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    EuropeAid 2008/155-683

    This project is implemented by

    TRT Trasporti e Territorio, Alfen Consult GmbH, Dornier Consulting GmbH and PTV AG

    Transport dialogue and interoperability between the EU and its

    neighbouring countries and Central Asian countries

    TRACECA IDEA

    TRACECA Route Attractiveness IndeX TRAX

    ROAD INDEX CALCULATION METHODOLOGY

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    TRACECA Route Attraciveness indeX - TRAX W W W . T R A C E C A - O R G . O R G

    TRANSPORT DIALOGUE AND INTEROPERABILITY BETWEEN THE EU AND ITS

    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 3 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    LIST OF SYMBOLS

    INDEX (R) Route INDEX

    INDEX (S) Stretch INDEX

    INDEX (N) Node INDEX

    (R) Route

    (S) Stretch

    (N) Node

    i Number of Stretch, if no any other indication

    j Number of Node, if no any other indication

    n Total Number of Stretches, if no any other indication

    m Total Number of Nodes, if no any other indication

    EU European part of the Route

    MID Middle (Central) part of the Route

    CA Eastern (Central Asian) part of the RouteADJ

    Adjusted valueAv

    Average value

    TrC(S) Transportation cost on stretches

    TiC(S) Transportation Time cost on stretches

    ReC(S) Transportation Reliability cost on stretches

    SeC(S) Risk cost (Safety) cost on stretches

    Specific weight

    (S)TrC Specific weight of the Transportation cost on stretches

    (S)TiC Specific weight of the Transportation Time cost on stretches

    (S)ReC Specific weight of the Reliability cost on stretches

    (S)SeC Specific weight of the Risk (Safety) cost on stretches

    C(N) Total Cost on NodeAv

    C(N) Average Total Cost on Node

    TiC(N) Time cost on node

    ReC(N) Reliability cost on Node

    (N)C Specific weight of the Average Total Cost on Node

    (N)TiC Specific weight of Time cost on node(N)ReC Specific weight of the Reliability cost on Node

    L (S) Length, km

    C Costs

    Tr Travel

    Ti Time

    Re Reliability

    Se Safety, Security

    K(N)w Specific weight of indexes of the utmost western node along the regional

    section of the Route

    K(N)e Specific weight of indexes of the utmost eastern node along the regional

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    TRACECA Route Attraciveness indeX - TRAX W W W . T R A C E C A - O R G . O R G

    TRANSPORT DIALOGUE AND INTEROPERABILITY BETWEEN THE EU AND ITS

    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 4 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    section of the Route

    C(o) Official Costs, EURO

    C(no) Unofficial Cost , EURO

    Tmin Minimum Time, in hours

    Tmax Maximum Time, in hoursAv

    t Average Time, in hours

    VOT Travel time cost per hour, (EUR)Av

    S(S)i Average speed

    FC (S)i Total Fuel Cost on the stretch (EURO)

    AFC Average 1 lt. Fuel Cost, (EURO/L)

    RiC(S)i Risk Coefficient (SAFETY PENALTY)

    CE Average Fuel Consumption adjusted in the standard conditions - 0,3 lt./

    100 kmTrT Travel timeST Stop timeT Total travel time

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    TRACECA Route Attraciveness indeX - TRAX W W W . T R A C E C A - O R G . O R G

    TRANSPORT DIALOGUE AND INTEROPERABILITY BETWEEN THE EU AND ITS

    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 5 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    1. EXECUTIVE SUMMARY

    1.1. Abstract

    This report presents TRACECA methodology for measuring Corridor attractiveness for the

    transport industry. In addition, it shows comparable calculations for the attractiveness of the

    TRACECA routes through the Caucasus, through Turkey / Iran and the alternative route through

    the Russian Federation. TRAX stands for TRACECA Route Attractiveness Index.

    The methodology considers the attractiveness of the transport corridor as such for the logistics

    chain and not on country by country basis. Based on the World Bank definition, the transport

    corridors are defined from a physical perspective, as a collection of stretches constructed from

    the transport networks of adjoining countries and bounded by gateways. The gateways are in

    many cases multi modal and mainly are the border crossings points.

    A corridor such as TRACECA has a primary economic function of promoting inter- and Intra-

    trade links of member countries. The rationale behind creating corridors is to ensure quality

    improvements along the corridor (Safety / Reliability / Cost / Transit Time of shipment).

    The results of TRAX shows that TRACECA corridors require further development and substantial

    improvements in all aspects of the logistics of a corridor as indicated above.

    1.2. TRAX Rationale

    To identify the order of magnitude and benchmark the TRACECA attractiveness as a corridor; It

    became imperative to deploy a TRACECA own tool to measure the attractiveness of the

    TRACECA routes and benchmarks it with alternative routes. This document illustrates the

    methodology adopted to develop a TRACECA Routes Attractiveness Index, which can be

    continuously measured to monitor improvements.

    TRAX stands for TRACECA Route Attractiveness indeX. The index is an objective and numeric

    tool to measure the attractiveness of a transport corridor in terms of its power to attract /

    accommodate inter-modal freight traffic.

    This document focuses on the methodology of calculating such an index for the roads basedtransport. This methodology will be extended in 2011 to include the inter-modal systems

    prevailing on TRACECA and the alternative routes.

    TRAX can also be used as a tool to monitor the improvements of the TRACECA routes based

    over a time series through periodic re-run of TRAX for example yearly.

    Therefore, the methodology was not developed as a theoretical exercise but with the following

    operational objectives in mind:

    Assess the attractiveness of the TRACECA routes in comparison with the competitive /

    alternative routes.

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    TRANSPORT DIALOGUE AND INTEROPERABILITY BETWEEN THE EU AND ITS

    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 7 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    The methodology deployed followed a 4 step approach:

    Step 1: Data CollectionIRU Nelti Project collected real-life drivers journals from a set of operators running haulage

    service between Europe and Central Asian / Caucasus regions. IRU provided the drivers

    journals to the TRAX approach as a courtesy.

    Obtaining the drivers journals from IRU reflect the real cost and time of the transportation to

    / from the EU Central Asia via alternative routes. The routes names in TRAX (Trans-Russia,

    Trans-Caucasus, Trans-Turkey) differ however from those used in NELTI (northern, central and

    southern route). TRAX routes have been renamed to reflect the territories it passes. This also

    avoids confusion with the TEN-T routes names.

    It is important to note, TRAX defines routes in a broader sense as each route may comprisealternative paths. For the index calculation an averaging was built across parallel stretches to

    obtain the attractiveness of this particular stretch.

    The drivers Journals revealed the following information:

    - Identified routes for analysis (Trans-Russia, Trans-Caucasus, Trans-Turkey)

    - Time: Minimum and maximum time spent across each route (Stretches / Nodes)

    divided by stretched: traveling / waiting / rest time (including the border

    procedures)

    - Cost: Minimum and Maximum actually money spent along the route (Stretches /

    Nodes) including official, unofficial expenditures incurred during the roads, at the

    border or at the ports.

