Transaction Costs in Transport Public–Private Partnerships: Comparing Procurement Procedures

Abstract

In recent years, concern has grown over good practices in the procurement process in public–private partnerships (PPPs). The consensus view is that PPPs are prone to higher transaction costs than traditional public provision. In this paper, we contrast the hypothesis that transaction costs in transport PPPs depend, to a large extent, on the procurement mechanism used in each case, comparing the Negotiated and the Open procedures. Given that PPPs may offer considerable benefits and significant savings over the entire life cycle of the project, it is essential for PPPs to minimize those costs that undermine efficiency gains and that deter private involvement. The quantitative analysis undertaken in this paper highlights that there is room for important savings in the tendering of PPP transport infrastructure projects, using an Open procedure.     

Data Review of Transportation Infrastructure Public–Private Partnership: A Meta-Analysis

The limited understanding of public–private partnerships (P3s) for transportation infrastructure finance has been generally attributed to a lack of data. The more fundamental question of how P3 data are utilized in the literature is more relevant and critical, but remains unclear. This study investigates this question by examining the linkages between research objectives and data characteristics through a meta-analysis of infrastructure P3 studies using multinomial regressions. It analyzes 95 empirical studies that adopt actual data, selected from a P3 research database that includes over 345 studies and are classified into five categories including performance, contract, risk, value for money, and institutional factors. Results show that the case studies are less frequently utilized to understand P3s' institutional issues compared to those that focus on P3s' performance or VFM. Survey data are more frequently used to study P3 contracts rather than issues related to P3 project risk. We highlight the need for policy-makers to require continuing disclosure of P3 performance for validating the effectiveness of the procurement model and to improve the practice.     

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.     

Rail Infrastructure: Challenges for Cost–Benefit Analysis and Other ex ante Evaluations

Abstract

Cost–benefit analysis (CBA) plays a major role in the ex ante evaluation of rail projects in many western countries. At first sight carrying out a CBA for rail projects seems straightforward, since cost estimates are almost always available, and the most dominant benefits are generally known, being the travel time saved and the increase in consumer surplus due to induced demand. However, the practice is much more complex: the quality of current estimates for costs and benefits is often poor and several benefits-related aspects are ignored. This article gives an overview of the challenges in improving the quality of CBAs for rail projects.     

Middle‐class Travel Patterns,Predispositions and Attitudes,and Present‐day Transport Policy in Bangkok,Thailand

Abstract

Middle‐class expansion and new consumption patterns have increasingly become an important focus of studies of the development and change in newly industrialized and middle‐income‐developing East and South East Asian countries. However, there is still a dearth of studies in the literature particularly focusing on middle‐class travel patterns, predispositions and transport policy preferences. Nor have the implications of these factors on current transport and land development policy been examined. The present exploratory study addresses this gap by examining three cases in Bangkok, Thailand, which in recent decades witnessed dramatic middle‐class expansion, an increase in private motor vehicle population, and spatial diffusion of middle‐class residences into lower‐density zones in the suburbs. By mainly employing a survey method of data‐gathering and quantitative research analysis, the paper discusses the following findings: (1) that middle‐class travel behaviour is characterized by a high dependence on private motor vehicle travel and ‘inward commuting’; (2) that middle‐class preferences for transport mode and attitudes about remedial policy options are generally protective of their members’ car‐dependence and ownership; and (3) that present policy measures of the Thai government on Bangkok transport perfectly fit and support exclusively middle‐ and upper‐class predispositions and stakes in mobility. These findings in a developing country city basically follow a similar profile to be found in middle‐class‐dominant transport patterns and urban form in a number of North American cities. This paper further argues that in a developing country city such as Bangkok, where marked social differentiation and the combined population of poor and low‐income classes still comprise almost half of the urban social landscape despite an expanding middle‐class, an adequate and good public transport system that also meets the former’s need for efficient mobility is an imperative.     

A Gendered Perspective of the Shelter–Transport–Livelihood Link: The Case of Poor Women in Delhi

Abstract

Women form an important part of the workforce originating from the slums in the city of Delhi, India. The paper illustrates that women spend more time travelling on slower modes of transport to access work; the faster modes are more expensive. Their time–poverty demands they look for work at shorter distances from home. The basic argument presented is that their ability to contribute to the alleviation of their standard of living and their status in society is severely curtailed by their limited mobility and the constrained accessibility to the transport system of the city. This transport deprivation becomes further exacerbated by the process of forced eviction and relocation of low‐income households to the periphery of the city, causing the women to lose livelihood opportunities.     

Transportation and income inequality in China: 1978–2007

This paper mainly studies how various types of transportation modes are associated with income inequality in China for the years between 1978 and 2007. Gini coefficients are used to measure the income inequality nationwide, and within urban and rural areas of China. Factors other than transportation are also considered in the regression model, including a few demographic variables and major economic indicators. We contribute to the literature by examining the income redistributive effects of transport infrastructure and services, and providing transport planning and policy guidance which may alter the orientation of public policy and help alleviate the growing social and economic imbalance in China.     

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.     

