An investigation into value capture and favourable conditions for its use In helping to finance transportation projects In South Africa.
Date
1991
Authors
Freeman, Mark Julian
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Abstract
The purpose of the investigation contained in this project report was to
identify what methods of value capture exist and what conditons would
favour their use in the transportation field in South Afdca.
The investigation was motivated by a need to identify new ways of
generating revenues for transport projects since traditional sources are
being depleted or used for other purposes.
A review of international literature on value capture identified fourteen
techniques which may be used. These techniques were grouped under three
headings - property-related charges, joint ventures and merchandising
approaches. The advantages and disadvantages of each technique as
described in the literature are outlined. Examples of where these
techniques have been used around the world are also given and the
current situation in south Africa with regard to value capture is
presented.
A survey of transportation professionals in the public and private sectors
in South Africa regarding the identified value capture techniques showed
that joint development, the lease or sale of development rights and
advertising space and the use of concessions were the most favoured
techniques. Tax increment financing. special benefit assessments and
employer wage-bill levies were the least favoured. The survey also
provided brief descriptions of some past value capture applications in
South Africa in the transport sector whilst, accorddng to the survey
respondents, future applications will most likely occur in association
with the provision of public transport facilities.
The main conclusions drawn from the investigation are that value capture
must be seen as an essential component in the process of integrating
transport and land use; that the involvement of the private sector in
value capture exercises is vital and that public authorities will need to
revise their role with regard to the delivery of transport facilities if
the number of value capture applications is to grow. Additional
conclusions offer some guidelines to help further the implementation of
value capture in the transportation field in South Africa.
Description
A project report submitted to the Faculty of Engineering, University of
the Witwatersrand, Johannesburg, in partial fulfilment of the requirements
for the degree of Master of Science in Engineering.
Keywords
Transportation -- Finance -- Research -- South Africa.