Transportation Supply and User Costs

CE 451/551

Principal source for this lecture: Transportation Costs & Benefits

Resources for Measuring Transportation Costs and Benefits~~~~~~~~~~~~~~

TDM EncyclopediaVictoria Transport Policy Institute

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Transportation costs can be thought of as …

• Internal or External (Distribution)

• Variable or Fixed

• Market or Non-Market

• Perceived or Actual

• Price

source: http://www.vtpi.org/tdm/tdm66.htm:

What does transportation cost?

• Transportation expenditures regularly account for nearly 11 percent of the U.S. Gross Domestic Product.

• This ranks 4th among expenditure by social function, trailing only housing, health care, and food.

Costs transportation planners must consider include:

• Capital costs– Vehicles– Land– Guide way/highway

• Planning/Design costs• Maintenance & Operations

– Labor – Liabilities/Casualties – Vehicle/Travel Costs

Costs vary by country/region

• Example: – 2006 ACC Overlay, Mapleton, Iowa– ~10,000 sq. yds (~0.5 miles of city street) of

2” ACC overlay for ~$90,000

• Bid Express, Online bidding exchange – Awarded Contract Prices (English Projects)

Iowa DOT

• Overall program costs are also helpful numbers to know. • STIP: Statewide Transportation Improvement Program• See the

DRAFT 2008-2011 Statewide Transportation Improvement Program (STIP)

• In 2006, Iowa transportation funding TOTAL = $1.3B ($785 million to Iowa DOT)

• Of the total, $16 million went to non-highway modes (does not include local aviation funding)

• Of course, this is only the DOT investment. The other modes are chiefly private or local. Within the 5-year plan, individual projects are described and programmed costs are given.

Example page from a STIP, costs in $1000‘s

Network (highway) Costs

• Road construction costs – grading and paving, not including planning

and land costs) – $250,000 per lane-mile in “easy” conditions – up to $2,500,000 per lane-mile in “difficult”

conditions

• Intersections – Rural $2,000,000 to $4,000,000– Urban $10,000,000 to $15,000,000

WIS 107 project

WIS 107 is a north/south connector for commerce, goods, tourists and travelers to WIS 153 and WIS 29 in Marathon County. WIS 107 serves the heart of the village of Marathon and local residents, businesses and manufacturers as Main Street.

This project represents a $2.3 million investment in North Central Wisconsin's transportation system.

WIS 107 is currently under construction from County B to the Rib River Bridge. Improvements include new storm sewer, pavement, curb and gutter, sidewalk and overhead lighting. Additional features will be constructed to ensure safe travel for pedestrians.

62nd Street and Cooper Road Drainage ImprovementsEstimated Project Cost: $527,000Project Background: The proposed project will entail completing drainage improvements in the area of 62nd Street and Cooper Road. The storm system will enclose Guion Creek with a low flow system to minimize the road hazard.

Roadway Safety Improvement for City of Sioux Falls constructed by the South Dakota Department of Transportation

1.9 miles of Interstate 29 in an urban location

Type of Improvement:Reconstruct Interchange, Grading, Replace structures on interchange and continuous

reinforced concrete mainline.

Cost of Improvement:$1,787,000

Source: http://www.siouxfalls.org/upload/documents/planning/mpo/tip_2006_2010.pdf

Porject name:El Dorado County Road Rehabilitation

Project Description:    US 50 at El Dorado Hills Boulevard: construct channelizationimprovements to    the   westbound on and off ramps and improvements to El Dorado Hills    Boulevard underneath US 50. This project is one piece of the overall    interchange  project listed under ELD15630.

