Course Details

Transport Economics & Financing Training Course

Introduction

Transportation infrastructure is the lifeblood of modern economies, facilitating trade, connecting people to jobs and services, and enabling social development. However, the development, maintenance, and operation of transport systems require substantial financial investment and careful economic planning. Decisions regarding transport infrastructure – whether to build a new road, expand a railway line, or invest in public transport – have far-reaching economic, social, and environmental consequences. Without a solid understanding of transport economics, policymakers, planners, and project managers risk making inefficient investment choices, misallocating scarce resources, and failing to achieve optimal outcomes for society. Traditional approaches often prioritize technical aspects over economic viability, leading to projects that may not be financially sustainable or deliver the greatest societal benefits. Furthermore, securing adequate and sustainable funding for transport infrastructure remains a critical challenge globally, necessitating innovative financing mechanisms. Our intensive 5-day "Transport Economics & Financing" training course is meticulously designed to equip transport planners, economists, engineers, policymakers, financial analysts, project managers, and public works officials with the essential knowledge and practical skills required to understand the economic principles underpinning transport decisions, conduct robust economic appraisals of transport projects, and explore diverse financing mechanisms for sustainable transport infrastructure development.

This comprehensive program will delve into fundamental economic concepts applied to transport, demand and supply analysis in transport markets, pricing strategies, project appraisal techniques (e.g., cost-benefit analysis), diverse funding sources (public, private, innovative), and the economic impacts of transport investments. Participants will gain hands-on experience in applying economic evaluation tools, analyzing transport project viability, and understanding the complexities of financing transport infrastructure in various contexts. By the end of this course, you will be proficient in critically assessing transport investment proposals, making economically sound decisions, and contributing to the development of efficient, sustainable, and equitably financed transport systems.

Duration

5 Days

Target Audience

The "Transport Economics & Financing" training course is crucial for a broad range of professionals involved in the planning, financing, and management of transport infrastructure and services. This includes:

• Transport Planners and Economists: Involved in policy analysis, project appraisal, and strategic planning for transport.
• Civil Engineers: Working on large-scale transport infrastructure projects, needing to understand economic viability.
• Policymakers and Government Officials: From ministries of transport, public works, finance, and planning.
• Financial Analysts and Investment Professionals: Working with infrastructure funds, development banks, or public-private partnerships.
• Project Managers: Overseeing transport infrastructure development from a holistic perspective.
• Consultants: Providing advisory services in transport planning, economics, and finance.
• Researchers and Academics: Focused on transport economics, infrastructure development, and public finance.
• Urban Planners and Regional Developers: Concerned with the economic impact of transport networks.
• Private Sector Developers: Involved in conceiving and implementing transport projects.
• Students in Economics, Transport Studies, and Public Policy: Gaining specialized knowledge in transport finance.

Course Objectives

Upon successful completion of the "Transport Economics & Financing" training course, participants will be able to:

• Understand core economic principles as applied to the transport sector.
• Analyze transport demand and supply dynamics and their implications for policy.
• Apply various economic appraisal techniques, particularly Cost-Benefit Analysis (CBA), to transport projects.
• Identify and evaluate diverse sources of finance for transport infrastructure and services.
• Comprehend different transport pricing strategies and their economic effects.
• Assess the economic and social impacts of transport investments.
• Understand the role of Public-Private Partnerships (PPPs) and other innovative financing mechanisms.
• Formulate financially viable and economically sound investment strategies for transport projects.

 Course Modules

Module 1: Introduction to Transport Economics

• Defining Transport Economics: Scope, importance, and key concepts.
• Characteristics of transport as an economic good: Public good aspects, externalities.
• Role of transport in economic development, trade, and regional integration.
• Understanding the demand for transport: Factors influencing travel choices (price, income, time).
• Understanding the supply of transport: Capacity, costs, and technology.

Module 2: Economic Appraisal of Transport Projects – Part 1 (Concepts)

• Purpose of economic appraisal: Decision-making, resource allocation, public accountability.
• Comparing economic vs. financial appraisal.
• Introduction to Cost-Benefit Analysis (CBA): Identification and valuation of benefits and costs.
• Time value of money: Discounting future benefits and costs.
• Key economic appraisal indicators: Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (BCR).

Module 3: Economic Appraisal of Transport Projects – Part 2 (Application)

• Identifying and quantifying benefits of transport projects: Travel time savings, vehicle operating cost savings, accident reductions.
• Valuation of non-market benefits (e.g., environmental impacts, accessibility).
• Quantifying costs: Capital costs, maintenance costs, operational costs, externalities.
• Practical application of CBA: Case studies and exercises in calculating NPV, IRR, BCR.
• Sensitivity analysis and risk assessment in economic appraisal.

Module 4: Transport Pricing and Regulation

• Principles of transport pricing: Marginal cost pricing, average cost pricing.
• User charges and their economic effects (e.g., tolls, fuel taxes, congestion charges).
• Regulation of transport markets: Monopoly control, market entry/exit.
• Addressing externalities through pricing: Congestion, pollution, noise.
• Subsidies in public transport: Rationale and economic implications.

Module 5: Financing Transport Infrastructure – Overview of Sources

• Traditional public financing: Government budgets, taxation.
• International development finance: Loans and grants from MDBs (e.g., World Bank, AfDB).
• Dedicated transport funds and road funds.
• Private sector participation: Understanding its role and scope in transport.
• Challenges in mobilizing adequate and sustainable finance for transport.

Module 6: Innovative Transport Financing Mechanisms

• Public-Private Partnerships (PPPs): Types of PPPs in transport, risk allocation, advantages, and disadvantages.
• Value Capture Mechanisms: Land value capture, betterment levies, special assessment districts.
• Green Finance: Bonds, climate funds for sustainable transport initiatives.
• Concessions and Build-Operate-Transfer (BOT) models.
• Leveraging technology for financing (e.g., smart tolling, user-pay systems).

Module 7: Economic Impacts of Transport Investments

• Direct and indirect economic impacts of transport projects.
• Impact on economic growth, employment, and productivity.
• Regional development and spatial impacts of transport.
• Impact on poverty reduction, social inclusion, and accessibility.
• Measuring wider economic benefits beyond traditional CBA.

Module 8: Sustainable Transport and Policy Implications

• Financing sustainable transport modes: Public transport, non-motorized transport.
• Policies for promoting green transport and reducing carbon emissions.
• The role of transport economics in national transport policy formulation.
• Developing financially sustainable transport sector strategies.

Case studies of successful transport financing and economic development

• CERTIFICATION
• Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

• Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

• Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com