Operational and Capital Improvements

Abstract

Since the development of major projects such as railroad systems or new ports and roads requires large initial capital investment and therefore involves a large risk, it is essential that every effort be made to maximize the use of existing transport facilities. This objective may be achieved either through operational improvements that improve the cost efficiency of the existing transportation facilities by promoting better operations, maintenance, and managerial practices or through capital improvements that provide for a progressive upgrading of existing facilities to match the expected increase in traffic volume.