Roosevelt Island Tramway Modernization Cost Benefit Analysis, Presented October 4, 2007
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Transcript of Roosevelt Island Tramway Modernization Cost Benefit Analysis, Presented October 4, 2007
![Page 1: Roosevelt Island Tramway Modernization Cost Benefit Analysis, Presented October 4, 2007](https://reader033.fdocuments.in/reader033/viewer/2022061119/5464d284b4af9fda3f8b482f/html5/thumbnails/1.jpg)
Tramway Modernization
Cost Benefit Analysis
Roosevelt Island Tramway
October 4, 2007
![Page 2: Roosevelt Island Tramway Modernization Cost Benefit Analysis, Presented October 4, 2007](https://reader033.fdocuments.in/reader033/viewer/2022061119/5464d284b4af9fda3f8b482f/html5/thumbnails/2.jpg)
Alternatives
1. Replace Critical Subsystems
2. New Similar Tramway
3. New Similar Tramway with Added
Redundancy
4. New Dual Shuttle
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Alternative 1Replace Critical Subsystems
• New track ropes, roller chains,
hangers, and cabins
• 7 year life expectancy
• Capital cost: $5.6 million (2007 $)
• 8 weeks downtime for subsystem replacement
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Alternative 2New Similar Tramway
• Fundamentally new system
• Existing functionality and performance
• 30 year life expectancy
• Capital cost: $14.25 million (2007 $)
• 6 months downtime for replacement
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Alternative 3New Similar Tramway with Added Redundancy
• Fundamentally new system
• Improved service and availability
• 30 year life expectancy
• Capital cost: $17.25 million (2007 $)
• 7 months downtime for replacement
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Alternative 4New Dual Shuttle
• Replace with two systems
• Improved service, reliability, and
flexibility
• 30 year life expectancy
• Capital cost: $20.4 million (2007 $)
• 7 months downtime for replacement
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Life Cycle Costs
• Capital costs
• Operating and maintenance costs
• Power costs
• Parts and supplies costs
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Life Cycle Costs Key Assumptions
• All Costs in 2007 $
• Inflation impacts future costs and revenues equally
• Time value of money is 5% annually
• Ridership and revenue grow by 20%
• Base ridership and revenue same for all alternatives
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Annualized Life Cycle Costs
Capital O & M Power Parts and Supplies
$3.9 M
$3.6 M
$3.4 M
$3.5 M
$4 M$0 $1 M $2 M $3 M
Alt 1: Replace Critical Subsystems
Alt 2: New Similar Tram
Alt 3: New Similar Tram + Redundancy
Alt 4: New Dual Shuttle
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Historical System Ridership
60,000
80,000
100,000
120,000
140,000
160,000
180,000
April
May
June Ju
ly
August
Septe
mber
Octob
er
Novem
ber
Decem
ber
Janua
ry
Febru
ary
Mar
ch
Rid
ers
pe
r M
on
th
2005 2006 2007
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Historical System Revenue
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
AprilM
ayJu
neJu
ly
August
Septe
mber
Oct
ober
Novem
ber
Decem
ber
Januar
y
Februar
y
Mar
ch
Rev
enu
e p
er M
on
th
2005 2006 2007
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System Ridership and Revenue
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
September
October
November
December
JanuaryFebruaryM
arch
April
May
June
July
AugustSept. 06-Aug. 07
1.6 M Riders, $3.0 M Revenue
2004-2005 2005-2006 2006-2007
Rid
ers
pe
r M
on
th
Period
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System Down Time
10
0 200 400 600 800 1000
Annual Hours of Down Time
Annual Down TimeTotal Annual Operating Hours: 7,436
850 Hours
580 Hours
440 Hours
25 Hours
Alt 1: Replace Critical Subsystems
Alt 2: New Similar Tram
Alt 3: New Similar Tram + Redundancy
Alt 4: New Dual Shuttle
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Net Annual Revenue / Rider
Revenue per rider =
Annual Revenue – Annual Costs
Annual Ridership
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Net Annual Revenue / Rider
$0.06
$0.17
$0.11
$0.06
$0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18
Revenue
Alt 1: Replace Critical Subsystems
Alt 2: New Similar Tram
Alt 3: New Similar Tram + Redundancy
Alt 4: New Dual Shuttle
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Summary of Cost-Benefit Tram Alternatives
1 2 3 4
Capital Costs $5,600,000 $14,250,000 $17,250,000 $20,400,000
Life Expectancy of Investment (years) 7 30 30 30
Down Time for Replacement 8 weeks 6 months 7 months 7 months
Discount Rate 5.00% 5.00% 5.00% 5.00%
Annualized Capital Cost $967,791 $926,983 $1,122,137 $1,327,049
Annual Operating and Maintenance Costs $2,300,000 $2,300,000 $2,300,000 $2,400,000
Annual Power Costs $140,000 $140,000 $140,000 $105,000
Annual Parts and Supplies Costs $75,000 $25,000 $25,000 $35,000
Total Annual Cost $3,482,791 $3,391,983 $3,587,137 $3,867,049
Base Annual Ridership (2007) 1,900,000 1,900,000 1,900,000 1,900,000
Base Annual Revenue (2007) $3,600,000 $3,600,000 $3,600,000 $3,600,000
Annual Hours of Operation 7,436 7,436 7,436 7,436
Hours of Annual Down Time 850 580 440 25
Revised Annual Ridership 1,900,000 1,968,989 2,004,761 2,110,799
Revised Annual Revenue $3,600,000 $3,730,715 $3,798,494 $3,999,408
Net Annual Revenue $117,209 $338,732 $211,357 $132,359
Net Revenue Per Rider $0.06 $0.17 $0.11 $0.06
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Non Quantifiable Benefits
• Safety/rescue
• Reliability/dependability
• Flexibility
• ADA Access
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Alternative 2New Similar Tramway
Increases Revenue Per Rider by 11 CentsCompared to Alternative 1
• Reduces likelihood of a system failure• Improves reliability and dependability by
reducing unscheduled down time• Flexibility of service similar to Alternative 1• Improved reliability enhances ADA Access
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Alternative 3Added Redundancy
6 Cents Per Rider Compared to Alternative 2 Adds:
• Redundancy reducing likelihood of need for rescue operation should system fail
• Further improves reliability and dependability by reducing unscheduled down time
• Flexibility of service similar to Alternatives 1 and 2
• Improved reliability enhances ADA Access
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Alternative 4Dual Shuttle
11 Cents Per Rider Compared to Alternative 2 Adds:
• Virtually eliminates need for rescue operation should system fail
• Improves reliability and dependability by nearly eliminating unscheduled down time
• Dual/independent system adds service flexibility not provided by other alternatives
• Provides most reliable/dependable ADA Access1
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What A Dual Shuttle Might Look Like
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or…