Private Capital for Railway Development

China is considering ways to attract additional capital to finance investment in railways. Worldwide, private capital has been attracted to the railway sector through a range of mechanisms including: (i) private sector provision of specific rail services or assets such as rolling stock; (ii) public private partnerships; (iii) leveraging commercial value of rail assets and increased land value around stations; and (iv) debt and equity financing of railway companies. Private sector investors seek to earn a return on investment that is commensurate with the risk of the investment. Therefore one will be attracted to profitable opportunities with manageable risk. Steps China can take to attract private capital for railway development include: (i) creating a policy and legal environment that protects the interests of different types of investors in the railway sector; (ii) identifying and creating profitable railway markets and entities that are suitable for private sector investment; (iii) managing the perception of risk in railway activities and assets; (iv) promoting asset sharing opportunities; and (v) expanding public private partnerships (PPPs) in rail assets and services.

Bibliographic Details

Main Authors:	Ollivier, Gerald, Lawrence, Martha
Format:	Brief biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2014-08
Subjects:	AMOUNT OF DEBT, AUCTIONS, BALANCE SHEET, BANK INVESTORS, BANK OFFICE, BANKRUPTCY, BONDS, CAPITAL GAINS, CAPITAL INVESTMENT, CAPITAL STRUCTURE, COMMON EQUITY, CONCESSIONS, CONTRACTUAL OBLIGATION, CORPORATE GOVERNANCE, COST OF CAPITAL, CURRENCY, CURRENCY RISK, DEBT, DEBT CAPITAL, DEBT FINANCING, DEBT OBLIGATIONS, DIVIDEND, DIVIDENDS, EQUIPMENT, EQUITY CAPITAL, EQUITY FINANCING, EQUITY INVESTMENT, EXCHANGE RATE, EXPROPRIATION, FINANCIAL EXPOSURE, FINANCIAL INSTITUTIONS, FINANCIAL RETURN, FINANCIAL RISK, FREIGHT, FREIGHT RAIL, FREIGHT TRANSPORT, FREIGHT WAGONS, GOVERNMENT ACTIONS, GOVERNMENT SUPPORTS, INCOME, INVESTING, INVESTMENT AMOUNT, INVESTMENT CLIMATE, INVESTMENT IN RAILWAYS, INVESTMENT PRINCIPAL, JOINT VENTURE, JOINT VENTURES, LAND USE, LAND VALUE, LAND VALUES, LEASES, LEASING, LEGAL ENVIRONMENT, LEGAL FRAMEWORK, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LOCOMOTIVES, LONG TERM DEBT, LONG TERM INVESTMENT, MARKET CAPITALIZATION, MARKET PRICE, MARKET VALUE, METRO TRIPS, MIDDLE-INCOME COUNTRIES, MINORITY SHAREHOLDERS, NATIONAL RAILWAY, OUTPUTS, OUTSOURCING, PASSENGER SERVICE, PASSENGERS, PPP, PRIVATE CAPITAL, PRIVATE FINANCING, PRIVATE INVESTMENT, PRIVATE INVESTORS, PRIVATE RAILWAYS, PRIVATE SECTOR FINANCES, PRIVATE SECTOR INVESTOR, PRIVATE SECTOR INVESTORS, PRIVATIZATION, PROFITABILITY, PUBLIC AUCTIONS, RAIL, RAIL ASSETS, RAIL DEVELOPMENT, RAIL NETWORK, RAIL PROJECTS, RAIL SERVICES, RAIL STATIONS, RAILROAD, RAILWAY, RAILWAY ACTIVITIES, RAILWAY ACTIVITY, RAILWAY ADMINISTRATIONS, RAILWAY BUSINESS, RAILWAY COMPANIES, RAILWAY COMPANY, RAILWAY CONCESSIONS, RAILWAY CONSTRUCTION, RAILWAY CORPORATION, RAILWAY CUSTOMER, RAILWAY DEVELOPMENT, RAILWAY EQUIPMENT, RAILWAY INFRASTRUCTURE, RAILWAY INVESTMENT, RAILWAY LINE, RAILWAY LINES, RAILWAY NETWORK, RAILWAY OPERATIONS, RAILWAY PROJECTS, RAILWAY REAL ESTATE, RAILWAY SECTOR, RAILWAY STATIONS, RAILWAY TRANSPORT, RAILWAYS, RATE OF RETURN, RETURN, RETURN ON ASSETS, RETURN ON DEBT, RETURN ON INVESTMENT, RETURNS, RETURNS ON EQUITY, RIGHT-OF-WAY, RIGHTS OF MINORITY SHAREHOLDERS, RISKY INVESTMENTS, ROLLING STOCK, SAFETY, SETTLEMENT, SHARE OF CAPITAL, SHAREHOLDER, SHAREHOLDERS, STOCK EXCHANGE, SURFACE TRANSPORTATION, TELECOMMUNICATIONS, TOLL, TRACK, TRADES, TRADING, TRAFFIC, TRAIN OPERATORS, TRANSIT, TRANSPORT, TRANSPORT CAPACITY, TRANSPORT MODES, TRANSPORT OF HAZARDOUS MATERIALS, TRANSPORT SECTOR, UNDERGROUND, VOLATILITY, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/134031468263105814/Private-capital-for-railway-development https://hdl.handle.net/10986/25482
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