Comparison of Public-Private Partnerships in Airports and Seaports in Low- and Middle-Income Countries

Sheila Farrell and Thierry Vanelslander

Transport Reviews, 2015, vol. 35, issue 3, 329-351

Abstract: The paper examines similarities and differences in public-private partnership (PPP) structures between airports and seaports in low- and middle-income countries using data from the World Bank's Private Participation in Infrastructure (PPIAF) database, and puts forward some hypotheses about the reasons for the differences. Qualification of the results is also made with available literature on airport and seaport PPPs. It uses eight granules -- the eight "Ws" -- as the basis for the analysis, comparing PPPs in terms of "What", "When", "Where", "Why", "Whole", "Who", "Whom", and "Which way". Although the similarities between port and airport PPPs generally outweigh their differences, there are several areas in which they diverge. These are the characteristics of the private-sector partner, the PPP models used, the use made of competitive tendering, and the bundling of facilities. Airport investors tend to attract a wider array of investor types than seaports, where the focus is more on specialised operators in build-operate-transfer (BOT) agreements. These differences have their roots in four main structural variations between the two industries: the level of integration of infrastructure and services, economies of scale, public service obligations, and the differing roles of competition and regulation.

Date: 2015
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DOI: 10.1080/01441647.2015.1015066

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