A Sustainable Asset Valuation of the Tirana–Durres Railway in Albania

This report presents the economic valuation of the Tirana–Durres railway in Albania, including its investment costs, added benefits, and avoided costs. This Sustainable Asset Valuation (SAVi) assessment shows that the project can lead to significant economic, social, and environmental benefits for the Tirana-Durres region, such as avoided vehicle operating costs, health benefits, and time saved.

The Tirana–Durres metropolitan region in Albania accommodates 37% of the country's population and accounts for 48% of the country's GDP. Despite being one of the most developed economic areas in the country, the region faces significant transportation challenges due to its reliance on road transport and an outdated railway network that has not received adequate investment or maintenance in the last 25 years. As a result, railway passenger and freight traffic has steadily declined over the years.

To address this problem, proposals have been made to rehabilitate the Tirana-Durres railway line and establish a new railway connection to Rinas International Airport, with the aim of improving Albania's railway transport and its economic performance by facilitating efficient passenger and trade movements while also reducing the use of polluting transport modes and decreasing carbon dioxide emissions.

This SAVi assessment analyzes the multiple economic, social, and environmental benefits that the Tirana–Durres railway will have in the region after it is rehabilitated. The assessment shows that the railway system would provide a more efficient, safe, accessible, and environmentally friendly mode of transportation in the region while delivering substantial monetary benefits.

Key findings include:

  • The Tirana–Durres railway is a highly profitable project, generating cumulative (2023–2053), discounted (3.5%) net benefits of EUR 415.51 million.
  • When accounting for the full range of added benefits and avoided costs to the region, the Tirana–Durres railway results in an integrated benefit-cost ratio of 4.79.
  • The greatest impact of the Tirana–Durres railway is the avoided vehicle operating costs that will result from the shift from road transport to the railway, followed by the health benefits from avoided air pollution costs and increased physical activity and time saved.