
Currently in Poland (some carriages in Szczecin and
Świnoujście do not count), the inland waterway transport is
not involved in cargo distribution between sea ports and their
hinterland. Providing that the waterway E40 is navigable and
accessible, the sea ports in the catchment area of that route
will gain an opportunity of delivering cargo from the hinterland by additional transport mode. In Poland these are the sea
ports of Gdansk and Gdynia and Elbląg.
The share of inland waterways shipping in cargo transport in
Poland is far below 1%. The road transport is dominating the
transport market already from 1970 (table 3).
The cargo transport market along the catchment area of inland waterway E40 can be characterised by the volume of cargo flows generated by Polish foreign trade with Belarus and
Ukraine, and by the volumes of transit originating or being
directed to those countries via Polish sea ports.
The volume of Polish foreign trade with Belarus and Ukraine
in 2013 amounted to 17 088 thous. tons, of which 4 696 thous.
tons are attributed to include exports and 12 392 thous. tons to
imports (see table 4).
The cargo turnover of Polish foreign trade with countries located
within the area of investigation is performed mainly by rail in
TRANSPORT
MODE
AIR
POLLUTION
COSTS
NOISE COSTS
ACCIDENTS
COSTS
EXTERNAL
COSTS PER
1000 TKM
Inland
waterway
Base (1)
Base (1)
Base (1)
< 5 euro
Road
7 times
more
70 times
more
178 times
more
24,12 euro
87 times
12 times
12,35 euro
more
more
Source: The program infrastructure development of inland water transport
in Poland, Part 1. Analysis of the inland water transport and water tourism in
Poland. Ecorys, Warsaw, Rotterdam 2011
Railway
n/a
Tab. II. Comparison of economic and environmental costs of inland shipping
and other transport modes
NUMBER OF KM
COMPLETED WITH
A CONSUMPTION
OF 5 LITRES OF
FUEL AND 1 TON
OF CARGO
THE AMOUNT OF
CARGO CARRIED
ON A DISTANCE
OF 1 KM WITH A
CONSUMPTION
OF 1 LITRE OF FUEL
NUMBER OF
GRAMS OF CO2
EMITTED PER
TONNE
Inland waterway
transport
500 km
127 tons
33,4 g/tkm
Railway transport
333 km
97 tons
48,1 g/tkm
Road transport
100 km
50 tons
164 g/tkm
Source: Perspectives and barriers to the development of inland water transport
in the context of reducing CO2 emissions and energy savings, Ministry of
Infrastructure, 2009. The results of the tests performed by the ADEME and the
German Institute for Energy and the Environment.
imports and by road in exports. Rail transport is handling nearly 88% of total import volumes, of which from Belarus ca. 1.3%,
while from Ukraine nearly 90%. In imports, the prevailing type
of goods are such as timber, charcoal, chemicals and cold iron
and steel products. Other types of cargoes are transported in minor volumes. In exports the variety of cargo types is larger. The
dominating cargo are: mineral fuels, mineral oils and products
of oil distillation, ceramic products, fruits, plastics, glass, stone
products, chemicals, salt and sulphur, cold iron and steel, paper
Tab. III. Volume and modal split of cargo transport in Poland
142
TRANSPORT VOLUME
MILL. TONS
1970
1980
1990
1995
2000
2005
2010
2011
2012
2013
2014
Total transport of which:
1289
2753
1645
1381
1272
1423
1917
1912
1789
1848
1840
rail
382
482
282
225
187
270
217
249
231
233
228
road
863
2168
1292
1087
1007
1080
1588
1 596
1493
1553
1548
pipeline
15
41
33
33
44
54
56
55
53
51
50
inland waterways
9
22
10
9
10
10
5,1
5
4,6
7
6,8
Structure
in %
1970
1980
1990
1995
2000
2005
2010
2011
2012
2013
2014
Total transport of which:
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
100,0
rail
30,0
17,6
17,1
16,3
14,7
19,0
11,3
13,0
12,9
12,6
12,4
road
67
78,6
78,5
78,7
79,2
75,9
82,9
83,5
83,5
84,0
84,1
pipeline
1,1
1,5
2,0
2,4
3,5
3,8
2,9
2,3
2,4
2,8
2,7
inland waterways
0,7
0,8
0,6
0,65
0,8
0,7
0,3
0,3
Source: Based on CSO data - own elaboration of Maritime Institute in Gdansk – Department of Economics and Law.
