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. BMI, 2016; 31(1): 139-147 DOI: 10.5604/12307424.1215051 www.bullmaritimeinstitute.com Bulletin of the Maritime Institute in Gdańsk ORIGINAL ARTICLE 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 DOI: 10.5604/12307424.1215051 www.bullmaritimeinstitute.com Bulletin of the Maritime Institute in Gdańsk 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. BMI, 2016; 31(1): 139-147 DOI: 10.5604/12307424.1215051 www.bullmaritimeinstitute.com Bulletin of the Maritime Institute in Gdańsk ORIGINAL ARTICLE 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 BMI, 2016; 31(1): 139-147 www.bullmaritimeinstitute.com DOI: 10.5604/12307424.1215051 Bulletin of the Maritime Institute in Gdańsk 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 BMI, 2016; 31(1): 139-147 3 INE, NAIADES, UN Global Compact, etc. DOI: 10.5604/12307424.1215051 www.bullmaritimeinstitute.com Bulletin of the Maritime Institute in Gdańsk ORIGINAL ARTICLE 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 BMI, 2016; 31(1): 139-147 DOI: 10.5604/12307424.1215051 www.bullmaritimeinstitute.com Bulletin of the Maritime Institute in Gdańsk ORIGINAL ARTICLE 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. ♦♦ DOI: 10.5604/12307424.1215051 www.bullmaritimeinstitute.com Bulletin of the Maritime Institute in Gdańsk ORIGINAL ARTICLE 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
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