Private Capital for Railway Development
China is considering ways to attract additional capital to finance investment in railways. Worldwide, private capital has been attracted to the railway sector through a range of mechanisms including: (i) private sector provision of specific rail se...
| Main Authors: | , |
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| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/134031468263105814/Private-capital-for-railway-development http://hdl.handle.net/10986/25482 |
| Summary: | China is considering ways to attract
additional capital to finance investment in railways.
Worldwide, private capital has been attracted to the railway
sector through a range of mechanisms including: (i) private
sector provision of specific rail services or assets such as
rolling stock; (ii) public private partnerships; (iii)
leveraging commercial value of rail assets and increased
land value around stations; and (iv) debt and equity
financing of railway companies. Private sector investors
seek to earn a return on investment that is commensurate
with the risk of the investment. Therefore one will be
attracted to profitable opportunities with manageable risk.
Steps China can take to attract private capital for railway
development include: (i) creating a policy and legal
environment that protects the interests of different types
of investors in the railway sector; (ii) identifying and
creating profitable railway markets and entities that are
suitable for private sector investment; (iii) managing the
perception of risk in railway activities and assets; (iv)
promoting asset sharing opportunities; and (v) expanding
public private partnerships (PPPs) in rail assets and services. |
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