0,25
0,38
0,37
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ORIGINAL ARTICLE
and cartoon, non-rail dedicated vehicles and others (meat, cold
iron and steel products, industrial goods).
Tab. IV. Cargo turnover of Polish foreign trade with Belarus and Ukraine in 2013,
by transport mode (thous. tons)
TRANSPORT MODE
TOTAL
EXPORTS
IMPORTS
In the analysed foreign trade there is a substantial imbalance
in the volume of cargo turnover. The inbound volume is 2.6–times larger than the outbound volume. The share of imports to
Poland in the total cargo turnover’s volume with the countries
mentioned above is around 72%.
Total
17088,1
4696,2
12391,9
- rail
12583,3
1692,0
10891,3
- road
4185,4
2893,8
1291,6
- others
319,4
110,4
209,0
Belarus
4807,1
1276,5
3530,6
Cost-benefit analysis (CBA)
- rail
305,5
256,8
48,7
- roads
1359,8
985,8
374,0
- others
241,8
33,9
207,9
Ukraine
12281,0
3419,7
8861,3
- rail
9377,8
1435,2
7942,6
- road
2825,6
1908,0
917,6
The overall objective of cost-benefit analysis (CBA) is to facilitate and improve the allocation of resources, by demonstrating the benefits of a particular project or program in relation
to alternatives to the public. CBA is designed to estimate the
social value of the investment.
Cost-benefit analysis is recommended in the EU2 by assessing
the advantages of the investment - particularly public ones from the macroeconomic point of view - through the analysis
of other possible (alternative) investments, projects and policies that occur in all identifiable areas and actions that have an
impact on the investment. It takes into account all the economic consequences of the project on the society.
Cost-benefit analysis is essential for estimating the economic
benefits of a defined project. Impact of the project should be
assessed on all levels: financial, economic, social, environmental, etc. The aim of cost-benefit analysis is to identify and to
monetise the value in all possible aspects, in order to determine the costs and benefits of the project. Afterwards the results are aggregated (net benefits) and on that basis a decision
whether the project shall be considered worth undertaking.
Some of the calculations that must be made in the analysis are
based on very detailed data and sometimes difficult to access.
The advantage of CBA is its objectivity based on monetary value, which takes into account various benefits and costs. It maximizes the effect in monetary terms and enables justified and
wise decision making regarding the profitability of the project
of the revitalization E40.
143
- others
77,6
76,5
1,1
Source: Based on the data of Customs Administration in Warsaw - own elaboration
of Maritime Institute in Gdansk – Department of Economics and Law.
The analysis of costs and benefits takes into account both positive and negative externalities associated with the possible
reconstruction of inland water way E40:
Direct effects: the impact on the transport system - the cost
of transport, routing, mode selection, the choice of time of
departure and arrival - made by the users of the part of the
network covered by the project of revitalization of E40.
Direct network effects: effects on behaviour choices within
the transport system carried onto other network users who
are not users of the network, (eg. possible modal shift at the
area of the waterway investment).
Indirect effects: effects occurring outside the transport network as a result of the project of revitalization of E40 on
transport infrastructure, including general changes in productivity, employment and population of residents in specific locations (eg. households moved into the city due to better connection with job market thanks to the new waterway).
A disadvantage of CBA is the problem with quantifying the appropriate market price for many public commodities. Similar
defects appear in the category of the fair value of revalued intangible assets, because fixing the market price for them is not
possible. The value of the discount rate is also very important
for the results of evaluation. In case it is established on too low
a level, it will lead to the overestimation of calculated return
on investment. And vice versa - using too high rates may lead
to the conclusion that the investment is unprofitable.
Indirect network effects: the impact on the selection of the
transport mode in other markets (real estate markets, labour
market, product markets and capital) as a result of changes
in the total costs caused by the project.
Financial discount rate reflects the opportunity of the cost of
capital, which is defined as “the expected return on the best
alternative project”.
