504 research outputs found
The long and winding path to private financing and regulation of toll roads
Road transport has long been the dominant form of transport for freight and passenger movement throughout the world. Because most road projects require investments with long amortization periods and because many projects do not generate enough demand to become self-financing through some type of user fee or toll, the road sector remains in the hands of the public sector to a much greater extent than other transport activities. But governments throughout the world, including those of many poor African and South Asian countries, are commercializing their operations to cut costs, improve user orientation, and increase sector-specific revenue. There seems to be demand for toll roads in specific settings, but the problems met by many of this"first generation"of road concessions-from Mexico to Thailand-have given toll projects a bad reputation. Many mistakes were made, and tolling is obviously not the best solution for every road. Most of the alternatives aim at improving efficiency (lowering costs). But there are many ways of getting the private sector involved in toll roads, thus reducing public sector financing requirements for the sector. Understanding the context in which toll roads are viable is essential both for their initial success and for effective long-run regulation. The authors provide a broad overview of issues at stake from the viewpoint of both privatization teams and regulators responsible for supervising contractual commitments of private operators and the government, to each other and to users.Urban Services to the Poor,Roads&Highways,Public Sector Economics&Finance,Decentralization,Banks&Banking Reform,Roads&Highways,Toll Roads,Urban Transport,Public Sector Economics&Finance,Airports and Air Services
Legal structure and management of terminals: Focus on commercial issues and privatization
Most ports globally remain under public control, yet globalization and international logistic chains exercise pressure towards the dilution of the public control. This text presents briefly the institutional framework of ports and focuses on the operational and financial triggers to dilute public control. Then the key issues related to the market and the society are analyzed. This chapter concludes with a section on the bid process and the primal points discussed, negotiated and agreed in a concession procedure. --Port Management,Terminal Management,Privatization
Collaborative Engagement Approaches For Delivering Sustainable Infrastructure Projects In The AEC Sector: A Review
The public sector has traditionally financed and operated infrastructure projects using resources from taxes and various levies (e.g. fuel taxes, road user charges). However, the rapid increase in human population growth coupled with extended globalisation complexities and associated social/political/economic challenges have placed new demands on the purveyors and operators of infrastructure projects. The importance of delivering quality infrastructure has been underlined by the United Nations declaration of the Millennium Development Goals; as has the provision of โadequateโ basic structures and facilities necessary for the well-being of urban populations in developing countries. Thus, in an effort to finance developing countriesโ infrastructure needs, most countries have adopted some form of public-private collaboration strategy. This paper critically reviews these collaborative engagement approaches, identifies and highlights 10 critical themes that need to be appropriately captured and aligned to existing business models in order to successfully deliver sustainable infrastructure projects. Research findings show that infrastructure services can be delivered in many ways, and through various routes. For example, a purely public approach can cause problems such as slow and ineffective decision-making, inefficient organisational and institutional augmentation, and lack of competition and inefficiency (collectively known as government failure). On the other hand, adopting a purely private approach can cause problems such as inequalities in the distribution of infrastructure services (known as market failure). Thus, to overcome both government and market failures, a collaborative approach is advocated which incorporates the strengths of both of these polarised positions
Dynamic modelling of demand risk in PPP infrastructure projects : โThe case of toll roadsโ
Infrastructure is the main driver of prosperity and economic development. To fill the gap between increasing demand for infrastructure and supply, the role of the private financing has become increasingly critical. Concession contracts in which the investment cost is recovered via payments from the end users are the most dominant among all PPP types. Although this mechanism has been seen as an efficient way to achieve infrastructure projects in terms of realising the project on time and to budget, the demand risk faced in the operation stage has heavily limited this efficiency. Evidence has shown that shortfall in demand can seriously jeopardize the schemeโs viability. Demand is dependent on a range of interrelated, dynamic factors such as economic conditions, willingness to pay and tariff for using the facility. In addition, uncertainty is an inherent aspect of most demand-underlying factors which makes demand estimation subject to high level of uncertainty. However, this uncertainty is largely ignored by modellers and planners and single demand estimate is often used when evaluating the facility. Given the threat to the project success resulting from potential variation between predicted and actual demand, it is believed that a demand risk assessment model is essential. This research is therefore devoted to developing a system dynamics model to assess demand risk by capturing the factors affecting demand and their relationships and simulating their change over time.
