COMPARISON OF LIGHT RAIL COST
PER NEW TRIP:
AND THE COST OF LEASING OR
BUYING A NEW CAR
The Federal Transit Administration uses cost per new one way ride to measure the cost
effectiveness of new transit capital programs, such as rail systems.
The annual cost per new commuter (work trip) can be calculated by multiplying the cost per new
one way ride by 450 (each commuter works approximately 225 days per year and each day
requires two trips, to work and from work).
A career cost can also be calculated, by multiplying the annual figure by 40.
The table below indicates such costs for a number of recent projects (all converted to 1994$).
This table is taken from Light Rail in Milwaukee, a Wisconsin Policy Research Institute report by
Wendell Cox (1998).
|
Cost per new ride: Light Rail Lines Completed or Under Construction |
| Light Rail Line |
Per New One-Way Ride |
Annual
Cost per Commuter |
40 Year Career |
| Baltimore-Airport |
$17.27 |
$7,761 |
$310,435 |
| Baltimore-Hunt Valley |
$11.87 |
$5,336 |
$213,424 |
| Baltimore -Penn Station |
$18.35 |
$8,246 |
$329,838 |
| Dallas |
$10.54 |
$4,735 |
$189,415 |
| Portland-Banfield* |
$11.11 |
$4,993 |
$199,728 |
| Portland-Westside |
$21.31 |
$9,580 |
$383,215 |
| San Jose-Tasman |
$40.94 |
$18,400 |
$735,998 |
| St. Louis-Lambert |
$11.72 |
$5,270 |
$210,801 |
| Average |
$17.89 |
$8,040 |
$321,607 |
In 1994$
Calculated from Federal Transit Administration data. |
The table below illustrates annual costs for new automobiles, calculated from 1999 newspaper
advertisements.
The least expensive light rail projects above are more than double the cost of the least
expensive cars (Dodge Neon and Saturn SL).
All of the light rail projects are more expensive than a Ford Taurus or Plymouth Voyager.
The most expensive projects are more expensive than luxury cars, such as the Cadillac
SLS, the BMW 740 and Lincoln Town Car.
All of the projects are more expensive than purchasing a minivan (Plymouth Voyager). In
view of the fact that light rail does not reduce traffic congestion and that there is a serious
problem of providing mobility to the inner city poor to jobs in the suburbs, this suggests
that use of the rail funding to provide minivans and automobiles in some sort of a reverse
commute program would serve a far more important purpose.
|
Annual Cost of Purchasing or Leasing a New Car |
| Automobile |
Lease/
Purchase |
Years |
Annual
Cost |
Cost per
New Ride |
Retail Price |
| BMW 740 |
Lease |
3.00 |
$9,149 |
$20.33 |
$65,000 |
| Cadillac SLS |
Lease |
3.00 |
$7,993 |
$17.76 |
$43,335 |
| Chevrolet Suburban |
Lease |
3.00 |
$6,245 |
$13.88 |
$33,488 |
| Dodge Neon |
Purchase |
5.00 |
$2,127 |
$4.73 |
$12,392 |
| Ford Explorer |
Purchase |
5.00 |
$6,814 |
$15.14 |
$27,519 |
| Ford Taurus |
Lease |
3.00 |
$3,248 |
$7.22 |
$18,000 |
| Infiniti Q45 |
Lease |
5.00 |
$7,305 |
$16.23 |
$45,000 |
| Jaguar XJ8 |
Lease |
3.00 |
$10,065 |
$22.37 |
$55,200 |
| Lincoln Town Car |
Lease |
3.00 |
$7,049 |
$15.66 |
$29,999 |
| Mercedes 320 |
Lease |
3.00 |
$10,804 |
$24.01 |
$65,345 |
| Plymouth Voyager |
Purchase |
5.00 |
$3,818 |
$8.48 |
$14,699 |
| Saturn SL |
Lease |
3.00 |
$2,326 |
$5.17 |
$11,995 |
Calculated from new automobile advertisements in 1999; Includes down payment, monthly
payment, sales tax and fees. Sales tax of 7 percent assumed.
Cost per New Ride allocated entire cost to 450 annual commuting trips. |
(c) 2001 www.publicpurpose.com --- Wendell Cox Consultancy --- Permission granted to use with attribution.
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The Public Purpose WENDELL COX CONSULTANCY
Demographia
P. O. Box 841 - Belleville, IL 62269 USA
Telephone: +1.618.632.8507 -
Facsimile: +1.810.821.8134
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