Study On Economic Evaluation Method For Transformation Of Existing Railway

To achieve the development goals of the railway network by 2020, we should strengthen the technical transformation of the existing road network and improve its present channel capacity while making great efforts to build passenger lines, inter-district links and new lines for coal transportation system. The issue of common concern, as well as the key to the implementation of the reconstruction project, is the way of transformation and whether the increased investment due to transformation can bring greater economic benefits.But it's a rather complicated task to evaluate the reconstruction of the existing railway economically because its costs and benefits involve not only the production and operations of the existing railways but also the transformation investment. Therefore, it is highly significant for making correct decisions about the railway reconstruction project to carry out an accurate economic evaluation of it on the basis of correctly forecasting the traffic volume of the reconstruction project, distinguishing between its costs and its benefits, and analyzing its financial and economic effects.This article first introduces the general principles and methods of economic evaluation and then addresses the method and procedures for forecasting the traffic volume of the existing railways in accordance with the characteristics of the existing railway reconstruction project, and analyzes the method for evaluating the reconstruction project economically and its particularity in terms of the financial evaluation, economic evaluation, uncertainty analysis, and analysis of the regional and macro-economic impacts. On the basis of establishing a complete system for an economic evaluation of the existing railway reconstruction project, this paper applies the system to the economic evaluation of the Xilinhot-Doron Railway reconstruction project, demonstrating its practicability.This paper discusses the method for evaluating the existing railway reconstruction project economically in connection with the characteristics of the project, hence some referential value for engineering economics staff to conduct decision analysis of the existing railway reconstruction project.