Guidebook for Considering Life-Cycle Costs in Airport Asset Procurement

Fortin, John W.; Alfaqih, Laith; Bell, Pamela

doi:10.17226/24764

Cited by 1 publication

(2 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Taking a life-cycle perspective allows officials not only to account for the initial procurement costs of the proposed project but also take into account the possible annual expenditures that facilitate the sufficient budget allocation and appropriate management of fiscal funds. LCCA provides adequate information at the project planning and design level that sets the tone for proper further asset management (Fortin et al , 2017).…”

Section: Methodsmentioning

confidence: 99%

See 1 more Smart Citation

Life-cycle cost analysis of a short-haul underground freight transportation system for the DFW Airport

Zahed

Shahooei

Farooghi

et al. 2019

BEPAM

View full text Add to dashboard Cite

Purpose The purpose of this paper is to conduct life-cycle cost analysis of a short-haul underground freight transportation (UFT) system for the Dallas Fort Worth international airport. Design/methodology/approach The research approach includes: identifying the cost components of the proposed airport UFT system; estimating life-cycle cost (LCC) of system components using various methods; determining life-cycle cash flows; evaluating the reliability of the results using sensitivity analysis; and assessing the validity of the results using analogues cases. Findings Although the capital cost of constructing an airport UFT system seems to be the largest cost of such innovative projects, annual costs for running the system are more significant, taking a life-cycle perspective. System administrative cost, tunnel operation and maintenance, and tunnel construction cost are the principle cost components of the UFT system representing approximately 46, 24 and 19 percent of the total LCC, respectively. The shipping cost is estimated to be $4.14 per ton-mile. Although this cost is more than the cost of transporting cargos by trucks, the implementation of UFT systems could be financially justified considering their numerous benefits. Originality/value This paper, for the first time, helps capital planners understand the LCC of an airport UFT system with no or limited past experience, and to consider such innovative solutions to address airport congestion issues.

show abstract

Section: Methodsmentioning

confidence: 99%

“…A discount rate of 1.5 percent recommended by the USOMB (2016) is used in this analysis. The service life of airport facilities is usually considered between 20 and 40 years (FAA, 2009; Fortin et al , 2017). In this paper, the life expectancy of all the system components is assumed to be 30 years, except for forklifts.…”

Section: Methodsmentioning

confidence: 99%