Railroad construction costs: a complex puzzle that defies simple comparison!

As much as l subscribe to the argument that some aspects of the general costing of railroad projects in Nigeria deserve a second look, l wish to submit that a particular assertion by a respected railway expert that and l quote - “…that over 4m USD per kilometer of the railway is far too expensive. That is a major issue. UK is expensive compared to Nigeria, and they renew their railways at less than 1m USD per kilometer even in built-up London as an average” isn’t borne out with all my years of railroad construction, renewal, and maintenance here in the UK, or elsewhere.

Let’s consider some specific examples to illustrate the complexity of railroad construction costs. The average reconditioning works on TfL/LUL, recon site, plain line, or recon site check rail, Station ground plain line, and station ground check rail, to mention a few, range from as little as £5635.39 sterling per meter to £9358.42/£11129.79 per meter. The cost per km and the math for a one-kilometer site (x 1000mtrs) are not straightforward calculations. Every location presents its peculiarities, which are too many to detail here. These are as of 20211 April, the last time I worked there before my voluntary retirement, a decision I have regretted ever since.

The Cross Rail/Elizabeth Line is a new 117 km long line; it became operational after completing all the work associated with its construction. Construction began in 2009 after the project was approved in 2007. It became operational on 24 May 2022. The final construction cost was reported at £17.8b (approximately £152.137m per km). It runs from the West of London (Reading and Heathrow, T4) through central London up to the East (Shenfield and Abbey Woods).

In my home state of California, a commuter rail line in the San Joaquin Valley Area, Bay Area of San Francisco, is estimated to cost $1.8b. A 65.9km line with seven stations will cost approximately $27.314m per km. The completion time is about 5 – 7 years! Then, there is the 418.4km Las Vegas to Los Angeles Brightline HSR link project, estimated at $8b. This works out at approximately $19.1m per km. Again, work out the math!

Last example: The Gotthard Swiss Alps Rail Tunnel, 57.09km, is a two single-track tunnel that took 17 years to complete for $12.3b (approximately $215.5m per km), 12.2b Swiss Francs, or 11b Euros. Construction began in 1996 and opened to traffic in June 2016. Again, work out the cost per km!

Lastly, on this construction cost comparison, the Idu/Abuja through to Kaduna, a 186km, standard gauge, single-track, section 5 of the Lagos to Kano planned rail line. The completion cost was put at $1.04b. This works out at $5,569m per km. It was commissioned into PAX service (l stand to be corrected) in June/July 2017 after six years of construction — and the Lagos to Ibadan section of the Lagos through to Kano, 156.65km, double track, standard-gauge system/line. The project was executed for approximately $1.560b. This works out at roughly $9.9m per km.

As mentioned, the reasons for cost variance in railroad construction are vast and fascinating. They range from geological and alignment options to systems integration, proposed stock types/technology, capital and operations costs, and stations and facilities, such as maintenance facilities, to mention just a few.

As the few examples above demonstrate, railroad construction cost comparisons vary significantly. This wide variance underscores the urgent need for a deeper understanding, which is crucial for railroad cost estimating and the successful execution of our work.

Railroad construction costs are not a matter of simple comparison. They are a complex puzzle that cannot be oversimplified. Embracing this challenge is not only necessary but also the key to understanding the intricacies of our field.

Written by Ed-Efe Okogba

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