2. QUESTION:
Role ofTransport Economist:
• Selection of system
• Costing, pricing and cost recovery mechanism
• Capital or fund generation
• Demand and Supply
• Connectivity, subsidies and welfare
• Socio-Economic development and environment
• Technology
• Estimation and forecasting
• Legal framework, rules and regulation policy
• Project formulation, execution and evaluation
• Economic growth
• Management and HRD
• Project in charge
3. 1. SELECTION OF SYSTEM:
1
ROLE OFTRANSPORT ECONOMIST
Role of transport economist is important for selection of system by selection of system which will fulfill the demand with
minimization of damage and will provide economic , social benefit.
Transport Economist choose transport system on the basis of various aspect such as area, cost benefit, utilization of system
(demand), life cycle of system, Pollution level of selected system, demography and physiography of city etc.
COMPARISONOF GOOD AND BAD SELECTIONOF SYSTEM
BRTS, Ahmedabad BRTS, Delhi
2. COSTING, PRICING AND COST RECOVERY MECHANISM:
Example: BRTS, Ahmedabad
Role of transport economist is important for costing, pricing and cost recovery mechanism after selection of transport system by
analyze fixed cost, variable cost and hidden cost to know whether selected system enhancing the economy of city or to
enhancing the economy of how much cost should apply for ticket or how much concession should given by comparing other tax
of government as well as need to analyze maintenance cost and supporting advertisement for the recovery of money. Transport
economist check cost recovery of money at various stages of project.
Transport economist also analyze phycology and sociology of people before providing transport service for the cost recovery.
Example: to minimize the cost of project Transport Planner has not proposed low Flore buses, Planner has proposed the bus
stop platform at the same level of bus Flore as bus costing was almost same.
4. 3. CAPITAL OR FUND GENERATION:
2
ROLE OFTRANSPORT ECONOMIST
Example:
Role of transport economist choose capital or fund generation such as source of capital cost, and method of project
implementation such as PPP, BOT, EPC to make project economically feasible.
Example: India Getting loan from Japan in low rate of interest to develop transport system
4. Demand and Supply :
Role as Transport Economist in Demand and supply is important because Transport demand comes when a settlement start
developing as transport a drive demand not a regular demand and before proposing a transport system transport economist
choose capacity of requirement.
Example: Bharthana
Example: There is single route government bus services available for nearest city which is 20km away from the town by twice a
day, private bus services has started after analyzing increase of demand of required services.
5. Connectivity, subsidies and welfare:
Role of transport economist in terms of connectivity, subsidies and welfare is important to provide connectivity even in remote
areas and promote services by providing subsidies and connectivity of remote area promote education improvement and
economic development.
5. 6. SOCIO-ECONOMIC DEVELOPMENT AND ENVIRONMENT:
3
ROLE OFTRANSPORT ECONOMIST
Role of transport economist to develop socio-economic development and environment is important by providing connectivity
will promote migration due to time saving and cost efficient. Transport economist promote transportation without damaging
environment.
7.TECHNOLOGY:
Role of transport economist is important by promoting new technology by taking care of economic and social feasibility which
will improve efficiency, productivity and revenue.
Example: Delhi Metro
Delhi metro is promoting driverless metro as well with driver metro as per feasibility.
8. ESTIMATION AND FORECASTING:
Role of transport economist is important by monitoring recovery from different stages of projects, transport economist monitor
the maximum capacity utilization or loss of project. Transport economist also estimate the life of project. Transport economist
estimate life of project and capacity of system utilization for recovery of cost and benefit.
9. LEGAL FRAMEWORK, RULES AND REGULATION POLICY:
Role of transport economist before proposing any transport system need to check legal framework or policy of that area to make
a successful transport system and also need to law or rules which may help to propose penalty norms and standard.
6. 10. PROJECT FORMULATION, EXECUTION AND EVALUATION:
4
ROLE OFTRANSPORT ECONOMIST
• Role of transport economist is to know how to project formulation, evaluation to promote economic and social benefit of
project.
• Analysis of performance of project by knowing parameter of performance.
• Projection of unexpected cost for the execution of project.
• Validation of forecast and sensitivity analysis.
11. ECONOMIC GROWTH:
Proposing transport system or facility by reducing cost of project such proposing missing link road is cheaper than proving new
road for any area.
12. MANAGEMENT AND HRD:
Choosing of management is important to make project feasible such as Delhi metro has develop their own management such as
regular training and also provided benefit to employees, choose man power and technology by taking care of economic and time
management. .
13. PROJECT IN CHARGE:
Transport economist as project in charge has to develop capability manage replacement of project by taking care of life of
project.
7. 5
Aspect Status
Selection of system During the 1990s, Bogota’s population
increased rapidly, he public transport system
was in decline and not able to cope with the
increase in users.
proposed a plan for a Bus Rapid Transit system, the
TransMilenio, that would improve the efficiency and
safety of public passenger transport services by
providing access to the urban poor, enhance private
sector involvement in service provision, reduce air
pollution and greenhouse gas emissions and lay the
foundation for a comprehensive urban development
process for the city
Sources for city
budget
rom taxes, fees, fines, operating revenues.
COSTING, PRICING
AND COST
RECOVERY
MECHANISM
he total cost of Phase 1 was US $240 million, funded by a local 46% fuel surcharge, general local revenues,
grants from the National Government (20%), and a loan from the World Bank (6%).
The total cost of Phase 2 was US $545 million, with 66% financed by the national government.
CASE STUDY: JUSTIFICATION ROLE OFTRANSPORT ECONOMIST
BRTS BOGOTA
