““Developing Sustainable Transportation Developing Sustainable Transportation Systems”Systems”

Arusha, TanzaniaArusha, TanzaniaAugust 26 – 27, 2009August 26 – 27, 2009

Public Private Partnerships (PPP’s)Public Private Partnerships (PPP’s)Dwayne C. Sampson, Superintendent

MTA New York City Transit, Dept of Buseswww.mta.info

PresidentConference of Minority Transportation Officials (COMTO) New York

Chapterwww.comto-ny.org

What is Public/Private Partnership?

Public Private Partnership (PPP) is defined as a contractual Public Private Partnership (PPP) is defined as a contractual relationship between a public agency and an organization relationship between a public agency and an organization from the private sector. These partnerships can take many from the private sector. These partnerships can take many forms. According to the National Council for Public-Private forms. According to the National Council for Public-Private Partnerships, there are generally about a dozen types of Partnerships, there are generally about a dozen types of PPP’s. PPP’s.

Across the United States, many public transportation Across the United States, many public transportation projects have succeeded through private partnerships. projects have succeeded through private partnerships.  Other large Public/Private Partnerships include:  Other large Public/Private Partnerships include: Hudson-Bergen Line, New Jersey – $ 2.2 billion JFK AirTrain, New York – $1.9 billion

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

several types incorporate a balance of both public and private.  The several types incorporate a balance of both public and private.  The following measures several common types of partnerships and their following measures several common types of partnerships and their degree of involvement between the public and private sectors.degree of involvement between the public and private sectors.

Public/Private Partnerships

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

authority) contracts with a private partner to provide and/or maintain a authority) contracts with a private partner to provide and/or maintain a specific service. Under the private operation and maintenance option, specific service. Under the private operation and maintenance option, the public partner retains ownership and overall management of the the public partner retains ownership and overall management of the public facility or systempublic facility or system

There are many considerations that must factor into which type of There are many considerations that must factor into which type of partnership is right. Public oversight, asset ownership, long term partnership is right. Public oversight, asset ownership, long term maintenance, liability and labor are all important matters that will maintenance, liability and labor are all important matters that will dictate which PPP is a better fit.  In the past, these issues have been dictate which PPP is a better fit.  In the past, these issues have been treated as obstacles and prevented partnerships from forming.  Yet, treated as obstacles and prevented partnerships from forming.  Yet, these questions have been addressed by other states by adapting the these questions have been addressed by other states by adapting the various types of partnerships.  Undoubtedly, these concerns are various types of partnerships.  Undoubtedly, these concerns are important but they should not deter the benefits of a Public/Private important but they should not deter the benefits of a Public/Private Partnership. Partnership.

Hudson Bergen Line The The Hudson–Bergen Light RailHudson–Bergen Light Rail ( (HBLRHBLR) )

is a light rail system in the is a light rail system in the United StatesUnited States, , owned by New Jersey Transit and owned by New Jersey Transit and operated by the 21st Century Rail operated by the 21st Century Rail Corporation. The design, construction, Corporation. The design, construction, operation, and maintenance of the operation, and maintenance of the system was part of a public–private system was part of a public–private partnership. partnership.

With an eventual overall cost of With an eventual overall cost of approximately $2.2 billion, the Hudson–approximately $2.2 billion, the Hudson–Bergen Light Rail is one of the largest Bergen Light Rail is one of the largest public works projects ever in New Jersey. public works projects ever in New Jersey. The project is being funded by a mixture The project is being funded by a mixture of state and federal funds.of state and federal funds.

The light rail has been a catalyst for both The light rail has been a catalyst for both residential and commercial development residential and commercial development along the route and has played a along the route and has played a significant role in the revitalization of significant role in the revitalization of New Jersey's Gold Coast. Many of the New Jersey's Gold Coast. Many of the stops are sited in vacant or underutilized stops are sited in vacant or underutilized areas, which are now beginning to see areas, which are now beginning to see intense residential and mixed-use intense residential and mixed-use development. development.

Hudson Bergen Line

21st Century Rail 21st Century Rail Corporation was Corporation was responsible for the entire responsible for the entire Hudson/Bergen Light Rail Hudson/Bergen Light Rail project: the design, build, project: the design, build, operate, and maintenance operate, and maintenance (DBOM or BOT)(DBOM or BOT)

Shirley A. DeLiberio, Former Executive Director, New Jersey Transit

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

people mover system in New York people mover system in New York City that connects John F. Kennedy City that connects John F. Kennedy International Airport (JFK) to the International Airport (JFK) to the city's subway, commuter trains and city's subway, commuter trains and airport parking lots. It is operated airport parking lots. It is operated by Bombardier Transportation by Bombardier Transportation under contract to the Port Authority under contract to the Port Authority of New York and New Jersey, which of New York and New Jersey, which also operates the airport and also operates the airport and AirTrain Newark.AirTrain Newark.

The AirTrain project was financed The AirTrain project was financed using federal Passenger Facility using federal Passenger Facility Charge revenue (collected as a $3 Charge revenue (collected as a $3 fee on each outbound flight ticket), fee on each outbound flight ticket), which can only be used for airport-which can only be used for airport-related improvements. The use of related improvements. The use of this funding required FAA approval. this funding required FAA approval.

JFK Air Train

Conclusion

Public/Private Partnerships have a proven track record Public/Private Partnerships have a proven track record across the United States and should be embraced by public across the United States and should be embraced by public officials.  The Hudson/Bergen Light Rail and JFK AIRTRAN officials.  The Hudson/Bergen Light Rail and JFK AIRTRAN are two examples of how PPP’s can work.  There are several are two examples of how PPP’s can work.  There are several types of partnerships that can be tailored to address the types of partnerships that can be tailored to address the concerns associated with including the private sector in concerns associated with including the private sector in transportation projects. transportation projects.

PPP may have considerable challenges due to the current PPP may have considerable challenges due to the current financial Climate worldwide. It is in this regard that public financial Climate worldwide. It is in this regard that public state holders become more flexible and private proposals state holders become more flexible and private proposals become even more creative. become even more creative.