PPP in lightrail 

Politicians and public authorities are currently faced with the issue of how to keep their urban areas liveable and accessible. What has already happened to metropolises, is now threatening to occur in medium-sized cities as well: traffic congestion and the infringement of environmental standards.

Strukton advocates Public-Private Partnerships (PPP) in lightrail as a succesful approach to realise public transport service in a more efficient and effective way.
Light rail connections cause less pollution and occupy less space than road traffic.

The benefits of public-private partnership in light rail
In a PPP project the authority and the private party share responsibilities. The risks are borne proportionately, while aspirations are shared. The aim is to resolve an urgent traffic problem as quickly as possibly by means of sustainable solutions.

 Traditional approach  PPP-approach
The authorities divide the total task: planning, design, construction, management, maintenance and operation. They conclude contracts with engineering firms, contractors, infrastructure managers and transport companies for each consecutive phase. The authorities define their wishes and requirements clearly and functionally. The private party develops an integrated technical and commercially viable solution allowing for the entire life cycle.
The government authority is responsible for the coordination and bears the inherent risks. The private party bears the responsibility for the interfaces between technical systems and the various project phases of the development process.
The government authority has to invest, while government budgeting structures do not make matters any easier. It can take quite some time to get such projects up and running.
 The private partners provide for the financing. The banks will conscientiously see to it that the best solution will be achieved, because reliable revenue from the project will be the only way for them to make sure that the financing will be repaid.
Possible consequences: fragmentation, technical problems and running over budget and schedule. The probability of the schedule and budget being exceeded is reduced because such events would increase the pressure on the project revenue. Transport and infrastructure will be optimally aligned, as any disruption would have a negative impact on the concession’s profitability.

The strength of Strukton
Two Strukton companies combine their forces for PPP solutions in light rail:
Strukton Integrale Projecten and Strukton Rail. Strukton Integrale Projecten acts as a manager and investor in the growing market of PPP in the Netherlands and Europe. Strukton Rail is a full-service provider and system integrator for rail systems in Europe. Strukton had formed a consortium called TramTeam which develops integrated light rail solutions for urban transport problems.

More information