CargoCap – Economic Feasibility

Michael Kersting, RUFIS Germany

Paul Klemmer, RUFIS Germany

In Germany the discussion of financing traffic infrastructure is increasingly dominated by the aspects of private provision and operation of traffic systems. In the context of this discussion the major question for the CargoCap system is whether the expected returns from the transportation services are sufficient to make an investment profitable.

The CargoCap system was designed for the transportation of selected goods in congested areas. It will secure the accessibility of these regions for merchandise traffic in spite of a prospective increase in road traffic and, consequently, in road congestion. Therefore, the economic feasibility study focuses on the needs of manufacturing, trade, and logistics. The integration of the regional CargoCap system into the long-distance traffic infrastructure is provided for.

The calculation of private investment indicates that even the basic line under consideration could be run profitably. The calculation takes into account expected traffic volume, estimated on the basis of available data on road haulage, and the present level of fees. If, additionally, the higher reliability of transportation and the increasing revenues after an expansion of the network are taken into consideration a steadily growing traffic network can be expected.

High investment costs and major capital expenditure could, however, prove to be problematic. Therefore, public funding will be necessary to finance the first sections of the line. Possible relief of local traffic infrastructure, reduction of the environmental externalities of road traffic, and the possibility of obtaining income by exporting this traffic system to other congested areas are important arguments for such a public funding.