A system dynamics based conceptual model was developed for mapping factors affecting demand for service provided by a typical PPP concession project. The model has five Causal Loop Diagrams (CLDs) which include: socio-economic, public satisfaction, willingness to pay, competition and level of fee. Based on the developed conceptual model, a quantitative simulation model for assessing traffic demand in toll road projects was developed. This model has six sub-models which are: socio-economic, public satisfaction, willingness to pay, competition, toll and expansion factors sub-models. With the use of case study of M6 toll roads (UK), it was demonstrated the potential application of SD as a tool for the assessment of demand risk in toll roads.
Univariate and multivariate sensitivity analysis, as well as risk analysis using Monte Carlo approach, were conducted using the developed SD model. Univariate sensitivity analysis helps identify the significance of the demand underlying factors when they change individually. Toll was identified as the most critical factor affecting toll traffic demand followed by congestion on the alternative un-tolled facility. Multivariate sensitivity analysis showed how demand changes when several factors change. Four scenarios were developed to show the impact of change in conditions and policies on the level of traffic. Monte Carlo simulation, on the other hand, provided level of demand with a range of confidence intervals. Providing such estimates of the expected value and the confidence level offers useful information throughout their ranges and creates overall risk profiles by providing the probability of achieving a specific result. The main contribution of the research is in the development of a system dynamics model as a tool for assessing demand in PPP projects and informing decision making, which is new to the area of demand risk modelling
Demand risk in the Portuguese SCUTS and the 2010 renegotiation
The
aim
of
this
thesis
is
to
study
the
demand
risk
of
those
SCUTS
highways
that
were
renegotiated
in
2010
and
2011,
in
which
the
demand
risk
was
fully
passed
to
the
public
sector.
Is
the
State
carrying
now
riskier
highways,
regarding
the
demand
risk,
comparing
to
the
private
benchmark
โ
Brisa?
The
2010
renegotiation
is
also
analysed
to
study
if
the
initial
demand
forecast
errors
of
those
3
SCUTS
renegotiated
were
corrected,
adjusted
to
the
historical
data
available
and
counted
with
the
negative
effect
of
the
introduction
of
tolls.
This
article,
using
the
model
proposed,
compares
the
demand
risk
of
the
ex-ยญโSCUTS
highways
with
the
private
benchmark
highways
chosen.
The
renegotiation
of
2010
is
analysed
through
the
study
of
the
previous
forecast
errors
and
the
historical
pattern
of
traffic.
The
study
concludes
that
besides
the
ex-ยญโSCUTS,
in
a
first
analysis,
do
not
show
a
significantly
higher
demand
risk,
the
2010
renegotiation
with
the
introduction
of
tolls
highlighted
some
questions
about
the
usefulness
of
those
highways,
given
the
huge
fall
in
the
volume
of
traffic.
It
is
also
showed
that
the
renegotiation
ignored
the
historical
pattern
of
traffic,
the
forecast
errors
already
known
and
the
negative
effect
of
tolls,
and
projected
future
traffics
very
optimistically,
completely
misappropriated,
leading
to
a
great
burden
to
the
State.
The
conclusions
are
limited
by
the
short
data
and
because
of
the
comparison
between
highways
without
tolls
(ex-ยญโSCUTS)
with
the
benchmark
highways
(that
always
had
tolls)
Recommended from our members
The review of PPP toll roads in the US and the simulation of the Chicago Skyway
As the traffic demand increases at a faster rate than the upgrade and maintenance of
transportation facilities through the traditional public financing methods in the United
States, the Public-Private Partnership (PPP) is becoming an important supplement to
the public transportation infrastructure investment. There are already several existing
PPP toll road projects in the United States that provide examples of practical
experiences and lessons for launching future PPP toll road projects. Additionally,
research in the past three decades has made significant progress in relevant research
fields about PPP toll roads, for instance, toll regulation, private revenue restriction,
and risk allocation. However, it is still difficult to apply these academic models and
research results into practical projects. Therefore, one of the objectives of this thesis is
to point out the gap between the analytical research results and practical needs,
through reviewing systemically the current PPP toll road projects in the United States
and the theoretical research. Potential research interests to focus on how to narrow
those gaps between the theoretical research and practical projectsโ needs by
improving the models or releasing the assumptions, to make the analytical research
results helpful to those decision-makers when facing a new PPP toll road project.