    Step 2: Interaction with the Industry

    In this step, interviews were carried out with representatives of the transport industry and

    freight forwarding agents in Europe / Caucasus / Central Asia. This serves to determine the

    weight of various criteria. Thee interviews delivered information on the following issues:

    - Insight on how the route choice decisions are made

    - Judgment of the criteria as transportation cost, time, reliability and security through

    the pair-wise judgment of these criteria

    - Qualitative indication of safety and security aspects (Risk)

    - Identification of other topics of the special importance from the business standpoint

    Step 3: Running the Calculation

    Each route was divided in number of stretches and nodes along the entire corridor:

    Stretches are roads or ferries

    Nodes represent boarder points, ports, transshipment points, logistics centers and other

    units which presumably do not have physical size

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    TRANSPORT DIALOGUE AND INTEROPERABILITY BETWEEN THE EU AND ITS

    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 8 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    The route index - INDEX (R) comprises two sub-indexes: stretch sub-index - INDEX (S) and node

    sub-index - INDEX (N).

    Stretch Index INDEX (S) is calculated as a sum of the main Stretch criteria (Adjusted weights of

    Transportation Costs / Time / Reliability / Safety and Security) multiplied by the specific weight

    of each these criteria.

    Node Index INDEX (N). Is calculated as a sum of the main Node criteria (Average Total costs /

    Time and Reliability throughout the node) multiplied by the specific weight of each these

    criteria.

    As routes have different lengths the final index value has been adjusted to corridor length.

    Step 4: TRAX Analysis

    In this final step, the outcome of the index has been analyzed and prepared for communication:

    Overall comparison of TRAX for the three routes

    Assessment of Time and Reliability on Stretch

    Assessment of Time and Reliability on Node

    Transportation costs on Stretch and Node

    Time costs on Stretch and Node

    Reliability costs on Stretch and Node

    Safety and Security costs on the route

    Comparison of routes and regions in terms of Transportation Costs, Time,

    Reliability and Risk.

    1.5. Results

    This chapter reflects the results of the methodology outlined above after deploying the

    information collected. It is important to note that the route attractiveness index, reflect the

    resistance a route has from the prespective of a freight forwarder. The higher the index, the

    less attractive the route will be. As every index, the figures can only be evaluated in comparison

    to one another.

    Index Comparison for the TRACECA / alternative routes

    ROUTE

    Total

    INDEXTRAVEL COST TIME COST Reliability Safety/Security

    TRANS-RUSSIA ROUTE 3114 1685 6767 6373 137

    TRANS-TURKEY ROUTE 6646 3408 7776 8839 300

    TRANS-CAUCASUS

    ROUTE8258 3446 11243 10849 221

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    TRANSPORT DIALOGUE AND INTEROPERABILITY BETWEEN THE EU AND ITS

    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 9 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    The figures above shows, that the Trans-Russian route compared to the other two routes, is the

    most attractive one based on general Index, but also based on each of evaluation criteria:

    Travel cost, time cost, reliability and safety/security.

    In particular, The Trans-Russia route attractiveness is double of the route going through the

    Turkish territories and almost three times ((2,75) as attractive as the Trans-Caucasus route.

    Taking a differentiated look at the criteria building up the index, shows that the Travel cost

    factor index is almost the same for Trans-Turkey and Trans-Caucasus routes, yet double as highas the Trans-Russian Route.

    The time cost factor does look much different. The time cost criteria going thourough Russia or

    Thourgh Turkey seem to be almost similar. Yet going through the caucas territories, the

    attractiveness drops to almost half of this of trans-Russia and Trans-Turkey.

    The reliability criterion reveals also that Trans-Russian route is the most attractive one,

    followed by the Trans-Turkey. Again Caucasus segments and nodes rank last in their appeal to

    the industry.

    Safety/Security criterion shows that going for the Trans-Turkey route is the least attractive

    option.

    The above analysis is very broad and to understand a closer look much be taken at the reasons

    behind this. A separate document will be published on the results and its analysis on the routes

    attractiveness.

    2. INDEX CALCULATION METHODOLOGY

    The starting point of the TRAX methodology is the fundamental assumption that transports

    logistics companies minimizes their expected transport cost based on the so-called generalized

    cost (cost-based approach). This approach is generally accepted in the current transport

    research literature and assumes that time is also an important scarce resource in the transport

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    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 11 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    travel, border crossings, idle time, status of the road and support infrastructure, official fees,

    maletolts and other challenges.

    The original drivers journals containing all specific data were obtained by TRAX / IDEA experts

    upon an agreement between IRU and the TRACECA Permanent Secretariat during a visit to the

    IRU Moscow office on January 25, 2010. (Annex 2).

    In addition to the drivers journals; a Questionnaire (Annex 3) was developed to ensure

    adequate input of the industrys particularly in the weighing of the different criteria. The

    Questionnaire also allowed obtaining transport logistics companies views on the routes

    concerned. The questionnaire was divided into four parts:

    The first part inquired background information on the company and its business

    activities in the different countries,

    The second part inquired individual paired judgment of the transport criteria: Cost,

    Time, Reliability and Security& Safety. The interviewers explained the definition of each of

    those criteria,

    The third part was dedicated to ask for the individual risk profile of the countries on a

    scale ranging from risk-free to high risk,

    The fourth part allowed the interviewed person to add some comments and to address

    topics of special importance for her/him.

    Depending on the results provided by the recipients, the TRACECA experts carried out the

    following activities:

    Fine-tuning of the methodology

    Calculate weight of the criteria for the index calculation.

    Calculate risk factors for the countries along the relevant routes. This serve as a basis to

    calculate perceived Security and Safety of Cargo for specific Countries.

    2.2. Generation of alternative routes for analysis

    Based on the drivers journals the paths along the three routes were constructed and plottedon a map.

    The routes were divided in stretches inter-linked by the nodes.

    Node

    1

    Node

    2

    Node

    3Stretch 1 Stretch 1

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    NEIGHBOURING COUNTRIES AND CENTRAL ASIAN COUNTRIES (IDEA PROJECT)PAGE 12 IDEAPROJECT IS FUNDED

    BY THE EUROPEAN UNION

    This allows efficient exploitation of the information obtained. The routes driven within EU

    territories were eliminated to avoid bias of the routes. In other works, the alternative routes

    started and ended at the EU borders.

    The transportation nodes within the TRAX framework represent state border crossing points /

    ports.

    In several cases a single stretch is served by a number of nodes. Each node (border crossing /

    customs point) processes certain types of good. The selection of the crossing point by the

    drivers is frequently determined by the cargo type and unofficial contacts enabling the

    simplification of the border crossing process. For calculation reasons, these nodes were

    combined into a single node.

    Based on the Drivers Journals three sets of routes were created as shown in the next figure:

    - Trans-- Russia route

    - Trans-- Caucasus route

    - Trans-- Turkey route

    Exploiting Drivers journals

    For the above constructed routes, information were extracted from the drivers journals and

    incorporated into a specially developed calculation tool based on MS-Exel.

    Tables 2.2.1 and 2.2.2 illustrate the input structure of the information for the stretches and

    nodes, respectively. Each line of the table reflects the information extracted from one drivers

    journal. Cost for fuel was not included into the transportation costs at that stage. They wereadded at a later point of calculation.

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    BY THE EUROPEAN UNION

    +ATR C(o) (m))/m C(no) (3)+

    C(no) (m))/m

    ))/m= Av

    C(o)+AvC(no)

    The average data on stretches and nodes were used for further calculations.

    In cases where the drivers journal comprises parallel (alternative) stretches within one

    country without nodes (i.e. identical transportation environment), stretches were consolidated

    into a single one Stretch with the average values of the total (Table 2.2.3).

