Refining Return on Investment Methodology/Tool for MnPAss
Started: April, 2015 End Date: June, 2017 Project ID #4W5378 Status: Ongoing
The objective of this project is to develop a refined, consistent and standardized return on investment (ROI) methodology and tool for the Minnesota Department of Transportation, to be used for better assessing MnPASS (managed lane) programs and projects.
A refined return on investment (ROI) methodology is needed by the Minnesota Department of Transportation to supplement existing benefit-cost analysis (BCA) tools, data, and methodologies available to evaluate MnPASS priced managed lane projects. This will facilitate more consistent and standardized measures for MnPASS system assessment and comparison. The ultimate issue in these ROI assessments is how to best define the benefits and costs of potential MnPASS corridors and alternatives. However, as stated in current MnPASS system studies (e.g. MnPASS System Study Phase II, the I-35W North Managed Lanes Study), the existing benefit/cost analysis tool typically includes a fairly narrow range of performance measures, specifically user benefits in the form of travel time, operating cost, and crashes. In addition, the current ROI methodologies and tool may introduce inconsistencies, as different projects may utilize different assumptions in estimating benefits and costs from the proposed development. The objective of this project is to develop a refined, consistent and standardized ROI methodology and tool for better assessing MnPASS programs and projects. The emphasis here is to investigate a more comprehensive set of factors, variables and perspectives to include within the refined ROI analysis framework, such as the transit impacts and weekend benefits (e.g. additional benefits accrued on the weekends) that are not included within the existing economic analysis, and incorporate broader benefits from MnPASS system operations (e.g. travel time reliability, network-level user benefits). Addressing the challenges of incorporating these concerns and impacts will be a key part of the refined methodology. Ultimately, this project will identify existing best practices of ROI assessment for the MnPASS system, and provide recommendations for conducting standardized ROI processes to evaluate the financial effectiveness of MnPASS as a long term regional mobility strategy.
Files & Documents
Sponsors & Partners
- Minnesota Department of Transportation (Mn/DOT) Sponsor
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