| Abstract | Benefit -cost analysis was applied to evaluate the net
economic benefits of retaining either or both sections of
the Mae Klong Railway Line in Central Thailand tor a five
year period, 1981-1985. Results of the analysis showed that
the cost retaining the line would be substantially less than the quantifiable economic benefits of retention to the community of either or both sections. Compared to the positive net economic benefit of retention (Baht 7,949,00U/5-year, discounted, lower estimate; and Baht 11,032,000/5-yr, discounted, upper estimate) , the travel time saving if the railway were closed (230,8BY hr/5-yr
lower estimate and 248, 7UO hr/5-yr upper estimate) are not
believed to be sufficient in money terms that there would
result in negative net benefit of retention. The retention of the Eastern section of the Mae Klong Line would be economic at both lower and upper estimates of future passenger demand. Against the negative net economic benefit there remain certain intangible a nd immeasurable benefits not capable of being expressed in money terms which would
result in a higher net social benefit.
Results of the analysis show the negative net economic
benefit o± retention of the Western Section for the lower
estimate of future passenger demand. Crediting the travel
time saving if the railway were closed (11 5,607 hr/5-yr) as
a benefit to the negative net economic benefit of retention
(Baht 1, 29 1,000/5-yr, discounted) would result in a greater negative benefit of retention. However, for the upper estimate , the positive net economic benefit of retention
(Baht 103,0000/5-yr) combined with the money value of the
travel time saving if the railway were closed (148,990 hr/5-yr) would probably result in a negative benefit of retention. The retention of the Eastern Section of the Mae Klong Line would not be economically justified at both lower and upper estimates of future passenger demand. |