Laserfiche WebLink
Executive Summary • DRAFT Ferry Financial Feasibility Study & Cost -Benefit and Economic Impact Anal <br />E.2.6 Benefit Cost Analysis <br />Section 7 summarizes the benefit -cost analysis (BCA)2 for the three service scenario alternatives. The <br />BCA quantifies the net societal benefits to ferry riders. It compares monetized benefits (savings in <br />travel time, passenger vehicle operating costs, accidents, emissions, and parking fees/tolls) to the <br />costs of constructing a terminal, acquiring ferries, and annual O&M. <br />User Benefits — Ferry services provide a relatively pleasant alternative to a grueling drive around the <br />SF Bay or up and down the Peninsula. Attracting drivers to ferry services, removes vehicles from the <br />roadway network, resulting in reduced vehicle miles traveled and vehicle operating-, accident-, and <br />emission -cost-saving benefits. Also, avoided parking fees and tolls benefit users. <br />Of these benefits, time is the most noteworthy, especially time on the ferry. On -ferry time can be <br />valued as a benefit due to the multitasking opportunities afforded by ferry rides (i.e., high-speed Wi-Fi <br />for electronic teleworking, social media, streaming media use, etc., purchasing food and drink and <br />entertainment, and enjoying the vistas and weather). <br />Net benefits — Net benefits after costs are relatively close for both route alternatives, given identical <br />capital outlays, and similar Operations and Maintenance (O&M) costs. As such, the economic <br />feasibility results are nearly identical at the various discount rates considered, with a slight favor <br />towards SF. <br />Project Economic Feasibility — The economic feasibility of ferry service hinges on how best to evaluate <br />on -ferry time. Deliberation suggests that on -ferry time is a user benefit, as long as it is not excessive <br />compared to other travel modes. Using an assumption that half the average time value per hour on- <br />board the ferry would be considered as a benefit was considered to be conservative. This assumption <br />results in positive net benefit findings for the three scenarios. <br />Fs�na. J <br />r_�riYF <br />Source: WETA, 2020 <br />z Sometimes called a cost -benefit analysis <br />E-10 Smith <br />