Cost Benefit Analysis Corridor PP22

Study on the completion of the railway link Germany - Greece

The Priority Project of the EU provides a railway link between Germany and Greece. This axis is the only connection from South Eastern Europe to the heart of the EU that does not cross the territory of non-EU countries. The aim of the project is to improve the connection by setting common quality standards. This study analysed how the objectives of the TEN-T Policy can be reached and the implications of this corridor's completion.

The study answers the following:

  • What is the specific added value of future investments vs. the one already ongoing?
  • What is/are the most suitable solution(s) for the connection between Germany and the Czech Republic, given the different options supported by the two countries?
  • What is the relative effect of further upgrading the Southern part of the corridor (Arad - Athens) compared to the one generated by the development of the Northern part (Germany - Constanta)?
  • What are the main internal & external costs & benefits of the development of PP22?
  • How do the alternative PP22 development scenarios relate in terms of costs and benefits (IRR, NPV & Benefits/Costs Ratio)?
  • What are the recommended priority interventions based on the outcome of the CBA?

The main conclusion is that the "Do-Minimum scenario" is most promising. This indicates that the investments made and planned so far are well spent. The foreseen investments on the Northern branch of the corridor (Dresden - Constanta) have a positive rate of return and the already foreseen investments of the corridor PP22 should continue.

More extensive investment programmes, such as the proposed passenger HS line Dresden - Prague, the upgrading of the Munich - Prague link and the Southern branch in Romania and Bulgaria, appear not to have a positive CBA. Further studies are recommended before investing in these links.

Transport & Mobility Leuven was responsible for the regional and economic modelling part of the study.

reports

Final report

period

2011-2012

funded by

European Commission, DG for Mobility and Transport

partners

NEA, PwC, ISIS

researchers

Griet De Ceuster, Christophe Heyndrickx

contact

Griet De Ceuster

+32 16 31.77.30
reference:11.46