How Do Governments Support the Development of Public Private Partnerships? Measuring and Comparing PPP Governmental Support in 20 European Countries

Abstract

Taking an institutional perspective, in this article we develop an index of the governmental support for public private partnership (PPP) — a ‘PPP Governmental Support Index’ (GSI) — which aims to measure the extent to which national governments provide an institutional framework that is either conducive or preventive for the introduction and diffusion of PPPs within transport infrastructure and other sectors. First, based on a substantive review of the literature, we define the elements of the PPP GSI, including the policy and political commitment regarding PPPs, the legal and regulatory framework, and the presence/absence of dedicated PPP-supporting arrangements. Second, we calculate the PPP GSI for 20 European countries, cluster them and compare similarities and differences in national governmental support of infrastructure PPPs. Third, we explore the potential link between national institutional index scores and infrastructure PPP activity in the 20 countries. Lastly, we discuss the potential and usefulness of the presented PPP GSI, as well as methodological limitations, and elaborate on how this index might be utilised to strengthen future comparative research on PPP in transport and other sectors.     

Airport–Airline interaction: some food for thought

Abstract

We provide an interpretive analysis of vertical relations between airports and carriers, while assessing the way in which deregulation of the airline market and the privatization of airports have created incentives for airport–airline interaction. In particular, if the vertical structure approach has become the standard approach in air transport research, we add to the literature by discussing three issues that we believe need further understanding. The three issues that we think should be the focus of future research on airport–airline interaction are (i) incomplete contracts and asymmetric information structure; (ii) upstream horizontal complementarities; and (iii) airports as two-sided platforms.     

Impacts of Transport Infrastructure on Productivity and Economic Growth: Recent Advances and Research Challenges

ABSTRACT

The paper provides an update of the survey focusing on estimating the contribution of transport infrastructure to productivity and economic growth. The central questions addressed are possible reasons behind the conflicting results reported in the literature on the elasticity of economic output with respect to transport infrastructure investment. After providing a systematic review of recent empirical studies on the effects of transport infrastructure on productivity and economic growth, the paper notes that controversial results can be attributed to ten causes (grouped into three categories for distinguishing): (1) related to different contexts: research period, geographical scales, and country's capability in enabling economic development; (2) related to different phenomena that are being measured: different economic sectors, different types of transport infrastructure, and different quality levels of transport infrastructure; and (3) related to distinct ways of measuring a similar phenomenon: measures used to describe the dependent variable and explanatory variable, functional specification, and estimation method of the econometric model. Strong network externalities of transport infrastructure may result in nonlinearity of the relationship between transport infrastructure and economic growth. Moreover, the absence of spatial concerns in infrastructure's impacts is another important source of inconclusive results. Finally, building on recent literature, the paper has discussed policy implications and identified several research avenues for further research.     

Deregulation of inter‐city coach services in Britain

Public transport in Britain has traditionally operated under conditions of regulation. The 1930 Road Traffic Act imposed controls upon the quantity and quality of transport regulations, with an abolition of the quantity controls associated with inter‐city coach services. The principal objectives of the Act were to eliminate restriction upon entry to the market and to promote competition between coach operators.

This paper is based on research which was undertaken to establish the impact of the 1980 Transport Act upon express (inter‐city) coach services in Britain. The effects of the legislation are examined in relation to the experience of various coach operators, British Rail, and the inter‐city traveller. This provides evidence of the way in which the supply of, and demand for, public transport behaves in a competitive, deregulated environment. It is shown that at least in net terms, the consumer has enjoyed short‐term benefits. Greater uncertainty surrounds the long‐term situation. The main competition has been confined to the principal trunk routes and has taken place between the state‐owned undertaking of National Express and British Rail. The outcome of deregulation for the private sector has been disappointing.

The paper identified similarities which exist between inter‐city and local public transport services. In this context, the lessons derived from express deregulation are employed to suggest likely developments in the deregulation of stage carriage (local) services in Britain.     

