Executive Rail Radar - The European rail industry - Roland Berger

d. Financing of railways and municipal transportPPPs will gain importance and will be significant for developingcountries, but public financing will prevail as the dominant sourceIMPORTANCE OF PPPs IN THE NEXT FIVE YEARS 1)PPPs will not fill the gap,although public financingwill be reducedPublic financing will remainthe dominant financingmode for railwaysPPP will be importantfor developing countriesPPPs will be a unique formof financing worldwidePPPs will become a majorfinancing mode in Europe, too5%5%Other 5%1) Financing of infrastructure projects and transport operations;% of answers; multiple answers possible31%40%60%> The responses point to a relatively critical attitudeon the part of railway companies to PPPs; railwaysassume that PPPs will not be big enough tocompensate for potential financing gaps frompublic sources> Potential reasons might be insufficient experiencewith PPPs and hence reservations, lack of accessto PPPs, or structural reasons (PPPs not suited forgeneral or long-term financing, rather for specificpurposes)> Another reason is that respondents expect PPPsto better suit specific projects, e.g. stations orindividual lines, i.e. where revenues and cost canbe directly allocated to the project> Only 5% of respondents expect PPPs to become amajor source of financing in Europe. The 60%majority expects PPPs not to fill the publicfinancing gapSource: Roland Berger Executive Rail Radar17