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Benefits of Private Sector Involvement In Road Provision: A Look at the Evidence

Publication Type:
Working Paper 33

Publication Subject(s):

ISBN:
642280290

ISSN:
1036-739X

Release Date:
June 1997

What role should the private sector play in road provision? Private contractors already perform a fair amount of the design, construction and maintenance of Australia's publicly owned roads. The evidence reviewed in this paper indicates benefits from further contracting out of road work to the private sector. In many cases, contracting out of road maintenance has reduced costs by 15 per cent or more. The evidence is less conclusive on the benefits of private investment in roads. Whether private toll roads are more efficient than other arrangements for road provision needs to be carefully examined case by case. Public ownership could be a better option than private ownership for some toll roads.

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