In addition, the paper simulates the Chicago Skyway, which is the first long-term
leased toll road in the U.S., in order to predict the future travel and welfare impacts
caused by the PPP toll road. Moreover, a โnon-competeโ clause experiment is
designed and the codes of programming is done in this paper. Future studies can use
the experiment and programming to test the effects of the โnon-competeโ clause to
PPP toll roads
Modeling of Optimal Concession Contract between Port Authority and Terminal Operators using Channel Coordination Model
์ธ๊ณ ํด์ด ์์ฅ์ ๊ธ๊ฒฉํ ๋ณํ๋ ํญ๋ง ์ฐ์
์ ํฐ ์ํฅ์ ๋ฏธ์น๋ค. PA (ํญ๋ง๊ณต์ฌ)์ TOC (ํฐ๋ฏธ๋ ์ด์ ํ์ฌ)๋ ๊ฒฝ์ ์ฐ์๋ฅผ ํ๋ณดํ๊ธฐ ์ํ์ฌ ์ง๊ธ๊น์ง ํญ๋ง ์์ค๊ณผ ์ฅ๋น์ ๋ง์ ํฌ์๋ฅผ ํด์๋ค. TOC๋ ๊ฒฝ์์ฌ ๋ฐ ํด์ด ํ์ฌ๋ก๋ถํฐ์ ์๊ตฌ ์ฌํญ์ ๋ฐ๋ผ ์์ต์ฑ์ ์ ๊ณ ํ๊ธฐ ์ํด ๋
ธ๋ ฅํ๋ค. ๊ฐ์ ์ํฉ์์ PA๋ ๊ฒฝ์๋ ฅ์ ์ฐพ๊ณ ์๋ค. ์์ฅ์ ๋ถํ์ค์ฑ๊ณผ ๊ธฐ์ ์ ๋ณํ๋ PA์ TOC๊ฐ ํ๋ ฅํ์ฌ ๋ ๋์ ์ฌ์ ์ํ๋ฅผ ์๊ตฌํ๊ณ ์๋ค. PA์ TOC๊ฐ์๋๊ณ์ฝ์ ํตํด ์ฌ๋ฌ ๋ฐฉ์์ผ๋ก ์ด์๋๋ค. ์ธ๊ณ์ 60-70%๊ฐ ์ด์์ค์ธ ์๋ ๊ธฐ๋ฅ ๋ชจ๋ธ์ ๋ฐ๋ฅด๋ฉด, PA๋ ํญ๋ง์ ํ ์ง ๋ฐ ์ธํ๋ผ๋ฅผ ์์ โ๊ด๋ฆฌํ๋ฉฐ, TOC๋ ํฐ๋ฏธ๋ ์ด์์ ๋ด๋นํ๋ค. PA์ TOC๋ ๊ณ์ฝ์ ํตํด ๊ณ ์ ์๊ธ์ ๋ด์ง ๋จ๊ฐ ์๊ธ์ ๋ฑ์ ์ฌ๋ถ๋ฅผ ๊ฒฐ์ ํ๋ค. ์ธ๊ณ ํญ๋ง ์๋ ์์คํ
์ ๋น๊ตํด ๋ณผ ๋, ์ ๋์ ์ธ ๊ณ ์ ๋ ๊ณ์ฝ ๋ฐฉ์์ด ์๋ค๊ณ ํ๋ค. ์์์์ ๋๋ถ๋ถ ์ง์ญ์์๋ ๊ณ ์ ์๊ธ์ ๋ฅผ ์ด์ฉํ๊ณ , ์ ๋ฝ ์ง์ญ์์๋ ๊ณ ์ ์๊ธ์ ์ ๋จ๊ฐ ์๊ธ์ ๊ฐ ํผํฉ๋ ๊ณ์ฝ์ ์ด์ฉํ๋ค.
