Transport Papers
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Publication
Rethinking Infrastructure Delivery: Case Study of a Green, Inclusive, and Cost-effective Road Program in Nicaragua
(World Bank, Washington, DC, 2014-06)This paper presents a development case study on alternative thinking in rural infrastructure delivery. Delivery in this case is achieved in a manner that advances the green growth, social inclusion and cost-effectiveness agendas. The need for green and inclusive approaches in reaching development goals cannot be overstated. At the same time, the use of public funds should ensure value for money and stretch government resources as far as they can go. Inclusion refers to the empowerment of all citizens to participate in, and benefit from the development process, removing barriers against those who are often excluded. The use of a community development approach is presented in this paper to demonstrate how this has been achieved on large scale and in a cost-effective way without compromising quality or timing. Heightened roles and responsibilities are conferred to the local target authorities and populations in this infrastructure delivery approach, and this experience is presented as a best practice that could be emulated in similar development work. On the technical front, most road infrastructure delivery in many countries is heavily mechanized and undertaken using default asphalt surfacing. This paper presents the adoption of an alternative and green paving material that is also cost-effective at the secondary rural road level. -
Publication
Road Freight in Central America: Five Explanations to High Costs of Service Provision
(World Bank, Washington, DC, 2012-06)An efficient system to transport goods domestically and internationally is a key element of the logistics chain. Road freight transport has a direct impact on poverty as it employs millions of people and generates a significant portion of Gross Domestic Product, or GDP, especially in low and middle-income countries. Trucking is the primary form of transportation for domestic, trans-border, and international cargo, in Central America. Road freight transport is now vital to production, distribution, and mobilization, driving economic, social, and environmental progress. In short, trucking is the backbone of economies around the world. In the past 20 years, the industry has advanced as technology has improved communication, management, productivity, including vehicle efficiency. Their objective in doing so is to expand markets, generate wealth on the basis of efficient specialization, introduce competition, and lower costs for production, distribution, services, and research and development. When road freight transport services are efficient, they support these objectives; when they are not they act as nontariff barriers to trade, creating delays, raising costs, worsening congestion and pollution. Such barriers prolong and destabilize delivery schedules, hinder 'just in time' inventory management and industrial processes, and impede the efficient combination of factors of production. -
Publication
Performance-Based Road Rehabilitation and Maintenance Contracts in Argentina : A Review of Fifteen Years of Experience (1996-2010)
(World Bank, Washington, DC, 2011-09)The road sector is the dominant mode of transport in Argentina carrying nearly 80 percent of total freight volume. The road network has a total length of about 630,000 km (11 percent paved), divided in three administrative levels: national, provincial, and municipal. However, more than 70 percent of total traffic volumes are concentrated on the paved national and provincial network, with the municipal network consisting of unpaved roads, access roads to farms and feeder roads with very low traffic volumes. A survey carried out in 1992 confirmed that only 44 percent of the national paved network was in good condition, with a high 35 percent of roads in poor condition. Rehabilitation works for the non-concessioned portion were contracted to the private sector under the traditional ad-measurement type or unit price-based system while maintenance activities continued to be carried out by force-account. In 1993 a loan from the World Bank was approved to finance, for the first time, high priority rehabilitation and maintenance works on the non-concessioned paved network, leading to the development of a long-term maintenance strategy based on the gradual expansion of performance-based contracts, a modality that is currently being replicated in other countries around the world. This paper is organized as follows: chapter one presents the national road network of Argentina; chapter two gives origins and definition of the Contrato de Recuperacion y Mantenimiento (CREMA) contracts; chapter three gives evolution in the procurement and the design standards of the CREMA; chapter four presents the market's response to the CREMA system; chapter five presents impact of the CREMA on the condition of the national road network; chapter six deals with cost effectiveness of the CREMA system; chapter seven presents Bank's strategy and role in the road sector in Argentina; and chapter eight gives lessons learned. -
