The role of financial management in Public-Private Partnership (PPP) governance in the railway industry: A scoping review
DOI:
https://doi.org/10.15282/jgi.8.2.2025.11518Keywords:
Public-private partnership, Financial sustainability, Urban planning, Risk management, Financial management, RailwayAbstract
Public-Private Partnerships (PPPs) are essential for the modernization of railway infrastructure, the enhancement of service quality, and the efficient utilization of resources. This review provides an analysis of PPPs in the railway sector, focusing on 25 articles retrieved from the Scopus database. Nonetheless, the study encompasses three primary topics: (1) PPP in Railway Projects, (2) Evaluation and Performance of Railway Infrastructure, and (3) Conflict Resolution and Risk Management in Railway Projects. Additionally, the findings suggest that PPPs can help governments reduce their financial burdens by utilizing private sector investment and expertise, resulting in faster project completion and cost savings. Effective PPPs in the railway sector are characterized by well-defined legal frameworks, strong contract management, and transparent governance. However, the presence of obstacles such as time delays, exceeding the budget, and conflicts among partners requires the implementation of efficient risk management and flexible governance strategies. Besides, case studies from different nations illustrate the potential and intricacies of PPPs, underscoring the importance of strategic involvement of stakeholders and the use of creative funding models. In conclusion, this review determines that the success of PPPs in railway infrastructure development depends on careful planning, well-defined regulatory frameworks, and proactive risk management to achieve sustainable and high-quality results.
References
Alcaraz Carrillo de Albornoz, V., Molina Millán, J., Lara Galera, A. L., & Muñoz-Medina, B. (2022). A dysfunctional legal framework for failed public–private partnership projects: Accounting or economics? Social Sciences, 11(12), 554.
Berisha, A., Kruja, A., & Hysa, E. (2022). Perspective of critical factors toward successful public–private partnerships for emerging economies. Administrative Sciences, 12(4), 160.
Branco, J. E. H., Bartholomeu, D. B., Junior, P. N. A., & Caixeta Filho, J. V. (2022). Evaluation of the economic and environmental impacts from the addition of new railways to the Brazilian’s transportation network: An application of a network equilibrium model. Transport Policy, 124, 61-69.
Bugalia, N., Maemura, Y., Dasari, R., & Patidar, M. (2023). A system dynamics model for effective management strategies of High-Speed Railway (HSR) projects involving private sector participation. Transportation Research Part A: Policy and Practice, 175, 103779.
Cui, C., Han, X., Zhou, Q., Xu, M., Xia, B., Skitmore, M., & Liu, Y. (2022). Impact of passengers' perceptions of social responsibility activities on the efficacy of PPP urban rail transit projects. Cities, 130, 103987.
Gartner, I. R. (2022). Binomial real options model with dynamic programming applied to the evaluation of railway infrastructure projects in Brazil. Pesquisa Operacional, 42, e260438.
Glaister, S. (2023). Lessons from London Underground Public Private Partnership and UK High-speed Rail. Journal of Transport Economics and Policy (JTEP), 57(4), 379-401.
Medrano, M. G., & Martín, T. G. (2021). Critical Success Factors Identified in High-Speed Railway Infrastructure: Public-Private Partnerships in Portugal and the Netherlands. Revista Portuguesa de Estudos Regionais, (59), 61-78.
Haqq, A. M., & Gultom, Y. M. (2022). The challenge of implementing public-private partnerships: a transaction costs perspective on waste to energy projects in Indonesia. Journal of Financial Management of Property and Construction, 27(3), 365-386.
Huang, Y., Ato, W. X., & Li, C. (2022). Information integration framework for a public–private partnership system of an urban railway transit project (Part A: System architecture). Journal of Industrial Information Integration, 25, 100244.
Huang, Y., Xu, W., & Li, C. (2022). Information integration framework for a public–private partnership system of an urban railway transit project (Part B: An empirical application). Journal of Industrial Information Integration, 25, 100245.
Kong, Y., & Nelson, S. E. (2020). Impact of effective information technology governance on audit technology performance in Ghana. Research Journal of Finance and Accounting, 11(24), 39-46.
Jupe, R., & Funnell, W. (2017). ‘A highly successful model’? The rail franchising business in Britain. Business History, 59(6), 844-876.
Khahro, S. H., Ali, T. H., Hassan, S., Zainun, N. Y., Javed, Y., & Memon, S. A. (2021). Risk severity matrix for sustainable public-private partnership projects in developing countries. Sustainability, 13(6), 3292.
Khallaf, R., Naderpajouh, N., & Hastak, M. (2021). Robust decision-making for multiparty renegotiations in public–private partnerships. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 13(3), 05021004.