Bottom-up grassroots innovation in transport: motivations,barriers and enablers

Abstract

There is a growing phenomenon of grassroots innovation, that is, that triggered by individual users or communities (physical or virtual) seeking a solution to a personal or societal problem. This has great potential as a new source of sustainable transport innovations, but has received little attention to date. This study conducted 16 in-depth interviews and a workshop with grassroots innovators in transport. A detailed thematic analysis of the interview data identified: catalysts for the idea and the motivation behind its pursuit; the barriers experienced (those that were overcome and those that were not); and the enablers that permitted the innovations to continue and to flourish. The paper concludes by identifying the conditions that need to exist for such innovations to be created, developed and exploited in order that their potential for increasing the sustainability of the transport system can be fulfilled.     

The utilisation and user characteristics of Uber services in London

ABSTRACT

Ridesourcing services such as Uber are nowadays a common feature within available transport options of many cities around the world (E.g. London & San Francisco). There has been much publicity about the potential impacts of ridesourcing services and how (or if) they should be managed or regulated without an objective understanding of who uses these services and why, as well as its current and future implications for public transport (PT).

Ridesourcing is part of a broader tech-driven, mobile app-based sharing phenomenon – the ‘sharing economy’ – which has disrupted traditional market models and industries, for example, the transport industry, where new players such as Uber have emerged and have quickly become part of the urban transport landscape. Uber has been at the forefront in disrupting the transport sector since its first launch in 2010 (San Francisco, USA). Since its launch, Uber has generated extensive media coverage and debate among policymakers, transport planners and transport authorities on how these services are affecting traditional transport modes such as buses and taxis. However, without objective empirical data – in terms of impacts on trip making characteristics, PT ridership and congestion – policymakers and transport regulators are yet to fully understand the real impacts ridesourcing services are having on the transport network.

This paper is part of broader research that aims to provide insights and empirical-based evidence on how Uber services are used (UberX and Uberpool) in London. A comprehensive survey was undertaken using a detailed questionnaire, issued to UberX and Uberpool users in London to gather detailed data on who uses the Uber services, why they use it and what are the trip purposes, in order to understand Uber user demographics and what effects (if any) Uber services are having on PT usage and trip making characteristics in London. The final findings provide important insights on Uber user demographics, trip purposes, types of trips replaced, impact on car ownership and why travellers use Uber services.     

Reflections on transport in the future

Abstract

The first INTRA Seminar, held at the College of Europe, Bruges, in April 1982, was on the theme Transport in the Future: some possibilities and their implications. This theme was chosen to give an opportunity to consider transport requirements and resources in the broadest possible way, and as a prelude to later Seminars on more specific subjects. Throughout, the emphasis was on major trends and possible discontinuities which may have important policy consequences. The seminar also aimed to help participants—who attended by personal invitation—to broaden and deepen their understanding of the role and nature of transport and its internal and external relationships.

These ‘reflections’ are intended for wider circulation, particularly for senior officials in national and international organizations not directly or regularly involved in transport but who may find it helpful in their own activities. They are not intended to be either complete or comprehensive, but deliberately emphasize those aspects which participants identified as requiring more consideration and examination. The opening section, entitled Overall Impressions, is a brief general statement. The fuller account of the Seminar which follows is largely based on the Working Paper circulated before the Seminar, on introductory Statements on particular topics prepared by participants, and on the reports by the Moderators of Study Groups; it has also benefited from advice and suggestions from others who intended to take part but who were prevented from doing so.

Since this account has been prepared by the two INTRA organizers, it naturally reflects their views of these papers, discussions and suggestions. Equally, any views expressed are not necessarily those of all participants—or, indeed, of any individual participant—nor of the organizations or institutions with which they are associated.     

Economic organization of intermodal transport

The paper considers in detail strategic changes occurring in the organizational context of intermodal transportation and discusses the application of economic approaches (primarily transaction-cost economics) for assessing the effectiveness of the appropriate governance structure in organizing the intermodal transport economic system. The paper reviews the developments in intermodal transportation, particularly in the context of logistics and supply chain management, and recognizes the trend for the formation of one-stop shopping megacarriers spurred by deregulation and market requirements. This culminates in the need to consider how companies should organize the economic governance of the intermodal transport system. The main governance structures include market (subcontracting) or hierarchy (internal organization). The transaction-cost economics approach is reviewed and applied at a conceptual level to provide the core basis upon which the assessment of the optimal governance structure in intermodal transport can be based. The review of the core economic principles indicates that the governance structure in intermodal transport is dependent on transaction costs, production costs and strategic considerations that a particular structure might entail and the policy implications thereof. The potential for empirical research in the application of the transaction-cost economics approach to intermodal transport is discussed and detailed direction for further empirical research is provided as well as discussion of policy implications particularly with respect to competition and antitrust.     

