Conditions and Performance Chapter Listing

Conditions and Performance Home Page

Introduction

Summary

Economics-Based Approach to Transportation Investments

Highway Investment Requirements

Bridge Investment Requirements

Combined Highway and Bridge Investment Requirements

Transit Investment Requirements

Investment Requirements

Exhibit 7-14 shows the necessary levels of annual capital investment that would be necessary to meet the goals described above. The annual cost to Maintain Conditions and Performance is $10.8 billion. Improving performance while maintaining current conditions would require an investment of $14.4 billion, while improving conditions at the current level of performance would cost $11.1 billion annually. The cost to Improve Conditions and Performance is $16.0 billion each year.

Exhibit 7-14

Summary of Transit Average Annual Investment Requirements 1998-2017

Source: Transit Economic Requirements Model.

Exhibit 7-15

Annual Transit Investment Requirements by Type of Improvement

Source: Transit Economic Requirements Model.

Transit investment requirements by type of improvement are displayed in Exhibit 7-15. The replacement and rehabilitation of the existing transit capital stock would cost $7.0 billion annually if conditions are to be maintained, and $8.6 billion if conditions are to be improved. Asset expansion to accommodate transit PMT growth requires $3.7 billion under maintained conditions ($3.8 billion if conditions are also improved). Enhancements to raise the overall performance of the Nation's transit system carries an annual price tag of $3.6 billion when conditions are maintained ($3.7 billion when conditions are improved). The totals in each column in Exhibit 7-15 reflect the total amounts for the Maintain Conditions/Improve Performance and the Improve Conditions/Improve Performance scenarios, respectively.

Exhibits 7-16 and 7-17 show the costs to maintain conditions and to make incremental improvements in performance and conditions. The exhibits disaggregate the forecast investments in transit capital by urbanized area population (over and under 1 million), mode (bus and rail), improvement purpose, and asset type (vehicles and non-vehicles). Investment requirements are greatest in major urbanized areas, reflecting the fact that 90 percent of the Nation's transit passenger miles are on transit systems in these 33 areas. The most expensive investments for replacement, expansion, and performance improvements are in non-vehicle rail infrastructure. Replacement of the bus fleet, with its relatively short useful life (approximately 12 years), is also a major expense.

Exhibit 7-16. Annual Average Cost to Maintain and Improve Transit Conditions and Performance 1998-2017

Exhibit 7-17. Annual Average Cost to Maintain and Improve Transit Conditions and Performance 1998-2017

Exhibit 7-18 provides a more detailed description of investment requirements by asset type. Annual costs are shown for each of the five major transit asset categories used in TERM (guideways, facilities, systems, stations, and vehicles), as well as other project costs. The largest expenditures on rehab and replacement are for vehicles, followed by guideway elements (new busways, track, road-beds, bridges, and tunnels). Guideway elements are the largest expense for system expansion and performance improvements, as fixed-guideway systems (both new and expansions of existing systems) are constructed to accommodate increased passenger growth and to increase operating speeds.

Exhibit 7-18. Average Annual Investment Requirements by Asset Type and Type of Improvement