This book discusses the role of public-private partnerships (PPPs) in global transportation infrastructure. Seen as a way to provide vital services in an era of shrinking government budgets, public-private partnerships have become an increasingly important part of travel infrastructure worldwide. This book describes and analyzes the structure of various models of PPPs in various countries, evaluating their effectiveness, and drawing policy implications for future use. Written by leading international researchers and practitioners in the transportation field, each chapter is a case study on the adoption, implementation, and outcome of transportation services in different municipalities. Taken together, these diverse case studies provide an integrated framework for evaluating and using PPPs. Providing rigorous empirical analysis of PPPs in transportation, this volume will be of interest to researchers in public administration, political science, and economics as well as practitioners and policymakers involved in establishing and monitoring PPPs in transportation.
Author(s): Simon Hakim, Robert M. Clark, Erwin A. Blackstone
Series: Competitive Government: Public Private Partnerships
Publisher: Springer
Year: 2022
Language: English
Pages: 357
City: Cham
Preface
Contents
About the Authors
Public-Private Partnerships in Transportation—Airports, Water Ports, Rail, Buses, and Taxis: An Overview
Introduction
Public-Private Partnerships for Transportation
The Potential for P3s in Airport Construction and Operation
Ghana’s Airport Cargo Centre as a P3
Insights From Madinah Airport in Saudi Arabia
Models, Expectations, and Reality in Airport P3s
Airport Privatization in the United States
Legal Impediments to Airport P3s in the United States
Water Ports
P3s in Port Areas: Lessons from Case Studies in Antwerp and Rotterdam
Seaport PPPs in the EU: Policy, Regulatory, and Contractual Issues
Rails and Buses
Sustainable Strategies for Mass Rapid Transit PPPs
The Las Vegas Monorail Bankruptcy Case
Public-Private Partnerships in Denver, CO
Governance of P3s: Lessons From the Italian Experience
Development of Urban Rail: A Case Study of the Gold Coast Light Rail Project in Australia
For-Hire Vehicles
The Case of Vehicles for Hire and P3
Using History to Develop Future Regulation of TNCs and Autonomous Taxis
Policy Issues and the Application of the P3 Process
Distinguishing Between Demand Risk and Availability-Payment P3
Public-Private Partnerships: A Policy Perspective
Summary and Conclusions
References
Evaluating the Viability of the Ghan Airport Cargo Centre as a Public-Private Partnership Project
Introduction
The Nature of Public-Private Partnership in the Ghana Airport Cargo Centre Project and the Survey Conducted
Costs and Benefits Accruing to Each Partner
Findings and Policy Implications
Strength Analysis
Safety and Security
State-of-the-Art Cargo Terminal
Competitiveness
Local Content and Technology Transfer
Weakness
Relative Cargo Volumes
Opportunities
Peace, Democracy, and Economic Stability
Threats
Political Interference
COVID-19 Pandemic
Local and Potential Competition Within the West African Subregion
Policy Implications
References
The Role of Individual Actors in Public-Private Partnership (PPP) Projects: Insights From Madinah Airport in Saudi Arabia
Introduction
Theoretical Background: Prevalence of a Mechanistic Approach in Suggesting Requirements for PPPs
Conceptual Framework: Institutional Entrepreneurship
Methodology
Research Context
Description of the Case Study and Its Performance
Medina Airport After the PPP
Data Collection
Findings
The Genesis of the PPP Idea and Its Rationale for Madinah Airport
How Did Institutional Entrepreneurs Within the GACA Implement the Madinah PPP Project?
Establishing Internal Commitment and Capacity
Mobilizing Political Support
Appointment of an Authoritative Figure with a Strong “Social Position”
Building Alliances and Bargaining Strategies to Overcome Bureaucratic Hurdles
How Did Institutional Entrepreneurs Gain the Trust of the Private Sector?
Comprehensive Build-Transfer-Operate (BTO) Agreement and the International Financial Cooperation (IFC) involvement
Effective Negotiations and Communication
Overcoming the Resistance of the Airport’s Administration and Staff
Discussion: Implications for Theory
Summary and Conclusions
References
Models, Expectations and Reality in Airport Public-Private Partnerships
Introduction
Airport Ownership and Management
Selected PPP Case Studies
ANA Airports, Portugal
Nikola Tesla Airport, Belgrade, Serbia
Pristina, Kosovo
Queen Alia Airport, Amman, Jordan
Analysis and Lessons From the Case Studies
Greenfield vs Brownfield
Single vs Airport System
Hubs vs Regional
Government Motivations
Conclusions
References
Airport Privatization in the United States
Introduction
Background
Airport Privatization Experience
Stewart International Airport
San Juan Luis Muñoz Marín Airport, Puerto Rico
Midway International Airport
St. Louis Lambert International Airport
Westchester County Airport
Summary and Conclusions
References
Legal Impediments to Airport P3s in the United States
Introduction and Historical Context
Unique Financial and Regulatory Challenges for US Airports
Financial Environment
Regulatory Environment
Narrow P3s, Targeted at Specific Capital Improvements, Are More Attractive Than Airport-Wide Investments
Airport Investment Partnership Program
Summary and Conclusion
References
Public-Private Partnerships in Port Areas: Lessons Learned from Case Studies in Antwerp and Rotterdam
Introduction
Public-Private Partnerships in the Port Areas of Antwerp and Rotterdam
Liefkenshoek Rail Tunnel (LHRT)
Second Maasvlakte (MV2)
Kieldrecht Lock (KDL)
