There is a strong need for infrastructure investments tobe better coordinated with the requirements of logistics operators.
It is important for the operators to beinvolved in public infrastructure investment planning to ensure the efficientuse of their resources and capacity. Butmany infrastructure owners and operators do not have a global view or easyaccess to global best practices. On theother hand, construction companies are becoming increasingly international,enabling the transfer of technology and working practices. But the industry would benefit if operators,who understand the markets, had a more influential role here. The private sector, along with lower lead times, brings a commercialand profit-making approach to infrastructure development. With a joint venture with public sector, it isrelatively easier to develop and implement solutions and services to theindustry.
The healthy competition encouragesfirms to innovate, provide quality service at a low cost and at low lead times,and be responsive to customers’ needs. Itallows fresh capital to be injected into rail industry. At times, the public sector simply does notpossess the necessary resources. Relianceon private capital is thus the only way to complete necessary renovations,upgrades, and maintenance that result in safer, faster, and more efficientservice.In the rail sector, there are also cases in which rollingstock investments were not coordinated with infrastructure. However, there are also examples of public-privatepartnership (PPP).
Intercity ExpressProgram in the UK is being handled as a PPP of up to 35 years at a value of£5.8 billion. It involves theprocurement of 700 seat high-speed trains specified to run on existing tracks(and subject to a coordinated program of infrastructure improvements) as analternative to the approach, instead of building new high-speed dedicated lines(though these are also planned in the UK).