    Table 2.2.3 Average Data on Stretch per Country

    Average Data on Stretch per Country

    AverageDistance

    AvL(s)= (L(S)i)/nWhereAv

    L(s - Average Distance, km

    L(S)i Length of stretch, km

    i= 1n, n total number of stretches

    Average

    travelling

    time in the

    country,h

    (Av

    TrT(s))

    Average

    Stop time

    on

    stretches in

    the

    country,h(

    AvST(s))

    Average

    total

    traveling

    time in the

    country,h

    (AvT(S))

    Average official

    costs in the

    country, EURO

    (Av

    C(o) (s))

    Average

    unofficial

    costs in the

    country,

    EURO

    (Av

    C(no) (s))

    Average total

    costs in the

    country, EURO

    (Av

    C (s))

    AvTrT(s) =

    (Av

    TrT(S)i)/n

    AvST(s) =

    (Av

    ST(s) i)/n

    AvT(S)=

    (Av

    T(S)i)/n=

    AvTrT(s) +

    AvST(s)

    AvC(o) =

    (Av

    C(o) (S)i)/n

    AvC(no)=

    (Av

    C(no)

    (S)i)/n

    AvC =

    (Av

    C(S)i )/n=

    AvC(o) +

    AvC(no)

    Where as , i= 1n,

    n total number of stretches

    In Analogy, the same approach was applied to the node calculations. If there were several

    nodes operating in parallel between two countries serving the same stretch, their data were

    combined into single node with the average values (Table 2.2.4).

    Table 2.2.4. Average Data on nodes between two countries

    Average Data on nodes between two countries (ADCN)

    Average

    node time at

    crossing , h(Av

    TrT(N))

    Average stop

    time on nodes

    (rest time), h(

    AvST(N))

    Average total

    node time, h

    (Av

    T(N))

    Average official

    costs on nodes,

    EURO(Av

    C(o)(N))

    Average

    unofficial costs

    on nodes,EURO

    Average total

    node costs,

    EURO(Av

    C(N))

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    BY THE EUROPEAN UNION

    (AvC(no) (N))

    AvTrT(N)=

    AvTrT(N)j/m

    AvST(N)=

    Av

    ST(N)j/m

    AvT(N) =

    Av

    T(N)j /m=Av

    TrT(N)+Av

    ST(N)

    AvC(o)(N)=

    AvC(o)(N)j/m

    AvC(no) (N) =

    AvC(no) (N)j

    /m

    Av

    C(N) =Av

    C(N) j/m=Av

    C(o)(N)+Av

    C(no) (N)Whereas , j= 1m,

    m number of nodes between two countries

    The average data were used for further calculations.

    Consideration of Risk Criteria

    Best option to consider the risks of a transport would use the insurance premium. During this

    work, insurance companies were not willing to share their experience in transport chain risk //

    i.e. safety and security of cargo) rating of TRACECA countries. For this, the freight forwarders

    interviewed were asked to rate this risk based on their experience for each country. Risk was

    classified in the categories High Rusk, Average Risk, Minor Risk / Low Risk or No Risk.

    The risk assessment was done solely for the stretches. According to the freight forwarders, risk

    hazards were limited to the rod stretches and did not indicate any risk hazards at nodes.

    Section C of the questionnaire / Interviews, the consultant obtained the estimation of the

    operators on the risk of cargo transport within a specific country. Despite the fact that the risk

    may increases with the value of goods, the judgment was requested for a base type of goods.As an example, Garments was given as a type of good to evaluate. Not all companies evaluated

    all countries. Evaluators limited their evaluations to the countries in which they have

    operational experience.

    Based on the classification, a risk percentage was calculated for every country. The calculation

    was based on an exponential function with a base of 1.26. While risk free receives a base

    weight value of 1, the High risk receives a weight of 2. Low risk receives a weight of 1.26 and

    medium risk a weight of 1.59.

    Based on the above, the share of the countries in the risk classes is calculated by the

    percentage of the risk class by the class weight. This represents the absolute value for risk. In anext step, the risk of the different countries was referenced to Western Europe as a

    benchmark. The risk factor for every country along the comparative routes is calculated by

    dividing the absolute value for each country by the benchmark of Western Europe give.

    The value of risk is usually expressed in monetary term. To obtain the monetary value for every

    stretch, the cost of transport along this stretch is multiplied by Risk Index .

    High Medium Low FreeCountry total

    votes Risk

    Total Relative

    value

    Risk

    index

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    BY THE EUROPEAN UNION

    marks %mar

    ks%

    mar

    ks% marks %

    (W. Europe)

    Armenia 8 5 63% 3 38% 0 0% 0 0% 1,85 1,53 1,53 0,5

    Azerbaijan 12 6 50% 2 17% 3 25% 1 8% 1,66 1,38 1,38 0,4

    Bulgaria 16 0 0% 3 19% 8 50% 5 31% 1,24 1,03 1,03 0,0

    Georgia 21 8 38% 9 43% 2 10% 2 10% 1,66 1,38 1,38 0,4

    Kazakhstan 20 3 15% 8 40% 4 20% 5 25% 1,44 1,19 1,19 0,2

    Kyrgyzstan 12 5 42% 3 25% 3 25% 1 8% 1,63 1,35 1,35 0,4

    Moldova 15 1 7% 5 33% 7 47% 2 13% 1,38 1,15 1,15 0,1

    Tajikistan 13 6 46% 3 23% 4 31% 0 0% 1,68 1,39 1,39 0,4

    Turkey 18 0 0% 5 28% 6 33% 7 39% 1,25 1,04 1,04 0,0

    Turkmenistan 12 4 33% 1 8% 6 50% 1 8% 1,51 1,26 1,26 0,3Ukraine 17 1 6% 4 24% 5 29% 7 41% 1,27 1,06 1,06 0,1

    Uzbekistan 12 3 25% 2 17% 3 25% 4 33% 1,41 1,17 1,17 0,2

    Iran 10 4 40% 1 10% 2 20% 3 30% 1,51 1,25 1,25 0,3

    Russian

    Federation21 1 5% 8 38% 7 33% 5 24% 1,36 1,13 1,13 0,1

    Rumania 10 0 0% 2 20% 6 60% 2 20% 1,27 1,06 1,06 0,1

    Belorussia 9 0 0% 5 56% 2 22% 2 22% 1,38 1,15 1,15 0,1

    Baltic

    Countries6 0 0% 1 17% 2 33% 3 50% 1,18 0,98 1,00 0,0

    WesternEurope 7 0 0% 2 29% 1 14% 4 57% 1,21 1,00 1,00 0,0

    Eastern

    Europe8 0 0% 2 25% 3 38% 3 38% 1,24 1,03 1,03 0,0

    China 9 0 0% 0 0% 3 33% 6 67% 1,09 0,90 1,00 0,0

    South Korea 1 0 0% 0 0% 1 100% 0 0% 1,26 1,05 1,05 0,0

    India 1 0 0% 1 100% 0 0% 0 0% 1,59 1,32 1,32 0,3

    2.3. Weighing of the evaluation criteria

    As indicated above, the Questionnaire was utilized to obtain the industrys views on the relative

    importance of the four evaluation criteria for the route choice. Four different categories could

    be choose as shown in the table below.