Evaluation Frameworks: CBA, PSC, and BENEFIT
Cost-Benefit Analysis (CBA)
Public Sector Comparator
BENEFIT
The Three Infrastructure Projects Compared and Evaluated
Conclusions and Discussion
Appendix
References
Seaport PPPs in the EU: Policy, Regulatory, and Contractual Issues
Scope and Purpose
EU Port Management Systems and PPP Practice
Port Management Systems
Port Reform and PPPs
The Regulatory Framework for Port PPPs in the EU
The EU Framework
The National Frameworks
Key Issues in Setting Up PPPs in the EU Port Sector
State Property
Contract Type
Award Process
Contract Duration
Public Funding
Control of Foreign Investment
Exclusive Rights
Public Service and Minimum Throughput Obligations
Pricing
Labor
Performance Standards
Dispute Settlement
Summary and Conclusions
References
Sustainable Strategies for Mass Rapid Transit PPPs
Introduction
Key Challenges in Designing MRT PPPs
Analysis of Two Failed MRT PPPs
Revenue Risk in Singapore’s Urban Rail System
Renationalization of London Underground Infracos
Analysis of Two Successful MRT PPPs
Land Value Capture in Hong Kong
Revenue Risk Sharing in Beijing Line No. 4
Summary and Conclusions
References
Rational Inattention in Non-Profit Public-Private Partnerships: The Las Vegas Monorail Bankruptcy Case
Introduction
Project Description
Context
Development
Construction and Early Years
Bankruptcy
Discussion
Demand Risk
Possible Explanations
Summary and Conclusions
References
Public-Private Partnerships in Denver, CO: Analysis of the Role of PPPs in the Financing and Construction of Transportation Infrastructure in the USA
Introduction
The Growing Importance of Transit PPPs in Financing Transportation Infrastructure in the USA
Transit PPPs in the USA
Some Benefits and Shortcomings of Transportation PPPs
Study Area and Background on Denver’s Transit PPP projects
Eagle P3 Project
Other Fast Tracks PPP Projects
Denver Union Station
US 36 Bus Rapid Transit and HOT Lanes (Phase 2)
Research Methods
Findings: The Benefits of PPP Projects in Denver
Financial Benefits
Other Benefits of Denver’s Approach to PPPs
Major Shortcomings of PPPs in Denver
Public Accountability and Transparency
Less Control by the Public Agency
Higher Upfront Costs and Debt Servicing
Policy Implications
Using Denver PPPs as a Model for Other PPPs in the USA
Regional Collaboration
Contractual Elements That Safeguard the Public Interest
Conclusion
Wider Implications and Policy Recommendations
References
Governance of Public-Private Partnerships: Lessons from the Italian Experience in Transportation Projects
Introduction
Current Issues in PPP Projects in Italy
Minimizing Asymmetric Information
External Consultants
Public Awareness, Project Transparency, and Economic Feasibility
Public Funds
Role of the Italian Financial System
Experiences from Italy
The Case of Milan Metro Line M4 (M4)
The Case of Milan Malpensa International Airport Terminal 1 and 2 Rail Link
Policy Recommendations and Concluding Remarks
References
Developing Urban Rail Using Public-Private Partnership: A Case Study of the Gold Coast Light Rail Project
Introduction
Special Characteristics of Urban Rail Development
Application of PPP in Urban Rail Development
Research Methods
Case Study Description
An Overview of the Gold Coast Light Rail Project
Procurement Process
Financial and Contractual Arrangements
Payment Mechanism and Performance Measurement
Risk Allocation Scheme
Modification Regime
Case Analysis and Discussion
Social and Economic Impacts
Benefits of the DBFO Model
Problems Associated with DBFO Model
Recommended Strategies for Improved Use of DBFO
Conclusion
References
For Hire Vehicle Regulation, Misunderstanding, Mismatch, Control and Capture: The Case of Vehicles for Hire and PPP
Background
Defining the VFH Market
Operational and Licencing Distinctions
Public-Private Partnerships
Replacement and Supplementary Transport
Complementary and Integrated Transit
Nature of Change in the Taxi Market
Market Development Over Time
Suitability and Impact of Regulation
Closed and Restricted Markets
Hybrid and Transforming Markets
Open/Deregulated Markets
Regulatory Reform
Reform of Quality Controls
Economic Control and Quantity Constraint
Impact of Reform on Market Equilibrium and Industry Partnerships
Conflicts Between Regulations
Defining the Principles for an Optimal Regulatory Structure
Structural Efficiencies
Conflict Resolution
Segment Regulation and Optimization
Taxi Hail Market
Taxi Stand Market
Pre-booked Market (Not TNCs)
Transportation Network Companies
Public-Private Partnerships
Summary and Conclusions
References
Using History to Develop Future Regulation of TNCs and Autonomous Taxis
Introduction
Early Coach-Drawn Service Regulations
Birth of the Automotive Jitney
Models of Taxi Regulations
The Era of Modern Taxi Regulations
Deregulation and Re-Regulation of the Taxi Industry
What Does History Tell Us?
Impacts of TNCs
Beyond TNCs to Autonomous Taxi Vehicle Regulations
So, Why Regulate?
For Hire Service Congestion Cycles
The Future with Autonomous Vehicles
References
Distinguishing Between Demand Risk and Availability Payment Public-Private Partnerships
Distinguishing Between Demand Risk and Availability Payment Public-Private Partnerships
Demand Risk Public-Private Partnerships
Availability Payment Public-Private Partnerships
Infrastructure as Public Goods
Summary and Conclusions
References
Public Private Partnerships for Airports, Water Ports, Rail, Buses, and Taxis: A Policy Perspective
Introduction
Historical Trends
Advantages and Disadvantages of PPPs
Evaluating the Expected Performance of PPPs
Why PPPs Now?
Commercial Airports
Taxicabs
Buses
Water Ports
Concluding Thoughts
References
Index
