FOA Consultores

Client

BANOBRAS

Place done

National

Date done

August to November 2004

Services

Sectors

Highways

FARAC Highways Econometric Studies (several axes )

The study consisted of the approach of a strategy to determine the rates that maximize revenue and FARAC gauging the network through econometric models.

STUDY CHARACTERIZATION

The network of highways and bridges FARAC includes sections on major road axes of the country, where a lot of people and goods in transit. The efficient administration of the sections included in the network FARAC implies the need to achieve economic and social optimization, in terms of establishing a pricing policy strategy that maximizes the capacity and income of each of the sections of the network. Under this argument the relevance and general characterization of the study is warranted.

METHODOLOGICS STRENGHTS

The main objective of the study was to determine the price and income elasticities of demand for highway services FARAC highways network and in particular the construction of econometric models by which to quantify the impacts that would have changed tariff levels on the capacity and revenue. This process consisted of a methodological framework with the following main activities:

Collection and analysis of historical statistics gauging, fees and income.
Building capacity weighted econometric models each way and respecting the particular vocation of each of the sections.
Estimated impact of each alternative adjustment in rates (sensitivity analysis of demand rate).

STUDY VALUE

This study led to the design of the strategy of pricing policy as possible optimizer in network administration and whose model was tested in 36 sections of 5 road axes of great importance in the country as: