The objective of this project was to evaluate the socioeconomic profitability of passenger transport related railroad infrastructure reconstruction.
The analysis was based on the methodology proposed by European Union for assessing costs and benefits of large infrastructure projects. All together three alternative scenarios were used.
Financial analysis from point of view of Eesti Raudtee’s infrastructure enterprise showed that the project is not financially cost-beneficial. The net present value of the investments was negative in both scenarios. On the other hand, the socioeconomic net present value of the project was positive for both investment scenarios. Both the financial and socioeconomic analysis showed that the full-length renovation expenses for the waiting platforms exceed expected gains and that opting for shorter platforms is more beneficial.
According to the transportation infrastructure investment plan the entire cost of the investment was 129 million kroons. The results allowed financing the investment from the Cohesion Fund.
The analysis was commissioned by ASI Consult OÜ, the end-user of the analysis was AS Eesti Raudtee.