Using cost-benefit analysis as a method of more efficient allocation of inland waterway E40 resources
Journal Title: Biuletyn Instytutu Morskiego - Year 2016, Vol 31, Issue 1
Abstract
Currently in Poland, inland waterways shipping is playing a significant role in the transport system. However, the inland waterway transport is not involved in cargo distribution between sea ports and their hinterland, apart from some carriages in Szczecin and Świnoujście. On the other hand, the European Union, as well as international organisations indicate clear benefits, which can be generated for the economy thanks to inland waterways development.Providing that the IWW E40 is navigable and accessible, the sea ports in the catchment area of that route will gain an opportunity of delivering cargo from the hinterland by an additional and more efficient transport mode. However, it is of key importance to assess the benefits of the defined project, the E40 restoration project as well, through a cost-benefit analysis (CBA). The overall objective of CBA is to facilitate and improve the allocation of resources, by demonstrating the benefits of an E40 waterway revitalisation project. The aim of CBA is to estimate the social value of the investment, maximize the effect in monetary terms and to enable justified and wise decision making regarding the profitability of the project of the E40 revitalization.The preliminary results show that in countries along the route of the international waterway E40: Ukraine, Belarus and Poland, the inland waterways system is not generally perceived as an important element of the transport system, being below one per cent of the transport modes.Revitalisation of the inland waterway E40, apart from the measurable socioeconomic benefits and costs, will evoke costs and benefit, which cannot be expressed in numerical values, including servicing the hinterland of seaports located along the waterway by inland waterway, improving flood protection, improving the water supply of the population and business, creation of new jobs, strengthening of international cooperation, etc.The development of transport on the restored waterway should be facilitated by an appropriate pricing policy and usage fees. Prices for the use of the waterway infrastructure should take into account the benefits of other users.
Authors and Affiliations
Marcin Kalinowski, Rafał Koba, Urszula Kowalczyk
Keywords
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