Transportation–land-use interaction: empirical findings in North America,and their implications for modeling

The last two decades have witnessed the implementation of various policies based on land-use to address problems stemming from automobile ownership and use. There are, however, questions with respect to the efficacy of such policies. This paper therefore reviews the literature on empirical studies of the transportation–land-use interaction with the objective of identifying the current state of knowledge concerning the interactions, particularly with respect to the impact land-use policies are likely to have on the system. The focus is on studies conducted in North America. The results are mixed; some studies conclude that urban densities, traditional neighborhood design schemes, and land-use mix have an impact on auto ownership and use. Other studies find the impact of such variables to be at best marginal. Gaps in our understanding of the interaction are identified. These are found to be primarily the result of data limitations and methodological weaknesses. A detailed discussion of the implications of the findings for the development and application of integrated transportation–land-use models is provided, with the recommendation that without such an integrated approach to analyzing the transportation–land-use interaction, any study of impacts of urban form on travel behavior is likely to yield erroneous results.     

Commuters’ behavior towards upgraded bus services in Greater Beirut: Implications for greenhouse gas emissions,social welfare and transport policy

Climate change is one of the most critical environmental challenges faced in the world today. The transportation sector alone contributes to 22% of carbon emissions, of which 80% are contributed by road transportation. In this paper we investigate the potential private car greenhouse gas (GHG) emissions reduction and social welfare gains resulting from upgrading the bus service in the Greater Beirut Area. To this end, a stated preference (SP) survey on mode switching from private car to bus was conducted in this area and analyzed by means of a mixed logit model. We then used the model outputs to simulate aggregate switching behavior in the study area and the attendant welfare and environmental gains and private car GHG emissions reductions under various alternative scenarios of bus service upgrade. We recommend a bundle of realistic bus service improvements in the short term that will result in a reasonable shift to buses and measurable reduction in private car emissions. We argue that such improvements will need to be comprehensive in scope and include both improvements in bus level of service attributes (access/egress time, headway, in-vehicle travel time, and number of transfers) and the provision of amenities, including air-conditioning and Wi-Fi. Moreover, such a service needs to be cheaply priced to achieve reasonably high levels of switching behavior. With a comprehensively overhauled bus service, one would expect that bus ridership would increase for commuting purposes at first, and once the habit for it is formed, for travel purposes other than commuting, hence dramatically broadening the scope of private car GHG emissions reduction. This said, this study demonstrates the limits of focused sectorial policies in targeting and reducing private car GHG emissions, and highlights the need for combining behavioral interventions with other measures, most notably technological innovations, in order for the contribution of this sector to GHG emissions mitigation to be sizable.     

Effectiveness and costs of odor repellents in wildlife–vehicle collisions: A case study in Central Bohemia,Czech Republic

This article summarizes the results of the field tests, when the efficiency and financial costs of the chosen odor repellents to reduce mortality of animals on selected roads and railways in the Czech Republic during the years 2011–2013 were evaluated. The main objective was to determine whether by using repellents it is possible to reduce the number of animals killed and evaluate the return of financial costs that are associated with the application of the repellents. Our results showed that the odor repellents are an effective tool to reduce wildlife–vehicle collision (WVC), and thanks to their application it was possible to reduce the cost of damage to property and reduce the number of killed animals by comparing the years 2011 (without measure) and 2013 (2 years of repellent application) by 37% of the initial loss.     

Evaluating the multi-scale patterns of jobs-residence balance and commuting time–cost using cellular signaling data: a case study in Shanghai

Transportation - Assessing jobs-housing balance (JHB) and commuting efficiency is crucial to urban and transport planning. However, the scale dependency problem, meaning that metrics may be biased...     

CO2 emissions and expansion of railway,road, airline and in-land waterway networks over the 1985–2013 period in China: A time series analysis

China, the world’s largest CO₂ emitter, is continuing its long-term strategy to use transportation investments as a tool for development. With the expectation that transportation will contribute 30–40% of the total CO₂ emissions in China in the near future, there is an imminent need to identify how the development of different transportation modes may have different long-term effects on CO₂ emissions. Using time series data over the period of 1985–2013, this paper applies the combined autoregressive distributed lag (ARDL) and vector error correction model (VECM) approach to identify short- and long-run causal relationships between CO₂ emissions and mode-specific transportation development, including railway, road, airline, and inland waterway. We find that China’s domestic expansions of road, airline, and waterway infrastructure lead to long-run increases in CO₂ emissions. Among them, waterway has the strongest positive impact on CO₂ emissions, followed by road. Despite a short-run, positive impact on CO₂ emissions, railway expansion leads to long-run decreases in CO₂ emissions. The results are especially encouraging for the central government of China given its long-standing and on-going efforts to expand railway infrastructure at the national level. Looking forward, it is recommended that China continues its national investments in railway infrastructure to achieve both environment and economy goals.     

The urban road pricing scheme to curb pollution in Milan,Italy: Description,impacts and preliminary cost–benefit analysis assessment

Starting from January 2008 Milan implemented a charging scheme to enter an 8 km² area of the city centre. The term used to denote the scheme is Ecopass, conveying the stated political objective of the scheme: a pass to improve the quality of the urban environment (ECO). The charge depends on the Euro emission standard of the vehicle. The paper illustrates the main features and impacts of the Milan Ecopass scheme, and presents a preliminary cost–benefit analysis. The scheme has been effective in curbing not only pollution emissions, but also congestion, and the result has been achieved with low implementation costs and without major political opposition. The cost–benefits analysis presents an overall net benefit. The identification of the winners and losers of the policy is conditioned by penalty payments. Without including the penalties, the surface public transport users and the society at large are the main winners, whereas car and especially freight vehicle users are net losers.