Economic mechanisms of public-private partnership in transport construction

Abstract

A whole complex of transport networks is needed for the quality functioning of the entire economic system of the country: railways, highways, river communications, ports, airports, train stations, etc. The Russian transport framework is based on a network of railways as a rule with radial structure. The country’s Federal highway network has not yet been formed, even in the form of a radial structure, and chord lines are almost not developed. The creation, development, and operation of transport infrastructure — roads, bridges, tunnels, ports, airports — has historically been considered the exclusive prerogative of the state. However, the situation has changed in recent decades. With the growth of requirements to the quality of infrastructure in the context of economic development, the budget deficit and organizational shortcomings that are objectively inherent in the system of public administration are increasingly affected. However, attempts to apply full privatization in this sector are usually unsuccessful, since private owners act solely in the interests of profit, without caring about maintaining the public orientation of the privatized enterprises. For this reason, the mechanisms of public-private partnership, which is an “intermediate” solution between completely public provision of services and full privatization, are becoming more and more common in the world practice. Public-private partnership reflects the growing trend in the global economy of the counter movement of the state and the private sector and is successfully applied not only in transport, but also in energy supply, water supply, public utilities and other areas.