Source: adapted from C. Russell (2008) Presentation at �Closing the Gap: Financing the Region�s Transportation Needs�, New York University, Rudin Center for Transportation Policy & Management.

Actors in Transport Finance

The transport finance sector involves two major groups:

• Providers. Concern the major actors that can be tapped to finance transport infrastructure. Various levels of government are the conventional source as well as private lenders (e.g. bond issuers) that simply provide capital. Private investors, namely terminal operators, are a relatively new source of financing commonly taking direct involvement in the management of transport infrastructure and equipment. All actors, particularly the private sector, expect a form of return on their capital investments. For many financial asset managers, transportation have become an asset class part of a diversification strategy.
• Recipients. Investments in transport infrastructure, once completed, eventually impact an array of recipients. The most obvious concern the users of the infrastructure who contribute to transport finance mainly for the usage fees (e.g. tolls) they provide. There are also others that contribute or benefit indirectly. Beneficiaries are actors that even if not using the infrastructure directly will derive a benefit. For instance, a new terminal (or additional traffic at an existing terminal) will benefit the regional economy with additional employment, a larger taxation base and a greater demand for a range of goods and services. The general public, particularly if governments are involved in the financing, will contribute indirectly through taxes.