Research on the theory and method of evaluating economic benefits of railway construction project

The theory and method of evaluating economic benefits of railway construction projects are discussed from a point of systematic view. The relations among direct, indirect and comprehensive benefits of railway construction projects are elaborated, and an example is quoted. The comprehensive surplus pattern on the comprehensive benefit is analysed. The result comes that the average profit of the comprehensive surplus pattern is the sum of the average profit of the direct surplus pattern adding the average profit of the indirect surplus pattern multiplied by its collateral coefficient. The main conclusion comes that not only the local economic benefit of the constructed project itself, but also the integrated economic benefit of the whole railway network and the indirect benefit from developing other industries in connection with the railway construction project should be paid attention to. In order to accelerate railway development, as to the railway construction project which has good indirect benefit but poor direct benefit, the government, a defender for overall interests, should participate in the investment directly, or give compensation through national revenue redistribution.