Public Private Transport

Public Private Transport

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by Eric | Sep 29, 2017 | Uncategorised | 0 comments
Transport is a system used to move people or goods from one place to another. There are various modes of transport including air, rail, sea and road. Arriving in a strange city, especially after dark, can be a challenging enough experience at the best of times. One of the things you can do to make it a lot easier is to pre-arrange a private airport transfer . If you forget to do this, then your other choice is public transport. Although there is nothing wrong with public transport, it is quicker and more efficient to have your travel arranged before your arrival. This is especially important if your flight gets in late and public transport is is no longer operating for the night.
Having said this; it is important to know the difference between public and private transport:
Buses, trains and metros are all classified as public transfers as it’s a mode of transport in which a number of people share. These types of transport all have their own schedules because they pass specific routes at certain times throughout the day. Usually run by the State, the only advantage of this type of transport is that they are relatively cheap and everyone using the service are charged equally. However, they are often overpacked and stuffy, particularly during the summer months. Furthermore, drivers will not wait for you if you’re running late and buses often don’t stop if they are overpacked.
In contrast to public transfers, with private transfers you don’t share the vehicle with others. The only people you share it with is the driver and your friends/family/colleagues. Normally, chauffeurs or executive cars are rented for private use, but buses and train carriages may also be used privately if you have a big party (although these cost more).
Private transfers have the following advantages over using public trains, buses, etc:
The advantages listed above should not be considered an exhaustive list, but they do give some idea of how private transport services are superior in numerous ways. If it’s cost you’re worried about then have no fear. What you’ll have to pay is not much more than public transport services, and may actually cost less in certain circumstances.
For all these reasons, and many more, it makes perfect sense to book a private transfer for your next business trip.

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Tyler D. Duvall, Assistant Secretary for Transportation Policy, U.S. Department of Transportation

