Allocating Revenue Risk in Transport Infrastructure Public Private Partnership Projects: How it Matters

Abstract

Transport infrastructure public private partnership (PPP) projects are very diverse and complex in nature not only because of their mode-specific intricacies but also because of their inherent economic characteristics that relate to the scope of involvement of the private sector in the project, the large sunk costs incurred, and ultimately, the competition to which these projects are exposed. The allocation of revenue risk is of paramount importance for the successful implementation of such projects and a sub-optimal allocation may lead to project structuring that is unnecessarily expensive and vulnerable to failure. At the same time, the revenue risk depends critically on the remuneration model used (user-based versus budget-based) and may, in turn, take the form of demand risk, counterparty risk or combinations of the two. This review explores the issues related to revenue risk allocation for transport infrastructure PPP projects. Overarching principles for the allocation of revenue risk that transcend mode-specificity are identified and compared to case studies generated in the context of the COST Action TU1001. The results show that theory and practice are divergent, leading to sub-optimal structuring and exposing projects to potential failure.     

Effectiveness of safety-based incentives in Public Private Partnerships: Evidence from the case of Spain

Many countries around the world are implementing Public–Private–Partnership (PPP) contacts to manage road infrastructure. In some of these contracts the public sector introduces economic incentives to the private operator to foster the accomplishment of social goals. One of the incentives that have been introduced in some PPP contracts is related to safety in such a way that the better the safety outcome the greater will be the economic reward to the contractor. The aim of this paper is at identify whether the incentives to improve road safety in highway PPPs are ultimately effective in improving safety ratios. To this end Poisson and negative binomial regression models have been applied using information from highway sections in Spain. The findings indicate that even though road safety is highly influenced by variables that are not much controllable by the contractor such as the Average Annual Daily Traffic and the percentage of heavy vehicles, the implementation of safety incentives in PPPs has a positive influence in the reduction of fatalities, injuries and accidents.     

Sustainability Assessment of Transport Infrastructure Projects: A Review of Existing Tools and Methods

Abstract

Attempts to integrate sustainability in the decision-making process for transport infrastructure projects continue to gain momentum. A number of tools and methodological frameworks are available — such as rating systems, traditional decision-making techniques, checklists, and different evaluation frameworks and models. While these tools are highly valuable, some practical issues remain unsolved. There is also a need for more standardized tools to appraise the sustainability of transport projects. This paper is a presentation of a review on the current assessment tools of sustainability applied to transport infrastructure projects. The preliminary part of the paper is an explanatory and comparative analysis of the tools and methods in terms of their effectiveness to appraise sustainability. The analysis is a critical evaluation of the current state of the art to identify the limitations of existing approaches, point out new areas of research, and propose a sustainability appraisal agenda for the future.     

Protection of Critical Waterborne Transport Infrastructures: An Economic Review

It is essential that transport infrastructures are protected against events which cause their failure. At an optimal level of protection, the sum of protection costs and expected residual damages following from disruptions will be minimized. In most cases however, this optimal level is not achieved because infrastructure protection is susceptible to various market and government failures. This brings us to the question who (a private or public actor) should do how much (the level of protection and intervention). This question is addressed in the present paper.

The starting point of the paper is the Directive of the European Council on the identification and designation of European Critical Infrastructures. We review the protection of critical waterborne transport infrastructures from an economic perspective. The review is based on a literature study and several interviews with Critical Infrastructure experts. For the studied infrastructures, we have identified causes and effects of their failure and examined the private–public roles in protecting them. Considering the market and government failures which occur in such configuration of roles, we propose several changes. We conclude that from a national policy perspective there are two important routes: (1) reinforcement of private sector roles among others by defining liabilities and providing information on risks and (2) strengthening of supra-national collaboration via improving and standardizing regulations, cost-sharing initiatives and penalty systems.     

