A cost-benefit analysis of a new container terminal

Abstract

This paper present a cost-benefit analysis approach applied to measure benefits involving the expansion of container capacity in a seaport context. The paper starts by setting out the theoretical background for identifying and measuring the project benefits. There have been identified and calculated three different benefits: benefits from existing traffic, benefits from avoided diversion costs and benefits from generated traffic. A practical application of this methodology has been included. The results for this application show that this project is viable, either if this infrastructure has congestion problems in the present or may have them in the short term. © 2010 Springer-Verlag Berlin Heidelberg.