Transport reviews prize

The transport problems that urban centres now face (as regard congestion, the environment and public deficits) have led to an examination of competition in the sector. Some countries have moved towards the deregulation or privatization of urban public transport, influenced by developments in the theory of contestable markets. These analyses could potentially provide a means of increasing the efficiency of public services and, hence, public transport. However, the authors do not feel that they can deal with the full extent of the problem. Particularly in urban areas, there is a need nowadays to examine the issue of competition between the passenger car and public transport, especially from the pricing angle. In France, decades of policy strongly influenced by a preference for the car have prevented this problem from being a central concern for researchers and decision-makers. The approach to the problem has mainly been centred on increasing urban supply to meet demand better. However, a failure to consider pricing, and the subsidization phenomena that can occur as a result, affects the shape of supply systems. Pricing, through its action on demand, acts on supply by increasing or reducing its potential profitability. 'Snowball' effects can, therefore, mean that slight underpricing results in the domination of one transport mode. These effects have been revealed in particular by work in the new field of network economics. The example of the Lyon conurbation shall be used to illustrate the case, which is that car travel is underpriced. The basis of the exposé will be a detailed analysis of the externalities associated with the car, i.e. the costs of car use and the revenue it raises for the community. The second part of the paper is a study of several urban travel policies in Europe (France, UK, Switzerland, Italy) to show the 'effects' of this underpricing. Where supply has followed the pressure of demand, the dominance of the car has been reinforced. However, in cities, particularly in Switzerland, where supply has been restricted, this dominance has been considerably moderated. On the other hand, it can be seen from the French example that taking strong action to improve public transport is not in itself sufficient to increase usage. Several lessons can be learnt from this work. First, it is shown, if it was still necessary to do so, that the problems of urban travel require a comprehensive and coherent approach. Modal policy must, therefore, be assessed with reference to the entire transport system. Next, in connection with the issue of regulation, it is important to consider the issue of competition in urban areas, and not only competition between public transport operators, but also (and even above all) competition within the entire system of personal and public transport. Finally, with regard to pricing, the ratchet effects that benefit the car as a result of its underpricing in urban areas need to be studied.     

Social and political implications of new transport technologies

The mechanism of change in society is discussed in terms of power and interest groups, and some of the past changes in transport technology are examined in terms of the degree of threat posed to the established order and the interest groups benefiting from change. On the basis of such a power/benefit model, three of the new transport technologies which have been proposed — “guideway”, “dial‐a‐bus” and “network cab”, are discussed as to their likely social and political acceptability.     

Comments on 'The limitations of transport policy'

This paper has been written as a response to the paper of Metz (2002) on 'The limitations of transport policy'. It is argued that the issues involved are more complex than Metz implies, and that many current travel patterns stem from decisions made previously about lifestyles, as a result of changing patterns of work, the availability of home-computing facilities, and increasing aspirations and income. Neither the models nor the data sources available to transport planners reflect these trends, and transport policy tends to be simplistic. Many of the transport policy issues stem from increasing car dependency, with its implications, particularly for the elderly and for the young. It is argued that transport policy has not been very effective in the past, and it is likely to be even less so in the future. Hence, there is a need to redefine the role of the transport planner and recognize the limitations of transport policy.     

Organizational and Ownership Transformation in Poland’s Urban Transport Companies

Abstract

This paper seeks to reconstruct the organizational and ownership transformation involving Poland’s urban transport that companies passed through after 1990. Data collected from various sources (above all the Internet, including the Bulletins of Public Information) were used to establish the degree of advancement of the transformation processes. Despite the passage of nearly two decades since the new economic reforms were launched, the privatization processes involving enterprises of municipal origin are not well‐advanced. There is not a single private company among the organizers of urban transport. Instead, an absolute domination of budgetary‐sphere entities may be noted. Furthermore, there are seven transport municipal unions. Among the operators (carriers) public ownership remains dominant in the form of single‐person local authority companies, local government companies, municipal union ownerships, municipal companies as well as budgetary units. Privatization processes have encompassed fewer than 10% of all operators in the form of companies with foreign participation, workers’ companies and companies with Polish non‐public sector participation. Moreover, in 20 localities urban transport is supplied by multi‐trade municipal services enterprises (as of end‐2008). Thus, transformation processes, though started earlier than in the case of Poland’s State Road Transport coach companies, are much less advanced.     

