Analysis of the Economic Value Generated by the Implementation of the M-Flow Project on the Chalong Rat Expressway

Abstract

The automatic toll collection system without barriers, Multi-Lane Free Flow (M-Flow), is a new type of expressway toll collection system which reduces the problem of jamming in front of the expressway toll gate, reduces air pollution emission and increases convenience for motorists to pay later (Post-paid). This paper presents the cost assessment or expenses incurred by implementing the M-Flow project on the Chalong Rat expressway for economic cost-effectiveness analysis, whereby the cost analysis of the project is divided into two cases: the absence of the M-Flow system and the case of the implementation of the M-Flow system (With M-Flow) to compare the cost-effectiveness and economic returns generated when the M-Flow system is operated from indicators such as net present value (NPV), economic internal rate of return (EIRR) and benefit-cost ratio. It was found that at a social discount rate of 12%, the net present value of the project (NPV: NPV) was positive. The benefit-cost ratio is 11.28 times greater and the economic internal rate of return on investment (EIRR) is 120% greater than the discounted interest rate which means that if the toll fee is collected with the M-Flow system on the Chalong Rat expressway. The project will provide a return on investment.