Learning unit 5:

Transport Infrastructure Investment

5.1 Overview

This study unit will provide an overview of recent trends on transport infrastructure
development across various countries and in South Africa. It starts with a description of
how transport infrastructure investment has changed across countries and regions, both
in terms of the magnitude and its composition, paying particular attention to differences
between urban and rural regions. This learning unit will also review the main benefits
associated with an efficient transport system, all while making suggestions on how current
evaluation tools, such as cost-benefit analysis, could be improved to account for all of
them.

Read the articles below:

https://www.pwc.com/gx/en/transportation-logistics/publications/africa-infrastructure-
investment/assets/south-africa.pdf

https://mg.co.za/article/2015-07-17-investment-still-needed-in-transport-infrastructure/

5.2 Investing in transport infrastructure

In general, OECD member countries have substantial needs for new investment in
transport infrastructure as well as upgrading of existing infrastructure. Governments
increasingly face tough decisions about where to locate or maintain public investments,
as resources become scarcer and investment needs multiply. It is increasingly important
that service and policy restructuring decisions reflect the diversity of needs and
circumstances facing urban and rural communities, and try to maximise the value for
money that investment can provide in each context. However, the quality of existing public
infrastructure has deteriorated and public infrastructure stock has started to drop in many
European countries (CEB 2017).

Read the article below: (page 8, executive summary only)

https://coebank.org/media/documents/Investing_in_Public_Infrastructure_in_Europe_27
dc1Pg.pdf.

5.3 Transport infrastructure and economic development

Extensive and efficient transport infrastructure is essential for well-functioning economies

and the development of regions and cities. When designed effectively, transport networks
can be an engine for productivity and improved quality of life for citizens. “Effective modes
of transport – including high-quality roads, railroads, ports, and air transport – enable
entrepreneurs to get their goods and services to market in a secure and timely manner
and facilitate the movement of workers to the most suitable jobs.” (World Economic
Forum, 2016:35[1])

Read the articles below: (not for examination purposes)

http://www3.weforum.org/docs/GCR2016-
2017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf

5.4 Investing in quality and maintenance

There are marked differences in the availability and quality of infrastructure across
countries, but these differences are being bridged. For instance, in the EU, the new
member states have been catching up with older members (UNECE, 2016:16).

Read the article below: (pp 1–5)

https://www.researchgate.net/publication/38976516_Infrastructure_and_Growth_Empiri
cal_Evidence
5.6 Benefits from transport infrastructure investment

Transport infrastructure creates economic benefits through different

channels. Importantly, these channels also differ between infrastructures connecting
regions and those connecting people within a city. Interregional transport infrastructure
facilitates mostly the movement of goods, while within-city transport infrastructure
facilitates mainly the movement of people. Given that the investments take place at
different scales, the competent authorities as well as governance arrangements are
different. A companion report on Improving Transport Planning for Accessible
Cities (OECD, 2020:45) provides an in-depth discussion of planning and governance
arrangements for better outcomes from infrastructure investment. The review of the
benefits of transport infrastructure investment provided in the upcoming section deals with
each type of infrastructure investment separately.

Read article below: (pp 7–14)

OECD (2020), Improving Transport Planning for Accessible Cities, OECD Urban Studies,
OECD Publishing, Paris. Available at https://dx.doi.org/10.1787/fcb2eae0-en.

Activities 5.1

Discuss the socio-economic impact of transport infrastructure investment in Gauteng

Province, South Africa.
List of references

CEB (2017), Investing in Public Infrastructure in Europe - A Local Economy Perspective,

Council of Europe Development Bank. Available at
https://coebank.org/media/documents/Investing_in_Public_Infrastructure_in_Europe_27
dc1Pg.pdf.

OECD (2020), Improving Transport Planning for Accessible Cities, OECD Urban Studies,
OECD Publishing, Paris. Available at https://dx.doi.org/10.1787/fcb2eae0-en.

UNECE (2016), “Infrastructure and growth”, Sustainable Development Brief, No. 3.

Available at http://www.unece.org/?i.

World Economic Forum (2016), The Global Competitiveness Report 2016-2017, World
Economic Forum, Geneva. Available at http://www3.weforum.org/docs/GCR2016-
2017/05FullReport/TheGlobalCompetitivenessReport2016-2017_FINAL.pdf.