Transportation project planning is described as a public activity where purely financial return is not the overriding benefit to be attained. Give the reasons why this activity is a major part of the public activity in the U.S. economy

Answer 1

Transportation project planning is the process whereby federal, state, or local groups review the movement needs or demands of a region or population segment, develop transportation alternatives, and usually propose or implement and alternative. This process enables the development of new movement processes or allows existing ones to continue in an environment of change.

Transportation project planning is a public activity; purely financial returns and other concerns are not the overriding benefits sought. It is a major part of the public activity in the U.S. economy for several reasons. First, public transportation processes can facilitate trade or movement where private actions have not or would not have been enticed to do so for financial gain alone. Second, various cultural and political benefits often come from projects and programs provided publicly. Third, transportation planning also lowers the cost of living or reduces the social costs of delay or congestion. Finally, transportation planning provides services that are not remunerative but are deemed socially necessary or desirable.

Transportation planning has been a critical factor in the beginning of the 21st century. There are many areas of transportation investment from which private firms have withdrawn. Many forms of transportation today are no longer economically profitable or compensatory. Urban bus systems, commuter railroads, rail and urban research and development, and many rail services are examples of transportation forms that would not exist without public sector involvement.

Many forms of transportation require large capital investments that would normally discourage or basically prohibit private investment. Port dredging and development, as well as airport and highway construction, are examples of capital items that are not affordable by the carriers using them. Instead, the ability of a public authority to attract capital enables the asset to be built; cost is recovered through user charges.

Public planning of transportation is generally found in situations where environmental or social needs override financial ones. A major argument used in modern subway construction is that, although the system might not recover its full costs from passenger fares, the city as a whole will benefit by increased access to already existing downtown facilities, including buildings, offices, stores, and water utility systems. Constructing other facilities in developing suburban areas will not be necessary. Also, commuters save money because the subway eliminates the need for a second family auto, long driving, excess fuel consumption, costly parking in downtown areas, and so on. Public planning of transportation involves a different viewpoint and set of objectives than does capital investment analysis in private firms.