The demand for optimising the quality of services is constantly increasing thus requiring the infusion of billions of euros in investments for vehicles, maintenance and infrastructure. But the deficit of public funds, amplified by the increasing public debts in many countries, questions conventional financing structures. However, the transport segment can benefit from funds, if new financing sources are being identified, next to new business examples and best practices for supporting the segment of construction, implementation, operation and maintenance in the transport sector.
Investments which are efficiently directed towards different segments, especially local infrastructure, will contribute to the normal economic development, thus positively influencing the citizens’ way of living. For delivering services and implementing infrastructure projects, the complementarity of roles between the public and the private segment is essential. The past years have been marked by serious integration problems on the global financial market. Meanwhile, the authorities have become aware of the importance of an optimal operation and the benefits of the capital market. This is carried out based on a long-term cost reduction, on long-term investments especially in the transport segment. Currently, a process of new regulations on financial markets is carried out internationally, all for increasing transparency, which is very important for financial instruments, as they guarantee financial stability. Thus transport will rely on an financing balance. “Governments has and still have problems with financing transport projects, stressing the importance of the other investment solutions and mechanisms. The best solution is that of public private partnerships. PPP investments are the best solution in developing projects”, said Urban Karlström, Chairman of the Swedish Forum for Innovation and Strategies in the Transport Sector.
Investments in new infrastructures are necessary and they will continue to be necessary for a long period of time, but, “in many countries, 90% of the necessary infrastructure already exists and it is extremely popular for politicians to launch new projects. But who will ensure maintenance? Maintenance is a problem for governments, as well as identifying new financial partners. When we talk about new projects, we should be sure about life cycle costs. It is quite difficult to identify this, both in what concerns the environment and the society, as well as with respect to the technical part”, said Joris Al, General Director of the Centre for Transport and Navigation, Ministry of Infrastructure (Netherlands). This is generated by the inevitable growth of the mobility demand, which requires a joint management of demand, financing and profit. Government regulation could be a solution with impact on the public segment as well, as it could also participate with investments in infrastructure and maintenance.
by Pamela Luică
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