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<br /> Issue #7<br /> IFC’s quarterly journal on public-private partnerships<br /> In this issue<br /> road: Brazil’s competitive drive<br /> rail: Speeding toward tomorrow<br /> logistics: MIT expert on why logistics clusters matter<br /> interview: UPS’s sustainable strategies<br /> Road<br /> Rail<br /> ppps<br /> In partnershIp wIth<br /> Australia • Austria • Brazil • Canada • Catalonia (Spain) • Flanders (Belgium) • France • Ireland • Italy •<br /> Japan • Kuwait • Netherlands • Norway • Sweden • Switzerland • United Kingdom • United States • Public-Private<br /> Infrastructure Advisory Facility (PPIAF) • Global Partnership for Output-Based Aid (GPOBA) • Private Infrastructure<br /> Development Group (PIDG) • African Development Bank • Asian Development Bank • Brazilian Development Bank<br /> (BNDES) • Caribbean Development Bank • Central American Bank for Economic Integration • European Investment<br /> Bank • European Bank for Reconstruction and Development • I<a title="Handshake Issue #7, Road &amp; Rail PPPs page 1" href="http://viewer.zmags.com/publication/1c3342e7?page=1"> Issue #7 IFC’s quarterly journal on publi</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 2" href="http://viewer.zmags.com/publication/1c3342e7?page=2"> In partnershIp wIth Australia • Austria • Braz</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 3" href="http://viewer.zmags.com/publication/1c3342e7?page=3"> Letter from IFC Growth and development are prima</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 4" href="http://viewer.zmags.com/publication/1c3342e7?page=4"> In this issue Road </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 5" href="http://viewer.zmags.com/publication/1c3342e7?page=5"> Logistics Moving smarter | 94 Mapping a path to</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 6" href="http://viewer.zmags.com/publication/1c3342e7?page=6"> Contributors 22 Tawia Addo-Ashong 52 Umberto </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 7" href="http://viewer.zmags.com/publication/1c3342e7?page=7"> Alfonso Guzman is Managing Director for Castalia </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 8" href="http://viewer.zmags.com/publication/1c3342e7?page=8"> obility atters M 6 | IFC.ORG/HANDSHAKE Photo © Lu</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 9" href="http://viewer.zmags.com/publication/1c3342e7?page=9"> PERSPECTIVE Whenever possible, well-functioning</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 10" href="http://viewer.zmags.com/publication/1c3342e7?page=10"> ity. By bridging distances between cities and vil</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 11" href="http://viewer.zmags.com/publication/1c3342e7?page=11"> Roads and railways that link agricultural areas t</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 12" href="http://viewer.zmags.com/publication/1c3342e7?page=12"> By John Kjorstad the other side To get to N</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 13" href="http://viewer.zmags.com/publication/1c3342e7?page=13"> Photo © inhaus creative ith a and an s— ddle an</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 14" href="http://viewer.zmags.com/publication/1c3342e7?page=14"> 12 | IFC.ORG/HANDSHAKE Photo © IFC</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 15" href="http://viewer.zmags.com/publication/1c3342e7?page=15"> COMPaSS foRwaRd THE waY PaViNG Private in</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 16" href="http://viewer.zmags.com/publication/1c3342e7?page=16"> Investment share in road PPPs by region (1990-201</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 17" href="http://viewer.zmags.com/publication/1c3342e7?page=17"> REVENUE SOURCES For the 276 road projects for whi</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 18" href="http://viewer.zmags.com/publication/1c3342e7?page=18"> two projects closed, implying, on average, a two-</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 19" href="http://viewer.zmags.com/publication/1c3342e7?page=19"> rOaD PPPs By REGION East Asia & the Pacific </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 20" href="http://viewer.zmags.com/publication/1c3342e7?page=20"> rOaD PERFORMANCE-bASED CONTRACTS </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 21" href="http://viewer.zmags.com/publication/1c3342e7?page=21"> Roads are a significant asset to any country—both</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 22" href="http://viewer.zmags.com/publication/1c3342e7?page=22"> Transfer methodology, where the contractor design</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 23" href="http://viewer.zmags.com/publication/1c3342e7?page=23"> ing of the contracting methodology. This results </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 24" href="http://viewer.zmags.com/publication/1c3342e7?page=24"> buSINESS EVERYONE’s New partnerships for road sa</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 25" href="http://viewer.zmags.com/publication/1c3342e7?page=25"> ROAD During the last decade, road safe</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 26" href="http://viewer.zmags.com/publication/1c3342e7?page=26"> education, research, incentives, and infrastructu</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 27" href="http://viewer.zmags.com/publication/1c3342e7?page=27"> PARTNERShIPS MAKE A DIFFERENCE Responding to Afri</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 28" href="http://viewer.zmags.com/publication/1c3342e7?page=28"> Annually, over 1.2 billion people travel on Brazi</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 29" href="http://viewer.zmags.com/publication/1c3342e7?page=29"> rOaD Despite Brazil’s size and influence—it is</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 30" href="http://viewer.zmags.com/publication/1c3342e7?page=30"> Road scholar Henrique Amarante da Costa Pinto has</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 31" href="http://viewer.zmags.com/publication/1c3342e7?page=31"> contract. These performance parameters create a c</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 32" href="http://viewer.zmags.com/publication/1c3342e7?page=32"> Finally, the “reequilibrium discount” is used to </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 33" href="http://viewer.zmags.com/publication/1c3342e7?page=33"> Government has declared that without private inve</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 34" href="http://viewer.zmags.com/publication/1c3342e7?page=34"> ROAD o C g l n o i r m e e t future </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 35" href="http://viewer.zmags.com/publication/1c3342e7?page=35"> FIRST GENERATION In the Colombian road sector, t</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 36" href="http://viewer.zmags.com/publication/1c3342e7?page=36"> Two contracts signed in 1997 and 1999 applied new</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 37" href="http://viewer.zmags.com/publication/1c3342e7?page=37"> SECOND GENERATION IFC | 35</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 38" href="http://viewer.zmags.com/publication/1c3342e7?page=38"> N O I THIRD T A R E N E G 36 | IFC.ORG/HA</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 39" href="http://viewer.zmags.com/publication/1c3342e7?page=39"> After 1999, a third generation of concessions aim</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 40" href="http://viewer.zmags.com/publication/1c3342e7?page=40"> FOuRTH GENERATION The signing of a new PPP law (</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 41" href="http://viewer.zmags.com/publication/1c3342e7?page=41"> In 2007 Colombia’s Ministries of Transport, Finan</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 42" href="http://viewer.zmags.com/publication/1c3342e7?page=42"> Colombia turns a corner Colombia turns a cor</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 43" href="http://viewer.zmags.com/publication/1c3342e7?page=43"> rOaD At the end of 2011, INCO—the Col</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 44" href="http://viewer.zmags.com/publication/1c3342e7?page=44"> board were created to support the objectives of s</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 45" href="http://viewer.zmags.com/publication/1c3342e7?page=45"> part of the infrastructure costs through user </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 46" href="http://viewer.zmags.com/publication/1c3342e7?page=46"> ROAD © William Loo Kok Wee Gajendra Haldea is A</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 47" href="http://viewer.zmags.com/publication/1c3342e7?page=47"> for subsequent government MCAs. I joined the Plan</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 48" href="http://viewer.zmags.com/publication/1c3342e7?page=48"> tors. The MCA serves as a ready-to-use contract c</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 49" href="http://viewer.zmags.com/publication/1c3342e7?page=49"> the turnkey approach, and the public sector too c</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 50" href="http://viewer.zmags.com/publication/1c3342e7?page=50"> ROAD FULL SPEED AHEAD Economic cost-benefit</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 51" href="http://viewer.zmags.com/publication/1c3342e7?page=51"> Consider this scenario: A small Latin American co</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 52" href="http://viewer.zmags.com/publication/1c3342e7?page=52"> don’t. (The numbers used in this article are