Decision Support Systems for Public Transport Management: The Athens Public Transport Authority Project

This article reports on an implementation study of a computerised decision support system for public transport management for the Athens Public Transport Authority (APTA). The study analysed the current situation, specified user requirements, determined system functionality, designed the system architecture, organised the project and, finally, planned dissemination activities. The decision support system covers the main public transport management activities of APTA - transport service provision, economic and financial planning, passenger complaints and suggestions, and personnel management - offering its users the possibility to study the potential effects of their decisions before implementation. To achieve this, the system will consist of a data warehousing system, for the integrated management of a wide variety of data sources, and of online analytical processing tools, for information analysis and scenario testing. The system architecture has been designed to offer robustness, flexibility, rich functionality and open connectivity. The system aims to help APTA reduce operational costs and provide a better transport service, attracting more passengers to public transport and reducing, in the process, congestion and pollution.     

Land Transport Policy and Public Transport in Singapore

Singapore has a sophisticated and efficient system of land transport to serve a growing demand for transportation. Constrained by limited space, a comprehensive set of land transport policies has been in place to balance the growth in transport demand and the effectiveness and efficiency of the land transport system. A multi-pronged approach has been used to achieve the objective of a world-class transportation system. These include integration of urban and transport planning, expansion of the road network and improvement of the transport infrastructure, harnessing the latest technology in network and traffic management, managing vehicle ownership and usage, and improvement and regulations of public transport (Ministry of Transport (MOT) (2003) Policy and Regulations, Land Transport, Available: www.mot.gov.sg, Date of Access: 15 September 2003). Singapore was the first country in the world to introduce various new techniques, notably the Area License Scheme (ALS) in 1975 and the Vehicle Quota System (VQS) in 1990. An Electronic Road Pricing (ERP) system replaced the ALS in 1998 to take the role of congestion management, the experience of which has also drawn particular attention from many large cities in the world. In 2003, the world’s first and only fully automatic heavy rail Mass Rapid Transit system was opened to the public, marking a new chapter in Singapore’s innovative approach to solving its land transport problem. This paper reviews the land transport policy implemented in Singapore and pays special emphasis to its public transportation systems.     

Contractual PPPs for Transport Infrastructure in Spain: Lessons from the Economic Recession

In this paper, we analyse the successes and failures of contractual public-private partnerships (PPPs) for delivering and operating transport infrastructure in Spain from the award of the first toll highway concession programme to the present. To that end, we show the risk allocation principles used in Spain and explore the evolution of the contracting approaches over the years. We found that the performance was reasonably good until the arrival of the economic crisis in 2008. Taking advantage of that, we make a review of contractual PPPs for different transport modes and assess the impact that the economic crisis has had on their business performance and the capacity of the central and regional governments to fulfil their commitments with the private sector. This analysis enabled us to identify measures that, if had been applied, would have improved the resilience of these contract during the economic crisis.     

A Review of Pseudo Panel Data Approach in Estimating Short-run and Long-run Public Transport Demand Elasticities

Abstract

The distinctions between short-run and long-run public transport demand elasticities have been highlighted in the literature, but the identification of long-run travel demand has been constrained by existing research methodology and the unavailability of longitudinal travel survey data. The pseudo panel data approach using repeated cross-sectional data has been suggested as an alternative to conducting a longitudinal travel demand analysis when genuine panel data are not available. This paper comprehensively reviews the background and the current practices of pseudo panel data research, and introduces the challenges in applied research that need further investigation, particularly for public transport. A case study using the Sydney Household Travel Survey data is presented to demonstrate pseudo panel data construction and to identify the short-run and long-run public transport demand elasticities using a pseudo panel data approach. The research findings suggest that the public transport demand elasticity of price in Sydney is ?0.22 in the short run and ?0.29 in the long run.     

Valuing Freight Transport Time using Transport Demand Modelling: A Bibliographical Review

The value of time for freight transport is of major importance in infrastructure-related cost–benefit analysis and yet its study has been largely neglected when compared with its passenger counterpart. In fact, one of the attributes that could decide the profitability of a project is how much can be saved if freight vehicles use new infrastructure. Despite being the primary benefit of most investments in transport infrastructure, researchers have not yet reached agreement over either the size or the nature of the values of time that should be used when evaluating projects. This article provides a review of the estimation of freight value of time through transport demand modelling and extant empirical evidence on this topic. Similarly, the bibliographic review of studies undertaken has allowed us to pinpoint the most critical issues when modelling freight transport demand and the position of various research teams regarding these aspects. Such issues include identifying the decision-maker, heterogeneity in the transport flows and transport attributes considered by decision-makers.     

