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Slide 1

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Resource allocation ­ role of
public and private sectors
TRANSPORT…read more

Slide 2

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Private and public expenditure can be divided:
Capital expenditure ­ this is long term and can involve
massive sums in the case of motorway construction,
rail network upgrades and airport development.
Current expenditure ­ this involves smaller sums and
is annual or short term in its incidence. E.g. Road
maintenance, public transport subsidisation and the
ongoing replacement of vehicle fleets.
Although the criteria for making decisions may differ, all
organisations invariably face the economic problem.
There are unlimited wants for transport
expenditure yet the resources that are available
are limited.…read more

Slide 3

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Private sector
Consequence of privatisation ­ private sector
expenditure on transport has increased in
importance over the last 20 years or so.
Expenditure has typically been on new buses, railway
rolling stock, aircraft etc. With the exception of the
M6 Toll road, there has been no direct investment in
roads, unlike in other EU countries.…read more

Slide 4

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Public sector investment
R0ad expenditure ­ largest item
Revenue support for rail and bus services has been
increasingly rising.
Gov expenditure on transport is around 6% of total
gov spending.
In total, when the private sectors contribution has
been taken into account, investment in transport
in the UK is at an all time high.…read more

Slide 5

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Benefits of increased investment ­ Railways
Rail transport ­ 2007 ­ total passenger miles
travelled by rail (30.1 billion). Further growth of 22%
is projected over the next 6 years.
Rail efficiency is improving nationally and train
operators are investing more resources in rolling
stock both of which increase the attractiveness of rail
transport to users.…read more

Slide 6

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Benefits of increased investment ­ roads?
Congestion getting worse
Despite huge expenditure on motorway widening
schemes and the construction of new bypasses.
Public investment in roads is scheduled to increase
until the 2010 transport plan programme is
complete.…read more

Slide 7

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Slide 8

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Slide 9

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Slide 10

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This presentation will be useful for students who want to understand how the public and private sectors work together in partnerships.

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