Cost–Benefit Analysis of Regional Railway Modernization with Emphasis on Investment Costs and Electrification

This paper evaluates the efficiency of modernization of the regional railway line Prievidza–Jelšovce in Slovakia using cost–benefit analysis (CBA), reflecting increased investment costs and the potential electrification of the line. The assessment is based on a detailed analysis of transport demand and infrastructure conditions, where daily railway passenger volumes range between 2300 and 3700 passengers, while individual car transport exceeds 10,000 passengers per day in most sections. Two alternative modernization variants were evaluated. The results show that the project generates socio-economic benefits, particularly through travel time savings amounting to approximately €42.3 million and reductions in operating costs and externalities. Significant environmental benefits were identified, especially in the case of the more advanced variant, with reductions in air pollution reaching €56.3 million and greenhouse gas emissions reaching €42.2 million. Despite these benefits, the economic evaluation indicates negative net economic outcomes for both variants. The total economic investment costs (excluding VAT and adjusted for economic appraisal) reach €543.4 million for the EIA variant and €511.9 million for the proposed variant, resulting in net economic values of −€186.2 million and −€70.8 million, respectively. The results therefore suggest that neither variant achieves full economic efficiency under the given assumptions, although the proposed variant performs significantly better. The findings highlight the strong sensitivity of project efficiency to investment costs and the scope of modernization. The study confirms the necessity of regularly updating CBA analyses in transport projects, as changes in input parameters can substantially influence investment decision-making.