Public transport programme benefit cost appraisal

Introduction

Cost-effectiveness and performance comparisons are used to evaluate the benefit cost appraisal for public transport programmes.

The benefit and cost appraisal determination for public transport programmes can be determined using the factors as described below.

Benefit and cost appraisal for public transport programmes

The primary benefit and cost appraisal for a public transport programme is undertaken by using the public transport programme appraisal template.  It allows the ability to assess public transport programmes on key performance indicators:

• benefit efficiency ratio
• farebox recovery ratio
• cost per service km, and
• service utilisation. 

This assessment is across a forward programme and in comparison to the existing programme and service levels provided. 

The template assists in determining if the proposed service programme will rank low, medium or high, with the default being low.   Both cost effectiveness and comparative benchmarking Benchmarking is undertaken when the NZTA makes comparisons against similar regions and the national average. A lack of information supporting differences from regional and national averages may result in changes to the efficiency rating for public transport or maintenance programme or a requirement for a study as a condition of investment approval. Trends in these measures over time are used rather than just annual values. should also form part of this assessment of public transport programmes. 

Any service variations and new services with a higher annualised cost (across a programme) must be separated from the public transport programme and be assessed as improvements (where a benefit cost ratio is required, refer to benefit cost ratio section above),   The impact of the improvements on the programme as a whole may also be assessed to ensure optimisation is being achieved (via applying the public transport programme appraisal template).

Public transport programme appraisal template

The public transport programme appraisal template can be used to support the evaluation.

Note that this Excel spreadsheet contains macros which must be enabled in order to use the template.