Economic effectiveness of urban railway infrastructure investments in the light of globalization and regional development. Study on example of Pomeranian Metropolitan Railway construction

Abstract

The myth of a borderless world pillars of open markets – the USA and the UK – are wobbling, and China is positioning itself as globalization staunchest defender. But is a mass retreat from globalization really the right approach for companies in these uncertain times? Or short of packing up and returning home, should they focus on localization – that is producing or even innovating where they sell-as the strategy of choice? Recall that as recently as a decade ago, business leaders and politicians believed that the world and that global companies, unconstrained by countries borders, would soon dominate the world economy. Today’s turmoil calls for a more subtle reworking of multinationals’ strategies organizational structures, and approaches to societal engagement. Poland has already been a beneficent of EU funds. Actually Polish internal indebtedness is increasing and Poland will not be able to use EU funds in the future.

The authors would like to present the Polish issue of planning investments financed by EU funds, e.g. the project of the Pomeranian Metropolitan Railway. Construction of this railroad is the first successful project in Poland to build a new railroad since the transformation of the state system in 1989. The project was financed by the European Regional Development Fund. The decision to build the line and award the grant was made on the basis of a feasibility study. A key element of this document was the CBA analysis, which was carried out on the basis of the Blue Book for railway transport.

A narrow look at the economic aspects and the earlier underestimated costs of the investment caused that the investment is unfinished. The question should be asked is whether use of another method of economic analysis would help to complete this investment without the need for over a dozen years of staging investment expenditures? Difficulties with the economic efficiency account are similar to the barriers to the development of globalization.