Numerous sources publishing the results of researches and
case studies3 indicate that the advantage of inland shipping
has relatively the best parameters relating to the volume of
The Guide to COST-BENEFIT ANALYSIS of investment projects, the Structural Funds, the Cohesion Fund and the Instrument for Pre-Accession; EUROPEAN COMMISSION, DG. Regional Policy, 2008
In cost-benefit analysis of the inland waterway E 40 revitalisation project, it should include all costs and benefits in
monetary terms and should consist of the essential elements
presented below.
2
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3
INE, NAIADES, UN Global Compact, etc.
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Fig. 4. Costs of the waterway E40 revitalization
Source: Own elaboration of Maritime Institute in Gdansk – Department of Economics and Law.
the infrastructure construction costs and external costs when
compared to other modes of transport (see figure below).
The evaluation of the social benefits resulting from the reduction of external costs of transport due to the cargo shift
from road to inland waterway transport shall be made according to:
Bis = Crt − Cis
Bis − the benefits of reducing the external costs of transport;
Crt − external costs generated by road transport;
Cis − external costs generated by inland waterways4.
144
External costs related to transport of cargo by road and inland waterway can be estimated using the simplified method, in which
the total cost is determined on the basis of forecast transport work
in the studied transport mode as well as average external cost of
the test agent according to the rate compiled by the European
Commission for all member states. The above method enables
the obtaining of an overview of the socio-economic benefits arising from shifting cargo from roads to inland waterways5.
Other expected external benefits after
the revitalisation of E40
Revitalization of inland waterway E40, apart from those measurable socioeconomic benefits and costs indicated above,
will evoke costs and benefits, which cannot be expressed in
numerical values, including in particular:
♦♦ Servicing the hinterland of seaports located along the waterway by inland waterway,
♦♦ Improving flood protection,
♦♦ Improving the water supply of the population and business,
♦♦ The ability to retain water and possibility to tackle drought,
♦♦ Development of the regions in particular as a result of the inProposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the granting of Community financial
assistance to improve the environmental performance of the freight transport system; Brussels, 04.02.2002, COM(2002)54, final
2002/0038 (COD).
5
Socio-economic analysis for the project entitled “The revitalization of inland waterway on the East-West relations including waterways:
Odra, Warta, Noteć, Bydgoszcz Channel, Vistula, Nogat, Szkarpawa and the Vistula Lagoon (planned waterway E70 in the Polish area)”,
Vectum, Szczecin - Gdańsk; November 2011
4
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Fig. 5. Benefits from the waterway E40
Source: Own elaboration of Maritime Institute in Gdansk – Department of Economics and Law.
Fig. 6. Benefits from the waterway E40
Source: Own elaboration of Maritime Institute in Gdansk – Department of Economics and Law.
145
vestment of new connection with the Bug river and Vistula
river ports,
♦♦ Increase the investment attractiveness of regions,
♦♦ Creation of new jobs,
♦♦ Improvement of transport accessibility,
BMI, 2016; 31(1): 139-147
Improve the transport density of the area influenced by
the investment,
♦♦ Strengthening of international cooperation,
♦♦ Promotion of a sustainable development idea,
♦♦ Extension of the service offer of economic centres, etc.
♦♦
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Tab. V. Method of calculating external transport costs
Charges for infrastructure use
The problem of standardisation of charges and taxes levied on
various modes of transport has been discussed in the White Paper published in 19986. It is proposed to take action to slowly unify transport charges in the Member States as well as the existing
regulations. An effective system of charges and taxes on transport should include all internal and external costs and benefits.
It is proposed to gradually introduce charges for the use of
transport infrastructure based on marginal costs - understood
in transport economics as variable costs that reflect the cost of
an additional vehicle or transport unit that uses the infrastructure. They can vary for different transport users, in different
times, in different conditions and in different places.
Marginal costs, as indicated in the White Paper of 1998 include
in particular:
♦♦ operating costs: energy, labour costs, some maintenance
costs,
♦♦ the costs of infrastructure use,
♦♦ congestion costs,
♦♦ costs of the environment: air, water, noise,
♦♦ the costs of accidents: property damage, pain, suffering,
start production, etc.
