The study analyses the institutional arrangements for: (1) private participation in the new Sydney Harbour Tunnel, and (2) the provision of new terminals at minor airports operated by a public-sector corporation. Commercial objectives probably secure efficient management of construction, but otherwise reap few efficiency benefits. When there are tight constraints on government budgets, commercial funding mechanisms make it easier for governments to promote their favoured schemes.
Topic: 5.5 Tunnels and bridges
Firms using the Humber bridge regularly for goods transport were able to benefit in a number of ways, and in this case it is appropriate to value savings in drivers’ time by the wage rate. But this conclusion may not be applicable to the more usual case of smaller incremental road improvements.
The authors re-examine the conclusions reached by Stephen Glaister in an article in this Journal in May 1976. They conclude that he overestimated the capacity that would have been required under uniform pricing, and also the price differentials required under peak-load pricing to reduce capacity and increase profit.
Equilibrium Short-Run Marginal Cost Pricing of a transport Facility. The Case of the San Francisco Bay bridge.
The author concludes that optimal tolls on the San Francisco Bay bridge would be much higher than those now charged, but that their introduction would have little effect on the composition of traffic.
Pay-off matrices are used with discounting of costs to evaluate possible courses of action to be taken before or after complete or partial collapse of a bridge. Discounted costs are multiplied by joint probabilities to give an index for ranking the options.
The author contends that large economies can be effected by peak load pricing for transport services. The Channel Tunnel project would have seemed much more attractive if provision has been made for differential charges to transfer some accompanied car traffic to even slightly less congested periods.