The Department of Transport circular 3/89 (see IRRD 827205) gave additional guidance on the Government's approach to the justification of Section 56 grants for public transport infrastructure projects. The approach is based on the view that subsidy for public transport projects needs to be justified primarily in terms of benefits to non-users, such as relieving road traffic congestion. The Section 56 application needs to demonstrate that the scheme is the most cost effective way of meeting the objectives. Thus the methodology must combine revenue maximisation on competitive public transport networks with sensitivity to changes in highway network congestion levels, particularly with respect to the recently increased DTp National Road Traffic Forecasts (see IRRD 821904). In addition, the evaluation must take account of contributions from other non- users such as developers, and environment benefits. The paper describes how these criteria have influenced the practical demand forecasting and appraisal methodology adopted for evaluation of a proposed extension of the Greater Manchester Metrolink system in the Manchester-Oldham-Rochdale corridor. Interactions between the public and private transport networks in the form of mode choice, park and highway speed/ bus speed models are discussed. (A)
Abstract