    To allow objective capture of the criteria, paired judgment approach was pursued. In this

    approach every two criteria are judged. Based on this judgment; the rank of the criteria was

    calculated. This approach utilized the Analytic Hierarchy Process (AHP). The Analytic Hierarchy

    Process (AHP) through its structured approach best fits dealing with the complex decisions of

    setting the ranking of the criteria based on paired judgment rather than prescribing the

    weights. The questionnaire is given in (Annex 1)

    Table2.3.1: Setting the relative importance for the criteria

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    BY THE EUROPEAN UNION

    Transport Cost arecompared

    toTransport Time

    Transport Cost arecompared

    toTransport Reliability

    Transport Cost arecompared

    to

    Transport Safety and

    Security

    Transport Time arecompared

    toTransport Reliability

    Transport Time arecompared

    to

    Transport Safety and

    Security

    Transport

    Reliabilityare

    4 More Important

    3 Slightly more

    Important

    2 Equally

    Important

    1 Slightly less

    Important

    0 Less Important

    compared

    to

    Transport Safety and

    Security

    The judgment scale of 0-4 proves to be practical in the TRAX case. Further distinction will not

    affect the final result in a statistically significant way.

    Calculation was made for the 4 criteria being compared leading to a total of 6 pair comparisons.

    The formula applies herefor is 2 P = (N (N 1) ,

    Whereas; P is the number of Paird comparison and N is the number of criteria. The total

    number of point is obtained by multiplying the P by the scale of judgment scale (0-4), The total

    number of points in the TRAX case is 6 x 4 = 24.Each pair has therefore a weight of 0.16667 (or 16.70 %) in the explanation of how relevant

    criteria are. At the same time, the result of each comparison is expressed on a rating scale

    (More important, Slightly more important, and Equally important). To keep this into

    account, the total weight of each pair has been split between the two criteria as follows:

    When one criteria is rated as more important (rate 4) it gets the whole weight (4/24 =

    0.16667) while its counterpart gets 0;

    When one criteria is rated as slightly more important (rate 3) it gets a weight of 0.125

    while its counterpart gets 0.041667;

    When one criteria is rated as equally important (rate 2) it gets a weight of 0.08333and also its counterpart gets 0.08333;

    When one criteria is rated as slightly less important (rate 1) it gets a weight of 0.041667

    while its counterpart gets 0.125;

    When one criteria is rated as less important (rate 0) it gets 0 while its counterpart gets

    the whole weight 0.16667.

    The final score of each criterion has been computed through the average of all the answers

    given by different evaluators:

    Table 2.3.2 Weight of the criterias

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    WEIGHT () FOR

    STRETCHES

    (S)

    FOR NODES

    (N)

    weight of the Cost (C) 13% 22%

    weight of the Transportation Time Costs (TiC) 17% 29%

    weight of the Transportation Reliability Costs (ReC) 29% 49%

    weight of the Risk costs (Safety) (SeC) 41% -

    2.4. Assumptions for the TRAX Calculation

    Estimates of Value of Travel Time

    To enable numerical calculation of the index an estimation for the Value of Travel Time (VOT)

    was required. The Value of Travel Time refers to the cost of time spent on transport, i.e. travel

    and waiting times. A desk research was made and the approach chosen is based on the recently

    published Monetary Estimates of VOT. This was published by Victoria Transport Policy Institute

    (www.vtpi.org) as a study on Transportation Cost and Benefit Analysis II. Travel Time Costs and

    the Study have been presented at the meeting of International Transport Forum in 2009.

    This Study use travel surveys to determine the value of travel time for Europe and other

    regions.

    The study found that travel time has an overall average value of about $10/hour, but that for a

    portion of trips (estimated at 10-15% overall and up to 24% during non-working days), traveltime has positive rather than negative value.

    The table below summarizes typical values of time used for transport project evaluation in

    Europe

    For TRAX calculation for road transport the value of 43 EURO has been used as a value of time.

    The fuel costs.

    The calculation of Index is based on officially published Fuel Prices on the following web sites

    International Road Union (www.iru.org), as primary source

    www.issa.ru, as secondary source.

    http://www.vtpi.org/http://www.iru.org/http://www.issa.ru/http://www.issa.ru/http://www.iru.org/http://www.vtpi.org/
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    2.5. Input Data for the Calculations

    Input Data for the Calculations for STRETCHES

    Data on Stretches obtained from the drivers journals:

    1. Length, km (L(S)i )

    2. Average Travel Time, hours (Av

    t(S)i )

    3. Minimum Travel Time on Stretch, hours (Tmin(S)i ) this is the minimum value of time

    used by the driver to travel across this stretch

    4. Maximum Travel Time on Stretch, hours (Tmax (S)i ) this is the maximum value of

    time used by the driver to travel across this stretch

    5. Average Official costs on the Route, EURO (Av

    C(o) (S)i )

    6. Average Unofficial costs on the Route, EURO (Av

    C(no) (S)i )

    7. Average Total Cost on the Route, EURO - (Av

    C(S)i )

    For the purposes of a unified approach the following assumptions were used:

    1. Travel Time costs per hour, EURO (VOT). The value of this index refers to 43 EURO.

    2. Average fuel consumption by the vehicle in the standard conditions 0,3 lt. per 100 km

    (CE)

    Calculation of the basic input values:1. Average speed (

    AvS (S)i )

    AvS (S)i = L(S)i /

    Avt(S)i

    2. Reliability in hours (Re (S)i ) this is a difference between the maximum and minimum

    value of the travel time, i.e. how much time may potentially be lost on stretch.

    (Re (S)i ) = Tmax(S)i - Tmin (S)i )

    3. Level of the Unofficial costs, %. (Cno (S)i ))

    Cno (S)i ) =Av

    C(no) (S)i /Av

    C(S)i *100%

    4. Total Fuel Consumption Cost on Stretch, EURO/L, (FC (S)i ))

    FC(S)i= AFC*CE* L(S)i = 0,22*0,3* L(S)i )

    5. Risk Coefficient (Safety Penalties) (RiC(S)i )) the calculation of this index is given in

    Section 2.2 Considiration of Risk criteria.

    Calculation of the INDEX criteria for STRETCHES

    Based on the exploitation of information from the drivers journal; the set of input data

    were used for the calculation of each of the criteria for stretches:

    1. Transportation Costs

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    2. Risk Costs (Safety)

    3. Transportation Time Costs4. Transportation Reliability Costs

    Transportation costs for Stretch (i) - (TrC(S)i ) were calculated by addition of all types of costs

    incurred throughout the itinerary, including official and unofficial, total cost of fuel being

    consumed by the vehicle in the average conditions to travel across this stretch. The value of

    any other costs associated with the transportation prime cost (amortization, interest,

    drivers salary etc.) was not taken into account.

    TrC(S)i = FC (S)i +Av

    C(S)i

    Risk Costs (Safety) (SeC(S)i ) on stretch (i) were calculated by multiplying the cost of

    transportation across this stretch by the risk coefficient of the same stretch. This criterion

    enables the assessment of a possible increase in the transportation cost on any stretch in

    terms of safety and security level (Risk Premium).

    SeC(S)i = TrC(S)i * RiC(S)i

    Transportation Time Costs ( TiC(S)i ) were calculated by multiplying the Average Travel Time

    on stretch (i) by the Travel Time cost factor / hour (43 EURO).

    TiC(S)i =Av

    t(S)i )* VOT

    Reliability Costs (ReC(S)i) were calculated by multiplying the Transportation Reliability cost /

    hour by the Travel Time cost / hour. This criterion reflects the costs of low predictability ofcargo delivery time and final costs.

