User-funded PPP models could expand the pool of funding
available for some freight and logistics infrastructure projects,
but they won't work for all projects.
Like most industries that rely on infrastructure that has
traditionally been publicly funded, the Australian freight and
logistics industry has a long list of infrastructure projects that
it would like to see developed. Though these projects would
undoubtedly improve the efficiency and productivity of the
logistics industry, and in turn accelerate Australia's economic
growth, the lack of available funding presents a significant
barrier to breaking ground.
Unfortunately, most transport infrastructure projects simply
aren't financially viable as solely private sector investments,
so funding must be generated, at least in part, from an alternative
source – namely from the infrastructure users and
beneficiaries. This is where a Public-Private-Partnership
(PPP) could be a viable option.
