Value creation? Value capture? an assessment of three different types of transport interchanges

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.This paper examines firstly, how to measure the extent of value created as a result of the provision of transport infrastructure and secondly, outlines the applicability of the use of global value capture mechanisms in the South African context. Three case studies were used to undertake the above assessment. The case-studies included a proposed Bus Rapid Transit interchange in Soweto, a proposed Metrorail station in Khayelitsha, Cape Town and an interchange on the proposed PWV9 Highway near Diepsloot, Johannesburg. The paper outlines an alternative method to measuring the extent of value creation that is based on a forward-looking, feasibility approach rather than the historic, hedonic approach that is conventionally used. Through this method, the paper shows that the extent of value creation is likely to be dependent on the type of interchange developed and the context in which the development of the interchange takes place. Taking the South African institutional and legal context into account, and through an analysis of internationally used value-capture mechanisms, the paper suggests that only a number of these recognised mechanisms will be able to be used to capture the value at these particular interchanges.