Public transport is a heavily subsidised industry with farebox revenue rarely covering costs. The benefits of public transport, however, are significant and difficult to quantify, making it tough for authorities to commit to investments in high quality public transport systems and new infrastructure. What is more, many transport systems struggle with incumbent operators who often hold disproportionate power, making healthy competition almost impossible. Our finance solutions for authorities aim to solve these issues, delivering better value for money services for communities and placing authorities back in the driving seat enabling alignment of the private sector with the objectives of the city.
Our operational financing approach available for public authorities is ambitious in concept but simple in delivery. If a city does not control its transport assets, it does not have control of its transport system. Ascendal can provide the financial capability to control the depots, fleets and broader transit system infrastructure, leasing it back to the authority to run the system in a structure that can access cheaper Government lending rates whilst not being directly Government owned. This enables authorities to take control of their city as they will gain control of a fit for purpose system where they can drive better performance, co-ordination and accountability, opening their market up to healthy competition from operators by lowering barriers to entry.
Alternatively, for Government-owned assets, it could generate a significant cash injection for the city without losing control of its assets.
Additionally, for specific infrastructure projects that add significant value to a city, including in its underlying real estate, we provide innovative solutions to help capture this broader value creation, which in turn makes it more possible to deliver these projects in a timely fashion. In many cases developing major mass transit projects is too high a capital cost for an authority. Our creative financing solutions can help deliver these specific projects by combining private and public enterprises in a symbiotic relationship matching risk to drive better outcomes. This solution enables authorities to consider more major mass transit projects, such as bus rapid transit routes that can transform how the city works without causing undue financial strain.
Ascendal believes that our financing approach combines the best of the private and public sectors. The public sector should be focusing on developing the best holistic strategy for a city while keeping the private sector accountable for delivering it. Public transport needs bold change and creative financing to achieve this. Our financing solutions pave the way for authorities to deliver a system that they want, that they control and that can deliver the right solution for their communities.
“A city authority’s objective should be to harness private greed for public good .”
Executive Chairman and Founder