    ReC(S)i = Re(S)i* VOT

    The results of calculations of the criteria, main indexes and basic data were brought

    together in a single Table for each stretch (Table 2.5.1).

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    Table 2.5.1 Standardized table with the Stretch estimated data

    Number

    ofStretch

    ShortDescription

    TypeofInfrastructure

    Countries

    Transpor

    tationcost

    Riskcos

    t(safety)

    Transportat

    ionTimecost

    TransportationReliability

    cost

    Lengthofthe

    stretch

    (km)

    AverageTotalTravelTime

    (ho

    urs)

    Minimum

    TravelTime

    Maximum

    TravelTime

    Reliabilityinhours

    Averag

    espeed

    AverageTotalcosts,EURO

    AverageOfficialcosts,EURO

    AverageUn

    officialcosts,

    EU

    RO

    LevelofUno

    fficialcosts,%

    TotalFuelCostonStretch

    (EU

    RO)

    Average1

    lt.

    FuelCost

    Traveltime

    costperhour

    (E

    UR)

    RiskCoeffic

    ient(SAFETY

    PEN

    ALTY)

    TrC(S)i SeC(S)i TiC(S)i ReC(S)i L(S)iAvt(S)i Tmin

    (S)i

    Tmax

    (S)i

    Re(S)iAvS(S)i

    AvC(S)iAvC(o)

    (S)i

    AvC(no)

    (S)i

    Cno

    (S)i

    FC (S)i AFC VOT RiC(S)i(Si) Name

    of

    Stretc

    h

    Road/

    ferry

    Name

    AFC(S)i+Av

    C (S)i

    TrC(S)i )

    * RiC(S)i

    Avt(S)i *

    VOT

    Re(S)i *

    VOT

    Source: Drivers Journals Tmax

    (S)i -

    Tmin

    (S)i

    L(S)i/

    At(S)i

    Source: Drivers

    Journals

    AvC(no) (S)

    /Av

    C (S)i*100%

    AFC*

    CE*

    L(S)i

    0,22 43 Source:Intervie

    ws and

    calculat

    ions

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    Input Data for the Calculations for NODES

    Data on Nodes obtained from the drivers journals are:

    1. Average Total Costs on Node, EURO (Av

    C (N)j)

    2. Average Official Costs on Node, EURO (Av

    C(o) (N)j )

    3. Average Unofficial Costs on Node, EURO, (Av

    C(no) (N)j )

    4. Minimum Waiting Time on Node in hours , (Tmin (N)j )

    5. Maximum Waiting Time on Node in hours, (Tmax (N)j )

    6. Average Waiting Time on Node in hours (Av

    t (N)j)

    For the purposes of a unified approach the following assumptions were used:1. Travel Time cost per hour, EURO (VOT). The value of this index refers to 43 EURO.

    Calculation of the basic input values:

    1. Reliability in hours (Re (N)j) this is a difference between the maximum and

    minimum value of the travel time, i.e. how much time may potentially be lost on a

    node.

    Re (N)j= Tmax (N)j - Tmin (N)j

    2. Level of Unofficial costs, %. (Cno (N)j)

    Cno (N)j= AvC(no) (N)j/ AvC (N)j*100%

    Calculation of INDEX criteria for NODES

    Based on the exploitation of information from the drivers journal; the set of input data

    were used for the calculation of each of the criteria for nodes:

    1. Average Total Costs on Node

    2. Time Cost on Node

    3. Reliability Costs on Node

    Average Total Costs on Node, EURO (

    Av

    C(N)j), as already stated, have been obtained from thedrivers journals and include all types of costs incurred within the node, be it official or

    unofficial. The value of any other costs associated with the transportation prime cost

    (amortization, interest, drivers salary etc.) was not taken into account.

    Time Costs on node (TiC(N)j)were calculated by multiplying the Average Total time on node

    (j) by the Travel time cost factor / hour (43 EURO).

    TiC(N)j=Av

    t(N)j* VOT

    Reliability Costs on Node (ReC(N)j) were calculated by multiplying the node Reliability cost /

    hour by the Travel time cost / hour. This criterion reflects any possible losses or gains that

    could occur on this node in the favorable or unfavorable circumstances resulting to anydelays in transit.

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    ReC(N)j= Re(N)j* VOT

    The results of calculations of the criteria, main indexes and basic data were brought together ina single table for each node (Table 2.5.2).

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    Table 2.5.2 Standardized table with the Node estimated data

    NumberofNode

    ShortDescription

    TypeofBorder

    Countries

    Average

    Total

    Costs

    on

    Node(EUR)

    Timecostonnode

    Reliabilitycosto

    nNode

    AverageO

    fficial

    costson

    Node,

    EURO

    LevelofUnofficialcosts,%.

    AverageUnoffic

    icalcostson

    Node,

    EURO

    Minimum

    WaitingTimeon

    Nodeinhours

    AveragetotalW

    aitingTime

    onNodeinhours

    Maximum

    WaitingTimeon

    Nodeinhours

    Reliabilityinhou

    rs

    Traveltimecost

    perhour,

    (EUR)

    AvC (N)j TiC(N)j ReC(N)j

    AvC(o) (N)j C(no) (N)j

    AvC(no)

    (N)j

    Tmin

    (N)j

    Avt (N)j Tmax

    (N)j

    Re (N)j) VOT(N) Nameof

    node

    Road

    / Sea

    Name

    AvC(o) (N)j +

    AvC(no) (N)j

    Avt (N)j *

    VOT

    Re (N)j* VOT

    Source:DriversJournals

    AvC(no)

    (N)j /Av

    C

    (N)j

    *100%

    Source: Drivers Journals Tmax

    (N)j -

    Tmin

    (N)j

    43

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    2.6. Segmentation of the Routes

    The calculation of the index TRAX was made by adding the values along stretches and nodes asdescribed above. To enable comparison and improvements monitoring, an intermediate step

    was introduced by creating regional sub index (R-TRAX). Each route was appropriately divided

    in three sections:

    - European section,

    - Middle/ Central section

    - Central Asia

    Consequently, the data on any route section comprise all data on nodes and stretches within

    this region of the route.The spatial distinction for the regions is given below:

    Trans Russia route Trans Caucasus route Trans Turkey route

    European section Belorussia Ukraine

    Rumania

    Bulgaria

    Bulgaria

    Turkey

    Middle (Central)

    section

    Russia Black Sea Ferry,

    Georgia, Caspian Ferry,

    Azerbaijan

    Iran

    Eastern section

    (Central Asia)

    Kazakhstan/ Uzbekistan/

    Kyrgyzstan/

    Kazakhstan

    Uzbekistan

    Kyrgyzstan

    Turkmenistan

    Uzbekistan

    Kyrgyzstan

    2.7. Regional adjustment of values for Stretches

    As stated above, the criteria for the Stretch index calculation were as follows:

    1. Transportation Costs (TrC(s))

    2. Risk Costs (Safety) (SeC(s))

    3. Transportation Time Costs (TiC(S))

    4. Transportation Reliability Costs (ReC(s))

    The data on these criteria derived from the calculations described above were adjusted to

    fit the the regional approach as follows:

    European section Middle (Central)

    section

    Eastern section

    (Central Asia)

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    Transportation costs

    TrC(s)

    TrC(s)EU = TrC(S)i TrC(s)MID = TrC(S)i TrC(s)CA = TrC(S)i

    Risk costs (Safety)

