Tips and Pitfalls in PPP design

The Public-Private-Partnership (PPP) procedure is a very appealing model, but as it becomes more and more used in practice, problems and failures have been observed in the management of many projects. Many of these unfortunate experiences are consequences of errors in the implementation of the procedure, but in other cases, clear errors of conception were the cause.Indeed, there are many ways to structure a PPP and PPP is not the only way to manage an infrastructure scheme. It is thus an important task to provide guidelines on whether to use PPP or other types of procurement and, in case a PPP is preferred, on how to design it. The aim of this chapter is to contribute to this task, trying to combine theoretical knowledge and practical experience.After a review of the variety of economic characteristics of transport infrastructure and their procurement conditions, we recall the reasons that may justify this association of public and private management which is the characteristic of PPP, outlining the limits of using pure private or pure public procurement. Then an analytic process is proposed, screening the parameters which matter most for choosing the PPP procedure among many possible ones, depending on the specificities of the various transport modes. This process gives also indications on key elements for implementing a PPP.Finally, the analytic process proposed is used for a generic analysis of, respectively, the motorways and port sectors, so as to test its practicability and customizing capability for the use of public authorities.     

多种交通方式下的城市空间分配

从集计角度分析了运行多种交通方式的城市交通系统。利用目前已受关注的宏观基本图（简称MFD）,描述城市交通的整体特性。以旧金山某区为例,使用现有数据,通过仿真论证如何应用MFD监管真实交通网络。然后讨论了同一路网中不同交通方式间如何相互作用,以及如何将这些作用纳入包含多种交通方式路网的MFD。研究得到的两个主要结论是：1）证实了已有研究猜想——对市区拥挤区域限行,可提高包括被限行者在肉的所有出行者的机动性;2）公交方式提供专用道路空间可提高所有交通方式的可达性。     

Regulation,trust and contractual incentives around transport contracts – Is there anything bus operators can learn from public air service contracts?

This paper compares recent experiences in contract negotiation and subsequent commitment in public air services with the bus industry. The heart of the paper is a survey of European and Australian regional airlines, which we mirror with revealed experiences of bus operators. We aim to identify a number of elements in the contracting regimes that have exposed ambiguity and significant gaps in what the principal (e.g., transport department) expected, and what the agent (airline or bus operator) believed they were obliged to deliver. Ultimately airline and bus services are similar in that public authorities procure transport services that are desirable for the society but would be unprofitable without government involvement. In both sectors (theoretically fairly similar) public transport contracts are used, and those usually include obligations and performance measurements. In terms of similarities, one of the surveyed contract details that had a perceived high clarity in both industries was “payment procedures” and amongst those with rather poor clarity was also in both industries “incentives to improve performance and grow patronage”. We also show differences between regional air services and bus operations with regard to performance measurement and pre-specified obligations. Because of the strong safety culture around air services we find that regulation and trusting partnerships are even more important to aviation than to the bus sector. Because of the high level of trust but also because of simpler and more complete contracts in aviation, there is much less (re-)negotiation going on compared to the bus operations.     

Towards a simplified performance-linked value for money model as a reference point for bus contract payments

The burgeoning commitment to contracting the delivery of bus services through competitive tendering or negotiated performance-based contracts has been accompanied by as many contract payments schemes as there are contracts. We are now well placed to design a simplified performance-linked payment (SPLP) model that can be used as a reference point to ensure value for money, given the accumulation of experiences throughout the world which have revealed substantive common elements in contracts. Whether the payment to the operator is framed as a payment per passenger or as a payment per service kilometre, the SPLP identifies efficient subsidy outcomes that are linked to a proxy indicator of net social benefit per dollar of subsidy. We illustrate how the SPLP model can be applied to obtain the gross (subsidy) cost per passenger (or per passenger km) from measures of gross cost efficiency and network effectiveness. This model can then be used as part of a benchmarking activity to identify reference value of money prospects in respect of passengers per $ subsidy outlay by adjusting for influences not under the control of the service provider. A single framework to identify contract payments to operators, and to assess (i.e., benchmark) operator performance on critical KPIs, is provided by internalising critical key performance indicators (KPIs) in the design of the SPLP. The proposed SPLP model is sufficiently general to be independent of the procurement method (competitive tendered or negotiated, for example) and of the treatment of revenue allocation (net or gross based contracts), with the additional advantage of being able to assess value for money for government.     