Role of transport in rural development in Africa

Rural Africa is starved of transport services. The transport routes run towards the export enclaves and the coast.

The political, social and developmental rural transport benefits are discussed. Rural transport will help (i) integrate the country and ease its governance; (ii) widen markets; (iii) induce increased agricultural output, through new technologies, reduced transport costs, etc. The transport cost savings should be passed on to rural firms and producers. The paper warns against their accruing only to middlemen — agricultural parastatals inclusive, thereby stifling the benefits to production. This could happen under some forms of pan‐territorial pricing. Negative aspects of road development, e.g. the substitution of local goods by imports, increased migration and noise, are noted.

The place and role of project appraisal in rural road planning is acknowledged. The broad‐based development packages approach associated with Integrated Rural Development Projects has, despite its attractions, some pitfalls. It favours well established villages and ignores distribution benefits within villages.

Project appraisal can be used to justify socially uneconomic transport developments. However, rural road investment projects with immediate negative returns are unlikely to be funded. Given clear priorities, short of elaborate cost/benefit analysis, obvious road investments choices can be made by the local community. Greater public accountability of transport planners and peoples’ participation in determining rural transport needs and priorities is emphasized. Increased rural road maintenance especially through self‐help schemes and increased use of traditional modes of transport, e.g. walking, animal and water transport, is recommended.     

Inland waterways—their role and significance in European transport

Summary

1) Western Europe has a navigable waterways‐network of about 19,000 kms. For the coming decades, however, about 40 percent of the length of these waterways has a very limited relevance, because of the small capacity of the barges that can pass along them.

2) Of the different types of barges the majority are the self‐propelled type. The importance of the pull‐towed barges is declining quickly, whereas the push‐towed barges are on the upswing.

3) The relative importance of inland shipping in comparison with rail transport is far from uniform. In The Netherlands inland shipping is dominant. On the other hand, in France, this mode of transport has only 30 percent of the total number of tons transported by inland shipping and railways together.

4) May the relative importance defer, there is a strong resemblance between the types of goods that are transported via the waterways with crude and manufactured minerals as well as building materials ranking high. In general, inland shipping is primarily involved in the transport of basic products and is of vital importance to the functioning of the West‐European economy.

5) The rather complicated legal regime of the waterways in Western Europe is certainly not the only reason why the integration in the transportation sector of the European Communities hardly moves on.

A fundamental discussion about the basic conceptions of the transport policy in the Common Market is unavoidable before real progress can be made. The entrance of the United Kingdom into the European Community may give an opening on this point.

6) Life goes on, with or without transport‐integration. Inland shipping moves forward too, paying for the use of infrastructure or not.

The general trends in transport support the expectation that the relative importance of inland shipping will increase in the coming decades. The increase in size of shipments and transport distances works in favour of this mode of transport. Besides this, inland shipping still has many possibilities to improve its productivity.

7) The future of inland shipping will be found in bulk transport and the transport of general cargo that has a volume per destination that goes far beyond the quantities for which the container or comparable types of transport units are better suited.     

Gender,Residential Location,and Household Travel: Empirical Findings from Low‐income Urban Settlements in Durban,South Africa

