Private sector involvement in financing and operating transport infrastructure

Abstract

The key role of transport infrastructure in the emerging European network has provoked many questions as to the financing and operating of existing and new transport infrastructure. In the course of the twentieth century governments in all countries have assumed responsibility for financing and operating transport infrastructure. In the past decade, however, serious doubts have been expressed on the efficiency of a strong public financial involvement in infrastructure. The paper addresses the question whether infrastructure financing and operation is a necessary competence of governments. In principle, infrastructure may be provided by the private sector, through which efficiency gains may be achieved. Therefore, the necessity for government financing is at stake in the current debate. In the paper several arguments for and against private financing are systemically evaluated and illustrated by diverse uses related to various modes of transport. The conclusion is that there is much scope for the private sector in financing and operating new and existing transport infrastructures in Europe.