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

This technical report provides a Sustainable Asset Valuation (SAVi) of the proposed rehabilitation of the Tirana–Durres railway in Albania. Using a systemic approach, the assessment compares a business-as-usual scenario with a railway scenario to quantify economic, social, and environmental impacts over a 30-year period (2023–2053). The analysis demonstrates that while the project is not economically viable under conventional cost-benefit analysis, it is highly profitable when integrating non-tangible societal benefits.

• The integrated cost-benefit analysis (CBA) for the Tirana–Durres railway scenario (2023–2053) shows cumulative discounted net benefits of EUR 270.34 million, with a total investment cost of EUR 71.42 million.
• There is a significant disparity between the conventional benefit-cost ratio (BCR) and the sustainable benefit-cost ratio (S-BCR). The conventional BCR, which only considers tangible impacts like capital costs, O&M costs, and revenues, is 0.12, whereas the S-BCR, which includes social and environmental added benefits and avoided costs, is 4.79.
• Avoided vehicle operating costs (VOCs), including fuel and maintenance savings from shifting road traffic to rail, represent the highest cumulative discounted value at EUR 96.79 million.
• The project is expected to generate substantial social and health benefits, with cumulative discounted health impacts valued at EUR 44.93 million. These stem from increased physical activity (walking to stations) and reduced air pollution from fewer road vehicles.
• Economic added benefits include cumulative discounted values of EUR 44.39 million for time saved due to reduced traffic and congestion, EUR 38.41 million from income creation through employment, and EUR 15.31 million in consumer surplus.
• The railway is projected to reduce environmental costs and emissions, with cumulative discounted avoided costs of EUR 32.08 million for general environmental impacts and EUR 19.56 million for CO2 emissions.
• The shift from road to rail is estimated to reduce traffic accidents, resulting in cumulative discounted avoided costs of EUR 41.61 million.
• The Tirana–Durres metropolitan region is a critical area for the project as it accommodates 37% of Albania's population, has a population density of 443 inhabitants per km2, and accounts for 48% of the country's GDP.
• The proposed railway infrastructure spans 34 km, consisting of 18.2 km of segregated lanes and 9.2 km of route operated in mixed traffic, with a total estimated cost of EUR 58.78 million.
• The current railway network in Albania is in poor condition due to a lack of investment and maintenance over the last 25 years, characterized by uncontrolled vegetation, poor drainage, and non-operational signalling and communication systems.

APA

Kapetanakis, M., Niño, N., Casier, L., & Bassi, A. M. (2024). A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania. International Institute for Sustainable Development. https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf

Chicago

Kapetanakis, Michail, Nathalia Niño, Liesbeth Casier, and Andrea M. Bassi. A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania. International Institute for Sustainable Development, 2024. https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf.

Wikipedia

{{cite report |last1=Kapetanakis |first1=Michail |last2=Niño |first2=Nathalia |last3=Casier |first3=Liesbeth |last4=Bassi |first4=Andrea M. |title=A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania |publisher=International Institute for Sustainable Development |date=January 2024 |url=https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kapetanakis2024sustainable, author = {Kapetanakis, Michail and Niño, Nathalia and Casier, Liesbeth and Bassi, Andrea M.}, title = {{A Sustainable Asset Valuation of the Tirana– Durres Railway in Albania}}, institution = {International Institute for Sustainable Development}, year = {2024}, month = jan, url = {https://www.iisd.org/system/files/2024-02/savi-tirana-durres-railway-albania.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }