SECTORS | Transport

Transport networks involve natural monopolies and complex intermodal issues. Roading is expensive, but difficult to charge for, making it hard for governments to invest as much as is needed. The quality of urban transit can make or break a city, but again is hard to fund and manage. The strategic map is changing for ports as larger ships require deeper channels, and make fewer calls in any country.

Castalia works on all these challenges. At the national or state level we develop good governance structures and policies to allow transport networks to be well planned and funded. At the project level we advise on how required infrastructure can be financed, often with private capital. We work on innovative contracting solutions to increase the efficiency of infrastructure construction and maintenance, and we advise on regulation to ensure that ports and airports are limited in their ability to exploit market power, while retaining incentives for investment and freedom for innovation.

The Castalia team specialises in:

  • Transport sector policy and governance: Putting in place planning and financing systems that promote accountability and responsive, efficient investment in vital transport services
  • Project investment analysis: Evaluating the economic and financial viability of transport investments
  • Subsidy design: Estimating viability funding gaps and developing subsidy mechanisms that help to achieve policy objectives of a reliable, sustainable and efficient transport sector
  • Transport regulation: Evaluating whether regulation is required to promote efficiency in transport and designing and implementing regulatory approaches that achieve desired policy outcomes in those countries
  • Competition related matters: We can assist governments in liberalising transport markets. We can also advise firms on potential competition effects of a proposed merger, business arrangement or market reform in the transport sector.