Publication
Making a Small Market Thrive : Recommendations for Efficiency Gains in the Latin American Air Cargo Market
(World Bank, Washington, DC, 2011-03)Air cargo origin destination flows in the Latin America and the Caribbean (LAC) region are heavily concentrated in the largest economies of South America and Mexico. With 32.7 percent of the airfreight moved to, from, and within the region, Brazil is the largest cargo market, followed by Colombia and Mexico, with 17.9 percent and 16.0 percent, respectively. The relatively small size of the air cargo market in LAC can be explained by: (i) low levels of demand for air cargo services (supply responds adequately to a low demand for air cargo services in/from LAC), or (ii) restrictions to a properly functioning market that impede the air cargo market to reach its full potential. The analysis carried out for the preparation of this paper indicates that the low levels of demand is the most reasonable explanation for the small size of the LAC air cargo market. There is room to improve some regulations which would make the air cargo market work more efficiently and probably at lower costs, but the size and diversity of the market will not significantly change as a result. Airport infrastructure quality fairs well overall, although some isolated issues exist in certain airports in LAC. Infrastructure limitations were evaluated through a survey conducted by an association of LAC airlines (ALTA). The results of the survey show that even the worst rated airports received an acceptable score in absolute terms. Policies aimed at reducing operating costs and related to soft constraints should also be implemented paperless customs procedures, improved security in airport premises and streamlining of custom inspection processes. -
Publication
Urban Transport Projects: Patterns and Trends in Lending, 1999-2009
(World Bank, Washington, DC, 2011)The study consisted of developing a compendium of profiles for all free-standing urban transport projects funded by the Bank in calendar years from 1999 through 2009, followed by a first-pass synthesis of patterns and trends. There were 50 such projects. In addition, profiles were done for several projects from this period which were classified as urban or transport, but with significant urban transport components. Also, profiles were done for several operations approved before 1999 or after 2009, because they formed organic sequences with some operations in the 1999-2009 batches, in the same city or the same country. In all, profiles were done for 56 operations. A list of these projects is in annex one. Full profiles are in annex two, grouped by the geographic region, and in the chronological order according to the date of loan approval. The sources consulted in writing the profiles included project appraisal documents, loan and project agreements, restructuring papers, and implementation completion reports. In addition to this introduction, the synthesis report has four chapters. In the next (second) chapter, a brief overview is provided of the batch of projects for which the profiles were done. Chapter three reviews urban transport programs by region. Chapter four presents outcome ratings for completed projects and issues related to their success or otherwise. Chapter five discusses the fit between the projects and a provisional version of the Bank's urban transport strategy. -
Publication
Performance Based Contracts in the Road Sector : Towards Improved Efficiency in the Management of Maintenance and Rehabilitation - Brazil's Experience
(World Bank, Washington, DC, 2010-03)This note aims at providing feedback on Brazil's successful experience in using performance based contracts in the rehabilitation and maintenance of the road networks. Since its introduction in the early 2000's, the use of this contract management model has progressively spread to reach, as of today, one third of the federal network and more than 10 percent of the states' networks, and expectations are for higher figures in the short run. The note highlights the context which led to the introduction of these contracts in the road sector and the strategic orientations adopted in their structuring. The model was notably expected to bring rationalization, accountability and credibility to the sector at a moment when road maintenance, though a crucial issue when considering the networks' characteristics and conditions, was not given sufficient consideration by the road administrations. The note then provides an evaluation of the positive achievements resulting from these contracts. The evaluation, comparing objectively performance based contracts to the traditional input-admeasurements approach, shows that these contracts brought an overall improved efficiency to the sector which translated to better road conditions at lower costs for the governments and reduced management burdens on the administrations. Finally, the note provides insights, gained from ten years of continuous learning, on the main lessons learnt, and perspectives on desirable evolutions in the future, while a balanced share of responsibilities and initiatives between the public and the private sectors is essential, strengthened administrations, fully accountable for preserving public interests, remain key to success; better articulating contract duration and rehabilitation works service life, which would lead to extended contract duration, is also one of the possible orientations for future performance-based contracts in Brazil. -
