Capacity benefits

9.  Capacity benefits are said to arise because the Link increases rail capacity from 19.2 million to 34.2 million passengers a year, which is around the capacity of the Channel Tunnel. In the absence of the Link, the Department estimates that growth in patronage would mean that the 19.2 million passenger capacity would be exceeded by around 2025. Further increases in demand would then need to be suppressed by increasing fares. When the Link is operating, the increased capacity will mean that there is no need to increase fares, so those travelling will benefit from lower fares than they would if the Link were not built.

10.  Total Capacity benefits are the increases in fares per passenger multiplied by the number of passengers travelling in the no-Link case. The first 19.2 million passengers get the full benefit of not having to pay the increased fare, and the passengers in excess of 19.2 million get half the benefit, in keeping with the "rule of half". These benefits are effectively cash benefits to passengers, unlike the resource benefits represented by the bulk of the user benefits, time savings.