    SeC(s)

    SeC(s)EU = SeC(S)i SeC(s)MID = SeC(S)i SeC(s)CA = SeC(S)i

    Transportation Time

    costs TiC(s)

    TiC(s)EU = TiC(S)i TiC(s)MID = TiC(S)i TiC(s)CA = TiC(S)i

    Transportation

    Reliability costs ReC(s)

    ReC(s)EU =ReC(s)i ReC(s)MID=ReC(s)i ReC(s)CA=ReC(s)i

    Length of the regional

    section, km L(S)

    L(S)EU= L(s)i L(S)MID= L(s)i L(S)CA= L(s)i

    i=1n,

    n- number of

    stretches on the

    European section

    of the route

    i=1m,

    m- number of

    stretches on the

    Middle (Central)

    section of the route

    i=1k,

    k- number of

    stretches on the

    Eastern section of

    the route (Central

    Asia)

    It is important to mention that the adjustment of the total index value to the length (for

    comparison reason as mentioned above) was made at the regional level and not for theenture corridor. This does not only ensure the comparability of the total index TRAX but

    also for the regional index R-TRAX. There was no adjustment made for the Node data.

    Furthermore, for the data adjustment purposes, the average length, km (Av

    L(S)) was

    specified. The average length of the route is calculated as an average value of all integrated

    regional sections of this route.

    AvL(s)=( L(s)i)/N, i=1.N (N number of the regional parts)

    The adjustment was applied to the following main values of each regional section of the

    route:

    European section Middle (Central)section

    Eastern section(Central Asia)

    Adjusted

    Transportation costs

    (ADJ

    TrC(S))

    ADJTrC(S)EU =

    TrC(S)EU / L(S)EU *Av

    L (S)

    ADJTrC(S)MID =

    TrC(S)MID / L(S)MID*Av

    L (S)

    ADJTrC(S)CA = TrC(S)CA /

    L(S)CA*Av

    L (S)

    Adjusted Risk (Safety)

    costs SeCADJ

    s

    SeCADJ

    s(EU)= SeCEU

    s

    / L(S)EU *Av

    L (S)

    SeCADJ

    s(MID)= SeCMID

    s

    / L(S)MID*Av

    L (S)

    SeCADJ

    s(CA)= SeCCA

    s /

    L(S)CA*Av

    L (S)

    Adjusted

    Transportation Time

    costs ADJTiC(S)

    ADJTiC(S)EU = TiC(S)EU

    / L(S)EU *Av

    L (S)

    ADJTiC(S)MID =

    TiC(S)MID / L(S)MID*AvL (S)

    ADJTiC(S)CA = TiC(S)CA /

    L(S)CA*Av

    L (S)

    Adjusted ReliabilityADJ

    ReC(S)EU =ADJ

    ReC(S)MID =ADJ

    ReC(S)CA =ReC(S)CA/

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    costs ReC(S) ReC(S)EU / L(S)EU *Av

    L (S)

    ReC(S)MID / L(S)MID*Av

    L (S)

    L(S)CA*Av

    L (S)

    2.8. Regional approach for Nodes

    In analogy to the regional approach for stretches, nodes representing the border crossing

    points and ports were also classified in accordance with the regional principle described

    above. For nodes at the borders between two regions, it was necessary to divide the node

    data into two sub-nodes. The division of the cost, time and the reliability values of a node

    were calculated by dividing them according to the length of the stretch they are connected

    to. For example for the Node (N) that accommodates two stretches, aone is European (Sw)

    and one Eastern (Se). The lengths of the both stretches are known (L(S)w, L(S)e ), then one

    might assume that the node accommodates the route with the following magnitude: (L(S)w+ L(S)e). However Sw and Se refer to the different regional sections of the route, and the

    node (N) accommodates two regional stretches. Now therefore:

    1) Specific Node (N) weight (KN) for the Stretch (Sw) will be equal to:

    K(N)w = L(S)w / (L(S)w + L(S)e)

    2) Specific Node (N) weight (KN) for the Stretch (Se) will be equal to:

    K(N)e = L(S)e / (L(S)w + L(S)e).

    As stated above, the node index calculation is based on the following three main criteria:

    1. Average Total Costs on Node, EURO (AvC(N)j) ,

    2. Time Costs on Node (TiC(N) j)

    3. Reliability Costs on Node (ReC(N) j)

    Therefore the specific weight value has been calculated with the use of the indicated criteria:

    Node European section Middle (Central)

    section

    Eastern section

    (Central Asia)

    Average Total Costs on

    node, EURO (Av

    C(N))

    AvC(N)EU=

    K(N)w*

    Av

    C(N)jw +AvC(N)j+ K(N)e*Av

    C(N)je

    AvC(N)MID=

    KNw* AC N(jw)+ACN(j)+ KNe*

    ACN(je)

    AvC(N)CA=

    KNw* ACN(jw) +ACN(j)+KNe* ACN(je)

    Time Costs on node

    (TiC(N))

    TiC(N)EU=

    K(N)w* TiC(N) jw +

    TiC(N)j+ K(N)e* TiC(N)je

    TiC(N)MID=

    K(N)w* TiC(N) jw +

    TiC(N)j+ K(N)e* TiC(N)je

    TiC(N)CA=

    K(N)w* TiC(N) jw +

    TiC(N)j+ K(N)e* TiC(N)je

    Reliability Costs on

    node (ReC(N))

    ReC(N)EU =

    K(N)w* ReC(N)jw +

    ReC(N)j+ K(N)e*

    ReC(N)je

    ReC(N)MID =

    K(N)w* ReC(N)jw +

    ReC(N)j+ K(N)e*

    ReC(N)je

    ReC(N)CA =

    K(N)w* ReC(N)jw +

    ReC(N)j+ K(N)e* ReC(N)je

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    Definitions j=1n, n number

    of nodes on the

    European section,

    jw- utmost Western

    node on the

    European section

    je utmost Eastern

    node on the

    European section

    j=1n, n number

    of nodes on the

    Middle section,

    jw- utmost Western

    node on the Middle

    section

    je utmost Eastern

    node on the Middle

    section

    j=1n, n number of

    nodes on the Eastern

    section

    jw- utmost Western

    node on the Eastern

    section

    je utmost Eastern

    node on the Eastern

    section

    The results of calculations have been consolidated in the summary table for each route sectionshown below.

