What it is about
Transport infrastructure is long-lasting and requires comprehensive planning and implementation stages. The operation of local public transport is also designed for relatively long service contracts. The actors involved are therefore dependent on long-term planning certainty with regard to the available financial resources. A reliable forecast of future funding requirements is of great importance.
Investment financing means providing funds for investment projects. These can be both new investments and replacement investments. For the individual actor, this is not a regular demand for financial resources, but occurs in waves. In the case of new investments, the investment financing requirement is fed by the projects in the planning stage. In a developed country like Germany with a comparatively well-developed infrastructure, the need for replacement investment is of great importance. Future financing requirements for the maintenance of existing infrastructure depend on the age and condition of the infrastructure.
The consumptive funding requirement applies to the public transport services offered on the infrastructure (especially local public transport). These financial resources are used to close the gap between the costs incurred and the user financing. A forecast of this funding requirement must take into account the services planned for the future, the development of costs and the development of demand.
Growing social demands on public transport are likely to increase its financing needs. In addition, efforts are being made to encourage passengers to switch to public transport through cheaper fares in order to contribute to environmental and climate protection. This further widens the gap between costs and revenues.
In order not to overstretch public budgets, the expected financing gap is to be closed by opening up new sources of financing for public transport. The instruments include models of third-party user financing (property owners), solidarity financing (citizen ticket) or cross-subsidisation from other transport sectors (e.g. parking fees). However, there are strict limits to these instruments in the German financial constitution.
How we support you
- We are familiar with the specific requirements in your area of responsibility as a transport company, as a public authority or as a public administration.
- We have suitable instruments at our disposal to determine future financing needs, both in terms of consumption and investment. Our focus is on the long-term perspective.
- We help you to use these results for your arguments internally (e.g. vis-à-vis the supervisory board) or externally (e.g. vis-à-vis politicians).
- We are also adept at representing the results of our financial requirement forecasts in the appropriate committees.
What our clients appreciate
- Our clients benefit from the fact that we can rely on an extensive wealth of experience as well as (prognostic) data bases from all major areas of the transport market.
- We know the balancing act between superficiality and attention to detail. Therefor, we focus our forecasting approaches on the specific question and thus guarantee solid results according to the principle: “As simple as possible, as differentiated as necessary”.
- We deliver concrete quantitative results on the basis of forecasts that have been validated as far as possible. This reliable factual basis enables our clients to make valid arguments beyond transparent interest politics.
The financing aspects play an important role in the majority of our expert reports and studies. Financing was a particular focus in the following projects:
- Public transport expansion in Darmstadt in the course of the transition to more sustainable transport
- Financing requirements of public transport in Germany until 2025