Understanding What is at Stake

  • Project proposals, as well as passenger and cargo through put projections, can help with the assessment of what is potentially at stake.
  • Before selecting or imposing a shared use strategy, governments should get a thorough overview of the players involved and their associated interests.
  • For any significant infrastructure project it is necessary to understand and consult with a range of actors, including: the leading extractive company with the anchor project; other extractive industry companies interested in multi-user access; third party users interested in multi-purpose access (which may require access fees); and financiers, etc.

Key Resources

Topic Briefing

The first step is for the government to determine the importance of the potential transport infrastructure investments and compare these to existing national and regional transport infrastructure and future plans. Project proposals, as well as passenger and cargo throughput projections, can help with the assessment of what is potentially at stake.

Read more

The government should get a thorough overview of the players involved and the associated interests before imposing any shared use strategy. For a cross-border railway infrastructure project, for example, there are likely to be a range of actors to understand and consult with including:

  • The leading extractive company with the anchor project that is likely to prefer sole access to the line if it is going to pay for the investment;
  • Other extractive industry companies interested in multi-user access, but wary of the leading mining company operating the railway line and excluding them;
  • Third party users interested in multi-purpose access that may require cross-subsidized access fees;
  • Financiers, who prefer a single user model if the extractive company with the anchor project is internationally renowned and has a strong balance sheet;
  • And the neighboring country government, that may require transit fees and would also like access to the railway line to promote economic development.

There may also be divergent interests for different groups of actors to consider. The Ministry of Finance, for example, may be interested in maximizing the revenues from the extractive sector, whereas the Ministry of Transport may want to promote infrastructure access in the country. Involving more players will mean that it will become more expensive and complicated to negotiate the project, leading to potential delays. See the Opportunity Assessment subtopic which covers the advantages and disadvantages of shared use.