Guide to Quantifying the Economic Impacts of Federal Investments in Large-Scale Freight Transportation Projects

This guidebook is intended for use by Federal, state, or local officials interested in systematically assessing the benefits and impacts of large-scale freight system investments. It lays out a general framework as a series of consistent steps that should be carried out to conduct economic benefit and impact analysis for any proposed project. It is designed first and foremost to ensure full consistency regardless of the combination of railroad, marine, aviation, or road transportation modes being affected. It is also designed to provide full transparency in the calculation of economic costs and benefits. The guide is organized into four parts: 1. Part 1 (Chapters 1 to 2) describes the general approach by defining the types of projects, information needs and results addressed by the analysis framework. The first chapter summarizes these factors, while the second chapter lays out the basic series of steps involved. 2. Part 2 (Chapters 3 to 7) walks users through each of the five steps involved in classifying the project, defining evaluation issues, applying transportation analysis methods, applying economic analysis methods, and applying decision methods. At each step, there are options for more or less detailed methods to be used, depending on the nature of the project. 3. Part 3 (Chapter 8) provides users with a case study that illustrates the nature of large-scale freight transportation projects in the real world and the challenges involved in evaluating their economic impacts. Appendix B includes additional case studies that illustrate transportation impact analysis and economic analysis techniques that will be useful in evaluating future projects (however, these case studies do not follow the framework laid out in this guidebook in its entirety). 4. Part 4 (Chapters 9 to 10) describes analysis forms and tools that can be applied in carrying out the five steps. 5. Appendices provide an analysis of how freight infrastructure investments impact supply chain practices and costs.