Project cost:$1,808,000

Completion year; 2006

link:http://www.sacog.org/mtp/pdf/2006%20MTP%20Project%20List.pdf

Theproject plans to replace Kechkes Road Bridge over the Fenton River inConnecticut in 2007. The bridge serves approximately 50~75 vehicles per dayduring peak months, with a maximum span of about 22 feet. The total estimatedproject cost is $918,658. The estimated construction cost, is $ 656,184, whichtakes account for 71 % of total cost. The following link is the preliminaryapplication for the project, which helps to give basic background informationand a list of construction item cost. Thank you.

http://www.ct.gov/dot/lib/dot/documents/dbridgepubs/BR05531.pdf

KDOT Project No.K-7418-01PROJECT DETAILSScheduled for Calendar Year2005LocationK-99, Elk County, Southeast KS0.12 miles north RS 229, north to Elk-Greenwood county line.Work TypeGrade & SurfacingScope of WorkReconstruct roadway on offset alignment (40 ft. roadway 3 ft. bituminous/5 ft. asphalt shoulder), signage.Project Length8.9 MilesProject CategoriesCategory: Major ModificationSubcategory: Non-Interstate Roadway Improvements KDOT Project No. K-7418-01 PROJECT COSTSProject costs are estimated. Actual expenditures and final costs may vary from those shown and are subject to change without notice as the project progresses.Estimated Construction Cost$12,316,258.58Estimated Total Project CostIncludes one or more of the following estimated costs, depending on a project's description: designing the project, moving utilities, purchasing right-of-way (if any is needed), construction, and inspection during construction. The project displayed here may not be funded for all of these estimated costs.$15,810,137.22 PROJECT FUNDINGProject funding percentages are approximate. Final funding distribution may vary from that shown and is subject to change without notice as the project progresses. Fed Funds80%State Funds20%

MOUNT BOLU TUNNEL PROJECT

Construction Period

14 years (1993-2007, due to two floods and two earthquakes during construction)

4 Viaducts 4.6 km

3 Bridges 900 m

2 Tunnels 2,954 m and 2,788 m

Excavation 9.7 million m3

Filling 7.7 million m3

Concrete used 1.3 million m3

Steel bars used 177,000 tons

Pile construction 65,000 m

Total length 25.5 km (2x3 lanes)

Total cost $ 800,000,000 (taxes excluded)

Source 1 , Source 2 , Satellite , 1 mile = ~ 1.6 km ,

Route 21(McCarter Highway)/NCSE (Newark City Subway Extension)  Project 

$327 million for: 

Crosswalks at all intersections along the length of Route 21Sidewalks on both sides of Route 21

3 through lanes constructed and auxiliary turning lanes at most signalized intersectionsOne mile, five station light rail extension of the Newark City Subway system. 

  

http://www.state.nj.us/transportation/commuter/roads/route21/ 

Rowe Construction Co. will be constructing approximately .7 miles of road.  The bid is at $511,242.10.  The road is new construction in

Normal Illinois, extending Shepard Rd.  The Road will join the Eagle's Landing subdivision to Hershey Rd, a local Eastside arterial.

http://www.normal.org/Gov/Council/AM/Agenda2007_09_04.asp

Urban Reconstruction: Brookings, SD

1 mile of grading, PCC pavement, curb and gutter, storm sewer, sanitary sewer,watermain, signals and lighting, and pavement marking.

The project included removal of existing pavement, c&g, and sidewalks to widenthe 4 lane facility.  All utilities were removed and replaced and 9.5” ofnonreinforced PCC pavement was placed.

Bid Awarded: $4,983,486.78

Source: SD DOT bid letting website.        http://apps.sd.gov/applications/HC65C2C/EBS/lettings/02082006abstract.pdfhttp://apps.sd.gov/applications/hc65c2c/BidLettingNET/ebslettings.aspx

Near the Twin Cities, approximately eight miles of highway were reconstructed as well as adding a third lane in each direction.  This project also included the replacement of 13 bridges which gave a total cost to the project of $135,600,000.  The website for information on this project is: http://www.graniteconstruction.com/about-us/hcd-project-detail.cfm?LocationID=301&ProjectType=Design-Build,Highway

Another project included designing two miles of new gravity sewer line.  The pipes range from 18-inch to 42-inch for this line.  The estimated total project cost is $25,000,000 which includes collection, CEQA/NEPA, and CAP/Budget.  More details on this project can be found at: http://www.shn-engr.com/projects/proj_civil.html

Tacoma Narrows Bridge Project

This project involved building a new 2.4 mile suspension bridge andretrofitting the old bridge over the Tacoma Narrows in Washington state.  Theproject started in 2002 with new bridge completion this past July. Retrofitting of the old 1950's bridge will be complete in 2008.

