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NJ TRANSIT Process for Evaluating Capital Projects

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NJ TRANSIT Process for Evaluating Capital Projects TRANSPORTATION RESEARCH RECORD 1202 57 NJ TRANSIT Process for Evaluating Capital Projects DONNA D'ORO In June 1987 NJ TRANSIT proposed a $1.3 billion plan for In developing an annual capital program, NJ TRANSIT rail and bus improvements that would handle projected growth understood the importance of including qualitative judgments in trans-Hudson commuting traffic. To evaluate projects, NJ as to a project's net worth in the decision-making. Proposed TRANSIT used standard financial cost/benefit analysis tech­ projects are analyzed as to both their financial and nonmon­ niques and considered the major impact of transportation etary costs and benefits (3). However, the annual capital pro­ investments on New Jersey's growing economy. Among the gram, which encompasses mostly routine capital replacement concerns commonly faced by a public agency is the weighing and major rehabilitation, does not include regional initiatives of the public policy benefits of an investment along with its aimed at capturing new markets. NJ TRANSIT found it nec­ cost-effectiveness and efficiency. essary to expand the evaluation criteria used in its annual capital process to make regional investment decisions. Key NJ TRANSIT was faced with the task of selecting, among policy concerns were the effect of a project on local economic many capital investment initiatives, the set of projects that development, private bus operators, auto congestion, and would best meet transit travel needs in New Jersey. The main intrastate mobility. In addition, NJ TRANSIT analyzed a set problems to be addressed by the agency were the growth in of alternatives for not just a single transportation corridor, trans-Hudson travel and the capacity limits of the current but for an entire network of geographic corridors combined transportation system. The ability to increase rail capacity to into one conceptual corridor of trans-Hudson travel. The vari­ Penn Station New York (PSNY) and bus capacity through ety of individual projects competing for selection demanded the Lincoln Tunnel to the Port Authority Bus Terminal (P ABT) full examination of the regional impacts of each project, rather formed the cornerstone of the planning effort. Capacity for than merely its financial costs and benefits ( 4). each transit mode was upgraded-increasing the number of It was important that the evaluation provide a method to peak hour buses to the P ABT by approximately 200, relieving judge each project fairly and consistently compared to other currently overcrowded approaches to the Lincoln Tunnel, and projects under consideration. The objective of the evaluation increasing the number of peak hour trains into PSNY from was to select projects that, taken together, could solve the 20 to 30. These upgrades would make it possible to handle needs bf trans-Hudson travelers and make the most use of projected trans-Hudson growth, as well as opening the door possible new transportation capacity into New York. for consideration of several rail project options (1). The list of rail projects was comprehensive, addressing each of the Trans-Hudson transportation corridors and in some cases including alternative ways of handling the same transit PROJECT OPTIONS market. NJ TRANSIT organized these options according to geography, as New Jersey's growth patterns differ by area, NJ TRANSIT grouped the project options into four geo­ and the range of potential transit improvements in each travel graphic travel corridors: Bergen County, Morris and Essex corridor varies (see Figures 1 and 2) . The methods used to Counties, Newark District, and Monmouth and Ocean Coun­ evaluate these rail projects played a key role in the organi­ ties. A brief description of the project options follows. zation's decision-making. From the beginning, NJ TRANSIT realized that its eval­ uation must include quantitative assessments of transportation Bergen County effectiveness and efficiency. Qualitative measures would assess the impact of a project on state development, policy concerns, West Shore Connection to New York Penn Station, West and external issues such as the environment, coordination Shore Transfer, West Shore to Hoboken with other regional transportation agencies, and risk factors. These concerns, common to public sector decision-making, The West Shore options involve restoring passenger rail ser­ involve balancing the public policy benefits of an investment vice on the West Shore rail line in Bergen County, New Jer­ with measures of cost-effectiveness and efficiency. In the pri­ sey, and Rockland County, New York. The West Shore cor­ vate sector the basis for decision is much more clearly defined­ ridor currently has the largest share of