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Private Sector Development

Próxima Parada: El Centro Comercial

Daniel Pulido's picture
Also available in: English
Sigue a los autores en Twitter: @danpulido y @IrenePortabales
 

Estación de Metro de Madrid esponsorizada
Muchos de los sistemas de metro del mundo no consiguen cubrir sus costos de operación con los ingresos tarifarios, mucho menos sus costos de capital. Una comparativa internacional llevada a cabo por las asociaciones de metros CoMET y Nova indica que, en promedio, los ingresos tarifarios de un sistema de metro cubren el 75% de sus costes de operación, mientras que los ingresos comerciales cubren aproximadamente un 15%, lo que supone un déficit del 10%. De igual modo, hemos hecho un cálculo de “números gordos” basado en los estados financieros de diversas empresas de metro de América Latina, corroborando que en promedio éstas presentaron un déficit en operación del 10% en el 2012, el cual asciende al 30% si se incluyen los costes de capital. Por supuesto existen ejemplos de metros que sí cubren sus gastos operacionales como son Santiago de Chile o Hong-Kong, pero otros como México DF necesitan subvención de la mitad de sus gastos de operación. Esta brecha de fondeo es un gran impedimento para mantener la calidad de los servicios y para ampliarlos para poder responder adecuadamente a las crecientes necesidades de desplazamiento.

Lamentablemente, el desfinanciamiento de los sistemas de transporte urbano es un problema generalizado, difícil de remediar con presupuestos públicos sobrecargados y/o soluciones inmediatas que aunque efectivas en teoría son difíciles de implementar en la práctica: el aumento de tarifas, por ejemplo, es una medida políticamente difícil y además genera mayor presión sobre los pobres, quienes más usan el transporte público; cobrar una tarifa que realmente cubra los costes socioeconómicos del uso del vehículo particular (tales como cargos por congestión) como instrumento de financiación del transporte público es también una medida impopular y difícil de implementar.

Dada esta situación, los operadores de transporte están continuamente buscando nuevas formas de recaudar fuentes adicionales de ingresos y así disminuir el déficit de financiación,  en muchos casos a través de asociaciones con el sector privado. A pesar de que muchos de los ejemplos se concentran en países desarrollados, algunos metros en América Latina y en otras regiones en vías de desarrollo están buscando aumentar sus ingresos no tarifarios:

Mind the (funding) gap, next stop: Making some extra money

Daniel Pulido's picture
Also available in: Español
Follow the authors on Twitter: @danpulido and @IrenePortabales
 

A branded metro station in Madrid
Most metro systems around the world are unable to cover their operating costs with fare box revenues, let alone fund capital expenditures. According to data from international benchmarking programs CoMET and Nova, tariff revenues cover an average 75% of operating costs, while other commercial revenues provide about 15%, resulting in an operating deficit of 10%. Similarly, a back of the envelope exercise that we conducted for Latin American metro companies showed that these had an average operating deficit of 10% in 2012. When including capital expenditures, this deficit grew to 30%. There are of course examples of metro systems that do recoup their operating costs, such as Santiago de Chile and Hong Kong, but others like the Mexico City Metro only cover half of their operating expenses with fare revenues. We should all mind this funding gap as it is a significant impediment to maintaining service quality and addressing growing urban mobility needs.

Unfortunately, the underfunding of transit systems can become chronic as public budgets are under growing pressure and the most direct solutions for increasing revenues are hard to implement: increasing fares, for instance, has proved to be politically difficult and disproportionately affects the poor, who use public transport the most; and charging a price that fully covers the social cost of private vehicle usage (i.e., congestion charges) as a way to fund transit is also politically sensitive.

In that context, transit operators are increasingly looking at new ways to tap additional sources of commercial revenue and make up for funding shortfalls, often through agreements with the private sector. Although most examples are concentrated in developed countries, some metro systems in Latin America and the developing world are looking at ways to increase non-tariff revenues:

What can we learn from public-private partnerships in the transport sector in Europe and Central Asia?

Vickram Cuttaree's picture
Private sector investment in Europe and Central Asia (ECA) is quite small, even accounting for the size of the individual countries’ economies. Despite integration within the European Union (EU), ECA countries have not attracted much private sector investment in the transport sector compared to other regions, such as Latin America or South Asia (four times more during 2009-13).
 
Mid-day traffic in Istanbul, Turkey
Mid-day traffic in Istanbul, Turkey

While public-private partnership (PPP) transport investment has been initially driven by countries (such as Poland, Croatia and Hungary) that implemented reforms to join the EU, most of them have not been able to close on transport PPP transactions in the past five years. Now Russia and Turkey are the leaders in the region, as explained below.

What can explain this situation?
A focus on off-balance sheet accounting of PPP projects has dominated transport PPP in EU-member ECA countries in recent years. Off-balance sheet accounting means PPP projects are structured in a way that only annual government payments are accounted for, instead of the total commitment (the assets and liabilities associated with the project). This means that PPP projects end up being large and greenfield (multi-billion dollar investment, typically in new highways), and tend to follow a separate path than for budget-financed projects, based on the assumption that the associated liabilities won’t be accounted for.

Risk allocation between the public and private sectors is driven by accounting treatment. This also results in limited support from governments and very rigid negotiations. It also means that projects are often not able to close or, as a former Minister of Transport said, “We do PPP to build off-balance sheet assets but, in order to reach financial close, assets has to be on our books.”

Logistics: a Critical Nexus Point for Inclusive Growth

Marc Juhel's picture
As I get ready to head back to Washington DC after a visit to The Netherlands, I don’t want to miss the opportunity to share with you some thoughts on sustainable logistics.

While some of you might be familiar with the term, transport logistics refers to the services, knowledge and infrastructure that allow for the free movement of goods and people. 

In today’s globalized economies, logistics is recognized as a key driver of competitiveness and economic development. And as policy making turns its attention to promoting sustainable growth paths, valuing scarce resources, and minimizing environmental impacts, sustainable logistics is indeed a key nexus point.

Efficient logistics systems are a precondition for regions, countries, cities and businesses to participate in the global economy, boost growth, and improve the living conditions of millions of people.

That’s why this topic is so important for the World Bank’s mission and our client countries in the transport sector. And that’s why this week in The Hague we organized, together with the government of The Netherlands and partners like Dinalog, the Dutch Institute for Advanced Logistics, our first Conference on Sustainable Logistics.

The 10-Cent GPS

Holly Krambeck's picture

We know that technology is not a panacea, that gadgetry and software are not always the right solutions for our transport problems. But how do we know – really know -- when technology is truly the wrong way to go – when, say, using an old-fashioned compass is genuinely better than a GPS?

Thanks to blogger Sebastiao Ferreira, writing for MIT’s CoLab Radio, I have learned about an intriguing phenomenon in Lima, where entrepreneur data collectors, named dateros, stand with clipboards along frequented informal microbus routes, collecting data on headways, passenger counts, and vehicle occupancy levels. The microbus drivers pay dateros about 10-cents per instant update, and they use the information to adjust their driving speed.  For example, if there is a full bus only a minute ahead of the driver’s vehicle, the driver will slow down, hoping to collect more passengers further down the route. In informal transit systems, where drivers’ incomes are directly tied to passenger counts, paying dateros is a good investment (Photo from MIT CoLab Radio).

If you think about it, use of dateros could be more efficient than traditional schedule or GPS-based dispatch, because the headways are dynamically and continuously updated to optimize the number of passengers transported at any given time of day.  According to Jeff Warren (a DIY cartography pioneer), the dateros have been praised as the “natural database, an ‘informal bank’ of transportation optimization data.”

Does this little-known practice call into question our traditional prescription for high-tech solutions to bus dispatch?