๊ทธ๋์ ์ธ๊ณ ํญ๋ง ์๋ ์์คํ
์ ๊ฐํ ์ฐ๊ตฌ๋ ๋ง์ง ์์๋ค. ํนํ ๊ตฌ์ฒด์ ์์น๋ฅผ ์ ๊ณตํ์ง ์๊ฑฐ๋ ๋น์ค์ฉ์ ์ฐ๊ตฌ๊ฐ ๋ง์๋ค. ํํธ, ์ด์ ์ฐ๊ตฌ์์๋TOC๋ณด๋ค PA ๊ด์ ์์์ ์ด์ต ๊ทน๋ํ๋ฅผ ๋๋ชจํ๋ ๋ฐ ์ค์ ์ ๋์๋ค. ๋ง์ฝ PA๊ฐ ์ฒ๋ฆฌ๋์ ๋๋ฆผ์ผ๋ก์จ ์ด์ต์ ๊ทน๋ํํ๊ณ ์ ํ ๋, ๊ณ ์ ์๋ ๊ณ์ฝ์ด ๋ ์ ๋ฆฌํ ์ ํ์ด๋ค. ์ด ์ฐ๊ตฌ๋ ๊ณต๊ณต๊ธฐ๊ด๊ณผ ๋ฏผ๊ฐ ๋จ์ฒด ์ํธ๊ฐ์ ์ด์ต ๊ทน๋ํ์ ๋ฐฉ์์ผ๋ก ์ฐ๊ฒฐํ๋ ๋ฐฉ๋ฒ์ ์ค์ ์ ๋๊ณ ์๋ค. PA๊ฐ TOC์๊ฒ ์ ์ํ๋ 4 ๊ฐ์ง ์ ํ์ ๊ณ์ฝ ๋ฐฉ์์ ๋น์กฐ์ , ์กฐ์ , Cournot ๋ฐ Collusion ๋ชจ๋ธ๋ก ๋น๊ตํ๊ณ , ๋์์ ๊ฐ ๊ณ์ฝ ๋ฐฉ์์ ๋ํด ๋ชจ๋ ์ํ๊ณผ ์์น ๋ถ์์ ํตํด ๋ชจ๋ธ์ ๋น๊ตํ๋ค. ์ฐ๊ตฌ ๊ฒฐ๊ณผ๋ ํฅํ ํญ๋ง ์๋ ๊ณ์ฝ์ ์๋ฆฝํ๋ ๋ฐ ์ค์ํ ์ํฅ์ ๋ฏธ์น ๊ฒ์ด๋ค. ๋น๊ต ์์น ๋ถ์์ ๊ด์ฐฐํ๋ฉด ๋ค์๊ณผ ๊ฐ์ ์ฃผ์ ๊ฒฐ๊ณผ๋ฅผ ์ป์ ์ ์๋ค.
๊ฒฐ๊ณผ์ ๋ฐ๋ฅด๋ฉด, ๊ณ ์ ๊ณ์ฝ๊ณผ ๋จ๊ฐ ๊ณ์ฝ์ ํฉ์น ์กฐ๊ฑด์ด ๊ฐ๊ฐ์ ๊ณ ์ ๋ฐ ๋จ๊ฐ ๊ณ์ฝ์ ๋ณด๋ค ๋ ๋๋ค๋ ๊ฒ์ ์ ์ ์๋ค. PA๊ฐ TOC์ ์ด์ต๊ณผ ์ํ์ ๋ค๋ฃจ๋ ๋งํผ TOC๊ฐ ์ฒ๋ฆฌ๋์ ์ฆ๊ฐ์ํฌ ์ ์์ผ๋ฉฐ, ์ด๊ฒ์ PA์ TOC ๊ฐ์ ์ด์ด์ต์ ๊ทน๋ํ ํ ์ ์๋ค. ๋ฐ๋ผ์PA๊ฐ ์กฐ์ ์๋ ๊ณ์ฝ์ ์ ๊ณตํ๋ ๊ฒ๋ณด๋ค ์กฐ์ ๋ ๊ณ์ฝ์ ์ ๊ณต ํ ๋ ๋ ๋ง์ ์ด์ต์ ๋ผ ์ ์๋ค. ๊ทธ๋ฆฌ๊ณ PA์ TOC์ ํตํฉ ์ด์ต์ ๊ฐ๊ฐ์ ์ด์ต๋ณด๋ค ๋ ๋๋ค. PA์TOC์ ํตํฉ ์ด์ต์ ํตํด์ PA๋ TOC์๊ฒ ์ ์ ํ ๊ณ์ฝ ๋ฐฉ์์ ์ ๊ณตํ๊ณ ์ํธ๊ฐ์ ์ด์ต ๊ทน๋ํ๋ฅผ ๋๋ชจํ ์ ์๋ค. PA๊ฐ ์ด์ต์ ๋๋ฆฌ๋ ค๊ณ ์๋ ํ ๋๋ง๋ค ์์ต๊ณผ ์์ ์ํ์ ๊ณต์ ํจ์ผ๋ก์จ TOC์์ ๊ด๊ณ๋ฅผ ์ ์งํด์ผํ๋ค. PA๋TOC์์ ํ์กฐ๋ก ์ด๋ค ๊ณ์ฝ๋ฐฉ์์ ์ ํํ๋๋ผ๋ ์ด์ต์ ์ฐฝ์ถํ ์ ์๋ค.|Rapid changes in the global maritime market have a major impact on the port industry. PA (Port Authority) and TOC (Terminal Operating Company) have invested heavily in port facilities and equipment so far to secure competitive advantage. TOC strives to improve profitability in accordance with requirements from competitors and shipping companies. In the same situation, PA is also looking for its own profitability. Market uncertainty and technological changes require PA and TOC to achieve better financial conditions in cooperation. The ports are operated in different contracts. According to the landlord function model which is operated by 60-70% of the world, the PA owns and manages the land and infrastructure of the port, and the TOC is responsible for terminal operations. The PA and TOC will decide whether to use a fixed fee or a unit fee through the contract. There is no absolute contract method in the port leasing system. Most regions in Asia prefer to use the fixed fee, while European countries prefer to use a mix of fixed fee and unit fee.
There have been few studies on the port leasing system. In particular, most of them did not provide specific calculations or were impractical. On the other hand, previous studies have focused on maximizing profits from the perspective of PA rather than TOC. This research focuses on how to connect to the method of maximizing profit between public and private entities. The four types of contracts proposed by the PA to the TOC are compared with the uncoordination, coordination, Cournot and Collusion models, and at the same time, model comparisons and numerical analysis are performed for each contract method. The results of the study will have a significant impact on establishing future port lease contracts. Observing the comparative numerical analysis, the following main results are obtained.
