£1bn programme to electrify the Great Western Mainline

This Times article covers the announcement of a major investment in the rail network - £1bn of extra spending to electrify the Great Western Mainline. About 300 miles (480km) of line will be upgraded at a cost of £1.1billion, including tracks from Didcot to Oxford, Reading to Newbury and Liverpool to Manchester. Lord Adonis the current Transport Minister is quoted as saying that the scheme will “pay for itself over a 40 year time period”. The investment might make a good case study for cost benefit analysis: Students might generate a series of advantages / disadvantages and then discuss how they divide into private and social costs and benefits.

*Employment effects of the construction project
*Increased demand for renewable energy sources
*Speedier trains - London to Oxford journey time cut by 6 mins
*More reliable services, fewer breakdowns
*Extra passenger capacity by removing diesel engines
*Disruption to services over the next six to eight years
*Canceling of orders for new diesel trains
*Construction costs of installing pylons, replacing bridges and other structures
*Impact (positive and negative) on people living close to existing lines including property values
*Demand for coach and bus travel during construction
*Impact on costs and competitiveness of businesses served by rail lines
*The opportunity cost of spending in excess of £1bn on this project

Students might also consider the importance of the choice of discount rate for these types of transport investment. And also the uncertainties surrounding the project - not least the probability of delays and cost over-runs once the project is fully underway.

According to the Department for Transport

“The last major electrification on the existing network was that of the East Coast Main Line in the late 1980s. While further routes were considered at the time, investment was constrained and other projects were considered to be a higher priority….... Electrification will bring important benefits for people making both long and short journeys. From 2016, commuters travelling between London, Slough, Reading, Newbury, Didcot, Oxford, and Swindon and intermediate stations will benefit from the reliability and comfort of electric trains.”

More coverage here:
£1bn project to electrify rail line (BBC news)
Great Western trainline to be electrified (Guardian)

And here