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Chapter 2
Transport
Planning
 Transport Planning
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 Planning:- Is the determination of future course of action to achieve desired goals.

 Transport planning- is planning and realization of strategies to supply the requirement of

transport services to meet the transport demand

 The system now in place is the product of many individual decisions to select projects for

construction or improvement, such as bridges, highways, tunnels, harbors, railway

stations, and airport runways
 It should be a rational one that serves to furnish unbiased information about the efects

that the proposed transportation project will have on the afected community and on users
 The process must be lexible enough to be applicable to any transportation project or

system .

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Cont’d….
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 Transport projects are normally justified for the improvements in;-

 Traffic flow and safety
 Savings in energy consumption and travel time
 Economic growth,
 Increased accessibility, etc

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Cont’d….
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 Transport planning have benefits to the society including:

 Reduced travel time
 Reduced length of a trip
 Reduced travel costs
 Reduced accidents
 Reduced pollution

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 Elements of Transportation Planning
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 The element of transportation planning consist of:-

Planning of Transport Systems/physical planning
Financing

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 Elements of Transportation Planning
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I. Planning of Transport Systems/physical planning

 The preparation of a structural plan for the area of which the

authority (metropolitan or local/regional) has jurisdiction

 The structural plan should contain land use policies and proposals for

road and rail network and to related services; e.g. rail terminals,
public transport interchange facilities, docks and airports

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II . Financing
 Transport was traditionally regarded as a public goods.

 Transport infrastructure cost paid by public authorities

 Financial structure is tough depending on the type of infrastructure

and the administrative/political/geographical level in scope

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 Transportation planning process
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 The transportation planning process comprises 7 basic elements to guide the

planning elements:-
 Situation deinition
 Problem deinition
 Search for solutions
 Analysis of performance
 Evaluation of alternatives
 Choice of project
 Speciication and construction

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Transportation Planning Process
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Figure: Elements in the Transportation Planning

Process Applied to Consider the feasibility of a
New Bridge

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 Transportation planning process
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I. Situation Deinition
 It involves all of the activities required to understand the situation that gave rise to the
perceived need for a transportation improvement
 In this phase,
 The basic factors that created the present situation are described, and the scope of the
system to be studied is delineated.
 The present system is analyzed and its characteristics are described.
 Information about the surrounding area, its people, and their travel habits may be
obtained.
 Previous reports and studies that may be relevant to the present situation are reviewed
and summarized.
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II. Problem Deinition

 Its purpose is to describe the problem in terms of the objective

 Objectives are statements of purpose, such as to reduce trafic

congestion; to improve safety; to maximize net highway-user beneits;

and to reduce noise.

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III. Search for Solutions

 It is idea-generating phase (brainstorming stage) in which many

options may be proposed for later testing and evaluation

 It also includes preliminary feasibility studies, which might narrow

the range of choices

 Some data gathering, ield testing, and cost estimating may be

necessary at this stage to determine the practicality and inancial

feasibility of the alternatives being proposed

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IV. Analysis of Performance

 Its purpose is to estimate how each of the proposed alternatives would
perform under present and future conditions
 The criteria identiied in the previous steps are calculated for each
transportation option
 Investment cost of the transportation project, as well as annual costs for
maintenance and operation are included in this step
 Data included are
 The number of persons or vehicles that will use the system

 The use of the system (such as trip length, travel by time of day, and
vehicle occupancy)
 Environmental efects of the transportation project (such as noise and air
pollution levels and acres of land required)
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V. Evaluation of Alternatives
 Its purpose is to determine how well each alternative will achieve the
objectives of the project as deined by the criteria.
 The beneits and costs are computed from performance data that will
result if the project is selected.
 A positive beneit-cost ratio are needed for further step

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VI. Choice of Project

 It is made after considering all the factors involved

 The chosen project would be the one with the lowest cost

 If the project involves the community, it may be necessary to hold

additional public hearings (A bond issue or referendum may be

required)
 It is possible that none of the alternatives will meet the criteria or

standards, and additional investigations will be necessary

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VII. Speciication and Construction

 Once the transportation project has been selected, the project moves

into a detailed design phase in which each of the components of the

facility is speciied
 For a transportation facility, this involves its physical location,
geometric dimensions, and structural coniguration
 The cost of building the project are estimated based on the design

 Construction irm is selected

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 Evaluating Transport Alternatives
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 Objective --to provide an appropriate information about the outcome

of each alternative so that a selection can be made

 An essential input in the process is to know what information will be

important in making a project selection

Selecting and Measuring Evaluation Criteria
 They should be easy to measure and sensitive to changes made in

each alternative
 It is advisable to limit the number of criteria

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Criteria for Evaluating Transportation Alternatives are:
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 Capital costs
 Construction
 Right of way
 Vehicles
 Maintenance costs
 Travel time
 Total hours and cost of system travel
 Average door-to-door speed
 Distribution of door-to-door speeds

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 Vehicle operating costs

 Facility operating costs
 Safety
 Social & environmental costs
 Noise
 Visual quality
 Community cohesion
 Air and water quality

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Evaluation Based on Economic Criteria

 It requires the measure of efectiveness that can be converted into
monetary units.
 The total costs of each alternative are user and facility costs, and then
 the project with the lowest total cost is selected
 It is completed beneit-cost ratio (BCR)
A. Cost of a transportation facility
 First cost or capital cost (engineering design, right of way, and
construction)
 Continuing costs (maintenance, operation, and administration)

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B. User costs
 costs for vehicle operation, travel time costs, and costs of accidents

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 An economic evaluation of a transportation project is completed using most

commonly one of the following methods:
i. Present worth (PW),
ii. Equivalent uniform annual cost (EUAC),
iii. Benefit-cost ratio (BCR), or
iv. Internal rate of return (IRR).