The document observes that the marginal costs of inland navigation are lower than in other transport branches. It is also worth
mentioning that inland waterway shipping is just one of several
other ways the inland waterways are used. The fact of use of the
waterways by other sectors and activities should be reflected in
the charge calculation. It was also highlighted that the financial
and environmental costs of traffic in inland waterway transport
are lower in comparison to other transport modes.
Referring to economic theories it should be noted that a tariff
policy based on marginal cost leads to the best possible use of
existing resources. There are three methods to determine the
level of prices (charges) for the use of infrastructure of which
each has its advantages and disadvantages:
Fair Payment for Infrastructure Use: A phased approach to a common transport infrastructure charging framework in the EU; White
Paper; Brussels, 22.07.1998; COM(1998)466 final.
6
COST
ROADS
RAILWAY
INLAND
SHIPPING
Accidents
5.44
1.46
0
Noise
2.138
3.45
0
Environment pollution
7.85
3.8
3.0
Climate change
0.79
0.5
Omitted
Infrastructure
2.45
2.9
1.0
Congestion
5.45
0.235
Omitted
Total
24.12
12.35
Maximum
5.0
Source: COM(2002)54, final 2002/0038 (COD).
Other expected external benefits after the revitalisation of E40
1. Econometric approach – study of the costs behaviour of (modelling).
2. Engineering approach - study of the technical relationship
between the use of infrastructure and the cost of such use.
3. Determination of cost source - broken down into fixed and
variable costs (see table above)7.
The most commonly used and recommended method is to
identify cost source. This method does not take into account
the cost of “capital” spent on creating infrastructure, which
should be “returned” or guaranteed by other means (a situation that is similar to toll roads in Poland, where the government provided a guarantee of return on capital in the form to
ensure adequate traffic or fees due to lower volume). This corresponds to the view that the construction of transport infrastructure, including waterways, is the responsibility of public
authorities and is implemented by public funds or with their
principal support (public intervention).
Conclusions
Choosing the appropriate methodology to calculate costs and
benefits of the investment is essential to take evidence-based
Por. Charging and pricing in the area of inland waterways; Practical guideline for realistic transport pricing; Final report; European
Commission - DG TREN; ECORYS Transport (NL), METTLE (F); Rotterdam, 04 August 2005.
7
Tab. VI. Costs and benefits of using transport infrastructure
FIXED COSTS
146
VARIABLE COSTS
INTERNAL COSTS
EXTERNAL COSTS AND BENEFITS
Capital costs:
Return of capital
Profit
Return on assets
Costs
Landscape deterioration
Visual effects
Maintenance costs:
Administration
Repairs and maintenance
Management costs (lighting, information,
etc.)
Source: White Paper; Brussels, 22.07.1998.
BMI, 2016; 31(1): 139-147
Benefits
Transport accessibility
improvement
Network benefits
Efficiency improvement
INTERNAL COSTS
EXTERNAL COSTS
Cost of traffic operations
Traffic handling costs
Pollutions
Accidents
Noise
Vibrations, etc.
DOI: 10.5604/12307424.1215051
www.bullmaritimeinstitute.com
Bulletin of the Maritime Institute in Gdańsk
ORIGINAL ARTICLE
economic decisions, in the case of a restoration of inland waterway E40. The analysis should show some other incalculable
consequences and effects of the restoration.
The preliminary CBA results presented in the article show,
that in countries along the route of the Inter-international
Waterway E40: Belarus, Poland and Ukraine - inland waterways system is not visible as an important element of the
transport system, participating barely below one per cent of
all transport modes. Rail and road transport dominate in these countries, also in terms of transport of goods in transit and
at greater distances.
The development of transport on the restored waterway should be
facilitated by an appropriate pricing policy and implemented fees.
Prices for the use of the waterway infrastructure should take into
account the benefits of other users (agriculture, tourism, anti-flood
protection, energy, population, etc.). Fees and taxes for the use of
inland waterway transport can be based on “marginal costs” while
ensuring the competitiveness of this mode of transport compared
to other transport alternatives. Pricing policy and charges should
also take into account the number of co-advantages, which cannot
be counted and included in the economic calculation, such as i.e.:
improvement of spatial accessibility, improvement of territorial cohesion, strengthening cross-border cooperation etc.
