A Cost-benefit Analysis of Commuter Train Improvement in the Dhaka Metropolitan Area, Bangladesh

A cost-benefit analysis of three possible alternatives along with the existing scenario on the Dhaka-Narayanganj route has conducted in this study. The first alternative is to reduce headway by improving existing railway tracks and signaling systems. The second alternative is to increase train frequency by introducing Diesel Electric Multiple Units (DEMU). The third alternative is to attain expected headway by double tracking with DEMU. The benefits considered are user's benefits, accident reduction savings, vehicle operating costs and emission reduction savings. The costs included capital and construction costs, operating and maintenance costs. The analyses utilized 3%, 5% and 10% Annual Average Ridership Growth Rates (AARGR) depending on passenger trends on the route. Two analysis tools such as Net Present Values (NPV) and Benefit-Cost Ratios (BCR) are used and compared among the alternatives to decide which alternatives are economically feasible on the basis of short terms and long terms perspectives.