Abstract

http://ssrn.com/abstract=1522065
 
 

References (11)



 


 



Is There ‘Value for Money’ in Transportation PPP’S? The Case of Macquarie and Sydney International Airport


Cameron Gordon


University of Canberra

Mark D. Hughes


affiliation not provided to SSRN

Andrew Read


University of Canberra

January 11, 2007


Abstract:     
This paper examines the link between value creation and transportation provision by conducting an examination of some of the projects financed and managed by Macquarie Bank, perhaps the worldwide leader in private infrastructure finance. Macquarie, an Australian firm, uses an infrastructure investment model that has been the subject of much imitation. The firm has been especially aggressive in expanding its operations into the United States, its latest acquisition being the Chicago Skyway. But in its home turf, where it has been operating the longest, its operations have increasingly become the subject of controversy. This controversy has not been just around policy, but also around finances, i.e., whether the Macquarie model really does create maximum value for both shareholders and transportation users. It is important to understand the strengths and weaknesses of this model since it is being proposed for adoption in many places worldwide.
This paper is divided into 7 sections. Section 1 contains this introduction. Section 2 briefly discusses the recent history of private participation in transportation provision in the US. Section 3 reviews Macquarie Bank’s growing involvement in that American private participation. Section 4 provides a framework for how privatization creates value. Section 5 summarizes the basic structure of the Macquarie infrastructure business model, while Section 6 analyzes the merits and demerits of that model by focusing on one of its key investments in its home country of Australia: Sydney airport. Section 7 draws policy conclusions and recommends steps for further research.

Number of Pages in PDF File: 13

Keywords: privatisation, airports, Macquarie Bank, infrastructure finance, value chain, transportation, transport finance, transport assets

JEL Classification: R4, R41, R42, R48

working papers series


Download This Paper

Date posted: December 14, 2009  

Suggested Citation

Gordon, Cameron and Hughes, Mark D. and Read, Andrew, Is There ‘Value for Money’ in Transportation PPP’S? The Case of Macquarie and Sydney International Airport (January 11, 2007). Available at SSRN: http://ssrn.com/abstract=1522065 or http://dx.doi.org/10.2139/ssrn.1522065

Contact Information

Cameron Elliott Gordon (Contact Author)
University of Canberra ( email )
Canberra, Australian Capital Territory 2601
Australia
6201 2685 (Phone)
Mark D. Hughes
affiliation not provided to SSRN ( email )
Andrew Read
University of Canberra ( email )
Canberra, Australian Capital Territory 2601
Australia
Feedback to SSRN


Paper statistics
Abstract Views: 1,030
Downloads: 198
Download Rank: 85,000
References:  11

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.437 seconds