"... [G]iven the fact that there are just limited financial resources all the way around, I think the need for [public-private partnerships] is going to grow much more in the future. When you think about the amount of money that goes into research and development on specific transportation modes or when you think about the long time line it takes in terms of trying to build infrastructure and especially where we're trying to -- lessen the gap between the demand for transportation and the ability of our transportation infrastructure to supply that demand, that it really requires public-private partnerships both in money, thought, and effort."-U.S. DOT Secretary Norman Y. Mineta.[5]
Transportation profoundly affects our well-being, development, growth patterns, and quality of life. Improved highway and transit facilities help National, State, regional, and local economies grow by increasing productivity, attracting new businesses, and providing access to new markets. A sound transportation system must grow as our society and economy expand. It must be kept up to the modern standards and be well maintained. Unfortunately, public surface transportation needs are far outpacing delivery of transportation projects. Thus, to keep our system vibrant, new ways to build and operate the system must be found. The U.S. DOT is committed to providing a greater role for the private sector in transportation services and infrastructure investment to supplement Federal, State and local spending for capital investment in our Nation's infrastructure. Coupling private capital and private initiatives with public transportation efforts produces more and better facilities for the traveling public.
One aspect of the transit program applies directly to this goal, by supporting joint development activities - the common use of land around a transit station for both transit purposes and related development activities. At its most advanced, this has resulted in whole neighborhoods being developed around, and depending upon, a public transportation station. In the current state of the practice, it has ranged from one-time fees for connections to major shopping centers (such as Mazza Gallerie in Washington, DC) to private construction of office buildings on top of a rail station (as with Dadeland North, in Miami). The optimal combination of public transportation investment with private sector investment results in entire corridors - such as the Ballston Corridor in Arlington, Virginia - being re-invented into places where people want to live, work, and recreate, and where the transportation system provides access and convenience for all of the traveling public.
This chapter will define a public-private partnership and will discuss the history of public-private partnerships in both highway and transit construction. Additionally, initiatives to promote public-private partnerships, undertaken by the FHWA and the FTA, will be discussed.