Publication
Private Participation in the Road Sector in Brazil : Recent Evolution and Next Steps
(World Bank, Washington, DC, 2010-03)Today, Brazil has the second longest highway network under private concessions in the world. This paper analyzes Brazil's experience under the two first phases of the federal road concession program, and highlights some of the program's strengths and areas for further development. Despite the unfolding world financial and economic crisis, the potential for further private participation in the sector appears very good. This paper essentially argues that it may be time for Brazil to revamp its current models for private participation in the sector, which may soon reach their limit in terms of being able to meet efficiently the needs of a growing economy. In summary, Brazil could: 1) diversify its toll road model to allow for more innovative public-private partnership structures; 2) update its toll regulatory and contractual framework to overcome some of the design problems that have led to relatively inefficient tolling; 3) consolidate the institutional framework for road concessions to give a stabilized basis for further developments; 4) develop a policy framework adapted to the current Brazilian environment, taking into account the need to ensure harmonized levels of service and tolls across the country; and 5) adapt the sector financing framework to the rising capacity of private markets. -
Publication
Brazil - Improving the Appraisal Framework for Road Transport Infrastructure Investments : Elements for Consideration
(World Bank, Washington, DC, 2010-03)The main purpose of an appraisal framework for transport infrastructure projects and programs is to provide an objective and transparent basis for decision-makers to ascertain the feasibility and levels of priority of major transport projects and policies. An appraisal framework also serves a second, more general, purpose: to contribute to upgrading internal management processes aimed at improving the quality of expenditure. An adequate appraisal framework needs to: 1) strike a balance between an objective economic evaluation and a broader multi-criteria evaluation; and 2) provide clear methodologies and norms to guide appraisers, and ensure comparability among project appraisals, when time comes to prioritize the projects. To ensure that an appraisal framework can deliver on the two above-mentioned purposes, it is important to raise public awareness as to the basic principles and objectives of appraisals, and to structure public sector capacity to undertake or lead, as well as review appraisals, to ensure that they are reliable and of adequate quality. Appraisal frameworks are at different stages of development in different countries, with the most advanced frameworks. Brazil has made a lot of progress in that area since the end of the 1990s. Today, the legal framework is conducive to the systematic undertaking of appraisals. While progress has been made on structuring a series of norms and guidelines to allow for the implementation of the framework's directives, the normative body, overall, is still relatively vague and incomplete. -
Publication
Results of Railway Privatization in Latin America
(World Bank, Washington, DC, 2005-09)This paper reviews the performance of railway concessions in Latin America over the period extending from the initial Argentina concessions in 1991-1993 through 2004. The bulk of the concessioning processes described herein were supported by the World Bank. Now over a decade since rail concessioning in Latin America began, the overall assessment of its results is positive, particularly for freight railways. Railway traffic volumes have climbed, with some improvements in surface transport market share. Although numerous data problems exist, measures of productive efficiency almost uniformly show post-concession improvements in cargo transport. Effects on rail rates and service levels have generally received positive reviews. Evidence is less extensive for passenger services, mostly because concessioning was largely limited to commuter services in Argentina and Brazil and because such concessions must be evaluated in terms of complex subsidy and regulated pricing regimes, rather than as market-based private enterprises. Railway concessions have not revived uneconomic intercity passenger services, nor has there been much effort to do so. iii. While concessioning brought impressive improvements in labor productivity and other efficiency measures, results have been not quite as dramatic as they are sometimes portrayed. This is in part because the initial concessions took place in the volatile Argentina economy, where a precipitous decline in the rail sector just prior to concessioning was followed by a dramatic post-concession revival. Elsewhere the decline in the rail sector was not as severe as in Argentina, nor was the recovery so rapid.