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“Developing Sustainable Transportation Systems” Arusha, Tanzania August 26 – 27, 2009 Public Private Partnerships (PPP’s) Dwayne C. Sampson, Superintendent.

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Presentation on theme: "“Developing Sustainable Transportation Systems” Arusha, Tanzania August 26 – 27, 2009 Public Private Partnerships (PPP’s) Dwayne C. Sampson, Superintendent."— Presentation transcript:

1 “Developing Sustainable Transportation Systems” Arusha, Tanzania August 26 – 27, Public Private Partnerships (PPP’s) Dwayne C. Sampson, Superintendent MTA New York City Transit, Dept of Buses President Conference of Minority Transportation Officials (COMTO) New York Chapter

2 What is Public/Private Partnership?
Public Private Partnership (PPP) is defined as a contractual relationship between a public agency and an organization from the private sector. These partnerships can take many forms. According to the National Council for Public-Private Partnerships, there are generally about a dozen types of PPP’s. Across the United States, many public transportation projects have succeeded through private partnerships.  Other large Public/Private Partnerships include: Hudson-Bergen Line, New Jersey – $ 2.2 billion JFK AirTrain, New York – $1.9 billion

3 Public/Private Partnerships
Partnerships can range between mostly private to mostly public and several types incorporate a balance of both public and private.  The following measures several common types of partnerships and their degree of involvement between the public and private sectors.

4 Public/Private Partnerships
O&M: Operations and Maintenance A public partner (federal, state, or local government agency or authority) contracts with a private partner to provide and/or maintain a specific service. Under the private operation and maintenance option, the public partner retains ownership and overall management of the public facility or system There are many considerations that must factor into which type of partnership is right. Public oversight, asset ownership, long term maintenance, liability and labor are all important matters that will dictate which PPP is a better fit.  In the past, these issues have been treated as obstacles and prevented partnerships from forming.  Yet, these questions have been addressed by other states by adapting the various types of partnerships.  Undoubtedly, these concerns are important but they should not deter the benefits of a Public/Private Partnership.

5 Hudson Bergen Line The Hudson–Bergen Light Rail (HBLR) is a light rail system in the United States, owned by New Jersey Transit and operated by the 21st Century Rail Corporation. The design, construction, operation, and maintenance of the system was part of a public–private partnership. With an eventual overall cost of approximately $2.2 billion, the Hudson–Bergen Light Rail is one of the largest public works projects ever in New Jersey. The project is being funded by a mixture of state and federal funds. The light rail has been a catalyst for both residential and commercial development along the route and has played a significant role in the revitalization of New Jersey's Gold Coast. Many of the stops are sited in vacant or underutilized areas, which are now beginning to see intense residential and mixed-use development.

6 Hudson Bergen Line 21st Century Rail Corporation was responsible for the entire Hudson/Bergen Light Rail project: the design, build, operate, and maintenance (DBOM or BOT) Shirley A. DeLiberio, Former Executive Director, New Jersey Transit

7 JFK Air Train AirTrain JFK is an 8.1-mile (13 km) people mover system in New York City that connects John F. Kennedy International Airport (JFK) to the city's subway, commuter trains and airport parking lots. It is operated by Bombardier Transportation under contract to the Port Authority of New York and New Jersey, which also operates the airport and AirTrain Newark. The AirTrain project was financed using federal Passenger Facility Charge revenue (collected as a $3 fee on each outbound flight ticket), which can only be used for airport-related improvements. The use of this funding required FAA approval.

8 JFK Air Train

9 Conclusion Public/Private Partnerships have a proven track record across the United States and should be embraced by public officials.  The Hudson/Bergen Light Rail and JFK AIRTRAN are two examples of how PPP’s can work.  There are several types of partnerships that can be tailored to address the concerns associated with including the private sector in transportation projects. PPP may have considerable challenges due to the current financial Climate worldwide. It is in this regard that public state holders become more flexible and private proposals become even more creative.

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