References:
[1]
Socio-economic analysis for the project entitled “The revitalization of inland waterway
on the East-West relations including waterways: Odra, Warta, Noteć, Bydgoszcz Channel,
Vistula, Nogat, Szkarpawa and the Vistula Lagoon (planned waterway E70 in the Polish
area)”, Vectum, Szczecin - Gdańsk; November 2011
[2]
White Book; Roadmap to create a Single European Transport Area - Towards a competitive
and resource efficient transport system; Brussels, 28.3.2011;
[3]
[4]
of reducing CO2 emissions and energy savings, Ministry of Infrastructure, 2009. The
results of the tests performed by the ADEME and the German Institute for Energy and the
Environment.
[14]
Infrastructure expenditures and costs; Practical guidelines to calculate total infrastructure
costs for five modes of transport; Final report; European Commission – DG TREN; ECORYS
Transport (NL), CE Delft (NL);
Data base of Customs Administration Analytical Centre in Warsaw
[15]
Fair Payment for Infrastructure Use: A phased approach to a common transport infrastructure charging framework in the EU; White Book; Brussels,22.07.1998
The program of development of inland waterway transport infrastructure in Poland. Ecorys.
Rotterdam, T.2, Warszawa 2011.
[16]
Project INWAPO - Upgrading of Inland Waterways and Sea Ports.
[5]
Polish Statistics Office (GUS)
[17]
[6]
Local data bank Polish Statistics Office (GUS).
[7]
INE, Inland Waterways Transport by numbers.
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL on the granting of Community financial assistance to improve the environmental
performance of the freight transport system; Brussels, 04.02.2002, COM(2002)54, final
2002/0038 (COD).
[8]
Data bank of Institut für Energie- und Umweltforschung Heidelberg GmbH
[18]
[9]
Inventory of available knowledge on strategic inland waterway projects, Platina, 2010.
[10]
Krystyna Wojewódzka-Król, Ryszard Rolbiecki, Aleksandra Gus-Puszczewicz, „Analysis of
the demand for cargo and passenger flow on the inland waterway E-70”, Sopot 2011
The Guide to COST-BENEFIT ANALYSIS of investment projects, the Structural Funds, the
Cohesion Fund and the Instrument for Pre-Accession; EUROPEAN COMMISSION, DG.
Regional Policy, 2008
[19]
Review of the transport and logistics system of the republic of Belarus
[11]
Medium and Long Term Perspectives of IWT in the European Union; Final Report – Main
Report.
[20]
Review of the transport and logistics system of the republic of Belarus; UNECE; United
Nations, New York and Geneva, 2013.
[12]
National Academy of Sciences of Belarus
[21]
Statistical Yearbook of the Republic of Belarus, 2014.
Perspectives and barriers to the development of inland water transport in the context
[22]
Transport Development Strategy to 2020 (with the prospect of 2030); 22.01.2013.
[13]
Word count: 3500
Page count: 10
Tables: 6
Figures: 6
References: 22
Scientific Disciplines: Other
DOI: 10.5604/12307424.1215051
Full-text PDF: www.bullmaritimeinstitute.com/fulltxt.php?ICID=1215051
Cite this article as: KalinowskiM., Koba R., Kowalczyk U.: Using cost-benefit analysis as a method of more efficient allocation
of inland waterway E40 resources : BMI, 2016; 31(1): 139-147
Copyright:
© 2016 Maritime Institute in Gdańsk. Published by Index Copernicus Sp. z o.o. All rights reserved.
Competing interests:
The authors declare that they have no competing interests.
Corresponding author:
Marcin Kalinowski; Instytut Morski w Gdańsku. Zakład Ekonomiki i Prawa; e-mail: [email protected]
The content of the journal „Bulletin of the Maritime Institute in Gdańsk” is circulated on the basis
of the Open Access which means free and limitless access to scientific data.
147
This material is available under the Creative Commons - Attribution 4.0 GB. The full terms of this license
are available on: http://creativecommons.org/licenses/by-nc-sa/4.0/legalcode
BMI, 2016; 31(1): 139-147
DOI: 10.5604/12307424.1215051
www.bullmaritimeinstitute.com