    Name of Route

    Region European Central

    (Middle)

    Eastern

    (Central

    Asia)

    Country Names Names Names

    Total

    Transportation Costs TrC(S)EU TrC(S)MID TrC(S)CA TrC(S)= TrC(S)EU +

    TrC(S)MID + TrC(S)CA

    Adjusted Transportation

    Costs

    ADJTrC(S)EU

    ADJTrC(S)MID

    ADJTrC(S)CA

    ADJTrC(S)=

    ADJTrC(S)EU +

    ADJTrC(S)MID +

    ADJTrC(S)CA

    Transportation Time

    Costs

    TiC(S)EU TiC(S)MID TiC(S)CA TiC(S)= TiC(S)EU +

    TiC(S)MID + TiC(S)CA

    Adjusted Transportation

    Time Costs

    ADJTiC(S)EU

    ADJTiC(S)MID

    ADJTiC(S)CA

    ADJTiC(S)=

    ADJTiC(S)EU +

    ADJTiC

    (S)MID+

    ADJTiC(S)CA

    Transportation

    Reliability cost

    ReC(S)EU ReC(S)MID ReC(S)CA ReC(S)= ReC(S)EU +

    ReC(S)MID +

    ReC(S)CA

    STR

    ETCHDATA

    Adjusted Transportation

    Reliability Costs

    ADJReC(S)EU

    ADJReC(S)MI

    D

    ADJReC(S)CA

    ADJReC(S)=

    ADJReC(S)EU +

    ADJReC(S)MID +

    ADJReC(S)CA

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    BY THE EUROPEAN UNION

    Risk (Safety) Costs SeC(S)EU SeC(S)MID SeC(S)CA SeC(S) = SeC(S)EU +

    SeC(S)MID + SeC(S)CA

    Adjusted Risk (Safety)

    Costs

    ADJSeC(S)EU

    ADJSeC(S)MI

    D

    ADJSeC(S)CA

    ADJSeC(S)=

    ADJSeC(S)EU

    +ADJ

    SeC(S)MID +ADJ

    SeC(S)CA

    Length, km L(S)EU L(S)MID L(S)CA L (S)= L(S)EU +L(S)MID+L(S)CA

    Average Length, kmAv

    L (S)

    Average Total Costs on

    Node

    AvC(N) EU

    AvC(N)MID

    AvC(N)CA

    AvC(N) =

    AvC(N) EU+

    AvC(N)MID+

    AvC(N)CA

    Time Cost on Node TiC(N)EU TiC(N)MID TiC(N)CA TiC(N)= TiC(N)EU +

    TiC(N)MID +TiC(N)CA

    Reliability Costs on Node ReC(N)EU ReC(N)MID ReC(N)CA ReC(N)= ReC(N)EU +

    ReC(N)MID+ReC(N)CA

    NODEDATA

    NODES Names Names Names Names

    2.9. INDEX Calculation

    As noted above, the Route Index consists of two sub-indexes: stretch sub-index and nod sub-

    index.

    TRAX - Roads INDEX (R)= INDEX (S) + INDEX (N)

    Stretch INDEX (S)

    The INDEX (S) for stretchs is calculated as a sum of stretchess criteria (Adjusted Transportation

    Costs, Adjusted Time Costs, Adjusted Reliability Costs, and Adjusted Safety Costs) multiplied by

    the specific weight of each criterion specified in Section 1.4. The adjustment relates to the

    length of each stretch. The following formula applies for the calculation of INDEX (S):

    INDEX (S) = (ADJ

    TrC(S) * (S)TrC +ADJ

    TiC(S) * (S)TiC +ADJ

    ReC(S) * (S)ReC +ADJ

    SeC(S) * (S)SeC ),

    However; this index was first calculated on the basis of the regional approach indicated above

    region (section) of the route, while the specific weights of criteria remained unchanged:

    INDEX (S)EU = (ADJ

    TrC(S)EU* (S)TrC +ADJ

    TiC(S)EU* (S)TiC +ADJ

    ReC(S)EU * (S)ReC +ADJ

    SeC(S)EU * (S)SeC )

    INDEX (S)MID = (ADJ

    TrC(S)MID * (S)TrC +ADJ

    TiC(S)MID * (S)TiC +ADJ

    ReC(S)MID * (S)ReC +ADJSeC(S)MID * (S)SeC )

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    INDEX (S)CA = (ADJ

    TrC(S)CA * (S)TrC +ADJ

    TiC(S)CA * (S)TiC +ADJ

    ReC(S)CA * (S)ReC +ADJ

    SeC(S)CA* (S)SeC )

    The total index can also be calculated by adding up the regional index. The following formula is

    valid.

    INDEX (S) = INDEX (S)EU +INDEX (S)MID+ INDEX (S)CA =

    = (ADJ

    TrC(S) * (S)TrC +ADJ

    TiC(S) * (S)TiC +ADJ

    ReC(S) * (S)ReC +ADJ

    SeC(S) * (S)SeC )

    Node INDEX

    The INDEX (N) for Nodes is calculated as a sum of the nodess criteria (Average Total Costs on

    Node, Time Costs on Node and Reliability Costs on Node) multiplied by the specific weight of

    each node criteria specified in Section 2.3. Therefore:

    INDEX (N) = (Av

    C(N) * (N)C + TiC(N)* (N)TiC + ReC(N)* (N)ReC),

    However, this index was first calculated on the basis of the regional approach indicated above

    for each region (section) of the route, while the specific weights of criteria remained

    unchanged:

    INDEX (N)EU = (Av

    C (N)EU* (N)C + TiC(N)EU * (N)TiC + ReC(N)EU * (N)ReC)

    INDEX (N)MID = (Av

    C (N)MID * (N)C + TiC(N)MID * (N)TiC + ReC(N)MID * (N)ReC)

    INDEX (N)C = (Av

    C (N)CA* (N)C + TiC(N)CA * (N)TiC + ReC(N)CA * (N)ReC)

    The total index can also be calculated by adding up the regional index. The following formula is

    valid.

    INDEX (N) = INDEX (N)EU +INDEX (N)MID+ INDEX (N)CA =

    = (Av

    C(N) * (N)C + TiC(N)* (N)TiC + ReC(N)* (N)ReC)

    The results of index calculations were calculated separately for each route on the basis of the

    regional approach and further combined in the summary table.

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    (IDEA PROJECT)PAGE 31 IDEAPROJECT IS FUNDED BY THE EUROPEAN UNION

    ROUTE TRANS - RUSSIA

    TRANS - CAUCASUS

    TRANS - TURKEYRegion Europe Middle (Central) Part East part (Central Asia)

    Countries Names Names Names Total

    Total INDEX INDEX(R)EU =

    INDEX (S) EU + INDEX (N) EU

    INDEX(R)MID =

    INDEX(S) MID + INDEX(N) MID

    INDEX(R)CA =

    INDEX(S)CA + INDEX(N) CA

    INDEX (R)=

    INDEX (S) + INDEX (N)=

    INDEX(R)EU +INDEX(R)MID+INDEX(R)CA

    Stretch

    INDEX

    INDEX (S)EU =

    (ADJ

    TrC(S)EU* (S)TrC +ADJTiC(S)EU* (S)TiC +

    ADJReC(S)EU* (S)ReC +

    ADJSeC(S)EU * (S)SeC )

    INDEX (S)MID =

    (ADJ

    TrC(S)MID * (S)TrC +ADJ

    TiC(S)MID* (S)TiC +

    ADJReC(S)MID * (S)ReC +ADJSeC(S)MID * (S)SeC )

    INDEX (S)CA =

    (ADJ

    TrC(S)CA * (S)TrC +ADJ

    TiC(S)CA *

    (S)TiC +

    ADJReC(S)CA * (S)ReC +

    ADJSeC(S)CA *

    (S)SeC )

    INDEX (S) =

    INDEX (S)EU +INDEX (S)MID+INDEX

    (S)CA= (ADJTrC(S) * (S)TrC +

    ADJTiC(S)* (S)TiC +

    ADJReC(S) * (S)ReC +ADJ

    SeC(S) * (S)SeC )

    Node INDEX INDEX (N)EU =

    (Av

    C (N)EU* (N)C + TiC(N)EU *

    (N)TiC + ReC(N)EU * (N)ReC)

    INDEX (N)MID =

    (Av

    C (N)MID * (N)C + TiC(N)MID *

    (N)TiC + ReC(N)MID * (N)ReC)

    INDEX (N)CA =

    (Av

    C (N)CA* (N)C + TiC(N)CA * (N)TiC+ ReC(N)CA * (N)ReC)

    INDEX (N) =

    INDEX (N)EU +INDEX (N)MID+

    INDEX (N)CA=

    (Av C(N) * (N)C + TiC(N)* (N)TiC +

    ReC(N)* (N)ReC)

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    BY THE EUROPEAN UNION

    3. FUTURE DEVELOPMENT AND USE OF TRAX

    TRAX methodology for road transport and calculations results shall be published on the

    TRACECA web site illustrating the reference year 2010. Regular update shall be made for TRAX

    to show the improvement in the TRACECA route attractiveness compared to alternative routes.