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i. Present Worth
The most straightforward of the economic evaluation methods is the present worth, (PW)
since it represents the current value of all the costs that will be incurred over the lifetime of
the project.

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ii. Equivalent Uniform Annual Worth

The conversion of a given cash flow to a series of equal annual amounts is referred to as the
equivalent uniform annual worth (EUAW). If the uniform amounts are considered to occur at
the end of the interest period

Where
EUAW = equivalent uniform annual worth
NPW = net present worth
i = interest rate, expressed as a decimal
N =number of years
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iii. Benefit–Cost Ratio

The ratio of the present worth of net project benefits and net project costs is called the
benefit–cost ratio (BCR). This method is used in situations where it is desired to show the
extent to which an investment in a transportation project will result in a benefit to the
investor..

Where
B2/1 = reduction in user and operation costs between higher-cost Alternative 2 and lower-
cost Alternative 1, expressed as PW or EUAW
C2/1 = increase in facility costs, expressed as PW or EUAW
If the BCR is 1 or greater, then the higher cost alternative is economically attractive. If the
BCR is less than 1, this alternative is discarded.
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iv. Internal Rate-of-Return

The interest rate at which the PW of reductions in user and operation costs equals the PW
of increases in facility costs is the rate of return. If the ROR exceeds the interest rate
(referred to as minimum attractive rate of return), the higher cost project is retained. If the
ROR is less than the interest rate, the higher-priced project is eliminated.

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Example :Illustration of Economic Analysis Methods

The Department of Traffic is considering three improvement plans for a heavily
traveled intersection within the city. The intersection improvement is expected to
achieve three goals: improve travel speeds, increase safety, and reduce operating
expenses for motorists. The annual dollar value of savings compared with
existing conditions for each criterion as well as additional construction and
maintenance costs is shown in Table . If the economic life of the road is
considered to be

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Table Cost and Benefits for Improvement Plans with Respect to Existing Conditions

50 years and the interest rate is 3%, which alternative should be selected? Solve the
problem using the four methods for economic analysis.

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Solution:
Solve by NPW method .

The project with the highest NPW is alternative II.

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Solve by EUAW method.

Note: (A/P-- 3 -- 50) =1/25.729 =0.03887

The project with the highest EUAW is Alternative II

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Solve by BCR method.

We reach the same conclusion as previously, which is to select Alternative II.

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Solve by ROR method.

In this situation, we solve for the value of interest rate for which NPW = 0.
Step 1. Compute ROR for Alternative I versus DN. (Recall that all values are with respect to
existing conditions.)
NPW = 0 = -185,000 + (-1500 + 5000 + 3000 + 500) * (P/A – i—50)
(P/A – i—50) = 185,000/7000
(P/A – i—50) = 26.428
i= 2.8%
Since the ROR is lower than 3% we discard Alternative I.
Step 2. Compute ROR for Alternative II versus DN.
NPW = 0 = -220,000 + (-2500 + 5000 + 6500 + 500) * (P/A – i—50)
(P/A – i—50) = 220,000/9500
(P/A – i—50) = 23.158
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i = 3.6%
Since ROR is greater than 3%, select Alternative II over DN.
Step 3. Compute ROR for Alternative III versus Alternative II.
NPW= 0 = - (310,000 - 220,000) + (12,800 – 9500) (P/A – i—50)
(P/A – i—50) = 27.273
i = 2.7%
Since the increased investment in Alternative III yields an ROR less than
3%, we do not select it but again pick Alternative II.

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Evaluation Based on Multiple Criteria

Many problems associated with economic methods limit their usefulness. Among these are:
Converting criteria directly into monetary values
Choosing the appropriate value of interest rate and service life, which can influence the
result
Distinguishing between the user groups that benefit from a project and those who pay
Failing to distinguish between user and other groups who benefit and those who lose by the
project
Including all costs
For these reasons, economic evaluation methods should be used either in
narrowly focused projects or as one of many inputs in larger projects.

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This evaluation method seeks to include measurable criteria that are not translated just in
monetary terms in addition to economic evaluation method
Numerical ranking methods, one of multiple criteria method, require that each measure of
effectiveness be translated to an equivalent score rather than monetary unit

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Environmental Impact Assessment

A systematic evaluation of negative and positive impacts irrespective of whether the impacts
are monetised or not

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Thank you