Evaluation of the Benefits of Transnational Transportation Projects

Abstract

In this paper an analytical framework has been developed to evaluate the primary beneficiaries of cargo traffic generated by transnational transport projects. In the transportation economics literature, the economic impact of infrastructure projects on cargo traffic has not been developed as fully as for passenger traffic. In much of the previous literature it is often assumed that consumers of the traded goods would receive the full benefits from the reduction in logistics and transportation costs. This paper has shown that whether the goods are traded internationally or regionally is a key factor in the allocation of the economic benefits arising from the reduction in the cost of cargo transportation. The analytical framework developed in the paper is applied to the evaluation of the impacts of the proposed Buenos Aires-Colonia binational bridge project.

JEL classification codes:

• F10
• H43
• R42

Key words:

• Argentina
• Uruguay
• cargo traffic
• transnational
• transportation benefits