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

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  • Sheila Farrell
  • Thierry Vanelslander

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.

Suggested Citation

  • Sheila Farrell & Thierry Vanelslander, 2015. "Comparison of Public-Private Partnerships in Airports and Seaports in Low- and Middle-Income Countries," Transport Reviews, Taylor & Francis Journals, vol. 35(3), pages 329-351, May.
    • Handle: RePEc:taf:transr:v:35:y:2015:i:3:p:329-351
    DOI: 10.1080/01441647.2015.1015066
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    References listed on IDEAS

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    1. Antonio Estache & Gines De Rus, 2000. "Privatization and Regulation of Transport Infrastructure : Guidelines for Policymakers and Regulators," World Bank Publications - Books, The World Bank Group, number 15199, December.
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    Cited by:

    1. Francesco Parola & Jasmine Siu Lee Lam, 2018. "An empirical investigation of logistics infrastructure projects in emerging economies," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 48-71, March.
    2. Shiying Shi & Heap-Yih Chong & Lihong Liu & Xiaosu Ye, 2016. "Examining the Interrelationship among Critical Success Factors of Public Private Partnership Infrastructure Projects," Sustainability, MDPI, vol. 8(12), pages 1-20, December.
    3. Engel, Eduardo & Fischer, Ronald & Galetovic, Alexander, 2018. "The joy of flying: Efficient airport PPP contracts," Transportation Research Part B: Methodological, Elsevier, vol. 114(C), pages 131-146.
    4. Feng, Hongxiang & Grifoll, Manel & Yang, Zhongzhen & Zheng, Pengjun, 2021. "Latest challenges to ports in public-private partnership: Case of Dandong Port (China)'s bankruptcy," Transport Policy, Elsevier, vol. 110(C), pages 293-305.
    5. Ronald Fischer & Diego Huerta, 2018. "Wealth Inequality and The Political Economy of Financial and Labour Institutions," Documentos de Trabajo 341, Centro de Economía Aplicada, Universidad de Chile.
    6. Xiao, Zengqi & Lam, Jasmine Siu Lee, 2020. "The impact of institutional conditions on willingness to take contractual risk in port public-private partnerships of developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 12-26.

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