Measuring the welfare effects of infrastructure: A simple spatial equilibrium evaluation of Dutch railway proposals

We specify a spatial computable general equilibrium model for the Netherlands based on the so-called New Economic Geography. The model distinguishes 14 sectors, two modes of transportation and over 500 municipalities. Key parameters are estimated by fitting predicted interregional trade flows to bi-regional input-output data. The model is then calibrated to a baseline scenario for 2020. From there, the transport grid is modified in line with six proposals for changes in rail infrastructure. The effects of these changes on employment and welfare are computed. We find that the most ambitious project leads to a redistribution of around 8000 jobs from regions further out to regions along the line and especially at the end of it. The net national welfare effect is equivalent to a 250 million euro (0.016%) increase in GDP.     

A simulation approach for estimating value at risk in transportation infrastructure investment decisions

Traditional economic analysis techniques used in the assessment of Public Private Partnership (PPP) projects are based upon the assumption that future cash flows are fully deterministic in nature and are not designed to account for risks involved in the assessment of future returns. In reality, many of these infrastructure projects are associated with significant risks stemming from the lack of knowledge about future cost and benefit streams. The fundamental premise of the PPP concept is to efficiently allocate risks between the public and the private partner. The return based on deterministic analysis may not depict a true picture of future economic outcomes of a PPP project for the multiple agencies involved. This deficiency underscores the importance of risk-based economic analysis for such projects. In this paper, the authors present the concept of Value-at-Risk (VaR) as a measure of effectiveness (MOE) to assess the risk share for the public and private entity in a PPP project. Bootstrap simulation is used to generate the risk profile savings in vehicle operating cost, and in travel time resulting from demand-responsive traffic. The VaR for Internal Rate of Return (IRR) is determined for public and private entity. The methodology is applied to a case study involving such a joint venture in India, the Mumbai Pune Expressway/National Highway 4 (MPEW/NH4), and fiscal implications from the perspective of the public and the private entities are examined. A comparison between deterministic and risk based economic analysis for MPEW/NH4 is presented. Risk analysis provides insightful results on the economic and financial implications from each participant's viewpoint.     

The regulatory function in public-private partnerships for the provision of transport infrastructure

A wide range of contractual arrangements are increasingly being used by the public sector to materialise the delegation of transport infrastructure provision tasks to the private sector, over long periods of time. This paper addresses the issue of transport infrastructure regulation in the specific context of public-private settings. Starting by the discussion on the concept of Public-Private Partnership (PPP) it is stressed that, despite the different meanings that can be found in the literature, it is possible to define a PPP by using a core group of characteristics, such as the bundling of services and the transference of a relevant part of the risks to the private sector on a long term basis. Regarding the action of the regulator, we look at three dimensions of efficiency that are expected to be pursued at the strategic level of regulatory action. However, it is acknowledged that the regulatory function is in practice rather complex since it requires balancing a multiplicity of other objectives or goals, which may vary according to specific economic conditions. In the domain of pricing, the review carried out suggests that since “first best” assumptions are not met in the “real world” it hardly seems possible that the short run marginal cost pricing “canon” could be directly used to shape pricing policies. Consequently, when considering the application of the standard neoclassical marginal cost pricing approach it is pertinent to ask whether the second best solutions can lead to efficient outcomes that might be accepted by the stakeholders. Bundling construction and maintenance tasks into a single long term contract, which is a typical characteristic of “standard” PPPs, could theoretically bring cost benefits since it allows for the possible internalization of any positive externalities that may be generated during the whole project life cycle. The economic rationale for the bundling of construction/maintenance with financing services is that it enhances the likelihood of submission of realistic bids at the procurement stage. In addition, the chances of the contractor sticking to the agreed contractual terms, after contract award, are potentially increased given the higher exposure to financial risk.     

集装箱贸易增长对全球运输基础设施的影响

随着中国的货物通过沿海的集装箱中转站潮涌而出,人们普遍承认中国已经成为世界贸易增长的巨大动力.     

Critical issues in the design of contractual relations for transport infrastructure development

The increasing use of Public-Private Partnerships (PPP) arrangements in the provision of transport infrastructure seems to be a trend all over the world with a very particular incidence in Europe. The arguments supporting these public decisions are several and their validity varies with the different realities where these instruments are applied. The paper highlights the critical issues around the design and implementation of PPPs in the transportation sector and makes a brief presentation of the rational behind the structure of papers presented in this special issue.     

Future challenges for transport infrastructure pricing in PPP arrangements

In this paper we report the conclusion of a research project dedicated to pricing regimes in public-private partnership contracts for the provision of transport infrastructure (Macário et al., 2009). Several elements have been brought to the bulk of knowledge that supports the design and implementation of public-private partnership in the transport sector. These developments have been achieved in the following domain:

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Understand difficulties of price setting within the PPP environment, given the potential conflict of interest among the different parties engaged, go beyond the discussion of first best versus second-best price setting mechanisms.

