Economic investigation for building a high-speed rail in developing countries: The case of Egypt

Abstract

High-speed rail (HSR) is the technology that allows trains to run at a speed up to 350 km/h. This study examines the economic viability of the proposed Cairo-Aswan high-speed line. The framework identifies the prospective costs of the project and its benefits. The evaluation of different types of benefits and costs includes a sequence of analytical procedures by applying a Cost-Benefit Analysis (CBA) to include all costs and benefits. The results show that the project has a positive Net Present Value (NPV) up to $10 billion. A sensitivity analysis is performed on operating cost, ticket price, and passenger flow. Thereafter, a model for calculating the number of trains is deduced and converted into a Nomo-graph based on annual passengers, train speed, number of train seats, and line length by linking these factors to each other. To verify the developed model, five cases with different parameters are examined.

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