Tashkent, Uzbekistan (UzDaily.com) -- Experts from the Institute for Macroeconomic and Regional Studies (IMRI) studied international experience in the use of public-private partnerships (PPP) for the development of the railway sector.

During the years of independence, large-scale structural and institutional reforms in the transport sector have been carried out in Uzbekistan.

For further development, the railway industry needs additional investments, which can be attracted through PPP.

There are several determinants associated with each country’s approach to implementing PPP mechanisms.

Often the public sector’s contribution to PPPs is access to land for development.

Under the Hong Kong Rail Plus Property Program, the government provided land to private companies for the construction and operation of rail lines in exchange for the right to develop land along the railroad.

In Japan, suburban rail service is funded by land and building rights—private railroads in Japan are effectively both real estate development companies and railways. Some Japanese railway companies own office buildings, apartments and sports stadiums and provide transportation services for customers to these facilities.

In Russia, private operators own or lease rolling stock, which they use to serve their customers. Taking advantage of these market opportunities, private operators in Russia have invested more than $20 billion in rail transport equipment.

France was the first country in Europe to use the PPP model to finance investments in high-speed rail (HSR). The use of PPPs has made it possible to significantly accelerate the development of the French HCW network compared to what it could have done with traditional public funding.

Thus, for Uzbekistan, PPP can provide opportunities for investment, improved operational efficiency and the introduction of modern and clean technologies on railway tracks and stations.

It is advisable to introduce PPP in the field of railway transport in improving the railway infrastructure, building new and modernizing existing lines, creating conditions and incentives for updating the fleet of freight and passenger cars.

It is optimal to transfer the operational activities of the stations under trust management to a private person, who, based on the areas identified for additional services, will develop the station and station complex.

A specific list of additional services should be formed on the basis of market demand for a particular station by attracting private capital. At the same time, the state will retain the regulatory function and ensure the safe and comfortable movement of passengers.