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Understand the role of government and regulators in the performance of a PPP.

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Translate the issue of asymmetries of information between parties into a risk taking language.

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Devise alternative contractual designs that will enable competitive price setting.

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Understand that a structural element is missing to conciliate the views of the different stakeholders over a PPP: a bridge between infrastructure costs and charges.

The objective of this paper is to overview the main challenges ahead of transport infrastructure pricing, considering the current and likely future policies as well as the field constraints. Moreover, a proposal is formulated to overcome some of the current pitfalls associated to transport infrastructure pricing.     

Analysis of the economic and social parameters of the Three-Wheeler Taxi service in Sri Lanka

Sri Lanka has an extensive Three-Wheeler Taxi service comprised of around 300,000 vehicles. These vehicles, which first made an entry to Sri Lanka’s roads in the early 1980s, account for around 15% of the active motor vehicle fleet at present. Three-Wheelers Taxis also account for around 6% of the passenger kilometres. These vehicles are mostly individually operated with some owned by the operator and others hired on a monthly or daily basis. The industry is unregulated with vehicle registration and driving licenses being the only instruments of regulation. Fares are unregulated. However, most operators belong to associations which are loose collections of operators found in a given locality. These associations impose a degree of self regulation with respect to fares. They also tend to demonstrate oligapolistic behaviour.The paper is based on a survey of 200 operators and 100 passengers from a Divisional Secretariat area in Colombo District. The survey covered a number of details pertaining to ownership, management and fare structures, as well as opinions on the service attributes by users. The survey also covered perceptions of operators to determine the social, economic and transport implications of the services provided. Details were also obtained on the profiles of the operators and their expectations.The paper provides the results of the analysis of this data and draws a number of conclusions on the economics of the industry as well as the social aspects associated with it. It also discusses the characteristics of the users of these three wheelers as well as their typical use. The analysis also investigates complementarily of service provision between three wheelers as an access mode to buses and railways. This analysis has been used to develop an understanding of the manner in which the industry has grown over the last two decades and how it is being operated today. It also identifies areas wherein the industry has become inefficient and assesses the degree of over pricing that exists due to this. The data also helps to determine the relationship between unemployment and provision of self-employed transport services.The paper concludes with a synopsis of the profile of the industry and its role within the wider transport sector and with respect to ownership. It also discusses the positive and negative impacts of the lack of regulation on the industry.     

SCGE modelling in cost-benefit analysis: The Dutch experience

Spatial computable general equilibrium (SCGE) models offer opportunities for computing wider economic effects in cost-benefit analysis (CBA) in a theoretically satisfactory way. This is important for the correct estimation of additional economic benefits and international relocation impacts. In the Netherlands, this potential has only been reached partly. Many different types of models are actually used, none of which yet covers all relevant markets. In CBAs carried out in recent years, ad hoc methods were used more often than models, let alone SCGE models. Moreover, the usual presentation of the model outcomes appears as a ‘black box’ to policy makers. There is much work to be done, in extending SCGE models to strengthen their empirical basis, and in improving the presentation of the outcomes.     

Workshop 6: The public agenda: What is working and what is missing

Workshop 6 topics covered social inclusion, the informal transport sector, transport in developing countries and sustainability. The strong connections and complimentary goals were noted, where solutions to social exclusion and greenhouse gas reduction can both be realised with good transport and urban planning. There is an opportunity for developing countries to avoid the transport mistakes in many developed countries, such as car dependence. This will involve the development of infrastructure that offers accessible public transport to the majority of people, providing resources to the informal transport system and integrating this with public transport. The workshop considered specific issues such as rural transport, new technology, car tolls to subsidise public transport, safety issues with informal transport and the failure to evaluate the longer-term impacts of many major transport infrastructure developments. Recommendations were made in relation to research and policy and future Thredbo topics.     

The cost of second best pricing and the value of risk premium

Private provision of public infrastructure (PPP) is meant to give incentives to increased efficiency in construction as well in operation and maintenance of the infrastructure e.g. within the transport sector. Efficiency is not only (private) economic efficiency, but also social efficiency e.g. social marginal cost pricing of use of the infrastructure.Is it possible to design contracts concerning payment mechanisms and financial instruments for transport infrastructure that will stimulate social efficiency and optimal allocation of risks between parties? The paper discusses whether different targets can be met and whether compromises may lead to acceptable second best solutions.PPP implies an opportunity to let the user-payment give desired incentives in the form of Social Marginal Cost Pricing (SMCP). A PPP project is a set of contracts and agreements between several parties, including the Government, the private contractor, subcontractors, banks and infrastructure users. These contracts should be designed to give the right incentives to the parties to achieve optimal risk allocation and utilising of resources.Long contract-periods are a common feature of PPPs. The paper examines the way that financial solutions should be designed to achieve the goals for the PPP-projects concerning economic and social efficiency. The expected size and variation of the income stream from the project will influence the loan conditions offered by banks concerning interest rates, guarantees and repayment and also the ability to attract investors. The balance between equity and loans again influences the conditions of the loans. An additional problem is asymmetric information between parties. The private contractor usually knows more about the task than the Government (hidden knowledge), and the Government cannot have full knowledge of the efforts of the contractor (hidden actions).     

