Uplifts in retail rents or land values beside (say) a new train station may be partly offset by a decline in retail rents or land values in areas that are further away from the new train station – thus impacting on tax revenues. That is, there may be a shifting of economic activity from one location to another as a result of the new infrastructure. In terms of measuring potential benefits, only the potential net increase in revenue should be considered. A focus only on the potential increase in tax revenues from value uplift and capture may lose sight of the potential for losses in areas that are not on the new transport route, or near the new train station16.Value uplift, and hence opportunities for value capture, occur when the private benefits of the additional public infrastructure outweigh the private costs, resulting in a windfall gain to people or businesses near the new transport project. Users of the transport project, and businesses serving those users, benefit from savings in travel time and reduced accidents, and incur costs (from user charges: tolls or fares). To understand and estimate the extent of value uplift it is necessary to decompose the cost benefit analysis into those costs and benefits that accrue privately and to society more broadly.Where the new transport infrastructure is subsidised – as is often the case for Public Transport (PT) and some road upgrades for private vehicles or freight – the fare does not cover the total cost of providing the infrastructure. This can be efficient due to high fixed costs, low long run marginal costs and the positive externalities of reduced accidents, congestion and pollution. However, these pricing decisions result in a divergence between the private benefit and private cost, which in turn generates the value uplift for those living near the new project. Care is required to ensure the uplift is not artificially inflated by under-pricing: user charges need to carry some of the weight of project financing not the least because prices are an important signal of the strength of demand.