This chapter provides a banker's view of some issues that have already been discussed in these handbooks. It (1) introduces financial concepts relevant to the transport industry; (2) reviews the funding of transportation infrastructure; (3) discusses models for public transport finance; (4) discusses new financing structures; (5) summarizes the financial products used in recent Australian and international project transportation; and (6) examines the future directions for financing transport opportunities. The transport sector incorporates a wide range of industry subgroups that, by their definition, are all broadly involved by some means in the movement of people or goods from point A to point B. Therefore, a one-man trucking operation and Qantas both fall under the transport industry banner. Clearly there are significant differences between the many types of transport businesses. This chapter will focus on the financing of large-scale transport infrastructure such as railways, toll roads, and airports. Finance raised for these types of project is generally characterized as "project finance," and is explained in detail in the chapter. This is in contrast to the small business finance that would be sought by a truck owner and the corporate finance that would be raised by Qantas.
Abstract