[5]By Dr. Eric Fruits
Econinternational [6]
The Oregonian recenty reported that Portland’s newest commuter rail project, known as WES, will be about $34 million (25 percent) over budget.
The latest estimates put construction costs at $166 million.
The newspaper also reports that the rail project is designed to carry 4,000 passengers a day.
Assuming a 30 year life for the project, a 7% discount rate, and 250 days a year of operation, construction costs alone will be $13.38 per passenger. Add in operating costs, and the costs of mass transit will likely exceed the costs of driving by 50 percent or more.