An investigation into value capture and favourable conditions for its use In helping to finance transportation projects In South Africa.
Freeman, Mark Julian
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.
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.
Transportation -- Finance -- Research -- South Africa.