trans-Hudson auto maximum profit must be made. In the public sector, however, commuting of the trans-Hudson corridors. The connection social, political, and environmental priorities may prevail (2). option would provide direct one-seat rail service to New York Penn Station by constructing new connecting track at Secau­ New Jersey Transit Corporation, Inc., Department of Planning, cus between the West Shore Line and the Northeast Corridor, Mccarter Highway and Market Street, Newark, New Jersey 07101. while the transfer option would involve a passenger transfer 58 TRANSPORTATION RESEARCH RECORD 1202 BERGEN COUNTY Kearny Connection and Manhattan Transfer West Shore Connection to Penn Station New York West Shore Transfer The Kearny connection would provide direct rail access to West Shore to Hoboken midtown Manhattan through construction of a track connec­ tion between the Morris and Essex lines and the Northeast Secaucus Connection Corridor. It would also link the Newark Broad Street station Secaucus Transfer directly with New York Penn Station, further supporting growth Secaucus Transfer and West Shore Transfer and redevelopment in downtown Newark. The Manhattan transfer is a transfer alternative to the Kearny connection. MORRIS AND ESSEX COUNTIES Bay Street Connection Kearny Connection Newark District Manhattan Transfer Kearny Connection and Bay Street Connection Raritan Valley Dual Mode and North Jersey Coast Line Dual Mode r.ROWTH TN NFWARK OTSTRTCT Raritan Valley Dual Mode These two projects call for dual power diesel-electric loco­ motives that would provide a one-seat, no-transfer ride to Northeast, Corridor Expansion New York Penn Station for the passengers currently riding North Jersey Coast Line Expansion these lines. Marth Jersey Coast Line Dual Mode MONMOUTH AND OCEAN COUNTIES Northeast Corridor and North Jersey Coast Line Expansion Old Bridge Extension South Amboy to Lakewood These projects involve trains, new stations, additional park­ Red Bank to Lakewood ing, and train yard expansions to accommodate rail ridership growth on the Northeast Corridor and North Jersey Coast FIGURE 1 Project options. Line. station at Secaucus. The transfer station would allow passen­ Monmouth and Ocean Counties gers to travel to New York Penn Station with one transfer as well as to connect to other lines that use the Northeast Cor­ The Old Bridge Extension, South Amboy to Lakewood, and ridor. The West Shore to Hoboken option involves connecting Red Bank to Lakewood projects would bring new rail service the West Shore line to the Bergen County line, which ter­ to the rapidly growing market in central New Jersey. The minates in Hoboken. A bus shuttle would operate from options involve branch lines off the North Jersey Coast Line I;Ioboken to midtown Manhattan, or passengers could transfer that take advantage of existing rail right-of-ways. to PATH trains or the planned Hoboken ferry for final con­ nections to lower Manhattan. EVALUATION CRITERIA A list of evaluation criteria was prepared with the help of Secaucus Connection/Transfer representatives from departments in corporate headquarters and the Bus and Rail subsidiaries through NJ TRANSIT's The Secaucus connection and transfer projects also attempt Strategic Planning and Policy Committee. The criteria were to deal with the high auto use in the Bergen County area by chosen to address the concerns of three major constituencies providing rail service to midtown Manhattan that does not defined as the operator (NJ TRANSIT); users (passengers); currently exist. The connection option would involve direct and non-users (auto users, government, other operating agen­ connecting track from the Main, Bergen, and Pascack Valley cies, community organizations, etc.) By focusing on these lines to the Northeast Corridor. The transfer option would three different constituencies, NJ TRANSIT achieved a broad involve a passenger transfer station at Secaucus. perspective in selecting its criteria. NJ TRANSIT concerns emphasized the need for cost-effective, financially feasible, low-risk solutions; passenger concerns emphasized the impor­ Morris and Essex Counties tance of travel benefits; and non-user concerns directed atten­ tion to issues such as relief of traffic congestion, economic Bay Street Connection development, and providing transit services to new markets. The proposed list of criteria was examined next in light of The Bay Street connection would consolidate two relatively the data available for each project. NJ TRANSIT possessed weak rail lines, the Boonton Line and the Montclair Branch, a mode-split ridership model that provided much of the data reducing costs for operation and capital maintenance. required to calculate travel benefits and ridership changes for D'Oro 59 YORK I I Atlantic I I I Ocean l I PENNSYLVANIA tI ......... I ...... I ....., I MONMOUTH/OCEAN..
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