Freight Benefit/Cost Study: Capturing the Full Benefits of Freight Transportation Improvements: A Non-Technical Review of Linkages and the Benefit-Cost Analysis Framework

Final Report

May 11, 2001

Presented to:
Federal Highway Administration
Office of Freight Management and Operations
Attn: Ms. Kate Quinn

Presented by the AECOM Team:
ICF Consulting
HLB Decision Economies
Louis Berger Group

Table of Contents

1	Introduction
2	Illustration of Linkages
2.1	The Business World's View of Logistics: Trends and Developments
2.2	Case Histories of Logistics Reorganizations
2.2.1	Polaroid
2.2.2	Dell Computer
2.2.3	Ford Motor Company
2.3	Summary
3	Framework for Economic Analysis
4	Estimating Quantitative Values for Benefits
5	Summary and Next Steps
Appendix A	More on Consumers' Surplus

List of Exhibits

Exhibit 1	Transportation and the Economy
Exhibit 2	How Do Firms React to Improvements in Freight Transportation?
Exhibit 3	Demand Curve for Transportation
Exhibit 4	Consumer Surplus for Transportation

List of Tables

Table 1	Effects of Improved Freight Transportation

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