Short course | 8 & 9 August 2007 | Brisbane
Overview | Program

Overview:

  • Selected aspects of transport and economics theory
  • Hands on evaluation of key aspects of simple and complex urban transport projects
  • Proper specification of transport model outputs & use for correct benefit estimation
  • Theory and practice of discounted cash flow analysis and application of risk analysis
  • Interpretation of economic evaluation results
  • Introduction to other forms of appraisal
  • Comprehensive references, background readings & spreadsheet templates

Description:

The national and state governments of Australia, through the Australian Transport Council (which comprises all Ministers for Transport), agreed to a standard approach to the planning and appraisal of land transport projects in Australia, as described in a five volume "National Guidelines for Transport System Management in Australia" that was last updated in December 2006. The Guidelines provided a standard framework describing processes, methods and tools to assist and guide transport planning and decision-making. The National Guidelines introduced new demands for the application of cost-benefit analysis to transport projects.

The course outlined principles that underlie economic evaluations, and the framework for economic evaluation, so that participants understood the context, objectives, approach and use of economic evaluation. The course addressed other types of evaluation to give participants a broader perspective of the role and practice of economic evaluation. Particular consideration was given to multi-criteria analysis that encompasses the objectives of triple-bottom line evaluation. The course introduced key features of the National Guidelines.

Insights were gained through discussion of practical issues such as:

  • the importance of the Base Case and its definition;
  • estimation of project costs;
  • differences between market, perceived and resource prices;
  • the role of generalised cost;
  • valuation of benefits;
  • the evaluation period;
  • residual values; and
  • sensitivity testing.

Participants were involved in analysing economic evaluations of several road and public transport projects that had both isolated and network effects.

Finally, the course addressed the link between transport demand models and cost-benefit studies. In particular it addressed the way in which data from the models needs to be used to correctly determine project benefits and errors that are commonly made in estimating these benefits. These errors are often very significant and sometimes can dramatically change the results of an evaluation.

Who attended:

The course was beneficial to staff of government agencies and consultants who were involved in planning and evaluation of transport projects, and for those who managed and used the results of such evaluations.

Course outcomes:

At the end of the course attendees:

  • had developed an appreciation of the role, scope and practice of economic evaluations;
  • were aware of data needs for economic evaluations of transport projects;
  • understood practical methods for evaluating road and public transport projects;
  • had gone through the economic evaluation of several demonstration projects;
  • were able to interpret the results of economic evaluations;
  • appreciated the differences between economic evaluations and other types of evaluation;
  • could recognise common errors in benefit-cost analysis; and
  • understood the role and content of the recently re-released National Guidelines with regard to economic evaluation.

Venue:

River Room, Stamford Plaza Brisbane, Corner Edward & Margaret Sts, Brisbane

Course leader:

David Bray is the principal of Economic and Policy Services Pty Ltd. He holds degrees in economics and engineering, and has 35 years of professional experience as a consultant and government employee. He has worked mostly in the transport and urban development sectors in Australia and in twenty-two other countries. He has prepared economic evaluations for a large number and wide range of transport projects for governments in Australia and for international agencies such as the World Bank and the Asian Development Bank. He contributed to preparation of the National Guidelines.

Presenters:

Philip Sayeg of Policy Appraisal Services has over 30 years of experience in transport planning and policy as a consultant and in Government. With qualifications in engineering, management and urban planning, his experience includes planning, operational analysis and evaluation of major public transport and road projects in Australia, Asia and the Pacific. He managed the Brisbane office of a national consulting company for a period of 5 years, was based in Asia for several years and returned to Australia in 1995. In addition to domestic clients, he works regularly with the World Bank and other international agencies.

Phil Charles is Professor of Transport Strategy and Director of the Centre for Transport Strategy at the University of Queensland in Brisbane. He has over 30 years experience in transport infrastructure and strategy development, institutional development and appraisal in Australia and the Asia-Pacific. He has undertaken senior management roles in NSW and WA state road agencies, as chief executive of a national association AUSTROADS and as a transport consultant with Booz Allen Hamilton.

Registration:

Registration is now closed.

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