Spending On Transport Infrastructure

MarineLink.com
Thursday, July 11, 2013

Transport infrastructure is a vital social and economic asset. Its construction and maintenance absorb significant resources while decisions on infrastructure have impacts that last for decades.

The report Spending on Transport Infrastructure 1995-2011: Trends, Policies, Data and a related database have been released by the International Transport Forum at the OECD. The 2013 edition of the Forum’s annual statistics update presents aggregate trends in inland transport infrastructure investment and maintenance since 1995 and provides data on road, rail, inland waterway, sea port and airport spending for the International Transport Forum member countries for the period 1995-2011.

The latest data on investment in road, rail and inland waterway infrastructure as a percentage of GDP (Figure 1) show that:

Investment as a percentage of GDP has remained at around 1% since 1995 in the OECD. The investment share of GDP has remained relatively constant in Western European countries (0.8% - 0.9%). There are only few exceptions from this trend, notably Greece, Spain, Switzerland and Portugal which show significantly higher GDP shares over the period (reaching 1.6% – 2.0%). Since 2007, however, Greece and Portugal have converged closer to the WEC average, investments declining to around 1.0% of GDP.

Data for North America also show a constant GDP share (0.6%), below the OECD average.

The share of investment in Central and Eastern European countries (CEECs), which until 2002 had remained at around 1.0% of GDP, has grown sharply, reaching 2.0% in 2009 – the highest figure ever reported by these countries. Investment share of GDP fell to 1.7% in 2010, likely affected by the economic crisis. Data for 2011 show again increase, with investment share reaching 1.8%.

The fact that the share of GDP dedicated to transport infrastructure has remained constant in many countries suggests that investment levels may be affected by factors other than real investment needs.

“Level of transport spending may be guided by historical budget levels, institutional budget allocation procedures or budgetary constraints taking also into account needs in other sectors of the economy”, says Jari Kauppila from the ITF.

Rising levels of investment in transition economies, on the other hand, reflect efforts to meet rising needs especially for road network capital.

Panel data of over 600 observations gives support to the conclusion that the level of road spending generally declines with the level of GDP per capita (Figure 2). There are several potential reasons for this declining trend.

“As efficiency and productivity increase, production becomes less transport intensive, potentially weakening the link between the GDP growth and transport demand and therefore infrastructure investments”, explains Jari Kauppila.

In many countries observers have raised concerns about underfunding of road assets and the state of existing road infrastructure, and its impacts on the competitiveness of the economy. Funding for road maintenance, particularly, may be postponed on the expectation that a lack of maintenance will not result in imminent asset failure. The available data on public road spending suggest that the balance between road maintenance and investment has been relatively constant over time in many regions (Figure 3). However, data do suggest an overall declining share of maintenance on total road spending especially over the last few years.

The report also presents broad conclusions on transport policies in member countries, as well as on performance, funding and strategic plans. Countries surveyed in the report emphasize the importance of an efficient and reliable transportation system. Governments formulate their strategic transport plans generally around three main themes: economic performance, environment and safety

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

WFW Advises ING Bank on $340m Loan Facility for Euronav

Watson, Farley & Williams (WFW) has advised ING Bank N.V. (ING) as sole bookrunner and facility agent for a syndicate of banks on a $340 million loan facility made available to Euronav NV.

Clean Marine Wins New Contract

Clean Marine has been selected by Hyundai Mipo Dockyard in South Korea to supply exhaust gas cleaning systems (EGCS) for two new MR tankers. IMO’s convention

Moore Stephens Expects Vessel Operating Cost to Rise

Vessel operating costs are expected to rise by almost three per cent in both 2014 and 2015, according to a new survey by international accountant and shipping consultant Moore Stephens.

Logistics

UN: Ship Inspections near Somalia for Arms, Charcoal

The United Nations Security Council authorized the inspection of boats suspected of carrying illegal shipments of charcoal or weapons to and from Somalia on Friday,

Singapore Bunker Meter Mandate Targets 'Frothy Fuel'

Singapore, the world's biggest bunkering port, plans to end the so-called "cappucino effect" in ship fuelling through new meters designed to stop suppliers from short-changing customers,

Antwerp Port Achieves Highest Throughput

The port of Antwerp handled a freight volume of 148,344,168 tonnes during the first nine months of this year. That’s 3.7% more than the same period last year. Both

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Salvage Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1472 sec (7 req/sec)