An efficient transport system is essential for the development of a country and of a region as it helps reduce travel time and production costs and improves competitiveness. It also improves access to markets and is a key aspect in preserving the investors’ interest in the region. However, a performing transport system is not enough for ensuring the development of the regions. The effect of transport infrastructure investments also depends on the capacity of this region to efficiently exploit infrastructure, which explains, in part, the different return on investment.
As more and more institutions estimate a significant population growth which will automatically lead to an increasing transport demand, mobility will mean the need to allocate infrastructure investments which depend on a series of factors such as the quality and the life expectancy of the infrastructure, geography and the capa-city of the manufacturing sector. But the fact that the GDP share dedicated to transport infrastructure has had the tendency to remain constant in several countries, “shows that the investment level is affected by different factors than real investment needs, such as institutional procedures for budget grant or budget constraints”, shows the report of the International Transport Forum published in June 2012.
According to the data updated by ITF, over the past 15 years, annual surface transport infrastructure investments have stood at 0.8% of the GDP in OECD countries (except for Japan), while the volume of investments has increased by 30%.
Rail infrastructure investments in Western Europe countries have gradually increased, while Central and East European countries have focused more on road infrastructure. However, the investment volume has been significant in the countries with a developing and transition economy, especially in CEE (starting with 2003). This growth became negative after reaching the maximum level in 2009 in real terms with a percentage of 11% (in 2010).
Western Europe vs. CEE
As regards railway infrastructure investments, their share increased from 15% to 23% in OECD (for 1995-2010), this trend being influenced by the development of Europe and Japan. Due to the political commitment on the development of railways in Western Europe countries, the share of railway transport investments has constantly increased from around 20% in surface transport infrastructure (in 1975) to 30% in 1995 and to 40% in 2010.
Statistics show once more the difference between railway infrastructure grants in the west and in the east of Europe. Therefore, if western countries have directed their funds to railway infrastructure, CEE countries have focused on roads, where the share of road transport in surface transport is increasing from 65% (in 1995) to 82% (in 2010).
“Although railway transport is significantly promoted in Europe because people have become aware of the importance and benefits it brings to the economy, in real terms, the allocation of investments in infrastructure varies a lot. Comparatively, in 1995-2008 statistics showed that investments in road infrastructures had priority against railway investments. If in 2000 railway investments in CEE countries stood at 22.7% , while road investments at 74.4%, in 2008, railway investments dropped to 17.9%, while road investments increased to 79.7%. If the next years don’t come up with railway investments, the freight volumes and passengers will continue to reduce and shift to roads. For railway transport to dominate the market, railway transport should record nothing but positive figures in the coming period of time”, declared Matteo Mussini, CER Se-nior Adviser for CEE.
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