$5 Billion Lease
Long-term deals are an effective way to make money from the freight sector while also improving the rate of activities that go on in the sector. The government has been in this area for a while and kickstarting deals that can speed up the economic activities in the sector.
There is a need for the government to kickstart more projects like this. Identify projects that are useful for investments and lease them out. Already, most of these projects and properties are not being optimally used due to one problem or the other. The private sector has the required skill and expertise to put these projects to use.
As such, it is a smart choice to have a solid public-private partnership that will serve the needs of the two parties. From time, PPP has been a major source of funding for the government and its projects. When the private sector comes into the scene, there is a lot that can be done. This makes it essential that the government fosters an environment that supports the coming of the private sector.
Stakeholders have advised the government to continue focusing on the identification of assets. A team should be set up that will be in charge of this identification and carrying out cost-benefit analysis. This will go a long way in putting many of the infrastructure assets to use. There is a crucial need to generate revenue and revive projects that are currently not serving their needs.
This will be a giant leap in sustaining the general infrastructural outfit of the country while also pumping funds into the necessary projects in the freight industry. When the government can identify both the right projects and the right private individuals to transfer these projects to, a lot will change.
There will always be a bidding process among the selected private individuals that can take up the project. This is a key part of the selection, as it ensures that the person who eventually gets the project is someone that can sustain and deliver on the assets. Also, the bidding process is one that pays the government because it allows the government to choose from the best deals.
An essential message that privatisation sends to the private sector is that the government is open to discussion concerning partnerships and collaborations. Studies have shown that the place of collaborations cannot be downplayed when it comes to economic development.
The successful $5 billion lease is an indication that the market is fertile and there is strong interest in it. This makes it essential for the government to evaluate how it can key into the market effectively.