made</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 53" href="http://viewer.zmags.com/publication/1c3342e7?page=53"> perceived to be a defender of the interests of th</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 54" href="http://viewer.zmags.com/publication/1c3342e7?page=54"> The (Silk)road less traveled International Road T</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 55" href="http://viewer.zmags.com/publication/1c3342e7?page=55"> ROAD Globalization and containerization have br</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 56" href="http://viewer.zmags.com/publication/1c3342e7?page=56"> and international road transport facilitation ins</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 57" href="http://viewer.zmags.com/publication/1c3342e7?page=57"> Turkish Delight FASTER BORDERS, FASTER GROWTH Tr</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 58" href="http://viewer.zmags.com/publication/1c3342e7?page=58"> money talks from A B with R B By Jeff Del</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 59" href="http://viewer.zmags.com/publication/1c3342e7?page=59"> ted to the success of the project over the long t</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 60" href="http://viewer.zmags.com/publication/1c3342e7?page=60"> volumes of cash managed through toll booths and o</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 61" href="http://viewer.zmags.com/publication/1c3342e7?page=61"> in a manner that fits with the practices of both </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 62" href="http://viewer.zmags.com/publication/1c3342e7?page=62"> the long and winding road Road and rail PPPs in A</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 63" href="http://viewer.zmags.com/publication/1c3342e7?page=63"> formed U.K. and U.S. roads because people were ch</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 64" href="http://viewer.zmags.com/publication/1c3342e7?page=64"> A TOOL FOR URBAN EXPANSION Mass Rapid Transit B</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 65" href="http://viewer.zmags.com/publication/1c3342e7?page=65"> • Completing robust engineering feasibility </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 66" href="http://viewer.zmags.com/publication/1c3342e7?page=66"> • Understanding the fare structure and how </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 67" href="http://viewer.zmags.com/publication/1c3342e7?page=67"> TrenDS In MrT PPPs PPP models for MRT projects ca</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 68" href="http://viewer.zmags.com/publication/1c3342e7?page=68"> 4 HEAVY RAIL/METRO PPPs Seoul’s Metro Line 9 Th</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 69" href="http://viewer.zmags.com/publication/1c3342e7?page=69"> LIGHT RAIL PPPs +2 Wellington’s Cable Car The Wel</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 70" href="http://viewer.zmags.com/publication/1c3342e7?page=70"> NEXT sTop: lighT rail What Light Rail </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 71" href="http://viewer.zmags.com/publication/1c3342e7?page=71"> By 2030, urban areas will be home to more than 4.</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 72" href="http://viewer.zmags.com/publication/1c3342e7?page=72"> TraMs Siemens & halske opens </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 73" href="http://viewer.zmags.com/publication/1c3342e7?page=73"> world war II hastens the decline of trams but ult</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 74" href="http://viewer.zmags.com/publication/1c3342e7?page=74"> TraInS THOuGHT OF Rail concession models</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 75" href="http://viewer.zmags.com/publication/1c3342e7?page=75"> direct economic impact, comprising mostly fuel im</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 76" href="http://viewer.zmags.com/publication/1c3342e7?page=76"> Sizarail DRC 1995-1997, 2008 Transrail Senegal/Ma</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 77" href="http://viewer.zmags.com/publication/1c3342e7?page=77"> shoulder no more than a mere portion of the cost </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 78" href="http://viewer.zmags.com/publication/1c3342e7?page=78"> Traffic volumes and revenues for a sample of SSA r</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 79" href="http://viewer.zmags.com/publication/1c3342e7?page=79"> • Governments committing to finance infrast</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 80" href="http://viewer.zmags.com/publication/1c3342e7?page=80"> MiNiNG NEwtransport SoluTioNS Photo © Beyond Ima</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 81" href="http://viewer.zmags.com/publication/1c3342e7?page=81"> raIL ME, YOu, OR