Chap 6 Government and Political Involvement

Choose the correct definition for transportation supply

• the provision of transport infrastructure, services and networks by the private sector for a specific period of time

• the provision of transport services by the private sector for a specific period of time and in a specific geographical area

• the provision of transport infrastructure, services and networks by the private sector and the government for a specific geographical area

• the provision of transport infrastructure, services and networks by the private sector and the government for a specific period of time and in a specific geographical area

Transportation supply consists of the following: (Choose all that apply)

• Infrastructures

• Service

• Network

• Firms

• Labor

Transportation suppliers consists of:

• Government, Private sectors and Individuals

• Only the government

• Government and Private sectors only

• Private sectors and Individuals only

Below are the reasons behind government's role in transport supply EXCEPT:

• Important for economic/strategic purposes

• High investment

• Not conducive for market competition

• Public service

• Loss making ventures

Why transport must be regulated? (Hint: More than one answer)

• the basis of operations

• controlling monopolies

• controlling excessive competition

• controlling movement of people

Which of the statement below is false?

• Rail transport is largely privately owned in developing countries.

• Air transport operates internationally and include state owned airlines as well as privately owned airlines.

• Sea transport is largely owned by the public sector.

Road freight transport is mostly owned by the government sector.

• True

• False

Public Private Partnerships (PPP) is defined as_____

• joint venture between private sector firms and public sector agencies.

• joint venture between private sector firms and international partners.

• joint venture between the government and public sector agencies.

• joint venture between private sector firms and individuals.

Built Own Operate Transfer (BOOT) means_____

• financing arrangement in which a developer designs and builds a complete project or facility (at little or no cost to the government or a joint venture partner)

• financing arrangement in which a developer designs and builds a complete project or facility (at a significant cost to the government or a joint venture partner).

• financing arrangement in which a developer designs and builds a complete project or facility (with the government or a joint venture partner providing financial assistance).

• financing arrangement in which the government designs and builds a complete project or facility (at little or no cost to the private sector or a joint venture partner)

The definition of Built Operate Transfer is when a private entity receives a franchise from the public sector to finance, design, construct and operate a facility for a specified period, after which ownership is transferred to the private sector.

• True

• False