Norway's current railway expansion plans are deemed economically unviable, with 80% of projects expected to yield negative societal benefits according to a recent government analysis.
In a critical analysis presented by Norway's government advisory committee on fiscal policy, it has been revealed that a staggering 80 percent of the project portfolio in the National Transport Plan is projected to have negative net societal benefits. This indicates that the anticipated gains from railway projects are outweighed by their costs. The concept of societal economic benefit in transport revolves around achieving efficient and safe transportation at the lowest possible cost to society, yet many costs and benefits remain difficult to quantify, such as impacts on societal security and environmental considerations.
Furthermore, the analysis points out that the selection process for projects within the portfolio does not prioritize the most profitable ones. This indicates a systemic issue where even projects with escalating costs, leading to decreased profitability, struggle to be executed. This calls into question the criteria used for establishing project viability, raising concerns among stakeholders about the effective allocation of resources in transportation infrastructure development.
As Norway contemplates the future of its railway system, the advisory statement highlights the pressing need for a fundamental reassessment of transportation priorities, especially those that promise only limited benefits or contribute to increasing fiscal strain. The findings suggest that the region should reconsider its approach to expanding its railway network, particularly in peripheral areas where such investments may yield little return, thereby necessitating a broader discussion on sustainable and economically viable transport solutions.
