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# Highway Costs - PowerPoint PPT Presentation

Highway Costs. Spring 2014. Highway Transportation Costs. HIGHWAY USER COSTS. Value of Time. Direct Crash Costs (per person). * \$7.00 per single-unit trucks, \$8.00 for combination trucks (include wage and benefits for drivers). Comprehensive Crash Costs (per person).

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## PowerPoint Slideshow about ' Highway Costs' - beulah

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### Highway Costs

Spring 2014

Value of Time

Direct Crash Costs (per person)

* \$7.00 per single-unit trucks, \$8.00 for combination trucks (include wage and benefits for drivers)

http://www.nsc.org/news_resources/injury_and_death_statistics/Pages/EstimatingtheCostsofUnintentionalInjuries.aspx

Unit highway user cost:

Where,

HU = Highway user costs in dollars per 1,000 vehicles

B = basic section costs (travel time, vehicle running costs

as a function of highway geometric characteristics)

A = Crash costs

L = length of section

T = Transition section costs due to change in speed between adjacent sections

D = additional costs caused by delay at intersections

User Benefits (between two alternatives):

Induced and Diverted Traffic (may need to take average traffic volumes between alternatives):

Where,

U0= user cost per unit of traffic without the improvement

U1 = user cost per unit of traffic with the improvement

V0 = traffic volume without the improvement

V1 = traffic volume with the improvement

Wright & Dixon (2004) Figure 4-1

Wright & Dixon (2004) Figure 4-2

Wright & Dixon (2004) Figure 4-3

Wright & Dixon (2004) Figure 4-4

Present Value of some future single payment:

Present Value of a series of uniform annual end payment:

Present Value Factor when user benefits change from year to year:

r = average growth rate, = future annual value estimate/first year value,

Y = number of years between estimates

Where,

PV = Present value

ΔU = user benefits, the reductions in highway costs

ΔM = increase in annual maintenance, operating and administrative cost due to investment

ΔR = increase in residual value due to the project at the end of the project life

ΔI = increase in investment costs due to the project

A highway agency is considering eliminating an S-Sharp curve on a multilane highway. The total construction cost for the improvement is estimated to be \$2 million and will be incurred at the inception of the project. Annual maintenance costs are anticipated to be \$2,000 less after the improvement because the elimination of the curve reduces pavement and guardrail damage.

The characteristics of the proposed alternatives:

• Two curves have same geometry: can be analyzed together

• There is no speed differential for passing one curve to the other

• The design speed increases from 50 mph to 60 mph for the alternative design (#1)

• One-way hourly volume is equal to the ADT divided by 18 (the number of hours used for the analysis)

• The capacity is reduced in year 20 to reflect normal deterioration of the roadway

3

27.8

71

20

B = 3 + 71 + 20 + (27.8 x \$3/hour) = \$177.4

Assuming a 25-year analysis period and a 4-percent discount rate, the present value of benefits is then PWg x first year of project:

18.7 x \$172,827 = \$3,231,865

For two-way traffic:

2 x \$3.231,865 = \$6,463,730

Note:

NET PRESENT VALUE OF PROJECT

NPV = \$6,463,730 – \$1,718,198

NPV = \$4,745,532

BENEFIT-COST RATIO

B/C = \$6,463,730 / \$1,718,19

NPV = 3.62 > 1

Wright & Dixon (2004) Table 4-9

Wright & Dixon (2004) Table 4-10

Wright & Dixon (2004) Example 4-6

Some useful websites:

http://www.fao.org/docrep/T0579E/t0579e06.htm

http://www.dot.state.tx.us/insdtdot/orgchart/cmd/cserve

/bidprice/s_0101.htm

http://www.bookmarki.com/index.asp?PageAction

=VIEWPROD&ProdID=45