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Tyler D. Duvall Assistant Secretary for Transportation Policy U.S. Department of Transportation
Committee on Transportation and Infrastructure Subcommittee on Highways and Transit U.S. House of Representatives
Chairman DeFazio, Ranking Member Duncan, and Members of the Subcommittee:
I greatly appreciate the opportunity to appear before you today to talk about one of the most important trends in transportation, Public-Private Partnerships. Under the leadership of Secretary Peters and Secretary Mineta before her, the U.S. Department of Transportation (USDOT) has made the expansion of public-private partnership a key component in the Department’s on-going initiatives to reduce the high and growing costs of congestion and improve transportation system performance.
The combined public and private sector interest in forming various transportation-infrastructure-related partnerships is growing every year. Based on a recent internal Federal Highway Administration survey, the majority of States are either participating in —or exploring the creation of — a public-private program. Currently, 23 States have some form of legislation that authorizes public-private partnerships in transportation.  The 2005 Safe, Accountable, Flexible, Efficient Transportation Equity Act – a Legacy for Users (SAFETEA-LU) also took important steps to further encourage development of public-private partnerships by expanding state tolling flexibilities, allowing up to $15 billion in private activity bonds to be issued outside state volume caps for highways and intermodal freight facilities, and directing USDOT to streamline design-build regulations.
While the private sector is keenly interested in investing in a broad range of infrastructure systems in the U.S., my testimony will focus on highways and public transportation facilities with an emphasis on four areas: 1) why have public-private partnerships become an attractive financing option; 2) what are the various forms that public private partnerships can take; 3) what are the public policy implications; and 4) the Federal government’s role.
WHY HAVE PUBLIC-PRIVATE PARTNERSHIPS BECOME AN ATTRACTIVE FINANCING OPTION?
The Demand for Private Sector Finance
As with any major economic trend, there are a variety of factors that have come together at the same time to propel us to this point. The willingness of public authorities to go beyond the traditional government approach to providing highways and public transportation systems has been driven largely by four distinct, but related trends: 1) growing resource scarcity; 2) declining system performance; 3) emergence of contract mechanisms to reduce government risk; and 4) growing public acceptability of direct user fees.
Governments today (Federal, State, and local) are experiencing financial difficulty in keeping up with the demand for transportation investment. Transportation-related taxes are being increasingly absorbed by rising costs and the need to dedicate ever more resources to system preservation and maintenance.
Over time, the growth in gasoline consumption has been and will continue to be limited by increases in fuel economy for cars. In this year’s State of the Union address, the President called for reducing gasoline consumption by an additional twenty percent in the next ten years by expanding alternative fuel production and increasing the average fuel economy of new cars and light trucks. In addition, vehicle miles traveled trends in the U.S. appear to have flattened out in recent years after tracking closely.
Political resistance to fuel tax increases has grown at both the state and federal levels. Results of a recent survey by Washington State’s DOT indicate 58 percent prefer the collection of tolls to fund future transportation improvements. Only 26 percent would rather see an increase in the gasoline tax.
At the same time, the costs of highway construction and rehabilitation have been growing faster than prices generally. As construction activity has taken off in China and India, competition for scarce construction materials has caused materials costs to explode, rising 8.5 percent in 2004 and 12.6 percent in 2005. Overall, construction costs since 1998 have risen 35 percent, more than twice as much as the GDP deflator.
Construction costs are particularly high in urban areas where congestion is most severe. Even without land acquisition costs, building a lane-mile of uncomplicated new highway in an urban area now costs about $11.2 million – adding land acquisition brings it to $15 million. But often there are complications that add to the costs, such as tunneling and overpasses, and these can push the cost of building a lane-mile of new highway to anywhere between $40 million and $300 million.  Environmental mitigation is also a growing portion of project costs, amounting to between 5 and 27 percent of project costs.
Deteriorating performance in the Nation’s surface transportation infrastructure is acute and widespread, and it affects both passenger travel and freight movement. For many years, the U.S. enjoyed substantial amounts of excess capacity along many sections of our transportation systems. Quite clearly, that era is over. In the past 20 years, hours of delay and wasted fuel have each increased by more than four times. The cost of wasted time and fuel for travelers in 2003 was over $60 billion, about 5 times the level in 1982. If we add the extra time people must allow in planning for congestion delay and the lost productivity associated with it, the annual costs rise to roughly $170 billion.  These costs have been growing at about 8 percent per year – almost triple the rate of growth of the economy. The extent, duration, and intensity of delay associated with these costs have all skyrocketed over the past two decades.
For example, between 1982 and 2003 U.S. highway congestion:
     •    Increased from affecting 33 percent of travel in 1982 to 67 percent of travel in 2003;
     •    Increased in duration from 4.5 hours per day in 1982 to 7 hours per day in 2003; and
     •    Tripled the delay for the average rush hour driver’s trip from 13 percent of normal trip time in 1982 to 37 percent in 2003.
For the trucking industry, the increases in delay time, wasted fuel, and other increased operating costs that congestion imposes costs them about $10.7 billion annually. The cost to shippers of delays in deliveries of shipments has been estimated at another $9.4 billion, so the total costs to truckers and their customers is about $20 billion per year. Productivity losses and costs of unreliability are in addition to those costs.
Emergence of Contract Mechanisms to Reduce Government Risk
Over the past decade, states and the private sector have gained valuable experience with new contractual mechanisms, including various types of design-build contracts, long-term management contracts and concession arrangements. These new contractual structures allow the government to efficiently manage the various risks associated with infrastructure development and operation without compromising other policy objectives. Because of these successful experiences, state legislators have given state transportation authorities broader leeway to experiment with ever more sophisticated arrangements.
Growing Public Acceptability of Direct User Fees
The introduction of the first motor vehicle fuel tax in the U.S. was in Oregon in 1918, however, that was not the preferred option. As transportation expert Martin Wachs, now with the Rand Corporation wrote in 2003 for the Report of the Committee for the International Symposium no Road Pricing, “The legislature had preferred a toll-based system of finance, but at the time it was rejected because of the cost of constructing toll booths and collecting tolls. So a practical limitation, rather than a policy-based one, dictated the starting point for our system of paying for road infrastructure.” Similarly, when President Eisenhower created the Interstate Highway System in 1956, he had originally preferred a toll-based system, but reluctantly agreed to go along with the recommendation of the Clay Commission to use fuel taxes as the financing mechanism instead.
By the 1960s, some visionaries were already anticipating a time when administrative costs would no longer force us to rely only on indirect charges such as the fuel tax. In 1963 the economist William Vickrey, who later won the Nobel Prize, wrote:
“Talk of direct and specific charges for roadway use conjures up visions of a clutter of toll booths, an army of toll collectors, and traffic endlessly tangled up in queues. . . . However, with a little ingenuity, it is possible to devise methods of charging for the use of city streets that are relatively inexpensive, produce no interference with the free flow of traffic, and are capable of adjusting the charge in close conformity with variations in costs and traffic conditions. My own fairly elaborate scheme involves equipping all cars with an electronic identifier which hopefully can be produced on a large-scale basis for about $20 each. These blocks would be scanned by roadside equipment at a fairly dense network of cordon points, making a record of the identity of the car; these records would then be taken to a central processing point once a month and the records assembled on electronic digital computers and bills sent out. . . . Cameras can be arranged at some locations to take pictures of cars not producing a valid response signal.” [1]
Twenty-five years before E-ZPass, and 40 years before the London and Stockholm congestion pricing systems, Vickrey had anticipated exactly how congestion charging would be carried out and enforced. Needless to say, with technology reducing the costs of electronic toll collection to a fraction of what it would have been in the 1960’s, administrative feasibility is no longer a problem.
Public opinion has also turned around. The American Automobile Association recently published a national opinion poll that found that 52 percent of respondents favored tolls as a revenue source for expanded highway investment, while only 21 percent favored an increase in fuel taxes. A survey by the Colorado DOT found 66 percent in favor of tolls as a way of financing new highway capacity, while only 16 percent favored fuel taxes. A 2005 Washington Post survey for the D.C. area similarly found 60 percent in favor of tolls, compared with 30 percent in favor of fuel taxes. A 2004 poll by the Minneapolis Star Tribune found 69 percent in favor of express toll lanes, but only 23 percent in favor of increases in fuel taxes. A 2006 p
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