Khan, M., & Khan, S. (2024). Proactively effecting community engagement in PPP projects: Lessons from the Tama Plaza redevelopment project, Yokohama. Sustainability, 16(1), 180.
Killada, M., & Gottumukkala, R. V. (2021, April). Hyderabad Metro Rail in India: A new record for public–private partnerships. In Proceedings of the Institution of Civil Engineers-Civil Engineering (Vol. 174, No. 6, pp. 25-30). Thomas Telford Ltd.
Ković, R., & Milenković, M. (2022). A two-step approach for selection of railway modernization projects based on analytic hierarchy process. Transport, 37(4), 264-278.
Lee, J., Kim, K., & Oh, J. (2022). Build-Transfer-Operate with risk sharing approach for railway public-private-partnership project in Korea. Asian Transport Studies, 8, 100061.
Li, X., & Love, P. E. (2022). Procuring urban rail transit infrastructure by integrating land value capture and public-private partnerships: Learning from the cities of Delhi and Hong Kong. Cities, 122, 103545.
Liu, B., & Sun, F. H. (2020). Research on the risk assessment method of PPP project based on the improved matter element model. Scientia Iranica, 27(2), 614-624.
Mazher, K. M., Chan, A. P., Choudhry, R. M., Zahoor, H., Edwards, D. J., Ghaithan, A. M., ... & Aziz, M. (2022). Identifying measures of effective risk management for public–private partnership infrastructure projects in developing countries. Sustainability, 14(21), 14149.
Morais, P., Matos, J., Bessa Vilela, Noémia, & Oplotnik, Z. J. (2022). Transparency and risk allocation in PPP: Addressing complex contracts' mathematical formulas in the Portuguese case. Lex Localis: Journal of Local Self-Government, 20(2), 435-453.
Ogochukwu, C. G., Ogochukwu, O. F., Ogorchukwu, I. M., & Ebuka, I. A. (2022). Assessment of the performance of railway transportation in Nigeria from 1970 to 2010. Scientific African, 15, e01120.
Oyieyo, P. A. (2020). Emerging challenges in the completion of construction projects through public private partnerships: empirical literature review. Journal of Building Construction and Planning Research, 8(04), 263.
Palmer, E. (2021). Regulating infrastructure: Human rights and the sustainable development goals in Myanmar. Human Rights Law Review, 21(3), 588-619.
Rutkowski, C. J., Eboch, K., Carr, A., & Greer, B. M. (2022). Strategic procurement collaboration for the common good: private and public procurement relationship duringa pandemic. Journal of Public Procurement, 22(1), 43-63.
Shakibaei, S., & Alpkokin, P. (2020). Conflict resolution in competitive liberalized railway market: Application of game theoretic concepts. International Game Theory Review, 22(01), 1950013.
Sharma, S., & Jayachandran, A. A. (2011). Scaling-up proven public private partnership models to achieve family planning equity goals in India. 2011 International Conference on Family Planning.
Sharma, S., Kandpal, V., & Gonzalez, E. D. S. (2024). A comprehensive review of Indian railway freight business: Strategies for regaining the lost ground and future prospects. Case Studies on Transport Policy, 16, 101195.
Shuliuk, B., & Horyn, V. (2022). Banking project financing of public-private partnership and its role in ensuring public welfare. Financial and Credit Activity Problems of Theory and Practice, 2(43), 17-23.
Sinha, A. K., & Jha, K. N. (2020). Dispute resolution and litigation in PPP road projects: Evidence from select cases. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 12(1), 05019007.
Suripatty, G. (2019). Standar prosedur pelaksanaan rekrutmen dan seleksi aparatur sipil negara. Jurnal Sosio Sains, 5(2), 79-90.
Van Wieringen, K., & Zajontz, T. (2023). From loan-financed to privatised infrastructure? Tracing China's turn towards public–private partnerships in Africa. Journal of Current Chinese Affairs, 52(3), 434-463.
Verweij, S., & van Meerkerk, I. (2021). Do public–private partnerships achieve better time and cost performance than regular contracts? Public Money & Management, 41(4), 286-295.
Winata, L. E., & Gultom, Y. M. (2024). The effects of governance on performance: The case of Public–Private Partnership (PPP) toll roads in Indonesia. International Journal of Construction Management, 24(13), 1398-1406.
Xiahou, X., Tang, L., Yuan, J., Zuo, J., & Li, Q. (2022). Exploring social impacts of urban rail transit PPP projects: Towards dynamic social change from the stakeholder perspective. Environmental Impact Assessment Review, 93, 106700.
Yang, X., & Tan, K. (2020). Tripartite risk game analysis on public private partnership projects of high-speed rail from the perspective of bank. International Journal of Safety and Security Engineering, 10, 617-623.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 The Author(s)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
