LIFE CYCLE COST (LCC) ANALYSIS OF AHMEDABAD-MUMBAI BULLETTRAIN PROJECT
Keywords:
Life Cycle Costing (LCC), Bullet train, Infrastructure project, Net present value, Sensitivityanalysis, Feasibility analysisAbstract
This paper is an attempt to carry out Life Cycle Cost (LCC) analysis of a bullet train project and also tolookinto the financial feasibility of the project and provide a decision for finding out the feasibility of the project, there by the realization of sustainability of any transport infrastructure, LCC analysis is gaining its recognitionby practitioners. A case study of Ahmedabad-Mumbai metro rail project phase-I has been considered for LCCanalysis in which total cost of ownership has been calculated with the help of net present value analysis. Herethe LCC analysis includes the construction cost, operation & maintenance cost, additional cost for adding rollingstock, replacement cost for replacing equipment and depreciation cost of the asset. Sensitivity analysis is alsocarried out between the discount rate and net present value to find out different changes in the LCCresult. Amodel for calculating LCC per metro seat has been proposed. The outcome from this study will help to comparethe LCC of various transport modes between Ahmedabad-Mumbai which would help in decision makingprocess for deciding the technical and financial feasibility of similar high speed railway projects across thecountry.