The development of the TIGRIS XL model: A bottom-up approach to transport, land-use and the economy

The project appraisal method in the Netherlands distinguishes direct effects, indirect distribution effects and indirect generative effects. Transport models are generally available for calculating the benefits of transport projects to travellers as part of the direct effects. The TIGRIS XL model, a Land-Use and Transport Interaction model, adds indirect distribution effects for the housing and labour market, by modelling changes in the spatial distribution of jobs and residents. This paper describes the current TIGRIS XL model and how it can be applied in the evaluation of transport projects. It refers to work done with the TIGRIS XL model to improve the calculation of the direct benefits by applying the so-called ‘logsum’ method. Finally it discusses ideas on how to extend the TIGRIS XL model to address indirect generative effects as well.The current TIGRIS XL model, its integration with the National Model System (the standard tool for the Dutch government to analyse the effects on passenger transport) and basic design principles are the starting point of such an exploration. These design principles include:

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an emphasis on detail, both spatial as well as in socio-economic segments, to account for differences in the availability of choice alternatives and in choice behaviour, and to provide impacts by region and socio-economic group;

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the requirement that the relationships used rest on an empirical foundation.

The post-processing methods proposed on this paper for the calculation of the direct benefits and indirect generative effects are consistent with these design principles. To calculate the indirect generative effects, a post-processing module is proposed which transforms changes in travel times and land-use into agglomeration effects. These agglomeration effects combine several of the generative effects, like scale economies, an increasing variety of products, labour market matches and knowledge spill-over. The effects of changes in the agglomeration indicator on productivity can be estimated with existing data sources, as was demonstrated in the UK (Graham, 2005).     

集装箱货运仿真模型在珠三角港港口投资方案评估

In the Pearl River Delta (PRD), there is severe competition between container ports, particularly those in Hong Kong, Shenzhen, and Guangzhou, for collecting international maritime container cargo. In addition, the second phase of the Nansha terminal in Guangzhou’s port and the first phase of the Da Chang Bay container terminal in Shenzhen opened last year. Under these circumstances, there is an increasing need to quantitatively measure the impact these infrastructure investments have on regional cargo flows. The analysis should include the effects of container terminal construction, berth deepening, and access road construction. The authors have been developing a model for international cargo simulation (MICS) which can simulate the movement of cargo. The volume of origin-destination (OD) container cargo in the East Asian region was used as an input, in order to evaluate the effects of international freight transportation policies. This paper focuses on the PRD area and, by incorporating a more detailed network, evaluates the impact of several infrastructure investment projects on freight movement.     

Economic impact of non-motorized transportation in Indian cities

Lack of a clear understanding regarding the economic impacts of non-motorized modes is a major reason why they are excluded from the transportation development agenda of cities in India. Keeping this aspect in mind the present study has been divided in to two parts. The first part tries to understand the non-motorized traffic evolution in India. It focuses on the declination of non-motorized modes, necessity to revamp it, the favorable conditions to promote them in India and the relative problems associated with it. It is found here that there is a necessity for defining the role of non-motorized modes in India for the viable implementation of infrastructure and policies related with it.     

Productivity change of the Spanish Port System: impact of the economic crisis

ABSTRACT

The main goal of this study was to assess the impact of the economic crisis on the productivity growth of the Spanish Port System (SPS). The Malmquist Productivity Index (MPI) was estimated for the 28 Port Authorities of the SPS, for a ‘non-crisis period’ (2005–2008) and a ‘crisis period’ (2008–2011). From a policy perspective, the MPI is a very useful approach for assessing the productivity change because it can be decomposed into the catching-up index and the frontier productivity index. The results showed that the economic crisis did not impact all of the Spanish Port Authorities equally. Some Port Authorities presented higher productivity growth during the crisis period than in the non-crisis period. Further analysis by the Mann–Whitney test revealed that Port Authority investments and productivity growth were statistically related. Information provided by this study may be very useful for stakeholders and decision-makers, in terms of long-term strategic planning and improving the competitiveness of the SPS. The findings illustrate that the economic crisis should not be seen as an international tragedy, but as an opportunity to adapt port traffics and installations to new needs and market demands.     

