Ce 867: Urban Transportation System Evalaution Homework 2: Assigned On March 28, 2019 Due On April 4, 2019

CE 867: URBAN TRANSPORTATION SYSTEM EVALAUTION
HOMEWORK 2
Assigned on March 28th, 2019
Due on April 4th, 2019
Submitted to: Dr. Anwaar Ahmed
Submitted by: ZAFIR ALI
CMS ID # 0000027
Question no. 1 :
The new transit demand for a transit facility is 20% higher than the initial demand. If the initial
ridership is 20,000
a. Find the elasticity of transit demand if transit fare changes from 50 to 25.
b. What will be the elasticity of transit demand if car parking fee is increased 25% of its initial fee of
Rs. 20.
Answer:
Initial Ridership(Demand)= 20,000
Final Ridership (Demand)= 20,000+(20,000 x 20/100)=24,000
a) Elasticity= % change In demand/% change in fare
= (20000-24000)/22000/(50-25)/37.5= -0.27
b) Initial parking fee= Rs.20
Final Parking Fee= 20+ (20x25/100)=20+5= Rs.25
Elasticity= % change In demand/% change in Parking fee
=(20000-24000/22000)/(20-25/22.5)= -0.18/-0.22
= 0.82
Question no. 3 :
The annual fixed costs of operating a transit system between cities A and B is $5 million. Also,
every passenger-mile costs the transit agency 80.56. Determine (a) the annual variable costs; (b) the
total annual costs; (c) the average total costs; (d) the average marginal costs. Plot a graph of the total,
average and marginal cost functions for the transit operations.
Answer:
FC VC V TC AVC(Annual) Annual Total Cost AFC(Average) ATC(Average) MC AMC(Average)

5000000 80.56 10000 5805600 294044000 2119044000 500 580.56 805600 80.56
5000000 80.56 20000 6611200 588088000 2413088000 250 330.56 1611200 80.56
5000000 80.56 30000 7416800 882132000 2707132000 166.6666667 247.2266667 2416800 80.56
5000000 80.56 40000 8222400 1.17618E+09 3001176000 125 205.56 3222400 80.56
5000000 80.56 50000 9028000 1470220000 3295220000 100 180.56 4028000 80.56
5000000 80.56 60000 9833600 1764264000 3589264000 83.33333333 163.8933333 4833600 80.56
5000000 80.56 70000 10639200 2058308000 3883308000 71.42857143 151.9885714 5639200 80.56
5000000 80.56 80000 11444800 2352352000 4177352000 62.5 143.06 6444800 80.56
Graph between total cost and Ridership.
TC vs V
14000000
y = 80.56x + 5E+06
12000000 R² = 1
10000000
Total Cost
8000000
6000000
4000000
2000000
0
0 10000 20000 30000 40000 50000 60000 70000 80000 90000
Ridership (V)
Graph between Average cost and Ridership.
Average cost vs V
700
600
500
Average Cost
400
y = -4E-12x3 + 7E-07x2 - 0.0375x + 878.82
300 R² = 0.9866
200
100
0
0 10000 20000 30000 40000 50000 60000 70000 80000 90000
Ridership(V)
Graph between marginal cost and Ridership.
Marginal Cost vs Ridership

7000000
y = 80.56x
6000000 R² = 1
5000000
Marginal Cost
4000000
3000000
2000000
1000000
0
0 10000 20000 30000 40000 50000 60000 70000 80000 90000
Ridership(V)
Question no. 4
The fixed operating cost of a transit agency is $50,000 per week. Statistical analyses of historical
costs have shown that the variable costs are governed by the following cost function: Variable Costs
= 0.02V3 – 4V2 + 750V, where V is the weekly ridership. If the average fare is $2.75 per rider,
determine the rider-ship that maximizes the revenue of the transit agency.
Note: Ridership is maximum when marginal cost equals average cost.
ATC = (FC+VC)/ V
= (50000 + 0.02V3 - 4V2 + 750V)/V
MC = 0.06V2-8V+750
For Maximum Ridership MC=ATC, -: For maximum Revenue conditions
0.06V2-8V+750 = (50000 + 0.02V3 - 4V2 + 750V)/V

V = 153.23≈154
Maximum Revenue = 154 x $ 2.75
=$ 423.5
Part B
Question no. 1:
Problem 1
Cost estimation is an essential component of alternative transportation systems evaluation. The
conceptual phase is the first phase of a project in which the need is examined, alternatives are
assessed, and the goals and objectives of the project are established. For sketch planning purpose
aggregate project cost estimate obtained from past similar projects can be used. A typical cost
estimation task for any kind of highway project should include (1) Advance Planning and
Preliminary Engineering (2) Acquisition of right of way (3) Construction Cost Estimate (4)
Operation costs and (5) Preservation and maintenance cost.
The activities like preliminary planning and engineering, and acquisition of the right of way are
usually same when comparing various alternatives. However, if the numbers of lanes are different for
different alternatives, than estimation of cost related to preliminary planning and engineering, and
acquisition of the right of way is required. For Rawalpindi Bypass (A hypothetical case study for this
course) prepare cost estimates covering following aspects:
a. Construction Cost:
1) Interchange construction (total cost for a typical interchange)
2) Bridge construction (total cost for a typical bridge)
3) Pavement construction (cost per lane-Km)
4) Painting and Signage (cost per lane-Km)
5) Other costs like toll facility construction
b. Operation Cost (per year)
1) Safety Patrols (safety arrangements)
2) Traffic Surveillance
3) Control centers
4) Toll operation costs
5) Emergency vehicle repair services
c. Preservation Cost (per year)
a. Routine maintenance
b. Periodic maintenance
d. R-O-W acquisition cost
e. Advance Planning and Preliminary Engineering
Note:
1. Cost estimates should be based on past projects of comparable size.
2. See latest PC1 for cost estimation.
Answer :
Advanced Engineering & Preliminary Cost:
For the Margalla Avenue Bypass project no data was found about the Advanced Engineering &
Preliminary Cost. The reason for this is because its feasibility study was done by CDA and no
separate consultant was hired. But as a rough estimate for such projects of same scale:
Sr. No Description Cost Cost Per Km