The Myth of Travel Time Saving

Abstract

The idea that the main benefit of improvements to transport infrastructure is the saving of travel time has been central to transport economic analysis. There is, however, little empirical evidence to support this proposition. Indeed, in the long run average travel time is conserved, implying that travellers take the benefit of improvements in the form of additional access to more distant destinations made possible by higher speeds. Such a perspective, based on considerations of the value of access, has implications for economic appraisal, modelling and policy.     

Choosing Public Transport—Incorporating Richer Behavioural Elements in Modal Choice Models

The development of behaviourally richer representations of the role of well-established and increasingly important influences on modal choice, such as trip time reliability and accounting for risk attitude and process rules, has moved forward at a fast pace in the context of automobile travel. In the public transport setting, such contributions have, with rare exception, not been considered. In this paper, we discuss and empirically illustrate the merits of advanced modelling developments aimed at improving our understanding of public transport choice, namely the inclusion of reliability in extended expected utility theoretic forms, to recognize risk attitude and perceptual conditioning, the consideration of passenger crowding and its inclusion in linear additive models, and the role of multiple heuristics in representing attribute processing as a way of conditioning modal choice. We illustrate the mechanics of introducing these behaviourally appealing extensions using a modal choice data set collected in Sydney.     

Role of the Railways in the Future of Air Transport

Abstract

The role of the railways in the air transport industry is usually limited to provision of access to airports. However, the development of high-speed rail networks and the congestion and environmental problems faced by the air transport industry suggest the railways could have a greater role in working with the airlines to provide an integrated transport service for medium-distance journeys (up to 800 km). Many air journeys involve two flights and a transfer at a hub airport. The alternative being investigated here would replace air journeys by a rail journey and a flight, and a transfer between them at the hub airport. Such integration could offer a positive alternative to aircraft on some routes and lead to railway journeys to airports becoming part of air transport services, and not only to provide access to them. Integration could therefore provide a better use of available air capacity rather than duplicating some high-speed rail routes and services.     

Accommodating risk in the valuation of expected travel time savings

Valuation of travel time savings is a critical measure in transport infrastructure appraisal, traffic modelling and network performance. It has been recognised for some time that the travel times associated with repeated trips are subject to variation, and hence there is risk embedded in the treatment of expected travel time. In the context of the expected utility framework, we use a nonlinear probability weighting function to accommodate choice made under risk. Although the empirical findings suggest small differences between the value of expected travel time savings (VETTS) in the presence and absence of risk, the mean estimate does make a noticeable difference to time benefits when applied to real projects. By incorporating nonlinear probability weighting, our model reveals that the probabilities associated with specific travel times that are shown to respondents in the choice experiment are transformed, resulting in overweighting of outcomes with low probabilities and underweighting of outcomes with high probabilities. Copyright © 2011 John Wiley & Sons, Ltd.     

A fuzzy stochastic approach to the multicriteria selection of an aircraft for regional chartering

This article deals with the problem of decision support for the selection of an aircraft. This is a problem faced by an airline company that is investing in regional charter flights in Brazil. The company belongs to an economic group whose core business is logistics. The problem has eight alternatives to be evaluated under 11 different criteria, whose measurements can be exact, stochastic, or fuzzy. The technique chosen for analyzing and then finding a solution to the problem is the multicriteria decision aiding method named NAIADE (Novel Approach to Imprecise Assessment and Decision Environments). The method used allows tackling the problems by working with quantitative as well as qualitative criteria under uncertainty and imprecision. Another considerable advantage of NAIADE over other multicriteria methods relies in its characteristics of not requiring a prior definition of the weights by the decision maker. As a conclusion, it can be said that the use of NAIADE provided for consistent results to that aircraft selection problem. Copyright © 2012 John Wiley & Sons, Ltd.