Assessment of port economic impacts on regional economy with a case study on the Port of Lisbon

This article presents a method of assessing the economic impacts of ports at both regional level and national level, through application of input–output analysis. To this end, a methodology for data collection is proposed, which combines a top-down with a bottom-up approach which should help in surpassing some of the difficulties commonly faced in port economic impact studies. The presented methodology allows port planners and policymakers to assess the economic significance and geographic reach of port investments. This study considers the economic impacts of the port cluster and the socio-economic significance of port user industries. The several layers of the analysis are kept separate to allow a better grasp of direct and indirect impacts. The proposed methodology is demonstrated in a study of the Port of Lisbon, which confirms the significance of this port to the Portuguese economy, and also demonstrates that the influence of the Port of Lisbon is mostly limited to an area in close proximity to the port. Therefore, results suggest that investments for the development of logistic infrastructures associated with the port should concentrate in the immediate hinterland of the port.     

过载保载对金属材料疲劳裂纹扩展速率影响研究

文章基于载荷次序效应产生影响的原因和相关预报模型,提出了考虑单峰过载和保载共同作用下疲劳裂纹扩展速率预报模型。在文中提出的考虑载荷次序效应的疲劳裂纹扩展速率预报模型的基础上,对几种金属材料在单峰过载、多峰过载、过载与保载共同作用下疲劳裂纹扩展速率进行了预报研究,并将预报结果与相应试验结果进行了比较,对考虑载荷次序效应的疲劳裂纹扩展速率预报模型的适用性进行了验证。     

Rural school transportation in emerging countries: The Brazilian case

The lack of proper policies for the rural environment, in contrast to the situation in the urban environment in Brazil, has prevented the rural population from benefiting from basic infrastructure and access to their rights as citizens. The poor school transportation conditions are large barriers to access and retention of pupils in schools. These poor conditions, with lack of comfort and high accident risks, result in long travelling hours to reach the school and lessen learning performance because the children arrive in the school tired and sleepy. The Brazilian Federal Government has adopted different programs and actions in order to overcome these difficulties and to improve school conditions in general. A new standard vehicle has been adopted, which will be fit for the harsh road conditions in the rural areas, and handbooks have been introduced to help the municipalities and their officials to plan and to contract school transport services. This paper provides an overview of the outlook for rural school transportation in Brazil, describing the operational conditions (including trip and vehicle conditions) and their users, as well as analysis on the effects on school performance, and also the role of the local and Federal governments.     

Ranking of factors contributing to higher performance in the ocean transportation industry: a multi-attribute utility theory approach

Ocean transportation has been mainly studied from an economic and strategic point of view. This paper adopts an operations management approach aiming at the identification of the value-adding attributes that characterize the ocean transportation industry. This is achieved by using Johansson et al.'s 1 four value metrics—service, quality, cost, time—which are used for the identification of the contribution that different factors make to the total created value. In this paper, multi-attribute utility theory (MAUT) has been used to measure and compare the value of different processes of various sectors of the ocean transportation industry. The application of MAUT methodology is illustrated with an example from the four sectors of the industry: liner, dry bulk, liquid bulk and specialized. Results suggest that there is strong emphasis placed by ocean transportation companies on quality and that there is differentiating importance put on service and cost by different sectors. Time is seen as the lowest value contributor by all four sectors of the surveyed companies.     

Ranking of factors contributing to higher performance in the ocean transportation industry: a multi-attribute utility theory approach

The North American Free Trade Agreement (NAFTA) signed by Canada, the U.S.A. and Mexico and which came into effect on 1 January 1994, is a significant move towards further integration of the North American economies. This paper examines the likely impact of NAFTA on Canadian ports. Three channels of impact are identified. First, there are direct impacts on trade flows between Canada and its North American trading partners. In this regard we find that ports do not typically handle the types of products that are likely to be affected by NAFTA, and so the direct impacts may be minimal. Second, and more significantly, port catchment areas are likely to undergo substantial changes as they respond to a more competitive environment within the free trade area. Third, the transportation sector has itself been included in NAFTA, and Canadian ports will face increased competition from land based transportation modes. We conclude that ports in Canada must learn to work more consciously as agents of regional economic development.     

An analysis of trends in passenger and freight transport energy consumption in India

This primary objective of this paper is to examine the causes for the change in energy consumption in the transport sector in India. The pattern of energy consumption and their causes for change are benchmarked against select countries. A mathematical model that decomposes changes in energy consumption to various factors has been used. The changes in the energy consumption are attributed to growth in transport volume, structural change or modal shift, and energy intensity. The analysis is conducted for passenger and freight transport separately. Results indicate that the growth in transport volume has been the main cause for increase in energy consumption for both passenger and freight transport in India despite the decline in energy intensity of various transport modes. Though not surprising for a growing economy like India, this poses a challenge for the future. Currently, India is a low carbon economy.