Session 4 - Topic 2

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Developing Sustainable TransportationDeveloping Sustainable TransportationSystemsSystems

Arusha, TanzaniaArusha, Tanzania

August 26August 26 27, 200927, 2009

Public Private Partnerships (PPPs)Public Private Partnerships (PPPs)

Dwayne C. Sampson, SuperintendentMTA New York City Transit, Dept of Buses

www.mta.infoPresident

Conference of Minority Transportation Officials (COMTO) New York Chapterwww.comto-ny.org


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What is Public/Private Partnership?

Public Private Partnership (PPP) is defined as a contractualPublic Private Partnership (PPP) is defined as a contractualrelationship between a public agency and an organization from therelationship between a public agency and an organization from theprivate sector. These partnerships can take many forms. Accordingprivate sector. These partnerships can take many forms. Accordingto the National Council for Publicto the National Council for Public--Private Partnerships, there arePrivate Partnerships, there are

generally about a dozen types of PPPs.generally about a dozen types of PPPs.

Across the United States, many public transportation projects haveAcross the United States, many public transportation projects havesucceeded through private partnerships.succeeded through private partnerships. Other large Public/PrivateOther large Public/PrivatePartnerships include:Partnerships include:

Hudson-Bergen Line, New Jersey $ 2.2 billion

JFK AirTrain, New York $1.9 billion


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Public/Private Partnerships Partnerships can range between mostly private to mostly public and severalPartnerships can range between mostly private to mostly public and several

types incorporate a balance of both public and private.types incorporate a balance of both public and private. The followingThe followingmeasures several common types of partnerships and their degree ofmeasures several common types of partnerships and their degree ofinvolvement between the public and private sectors.involvement between the public and private sectors.


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Public/Private Partnerships

O&M:O&M: Operations and MaintenanceOperations and MaintenanceA public partner (federal, state, or local government agency orA public partner (federal, state, or local government agency or authority)authority)

contracts with a private partner to provide and/or maintain a specific service.contracts with a private partner to provide and/or maintain a specific service.Under the private operation and maintenance option, the public partner retainsUnder the private operation and maintenance option, the public partner retainsownership and overall management of the public facility or systemownership and overall management of the public facility or system

There are many considerations that must factor into which type of partnership isThere are many considerations that must factor into which type of partnership isright. Public oversight, asset ownership, long term maintenance, liability and laborright. Public oversight, asset ownership, long term maintenance, liability and laborare all important matters that will dictate which PPP is a better fit.are all important matters that will dictate which PPP is a better fit. In the past,In the past,these issues have been treated as obstacles and prevented partnerships fromthese issues have been treated as obstacles and prevented partnerships from

forming.forming. Yet, these questions have been addressed by other states by adaptingYet, these questions have been addressed by other states by adaptingthe various types of partnerships.the various types of partnerships. Undoubtedly, these concerns are important butUndoubtedly, these concerns are important butthey should not deter the benefits of a Public/Private Partnership.they should not deter the benefits of a Public/Private Partnership.


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Hudson Bergen Line TheThe HudsonHudsonBergen Light RailBergen Light Rail ((HBLRHBLR))

is a light rail system in theis a light rail system in the United StatesUnited States,,owned by New Jersey Transit and operatedowned by New Jersey Transit and operatedby the 21st Century Rail Corporation. Theby the 21st Century Rail Corporation. Thedesign, construction, operation, anddesign, construction, operation, andmaintenance of the system was part of amaintenance of the system was part of a

publicpublicprivate partnership.private partnership. With an eventual overall cost ofWith an eventual overall cost of

approximately $2.2 billion, the Hudsonapproximately $2.2 billion, the HudsonBergen Light Rail is one of the largest publicBergen Light Rail is one of the largest publicworks projects ever in New Jersey. Theworks projects ever in New Jersey. Theproject is being funded by a mixture of stateproject is being funded by a mixture of stateand federal funds.and federal funds.

The light rail has been a catalyst for bothThe light rail has been a catalyst for bothresidential and commercial developmentresidential and commercial developmentalong the route and has played a significantalong the route and has played a significantrole in the revitalization of New Jersey'srole in the revitalization of New Jersey'sGold Coast. Many of the stops are sited inGold Coast. Many of the stops are sited invacant or underutilized areas, which arevacant or underutilized areas, which arenow beginning to see intense residentialnow beginning to see intense residentialand mixedand mixed--use development.use development.


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JFK Air Train AirTrain JFKAirTrain JFK is an 8.1is an 8.1--mile (13mile (13 km)km)

people mover system in New York Citypeople mover system in New York Citythat connects John F. Kennedythat connects John F. KennedyInternational Airport (JFK) to the city'sInternational Airport (JFK) to the city'ssubway, commuter trains and airportsubway, commuter trains and airportparking lots. It is operated byparking lots. It is operated byBombardier Transportation underBombardier Transportation undercontract to the Port Authority of Newcontract to the Port Authority of New

York and New Jersey, which alsoYork and New Jersey, which alsooperates the airport and AirTrainoperates the airport and AirTrainNewark.Newark.

The AirTrain project was financedThe AirTrain project was financed

using federal Passenger Facility Chargeusing federal Passenger Facility Chargerevenue (collected as a $3 fee on eachrevenue (collected as a $3 fee on eachoutbound flight ticket), which can onlyoutbound flight ticket), which can onlybe used for airportbe used for airport--relatedrelatedimprovements. The use of this fundingimprovements. The use of this fundingrequired FAA approval.required FAA approval.


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JFK Air Train


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Conclusion

Public/Private Partnerships have a proven track record across thePublic/Private Partnerships have a proven track record across theUnited States and should be embraced by public officials.United States and should be embraced by public officials. TheTheHudson/Bergen Light Rail and JFK AIRTRAN are two examples ofHudson/Bergen Light Rail and JFK AIRTRAN are two examples of

how PPPs can work.how PPPs can work. There are several types of partnerships thatThere are several types of partnerships thatcan be tailored to address the concerns associated with includingcan be tailored to address the concerns associated with includingthe private sector in transportation projects.the private sector in transportation projects.

PPP may have considerable challenges due to the current financialPPP may have considerable challenges due to the current financial

Climate worldwide. It is in this regard that public state holdersClimate worldwide. It is in this regard that public state holdersbecome more flexible and private proposals become even morebecome more flexible and private proposals become even morecreative.creative.

Documents

Session 4 - Topic 2