Public-Private Partnerships in Transportation Infrastructure

The International Technology Scanning Program

Understanding the Policy and Program Structure of National and International Freight Corridor Programs European Union

12ObjectivesPurposeLearn from the EU and member countries experiences on freight corridor planning and implementationUnderstand how programs were developed, evolved and implemented on a national level and across jurisdictional levels

Specific ObjectivesUnderstand how specific corridors are selected and prioritizedUnderstand how corridor improvements and operations are financed Understand leadership required to develop and implement policyIdentify how performance standards/measures are developedIdentify ways to foster international collaborations on freight corridor issuesReduce text 7 lines x 7 words 23Sponsors and ParticipantsNorth American Participation U.S., Canada and MexicoAnthony T. Furst (FHWA Co-chair)Eric G. Madden (AASHTO Co-chair), Pennsylvania DOTMonica M. Blaney, Transport CanadaBernardo J. Ortiz, Mexico Ministry of Comm. and Transport (SCT). Kenneth L. Sweeney, Maine DOTB. Renee Sigel, FHWAErnie B. Perry, Missouri DOT Spencer L. Stevens, FHWARobert L. Penne, AASHTODavid F. Long, US Department of CommerceGeorge E. Schoener, I-95 Corridor Coalition Eduardo Asper, Mexico Intermodal Transportation Association (AMTI). Juan C. Villa (Report Facilitator), TTI34Scan Tour Countries

Belgium European Union

New MembersHungaryPoland

Founding and Old MembersGermanyThe Netherlands AustriaWhy these countries were selected, more details on corridors45Key Topics of InterestPolicies: Identify novel freight policy issues and understand benefits corridor programsPlanning Process: Identify corridor selection and prioritization, and project selection processesSustainability: Identify role that environmental aspects playFunding: Understand how corridors and projects are financed and managedOperation: Identify freight corridor operation strategies

56The European Union

EU Enlargement in the 2000sThe EU is not a federation, nor an organization for cooperation

Member States remain independent sovereign nations Member States delegate some of their decision-making powers to gain strength and world influence none of them could have on their own 67EUs Trans-European Transport NetworkGoal of creating an internal market and reinforcing the economic and social cohesion

1993TEN policy into the EC Treaty1995Financial Regulation to support TEN projects1996TEN-T Guidelines adopted to determine network and priorities covering the EU152004Major revision of the TEN-T Guidelines to integrate the 10 + 2 new Members 2006Communication on the extension of the major TEN-T axes to the neighboring countries2009Green Paper on the Future of the TEN-T2011Revision of the Guidelines

78TEN-T Priority Axes and projects

89TEN-T OrganizationEuropean Commission (Directorate General for Mobility and Transport(DG MOVE): defines the policyTEN-T Executive Agency (EA): turns the policy into actionMakes political decisions regarding the TEN-T programDefines strategy, objectives, and priority areas of action Takes the final financing decisions Monitors and supervises the Agency Implements the TEN-T program on behalf of the European Commission Efficiently manages entire project lifecycle, including:- Organizing calls and evaluations- Giving support to Member States Prepares financing decisions Provides key feedback to the European Commission 910Freight Transportation Corridor PoliciesFor the common European market to function smoothly there is a need for an integrated transport system

Freight Transport Challenges:

Congestion is affecting costs/travel time, increasing fuel consumptionNeed to reduce emissions to meet climate change targetsHighly dependent on fossil fuels, a large proportion of which are imported.Safety and security need to be further enhanced

1011Freight Transportation Corridor PoliciesOpportunities:Heterogeneity of the EU has increased with enlargements and new logistics techniques and best practices are implemented

European companies have established themselves as world leaders in freight transport logistics.

Prospects of enhancing trade relations with countries outside the EU are relevant

1112Freight Transportation Corridor PoliciesA common approach:

Focus on corridors, also connecting the transport chains to and from the neighboring countries and overseas

Promotion of innovative technologies and practices in infrastructure, transport modes and freight management.

Simplification and facilitation of freight transport chains and related administrative procedures

Improving the quality of transportation services

1213Policy FindingsThe Trans European Network concept serves as a unifying vision for the EUThe long-term vision of the TEN-T is constantTransportation infrastructure is a key national assetThe strategic vision integrates transportation policyConnectivity/access.Economic development/commerce.Environment/sustainability.Policy coordination affects outcomesGermanys tolling scheme has been instrumental in driving the fleet to cleaner enginesDiversion from truck to rail or water transport has not workedNeed for a focused corridor level system.

1314Planning Process Key FindingsProject application process is transparent and well defined. Selection criteriaRelevance to the TEN-T priorities and policy objectives.Maturity.Impactparticularly on the environment.Quality (completeness, clarity, soundness, and coherence).

Independent observers

Planning processes at the Member States vary.

1415Planning Process Key Findings8B tunnel through the Alps has limited value to Austria

Alignment of Member States priorities and EU priorities is a challenge.

Poland is aligning its transportation infrastructure eastward and southward 1516SustainabilityRoad transport is the dominant mode, with 84% of CO2 emissions in the EU

The 2001 Transport White Paper aimed to restore the balance between road and other modes by:Promoting co-modality. Developing infrastructure charging. model to calculate internalization of external costs Promoting the use of cleaner cars and fuels. 1617Sustainability Key FindingsStrong linkage of transportation policy to environmental, social, and sustainability aspects -- Decarbonization

Aligning theory and practice is always a challengeGood alignment:Germanys Toll Collect system links toll amounts to emissionsPort of Rotterdam new terminal leases require mode split (35% truck, 45% barge, and 20% rail)

Challenging alignment:policy position to move cargo from trucks to rail or water transportPassenger traffic is prioritized on the EU rail system. Newly admitted Member States wish to expand road networks at the expense of an extensive rail network

1718FundingThe cost of the 30 priority axes is approximately 250BFunding of TEN-T projects mostly comes from the national budgetsCohesion and Structural Funds can go up to 85% for cohesion countries

1819Funding Key FindingsMultiple funding sources are available to meet project needsPartnerships between government, private, and quasi-governmental entities with a mix of grants, bonds, loans, user fees (tolls), and taxesMulti-year funding to bring a project to completion is necessaryDifferent funding opportunities reflect TEN-T implementationTEN-T Funds and Cohesion Funds

Tolling Policy varies by countryHungary is solidly onboard with the user pays principle Germany has a policy to facilitate rather than prevent mobility.

1920Implementation and OperationCoordination IssuesCoordination on cross-border projects is the most complex aspect of TEN-T projectslack of joint traffic forecasts and general project development approachesdiffering investment plans, contradictory timelines, capacity planning, alignment, technical and interoperability characteristics, and environmental assessments.

Solution: European CoordinatorsGoal to accelerate project implementation, especially in cross-border projects. Political appointees with sufficient credibility

2021Implementation and Operation Key FindingsGreater harmonization of technology and operations is necessary to ensure success of a national vision. Roadway issues related to tolling and the various methods of collecting the tollsRail interoperability

Corridor Coalitions and Project Coordinators play an important role in project development.21ConclusionsImportance of a unifying vision linking transportation and the economyChallenges of multijurisdictional transportation planning and implementationEvolution from exclusively national/local to international understandingCreate foundation for fact-based policy decisionsAligning benefits and costsAligning policiesReinforce the value of multi-year stable funding

22 North America?

truck/rail split22