Short Course on Economic Evaluation of Public Transport Infrastructure
on organising the preconference short course by David Bray. It was an
Bureau of Transport Economics, Australia
you and my compliments to David Bray for his insightful course."
:: Tuesday 17 October 2000
conjunction with the Smart Urban Transport conference
:: 9:00am 5:30pm
:: Hilton Brisbane, 190 Elizabeth Street, Brisbane Australia
course may be re-run in 2001. If people are interested please contact
Professor Phil Charles.
The course introduced the subject of economic evaluation of transport
infrastructure projects in general, and public transport projects in particular.
It was of interest to managers who need to understand the intent, practice
and interpretation of such evaluations, and to transport professionals
who are involved in undertaking evaluations.
The course outlined principles that underlie economic evaluations, and
the framework for the economic evaluation of transport infrastructure
proposals, concentrating on public transport projects, so that participants
understood the context, objectives, approach and use of economic evaluation.
Practical experience was gained through the economic evaluation of several
public transport projects, including a bus interchange and a busway project.
Brief consideration was also given to the economic evaluation of other
transport projects, and to other types of evaluation, to give participants
a broader perspective of the role and practice of economic evaluation.
At the end of the course, participants:
¤ had an appreciation of the role,
scope and practice of economic evaluations;
¤ understood the data needs of an
economic evaluation of public transport projects;
¤ knew the method for evaluating public
transport infrastructure projects;
¤ had completed an evaluation of a
¤ were able to interpret the results
of economic evaluations; and
¤ appreciated differences between
economic evaluations and other types of evaluation.
David Bray is the principal of Economic and Policy Services Pty Ltd.
He holds degrees in economics and engineering, and has 27 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 eighteen
other countries. David has prepared economic evaluations for a wide range
of public transport and road projects for Governments in Australia and
international agencies such as the World Bank and Asian Development Bank.
Session 1. Introduction and Economic Principles
Objectives of the course; structure of an economic evaluation; economic
principles that are relevant to the economic evaluation of projects
the role of markets, community welfare, opportunity cost, time preference
rate, financial and economic values; base case and project case.
Session 2. Transport Demand
What transport demand information that is needed; current demand;
latent demand; future demand
10:40 11:00 Morning break
Session 3. Transport Costs
Infrastructure costs; road transport costs; public transport costs;
financial and economic costs.
Session 4. Project Benefits
Identifying the effects of a project; estimating the gains and losses
that are incurred by government, operators, users and others; valuing
gains and losses
12:30 1:30 Lunch
Session 5. Project Evaluation
Elements of an economic evaluation; evaluation period; determining
costs and benefits; discounting; output parameters - benefit-cost
ratio, internal rate of return, present value; sensitivity tests;
brief overview of other types of evaluation - financial evaluation,
financial statements, multi-criteria evaluation.
2:30 2:45 Afternoon break
Session 6. Economic Evaluation Case Studies
Illustration of economic evaluations of a bus interchange and a busway
project; speaker on Queensland and national evaluation practice.