Indirect Effects to Include in Strategic Environmental Assessments of Transport Infrastructure Investments

Abstract

Indirect effects are important considerations when making consequence analyses in general and in strategic environmental assessments in particular of potential transport solutions and infrastructure plans. The primary objective of this paper is to emphasize the need for a deeper understanding of the long‐term system effects of investments in transport infrastructure with a focus on the structuring effects that roads and railways have on society, e.g. altered transport patterns, altered settlement structures and changes in use of the built environment. Special attention is given to the following potential indirect effects: increased total transport volume, increased share of private motorists and truck transport, increased urban sprawl, and increased energy use in buildings. The conditions that determine the power of the effects are discussed and a number of key factors to be considered in transport infrastructure planning, especially in strategic environmental assessments, are suggested. Since many indirect effects emerge over time, an extended time perspective is of essence. Therefore, scenario techniques may be useful when analysing indirect effects in transport planning processes.     

公共充电站在基础设施建设中的规划与研究

随着我国社会经济发展水平的不断提高,汽车使用量持续攀高。大力发展新能源汽车,能够促进资源充分利用,减少汽车尾气排放,对保障能源安全、促进节能减排、防治大气污染、推动我国能源可持续发展具有重要意义。随着电动汽车的推广使用,电动汽车对充电站的基础设施建设以及服务网络的完善等需求日益紧迫。充电基础设施的建设,用以满足电动汽车的发展需求,并以充电设施、充电系统的适度超前发展引导电动汽车的业务发展。     

Innovative Public Transport Oriented Policies in Seoul

The objective of this paper is to introduce the innovative transport policies of Seoul that have recently been planned and implemented. In this paper, the various transport policies of Seoul are classified and explained according to two important paradoxes that are highlighted by Downs and Thomson, and Edgeworth. These paradoxes describe how to break the vicious circle of car and public transport use by restraining car use and encouraging the use of public transport, and thus indicate how traffic congestion problems might be solved.     

国际航空运输需求的不完全可逆研究——来自美英国际航空运输市场的实证证据

不完全可逆是对消费者短期行为与长期行为差异的一种体现方式。本研究通过对2010年2月至2016年12月美国与英国之间的国际航空运输数据进行分析,发现关英之间的国际航空运输需求对票价和汇率同时存在不完全可逆性,而且通过对短期和长期结果的对比发现航空运输需求的汇率的短期弹性和长期弹性不仅存在大小上的差异,甚至影响方向上的差异都有可能存在。此外,本研究还对不完全可逆的检验方法进行了修正,使其能够适应本研究中出现的系数相反的情形。     

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.     

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.     

Objectives,Methods and Results of Surveys Carried out in the Field of Urban Freight Transport: An International Comparison

In industrialized countries, the number of studies and surveys in the field of urban goods movement (UGM) has increased considerably over recent years. This paper compares the objectives, methods and results in this sector and focuses on nine industrialized countries of Europe, America and Asia. This non‐extensive review shows that in spite of different framework methods and models, similar trends emerge at the economic and environmental levels. It is necessary to take into account urban logistics in the broadest meaning of the term. Cooperative action seems to bear fruit providing that information and dialogue take place in the long‐term with all the operators involved. The development of intelligent transport systems (ITS) and better management of urban facilities may improve these attempts. We present our viewpoint in order to shed light on research oriented towards the sustainable management of urban logistics.     

凤山县农村公路交通基础设施现状及发展思路

文章分析了凤山县交通基础设施建设现状,提出了凤山县"十二五"时期交通发展的思路与主要举措,并对存在的问题加以探讨。     

中国城市公共汽车运输业改革进程和前景

城市公共汽车运输是具有普遍服务义务的基础性公共服务,具有安全、经济、社会、环境多目标约束的复杂性,其改革设计必须权衡政府规制、市场竞争、企业激励和社会意愿。本文以上海、深圳、成都公共汽车运输业改革为例,归纳总结了中国城市公共汽车运输业改革进程和问题;提出了以竞争性招标的特许经营制度为核心,建构中国城市公共汽车运输的可竞争市场,强调城市公共汽车运输业改革需要政府调控、市场调节、社会监督、企业自律组合治理的制度设计,推进体制、机制和技术等制度的综合改革。