Appraisal of Rail Projects.

This paper reviews the particular characteristics of rail investment projects, taking as a starting point four examples ranging from decisions on individual routes to national rail investment programmes. The motivation for rail investment, and the interdependence of projects are examined, before turning to the identification of base case and options and the measurement of costs and benefits. It is argued that the main problems in rail investment appraisal are not technical ones relating to measuring costs and benefits but are contextual ones relating to the interdependence between rail projects and with decisions in other sectors of the economy. For this reason it is essential that rail projects be appraised with an appropriate planning framework.