According to the results, it can be seen that the two-part tariff is higher than the each of fixed and unit contracts. As the PA shares with the profits and risks in cooperation with the TOC, the TOC can increase throughput, which can maximize the total benefit between PA and TOC. Thus, the PA can make more profits when it comes to providing a contract that is coordination contract provide more than uncoordination contract. And the joint profit of PA and TOC is higher than the respective total profits. Through the joint profit of PA and TOC, the PA can provide the TOC with the appropriate contractual condition and maximize their joint profits. The PA, in cooperation with the TOC, is able to generate profits no matter what contract type it chooses.Table of Contents
LIST OF TABLES III
LIST OF FIGURES III
ABSTRACT IV
์ด๋ก VI
CHAPTER 1. INTRODUCTION 1
1. BACKGROUND 1
2. AIM AND OBJECTIVES 6
3. SIGNIFICANCE 9
4. STRUCTURE OF THE THESIS 10
CHAPTER 2. LITERATURE REVIEW 11
1. PORT ECONOMICS 11
1. PORT GOVERNANCE 11
2. CONTRACTS: LEASEHOLD AND CONCESSION 16
3. PRICING MECHANISM 18
2. CONCESSION CONTRACT SCHEMES 21
1. FIXED-FEE CONTRACT 21
2. UNIT-FEE CONTRACT 22
3. TWO-PART TARIFF CONTRACT 22
4. FOREIGN AND KOREAN PORT CONTRACT SCHEMES 22
3. RISK SHARING CHARACTERISTICS 26
1. RISKS TYPES IN CONCESSION CONTRACTS 27
2. RISK ALLOCATION BETWEEN PA AND TOC 28
CHAPTER 3. THEORETICAL BACKGROUND AND MODEL DEVELOPMENT 30
1. THEORETICAL BACKGROUND 30
1. BERTRAND MODEL 31
2. COURNOT MODEL 32
3. STACKELBERG MODEL 33
4. COLLUSION MODEL 34
2. MODEL DEVELOPMENT 38
1. TERMINAL OPERATORSโ OPTIMAL BEHAVIORS UNDER THREE SCHEMES 41
2. PORT AUTHORITYโS OPTIMAL BEHAVIORS UNDER FOUR SCHEMES 45
3. COURNOT COORDINATION 55
4. COLLUSION COORDINATION 59
5. COMPARING THE ASSUMPTION MODELS 64
3. COORDINATION THROUGH SHARING THE RISK AND REVENUE 72
1. ASSUMPTION 72
2. SHARING THE JOINT PROFIT 73
3. SHARING THE MARKET UNCERTAINTY 73
4. SHARING THE MARKET RISK 74
CHAPTER 4. NUMERICAL ANALYSIS AND RESULTS 75
CHAPTER 5. CONCLUSION 81
1. SUMMARY 81
2. IMPLICATIONS 83
3. LIMITATION 84
4. FURTHER STUDIES 85
REFERENCE 86Docto
A risk based approach to enhancing public-private partnership (PPP) projects in Nigeria
This thesis investigated the sources of the problems with Public Private Partnership (PPP) projects in Nigeria. The reason for this enquiry is as a result of the multitude of problems threatening the collapse of most of the concluded projects. Therefore, against the backdrop that proper risk management is the most critical success factor for PPPs, the thesis evaluated how risks have been allocated and mitigated in the projects concluded thus far in Nigeria. This is premised on the basic assumption that if risks are better managed, that it would result in enhanced projects.Having determined that political risk, demand risk and stakeholder opposition risk were the most prominent risk factors affecting PPPs in Nigeria, three case studies were used to evaluate how these risks have been handled. The projects are the 26 ports concessions, the Murtala Muhammed Airport terminal 2 (MMA2) BOT project and the Lekki toll road concession. It is believed that the lessons learnt from these studies will provide a tool for policy reforms leading to more successful projects. Also, by adopting an interdisciplinary approach, the thesis ensures that its findings and recommendations may easily be generalised across other projects, economic sectors, and disciplines and even to other countries in Sub-Saharan Africa, since these countries share the same socio-economic conditions with Nigeria
Public and private roles in road infrastructure: an exploration of market failure, public instruments and government failure