(Million PKR) (Million PKR)
1 Feasibility Study @ 3% of Overall Project Cost 31.317 3.479
2 Contingency @ 1% in Feasibility 10.439 1.159
Total PKR 41.756 Million
Construction Cost:
For the calculation of construction cost for Margalla Avenue Bypass following technical
parameters are taken into account:
 Road Work: Length of Road 9 km

Pavement 48ft + 10ft shoulder
The proposed pavement design to be adopted is as follows:

a) Wearing Course 2”
b) Base Course 12”
c) Sub Base 12”
In addition to above scope of work covered under the scheme is as under:
 Culvert/Dutch Two cell box culvert (12 Nos)

 Road Safety Metal Guard Rail, Lane Marking
 Drainage Works Dish Drain in cut areas
 Bridge Railway Bridge (01 Nos) amounting 63 Million PKR
 Tool Plaza’s As per standard of CDA amounting 40 Million PKR
 E & M Works Road Lights
 Soft Lands Scaping Beautification (plantation of tress)
Total Cost Cost Per Km

S/No Description st nd
1 Year 2 Year (Million PKR) (Million PKR)
1 Road Works 694.977 77.210

416.986 277.991
2 E & M Work 46.96 5.217
28.176 18.784
3 Soft Landscaping 51.215 5.690

30.729 20.486
4 Railway Bridge 63.000 7.00

37.800 25.200
5 Toll Plazas 40.000 4.444

24.000 16.000
Base Cost 896.152 99.572

537.691 358.361
6 Contingencies @ 3% 16.131 10.754 26.885 2.987
7 Shifting of services 8.913 ------- 8.913 0.99
8 Project Director’s Office 5.315 3.543 8.858 0.984
Escalation @ 6.5 % at 2nd year

9 ------- 23.300 23.300 -----
base cost
10% premium on road bridge
10 47.879 31.919 79.798 8.866
and toll plaza work
Total 615.929 427.977 1043.906 --------
Operating & Maintenance Cost:
Sr. No Item Cost (Million PKR)
1 Annual Operating & 1. Salaries of staff @ 25% of PKR 31.344 Million =

Maintenance Cost PKR 7.836 Million
after completion of 2. Consumable Store @ 10% of PKR 31.344 Million =
project PKR 3.134 Million PKR
3. Work through contract @ 65% of PKR 31.344 Million =
PKR 20.374 Million

2 Safety Patrol 1. Safety Patrol 3 Vehicles painted with CDA logo =
1 Million PKR
3 Traffic Surveillance 1. A total of 10 Cameras over the complete facility to monitor
traffic = 0.2 Million PKR
4 Traffic Surveillance 1. A control center to be for Traffic Surveillance =
Control Centre 2 Million PKR
5 Traffic Surveillance 1. Total 03 Nos of employs having 08 Hour shift each
Staff = PKR 60,000 = 0.06 Million PKR
Right of Way Acquisition Cost:
For the Margalla Avenue Bypass project no data was found about the Right of Way Acquisiton
Cost. The reason for this is because it is being built on land already under control of CDA and no
land was purchased. But as a rough estimate for such projects of same scale having a total of
600 ft right of way acquisition:
Sr. No Description Cost Cost Per Km

(Million PKR) (Million PKR)
1 Right of Way Acquisition 290 32.22
2 Shifting of Utilities 9 1
3 Law Cases 1 ----
Total PKR = 300 Million

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CE 867: URBAN TRANSPORTATION SYSTEM EVALAUTION

Submitted to: Dr. Anwaar Ahmed

Submitted by: ZAFIR ALI

FC VC V TC AVC(Annual) Annual Total Cost AFC(Average) ATC(Average) MC AMC(Average)

Graph between Average cost and Ridership.

Marginal Cost vs Ridership

0.06V2-8V+750 = (50000 + 0.02V3 - 4V2 + 750V)/V

Sr. No Description Cost Cost Per Km

 Road Work: Length of Road 9 km

The proposed pavement design to be adopted is as follows:

In addition to above scope of work covered under the scheme is as under:

 Culvert/Dutch Two cell box culvert (12 Nos)

Total Cost Cost Per Km

1 Road Works 694.977 77.210

3 Soft Landscaping 51.215 5.690

4 Railway Bridge 63.000 7.00

5 Toll Plazas 40.000 4.444

Base Cost 896.152 99.572

6 Contingencies @ 3% 16.131 10.754 26.885 2.987

7 Shifting of services 8.913 ------- 8.913 0.99

8 Project Director’s Office 5.315 3.543 8.858 0.984

Escalation @ 6.5 % at 2nd year

Total 615.929 427.977 1043.906 --------

Operating & Maintenance Cost:

Sr. No Item Cost (Million PKR)

1 Annual Operating & 1. Salaries of staff @ 25% of PKR 31.344 Million =

Total PKR 31.344 Million

Right of Way Acquisition Cost:

Sr. No Description Cost Cost Per Km

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