Abstract

Urban development and transport policies designed to improve the livelihoods of poor communities need to consider the particular needs of women to be effective. Gender roles are played out in a spatial world, and can thus be expected to vary across the urban landscape. The paper examines empirical relationships between spatial factors—in particular residential location within the city—and travel behaviour for men and women in a cross‐section of low‐income communities in a large metropolitan area in South Africa. Data from a comprehensive household survey show that locality has a significant influence on gender experiences of mobility. Gender differences are greatest in more distant, rural localities, although site‐specific characteristics such as walking access to social services, informal work, and small‐scale agriculture help alleviate women’s inequitable travel burdens. Central localities display the smallest differences between men and women’s travel habits, supporting the notion that the high access afforded by centrally located housing helps to promote the satisfaction of women’s daily needs as well as their strategic empowerment. Households in peri‐urban and peripheral localities suffer the highest travel burdens, having neither the high access of a central location nor the livelihoods‐enhancing amenities of a rural environment. Women bear a large part of this burden. Urban development strategies to benefit the urban poor while promoting gender equity are highlighted, including an added emphasis on the provision of social and educational infrastructure within closer proximity to peripheral residential areas, coupled with better pedestrian access.     

Safety outcomes of internationalization of domestic road haulage: a review of the literature

Abstract

The European Union (EU) promotes gradual lifting of restrictions on foreign hauliers involved in domestic road transport of goods (cabotage), and a major deregulation was scheduled in 2014. Due to complaints from several member states facing competition from new EU-countries with lower labour costs, this process was postponed until 2015. An important aspect related to such a deregulatory reform includes potential consequences for transport safety and accident risk factors. The main aims of the current paper are therefore to examine the potential transport safety outcomes of increasing internationalization of domestic road haulage, and to examine potential accident risk factors of foreign hauliers. This is done by reviewing the research literature. This paper shows that the heavy goods vehicle (HGV) accident risk varies with a factor of up to 10 in European countries, and that the accident risk of foreign HGVs is approximately two times higher than that of domestic HGVs in the studied European countries. The paper points to several risk factors and concludes that better data on accident risk and risk factors must be gathered in order to enable European authorities to correctly analyse and respond to this important traffic safety challenge.     

Efficiency of European Funds in the Accession Countries: The Case of Transport Infrastructure Investments in Latvia

ABSTRACT

A transport initiative, like any kind of public action, has an impact on the monetary cost, time cost, efficiency and comfort of the transportation of goods and people, in particular transport infrastructure investments. All such initiatives are subject to cost benefit analyses at the national and EU level to know whether the present value of total net benefits including environmental impacts exceeds their cost. However, several important policy issues remain unresolved in standard evaluation procedures. One issue is whether the so-called direct measurement of user benefit, which consists of quantifying changes in surplus of the users of the transport system, captures all welfare generated in the economy. Another issue is how the gains (or possibly losses) of a transport initiative are distributed among regions. The aim of this article is to perform a systematic and quantitative analysis of the socio-economic and spatial impacts of alternative transport investments by carrying out scenario simulations in order to improve the understanding of the impact of transportation policies on the short- and long-term spatial development in Latvia. The general result from the scenario simulations is that rail projects seem to be more effective in terms of promoting regional economic activity than road projects.     

Towards a theoretical model for behavioural adaptations to changes in the road transport system

A preliminary theoretical model is developed for the mechanism of behavioural adaptations to changes in the road transport system, which describes the process of behavioural change, explains the nature of adaptation phenomenon, and predicts its effects on road safety programmes. It can be used as a basis to organize the body of adaptation research and to explain empirical results.     

Social Impacts of Transport: Literature Review and the State of the Practice of Transport Appraisal in the Netherlands and the United Kingdom

Abstract

Transport appraisals in European countries increasingly address three dimensions of sustainability—economic, ecological and social. However, social impacts of transport have been underexposed in (ex‐ante) transport project appraisal, at least in the Netherlands. Firstly, this article presents a theoretical framework describing the relationships between determinants of social impacts of transport; it also provides a definition and categorization of those impacts. Secondly, the article reviews the state of the practice of national transport project appraisal in the Netherlands and the United Kingdom. The article shows that social impacts of transport investments can take on many forms and their levels of importance may vary widely, in project appraisal. The UK transport appraisal guidance includes a spectrum of social impacts through quantitative and qualitative assessments that is broader than the Dutch appraisal guidance. However, it does not cover the full range as identified in the literature. This holds, in particular, for the temporary impacts of transport investments, health impacts, social cohesion, the distribution and accumulation of impacts across population groups and social justice. All in all, it can be concluded that there is a long way to go before social impacts of transport projects are completely included in appraisals, in a way that allows us to compare them to economic and ecological effects.