How to get value for money through private sector participation in rail passenger service delivery - International evidence

Abstract

Paper presented at the 30th Annual Southern African Transport Conference 11-14 July 2011 "Africa on the Move", CSIR International Convention Centre, Pretoria, South Africa.

African cities largely rely on road transport solutions, while on other continents rail performs a vital role in moving large passenger volumes. The question of how best to secure value for money in the delivery of urban and interurban rail services through private sector participation has become a major issue. Investment in transport infrastructure and improved service delivery will be essential for increasing urban mobility and improving African cities' competitiveness. There is considerable interest in understanding the different approaches to securing private sector participation in rail service delivery around the world. With the right framework, the private sector can transform the levels of rail investment, efficiency and service delivery. This paper presents the international evidence, focusing on the most important cases in Latin America, Europe and Australia. As well as reviewing the academic literature, it presents new research quantifying the impacts of the various alternatives on usage, efficiency, innovation and the passenger experience. It also sets out the results of an interview programme with operators, government and regulators. Finally the general lessons that can be learnt are summarised.