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The utilization of a tramway within a project must be cost efficient. The cost of purchasing, installing, operating and maintaining the tramway must be less than the overall benefits to the project. Estimated initial and long term cost must be made early in the feasibility phase of the project in order to assess the financial liability of the utilization of a tramway within the project. The financial benefits of the tramway must be realistically reviewed. Benefits can include direct ticket sales revenue and income generated by other sources that are enhanced or made possible by the existence of the tramway. Ticket sales must be based upon assumed realistic utilization of the tramway along with a ticket pricing structure that is attractive to the passengers. Additional project benefits must be assessed based upon no only their enhanced values created by the existence of the tramway but also upon their ability to provide an income source to pay back the initial cost of the tramway along with the long term cost of operations.
