This chapter considers how governments should invest in and use the transport infrastructure in the best public interest. A goal of net social benefit maximisation is defined for this purpose. The relative importance of producer, user and external costs is discussed, and some possible cost and output relationships are explored. This leads to pricing principles and investment criteria. The chapter then addresses the question of whether optimal transport infrastructure charges will pay for the facilities; the discussion is limited to `congestion tolls' or equivalent types of charges to regulate capacity usage. Five examples are presented: (1) fully integrated road transport system; (2) one road (2) one road owner, many truck transport operators; (3) fully integrated rail transport system; (4) one rail track owner and a separate main line train operator, as in Sweden; and (5) one transport infrastructure owner and a few transport infrastructure users/transport operators.
Abstract