Public and Private Roles for Transport Infrastructure and Terminals

Public and Private Roles for Transport Infrastructure and Terminals

A public authority may decide to allow private actors to be involved in the management and operations of transport infrastructure and terminals over a series of options:

  • Service contracts. Involves the contracting of services or their outsourcing by delegating non-core activities from the public sector to a private entity. Several private firms have developed expertise in providing specialized services in the operation, maintenance, or management of transportation assets.
  • ­Management contracts. Contracting out management and operation of some core activities to a private entity, such as parking facilities, terminal concessions (stores and restaurants), and terminal operations. Management contracts for parking operations are particularly prevalent in the airport sector.
  • Developer financing and operation: There is a wide variety of developer financing and operation options, which include passenger terminals, parking garages, rental car facilities, fueling systems, cargo facilities, and general aviation facilities. The private sector can provide development, operation, maintenance services, and sometimes financing under long-term leases or concessions.
  • ­Concession agreement. A long-term lease involving managing and developing a facility to a private operator. The concession usually consists of the operator undertaking capital improvements.
  • Sale. The terminal or the infrastructure is transferred on a freehold basis with the requirement that it continues to be used for stated purposes.