Project Summary Report 5-4565-01-S
URL: http://tti.tamu.edu/documents/5-4565-01-S .pdf
Project 5-4565-01: Implementing an Economic Model
for Public-Private Rail Projects
Authors: Craig E. Roco, Leslie E. Olson, and Leslie P. Chady
The TxDOT Public-Private Feasibility Analysis
Model: Project Summary Report
The development of intermodal rail service by What We Did…
transportation infrastructure calculating economic gains Development of a format
through public-private to the public and private for the economic model
partnerships should result in sectors as a function of began by determining
favorable economic returns public funding. the needs of TxDOT’s
for both the public and TxDOT funded Multimodal Section, which
private sectors. With the Implementation Project now plays an expanded role
Texas Legislature’s passage 5-4565-01 as an extension in transportation planning as
of HB 3588 comes the of Project 0-4565 to provide a result of state legislation
responsibility of officials an in-house economic model that permits the state to
at the Texas Department of capable of analyzing public invest public funds in
Transportation (TxDOT) to investments in railroad railroad projects. TxDOT
determine which projects infrastructure using the placed particular emphasis
will produce sufficient approach shown in Figure 1.
returns to all stakeholders
through the creation of
An economic analysis
method that facilitates the
equitable sharing of costs in
(see Figure 1) was proposed
in TxDOT Project 0-4565,
Service through Public-
Private Partnerships in
Texas.” This approach can
identify the feasibility of
cost-sharing strategies for Figure 1. Recommended Approach to the Feasibility Analysis of
Project Summary Report 5-4565-01-S –1–
on expanding the capabilities of What We Found… explain which sections of the
the model beyond the analysis Transportation infrastructure model are applicable to specific
of intermodal rail projects to projects that are candidates for project types (i.e., new toll
include other issues of interest to public-private partnerships consist roads, tolling existing roads, rail
TxDOT, such as rail relocation of the transfer of traffic from an relocations, new passenger rail,
projects and the implementation existing corridor to an alternative new passenger rail following
of passenger rail service in corridor. For example, a rail freight rail relocation, and
existing rail corridors. relocation project involves the intermodal rail service). In this
The TxDOT Public-Private transfer of rail traffic between regard, the economic model has
Feasibility Analysis Model points A and B from existing more widespread application
was developed using Microsoft track to a new rail line, as shown to TxDOT issues than the
Excel® due to the regular use of in Figure 3. Even the conversion original work in Project 0-4565.
this software within TxDOT, of an existing public road to a Also, worksheets in the Excel
and due to the capacity of toll road involves the transfer spreadsheet can be copied in
@RISK add-in decision tools to of traffic between points A and cases where the public-private
allow project risks to be included B to a new facility, though for partnership consists of more than
in the analyses. The model is a accounting purposes only, as one public or private entity.
single Excel file with worksheets shown in Figure 4.
programmed to evaluate project The economic model includes
economics for the public and a help menu, shown in Figure 5,
private sectors, as shown in with pop-up windows that
Figure 3. Rail Figure 4.
Relocation Toll Road
Figure 2. The Excel-Based Economic Model with Multiple Worksheets.
Project Summary Report 5-4565-01-S –2–
The versatility of the TxDOT
Analysis Model requires the
user of this spreadsheet to have
some experience with Excel and,
preferably, with the feasibility
analysis of transportation
projects. However, a user manual
(see Figure 6) accompanies
the economic model in order
to assist the user in modeling
public-private partnerships. This
manual contains guidelines,
definitions, and descriptions
of internal calculations that Figure 5. Help Menu Buttons by Project Type in the Economic Model.
may provide clarity on how the
model generates results. Since
this model is simply an Excel
spreadsheet, anyone experienced
with Excel can modify it so that
more specific needs of the user
can be met.
Figure 6. User Manual for the Economic Model.
Project Summary Report 5-4565-01-S –3–
For More Details...
The project resulted in an Excel-based economic model (TxDOT Product 5-4565-01-P1) and a
user manual (TxDOT Product 5-4565-01-P2).
Research Supervisor: Craig E. Roco, TTI, email@example.com, (979) 845-5817
Key Researchers: Leslie E. Olson, TTI, firstname.lastname@example.org, (979) 845-5817
Leslie P. Chady, TTI, email@example.com, (979) 845-5817
TxDOT Project Director: Ron Hagquist, firstname.lastname@example.org, (512) 416-2343
TxDOT Research Engineer: Duncan Stewart, P.E., Research and Technology Implementation
Office, email@example.com, (512) 465-7403
To obtain copies of reports, contact Nancy Pippin, Texas Transportation Institute, TTI
Communications, at (979) 458-0481 or firstname.lastname@example.org. See our online catalog at
YOUR INVOLVEMENT IS WELCOME!
This research was performed in cooperation with the Texas Department of Transportation (TxDOT)
and the U.S. Department of Transportation, Federal Highway Administration (FHWA). The contents
of this report reflect the views of the authors, who are responsible for the facts and accuracy of the
data presented herein. The contents do not necessarily reflect the official view or policies of the
FHWA or TxDOT. This report does not constitute a standard, specification, or regulation, nor is it
intended for construction, bidding, or permit purposes. Trade names were used solely for information
and not for product endorsement. The researcher in charge of this project was Craig E. Roco.
Texas Transportation Institute/TTI Communications
The Texas A&M University System
College Station, TX 77843-3135