    In this regard and in the course of 2011, TRAX will be further development to Intermodal Index

    TRAX by including the railway born transport links along the TRACECA routes and the Trans-

    Russian routes.

    For intermodal index calculating will be applied a single methodological approach for all its

    constituent parts: road and rail transport indexes.

    In such a way the TRAX for rail transport will be calculated by analogy with TRAX for road

    transport, illustrates the attractiveness indications of a route chosen by a transport operator

    such as time, cost, reliability of transportation and safety. The weighing of the criteria must also

    reflect the priorities and weights considered by the transport operators.

    Data collection, definition of criteria weights, formation and segmentation of the route will be

    made in cooperation with transport companies and operators by questionnaires and

    interviews.

    Planned integrated approach to data collection at the national and international level:

    1) Questionnaire survey and Interviews with the national railway administrations /

    companies - to provide national data on individual countries on route lines, tariff scale,

    costs of transportation on stretches and processing in the nodes, indicative time of the

    transportation through the route (stretch) and carry out the necessary operations in the

    nodes.

    2) Questionnaire survey and Interviews with operators / companies / freight forwarders,

    providing services of rail transportation - to receive data at the national level for

    individual countries about the time and cost of transportation by rail on a particular

    route (stretch/node)

    3) Questionnaire survey and Interviews with operators / companies / freight forwarders,

    providing services of international rail transportation - to receive data at the

    international level about the time and cost of transportation by rail on particular route

    (stretch/node) in terms of non-resident.

    Thus, each stretch or node gets three types of assessment on time and cost of transportation:

    - In terms of national railway administration

    - In terms of national rail transport operator / freight forwarders

    - In terms of international rail transport operator / freight forwarders.

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    BY THE EUROPEAN UNION

    Further, the calculation of the reliability of railway transportation, average cost and time will be

    carried out in the same way as in the above described methodology.

    The selection / weighing of the criteria have been based on several interviews with

    transportation operators in the TRACECA region and in Western Europe. The criteria meet the

    state-of-the-art experience in transport research

    Intermodal index Trucks will calculate based on value (specific gravity) of road and rail traffic for

    each route.

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    BY THE EUROPEAN UNION

    4. REFERENCES1. NEW EURASIAN LAND TRANSPORT INITIATIVE, Final report , Analysis of monitoring data collected on

    NELTI Project Routes in 2008 2009

    2. Becker, G.S. (1965) A theory of the allocation of time, in: Economic Journal, Vol. 75 (3), Pages 493-

    517

    1. Bruzelius, N. (1979) The value of travel time, 1st edition, Croom Helm, London

    2. De Serpa, A.J. (1973) A theory of the economics of time, in: Economic Journal, Volume 81, Pages

    825-841

    3. Evans, A.W. (1972) On the theory of the valuation and allocation of time, in: Scottish Journal of

    Political Economy, Volume 19, Pages 1-17

    4. Goodwin, P.B. (1981) The usefulness of travel budgets, in: Transportation Research, Volume 15 A,

    Pages 97-106

    5. EURASIAN DEVELOPMENT BANK (2009) The EURASEC Transport Corridors Sector Report

    6. UNITED NATIONS (2008) Joint study on developing Euro-Asian Transport Linkages

    7. SSATP (2008) Sub-Saharan Africa Transport Policy Program, Lessons of Corridor Performance

    Management- Discussion Paper No. 7, Regional Integration and Transport

    8. Arvis, J.F., Raballand, G. and Marteau, J.F. (2007) The cost of being landlocked: logistics costs and

    supply chain reliability, WP 4258, The World Bank Group

    9. The World Bank Group (2005) Best Practices in Corridor Management

    10. 11. EUCAM (2009) Optimization of Central Asian and Eurasian Trans-Continental Land Transport

    Corridors, working paper 09

    11. NELTI (New Eurasian Land Transport Initiative Final Report-2008

    12. Catalany, M. (2009) Transport competition on a multimodal corridor by elasticity evaluation,

    University of Naples/Italy

    13. NCHRP Report No 431,(2009) National Cooperative Highway Research Program, Valuation of Travel

    Time Savings and Predictability in Congested Conditions for Highway Use Cost Estimations

    14. The World Bank Group and Turku School of Economics (2007) Connecting to Compete- TradeLogistics in the Global Economy-The Logistics Performance Index and its Indicators, accessible on

    online World Bank resources

    15. U.S. Department of Transportation, Federal Highway Administration, (2004) Freight Transportation

    Improvements and the Economy

    5. ANNEX 1. TRACECA TRAX QUESTIONNAIRE

    The team of the Project IDEA Transport Interoperability and Dialogue between the EU,

    Caucasus and Asian is supporting the initiative to improve the attractiveness of the TRACECA

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    BY THE EUROPEAN UNION

    Transport Corridor. Within this framework, this questionnaire serves obtaining feedback from

    the TRACECA stakeholders towards prioritizing the main features for development. Your

    answers will be the base for identification of the existing bottlenecks and fine tuning of the

    priority ranking of future transport investments in the TRACECA Corridor.

    Please fill in this questionnaire and return it to the IDEA team

    Part A. General questions on companys scope of activity

    Name of the

    Company:

    Company address

    Contact Partner /

    Phone number

    Business field

    Number of staff

    Number of

    trucked

    containers per

    year

    Client locations

    in TRACECA

    countries:

    Yes No Under Planning

    Armenia

    Azerbaijan

    Bulgaria

    Georgia

    Kazakhstan

    Kyrgyzstan

    Moldova

    Tajikistan

    Turkey

    Turkmenistan

    Ukraine

    Uzbekistan

    Romania

    Islamic Republic of

    Iran

    Client locations

    in other

    Yes No Planning

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    BY THE EUROPEAN UNION

    equally important

    slightly more importantmore important

    less important

    slightly less important

    equally important

    slightly more important

    Transport Time

    more important

    Tracking and Safety

    less important

    slightly less important

    equally important

    slightly more important

    Transport Reliability

    more important

    Tracking and Safety

    To finish this questionnaire, please tell us about the risk-profile of carrying through (transit)

    and in-between the above listed countries.

    Country High Risk Medium Risk Low Risk Risk-FreeArmenia

    Azerbaijan

    Bulgaria

    Georgia

    Islamic Republic of Iran

    Kazakhstan

    Kyrgyzstan

    Moldova

    Peoples Republic of China

    Russian Federation

    Tajikistan

    Turkey

    Turkmenistan

    Ukraine

    Uzbekistan

    Romania

    Please address more topics in the next field you might find of importance

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    Thank you very much for your time spent to answer our questions.

    The IDEA-Project TEAM


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