Cost for this bridge, according to the Fact Sheet link below, was $849million.

Fact Sheet: http://www.wsdot.wa.gov/projects/sr16narrowsbridge/factsheet/

The cost was covered mainly with bond proceeds ($800 million), which will bepaid back with toll charges on the bridge. 

http://www.wsdot.wa.gov/projects/sr16narrowsbridge/financing/capitalfunds/

Project Home Page: http://www.wsdot.wa.gov/projects/sr16narrowsbridge/

The 235 reconstruction in Des Moines cost over $400,000,000 for ~14 miles.

The Des Moines MPO estimates that highway and street improvements in the metro area between 2005 and 2030 will cost nearly two billion dollars (Year 2030 Long-Range Transportation Plan).

Some useful formulas

• Price inflation using CPI (Consumer Price Index)... – Cost (year predicted) = Cost (past year) * CPI (year predicted) /

CPI (past year) • If CPI (2006) = 200 and CPI(1976) = 57 and cost (1976) = $2.3M ...• Then cost(2006) = $2.3M * 200 / 57 ==> $8M

• Compound Growth Rate ... – R = 100([CPI2006/CPI1976]1/(2006-1976) - 1) =

100([200/57]1/30 - 1) = 4.27%

• To project to year 2036, assuming same growth rate (from above)... – $8M {1.0427(2036-2006} = $28M

• Can you think of an easier way to do this?

Transportation User Costs

After housing (32.6%), transportation (18.9%) accounts for the largest single household expenditure. Of the 18.9% transportation expenditures, the largest expenditures is vehicle purchases (47.1%). Other transportation expenditures which includes maintenance and insurance, is the second largest transportation expenditure (38%), followed by the purchase of gasoline and oil. Source: http://www.fhwa.dot.gov/ohim/onh00/onh2p1.htm (year 2000)

Value of Travel Time Savings

COST OF ACCIDENTS (CRASHES)

• Annually, about 42,000 Deaths / 300M People = One in 7100 • For ISU ... 26,000 / 7100 ~ 4 Students deaths per year (low or high?

– why?) • For Ames ... 50,000 / 7100 ~ 7 deaths per year • Your Family/Friends/Relatives ... 100 / 7100 = One Death Every 71

Years (your lifetime) • Your Acquaintances ... (1000+) = A Death Every Seven Years • Total cost at 6 cents per mile ($180B per year), …• 0.06 x 12,000mpy = $720 per Year

• 3 trillion miles driven per year, in the US (http://www.fhwa.dot.gov/policy/ohim/hs04/index.htm) and 178B gallons of fuel (17mpg)

Compare Crash Rates by Facility Types (2004)

• Rural Local Roads: 4100 fatalities, 132B miles driven, rate = 3.1/HMVMT

• Rural Interstate: 3100 fatalities, 267B miles driven, rate = 1.2/HMVMT

Other User Costs

• Transit Fares

• Transit “Other” (time, inconvenience, ...)

• Reliability is a Cost (difficult to estimate) ...

Would you rather have 12 minutes with 1 minute variability or 10 minutes at 5 minute variability???

Non-user Costs

Defense costs?

• Greene and Tishchishyna (2000) estimate that oil market upheavals of the last 30 years have cost the U.S. economy $7 trillion (net present value) in reduced output, with a range of $3.5 to $14.6 trillion. These estimates do not include military, strategic or political costs associated with U.S. and world dependence on oil imports.

• An extensive review of economic and political issues concludes that, “if U.S. motor vehicles did not use petroleum, the U.S. would reduce its defense expenditures in the long run by roughly $1 to 10 billion per year.” (Delucchi and Murphy, 1996). A major study by the National Research Council (NRC, 2001) estimates that these externalities average about 30¢ per gallon of gasoline.