THEM? PROJECT MODELS FOR MINING</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 82" href="http://viewer.zmags.com/publication/1c3342e7?page=82"> The MULTI-USer aPPrOaCh: Can the same transport i</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 83" href="http://viewer.zmags.com/publication/1c3342e7?page=83"> The M</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 84" href="http://viewer.zmags.com/publication/1c3342e7?page=84"> Ehoala Port, Madagascar (opened in 2009) Construc</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 85" href="http://viewer.zmags.com/publication/1c3342e7?page=85"> raIL ON THE FAST TRACK everything you’ve alwa</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 86" href="http://viewer.zmags.com/publication/1c3342e7?page=86"> 1% 1600 mm (5’3”) Ireland, parts of Australia, B</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 87" href="http://viewer.zmags.com/publication/1c3342e7?page=87"> which gauge is the best for efficient freight ope</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 88" href="http://viewer.zmags.com/publication/1c3342e7?page=88"> Speeding toward tomorrow As the retrenchment cont</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 89" href="http://viewer.zmags.com/publication/1c3342e7?page=89"> With a depressed economy and little government mo</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 90" href="http://viewer.zmags.com/publication/1c3342e7?page=90"> private construction group Eiffage. These will be</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 91" href="http://viewer.zmags.com/publication/1c3342e7?page=91"> It would be a mistake to conclude from these exam</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 92" href="http://viewer.zmags.com/publication/1c3342e7?page=92"> Riding RuSSIAN RAILS Public-private solutions sol</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 93" href="http://viewer.zmags.com/publication/1c3342e7?page=93"> Photo © Falcon0125 raIL statistics of the 1</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 94" href="http://viewer.zmags.com/publication/1c3342e7?page=94"> LEGALEASE Railroad TIES that bIND </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 95" href="http://viewer.zmags.com/publication/1c3342e7?page=95"> tualization of new railways or the expansion of a</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 96" href="http://viewer.zmags.com/publication/1c3342e7?page=96"> Moving smarter </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 97" href="http://viewer.zmags.com/publication/1c3342e7?page=97"> Parliament, and European Commission, as they agre</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 98" href="http://viewer.zmags.com/publication/1c3342e7?page=98"> Logistics Enhancing trade is the most effectiv</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 99" href="http://viewer.zmags.com/publication/1c3342e7?page=99"> The International Road Transport Union (IRU) has </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 100" href="http://viewer.zmags.com/publication/1c3342e7?page=100"> is the new green UPS’s sustainability initiatives</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 101" href="http://viewer.zmags.com/publication/1c3342e7?page=101"> of the business, and making sure the company rema</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 102" href="http://viewer.zmags.com/publication/1c3342e7?page=102"> Corporate Sustainability Report 2011 </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 103" href="http://viewer.zmags.com/publication/1c3342e7?page=103"> Avoiding Left Turns turn ross i s. Less eng</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 104" href="http://viewer.zmags.com/publication/1c3342e7?page=104"> Logistics Yossi Sheffi is dir</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 105" href="http://viewer.zmags.com/publication/1c3342e7?page=105"> Logistics clusters redraw the transportation map </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 106" href="http://viewer.zmags.com/publication/1c3342e7?page=106"> cessful because the government got everybody invo</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 107" href="http://viewer.zmags.com/publication/1c3342e7?page=107"> hubs of environmental sustainability and innova- </a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 108" href="http://viewer.zmags.com/publication/1c3342e7?page=108"> FaST FaCTS CO (in grams) emitted per metric ton</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 109" href="http://viewer.zmags.com/publication/1c3342e7?page=109"> On traveling: “ I think the only worthwhil</a> <a title="Handshake Issue #7, Road &amp; Rail PPPs page 110" href="http://viewer.zmags.com/publication/1c3342e7?page=110"> Subscribe: ifc.org/handshake Connect with us: </a>