Light Rail Myth #5

Light rail cost effectiveness

Now that a commercial developer-led light rail advocate community organization is dawning on the horizon, a series of public relations myths will befall the unsuspecting public. In a weekly series, I will attempt to anticipate these fantasies and dispel them with a reality statement and supporting data.

The Myth: Light rail transit is cost-effective.

Follow up:

The Reality: Light rail transit is economically inferior to conventional bus service.

U.S. Department of Transportation (DOT) published an important analysis of rail systems costs. It found that the average cost per one-way passenger trip on light-rail systems was six times higher than by bus. More importantly, light-rail passengers are subsidized to the tune of five times more per passenger mile than the subsidy for bus passengers per passenger mile.

For sound economic analysis, these figures include the facilities construction cost, amortization, as well as operating costs. Light rail advocates will cloud the issue by citing cost figures that include operating costs but exclude of construction cost.

Calculating transit costs without including construction costs is like calculating the costs of automobile ownership by adding up gas and oil charges while ignoring both the purchase price and the interest on the purchase loan

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