Value of time for freight - VTTV and modal shift

Purpose and goal

The purpose was to enable cost-benefit analyses of robustness and punctuality for freight traffic and calculation of the socio-economic value of modal shift between road and rail. VTTV (Value of Transport Time Variability) is necessary for these analyses. The project has developed a method for estimating VTTV. With this method we are one step closer to be able to make the analyses. A secondary goal has been to increase the level of knowledge of VTTV for Swedish conditions along with the consequences of poor reliability in freight transport, which is done e.g. by the attached report.

Results and expected effects

The project has resulted in a new calculation method for estimating VTTV and new knowledge about effects and costs of delays in freight transportation. If the method is used to derive new socio-economic values, it will give the Swedish Transport Administration new possibilities to make cost-benefit analyses for infrastructure measures aiming at improving reliability and robustness (though development of other areas is also needed in order to make complete analyses). In the long run, this will hopefully contribute to more reliable transportation.

Approach and implementation

The project was carried out by representatives from 5 organisations working together. To some extent different parts were responsible for different areas, but method and results were coordinated with the group. The project´s reference group contributed with feedback and advice from the freight transportation business. The project included literature studies, mathematical derivation of the micro-economic model and estimation method, analysis of effects and costs related to delays, interviews and surveys to companies and analysis of major disturbances on the Swedish railroad.