Starting with a 'greenfield' situation, we discuss reasons for market failure in road infrastructure provision. We show why it may not be optimal from a welfare perspective to leave road provision fully to the market and government intervention in this sector can improve welfare. Government intervention comes in different forms, such as financial intervention (taxation, subsidies), regulation (price, quality, environmental), and public provision of roads or road services. The analysis of the literature regarding government instruments allows us to establish a correspondence between different forms of market failure and instruments. Several case studies of particular road infrastructure projects are included to illustrate the use of government instruments.
Agent-Based Models of Highway Investment Processes: Forecasting Future Networks under Public and Private Ownership Regimes
The present highway funding system, especially fuel taxes, may become a less reliable revenue source in the future, while the transportation public agencies do not have sufficient financial resources needed to meet the increasing traffic demand. In the last two decades there has been increasing interest in utilizing private sector to develop, finance and operate new and existing roadways in the United States. While transportation privatization projects have shown signs of success, it is not always clear how to measure the true benefits associated with these projects for all stakeholders, including the public sector, the private sector and the public. "Win-win" privatization agreements are tricky to make due to conflicting nature of the various stakeholders involved. Therefore, there is a huge need to study the welfare impacts of various road privatization arrangements for the society as a whole, and the financial implications for private investors and public road authorities.
In order to address these needs, first, an empirical analysis is performed to study the investment decision processes of public transportation agencies. Second, the agent-based decision-making model is developed to consider transportation investment processes at different levels of government which forecasts future transportation networks and their performance under both existing and alternative transportation planning processes. Third, various highway privatization schemes currently practiced in the U.S. are identified and an agent-based model for analyzing regulatory policies on private-sector transportation investments is developed. Fourth, the above mentioned models are demonstrated on the networks with grid and beltway topologies to study the impacts of topology configuration on the privatization arrangements. Based on the simulation results of developed models, a number of insights are provided about impacts of ownership structures on the socio-economic performance in transportation systems and transportation network changes over time. The proposed models and the approach can be used in long-run prediction of economic performance intended for describing a general methodology for transportation planning on large networks. Therefore, this research is expected to contribute significantly to the understanding and selecting proper road privatization programs on public networks
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