Mass Mobility and economic development

Missing or inadequate infrastructures hamper the economy. According to the World Bank and to the Pearson consulting firm, African productivity losses related to missing infrastructures represent 40% of the total economic potential.

Emerging countries see their difficulties compounded by the lack of infrastructures. Yet, according to the same study, the development of infrastructures can generate up to two points of economic growth.

There are 3 types of critical infrastructures :

  • The transportation of passengers and cargo.
  • The transportation of energy and information..
  • The transport and water distribution.
Despite the strategic importance of people mobility in emerging countries, operating costs and high maintenance, make passenger rail a low attractive sector.

  • Private investment is directed to freight transport, minerals, quicly profitables.
  • Public investment turns away from the rail passenger transport, with a structural deficit and subsidized.
In most emergent and developing countries, commodities have priority on the rail network. The population need in mobility falls back on the bus, the car... And generates heavy loss in potential growth.

Critical infrastructure and short-term competitiveness : a vicious circle

Long-term projects are critical but suffer from a lack of investor confidence and public authorities support : Passenger transport falls into this category.

Long-term investment plays a major role in the economic performance of sectors which can be profitable fast. But the lack of mobility of populations prevent this strategy to be profitable.

In this context, developing urban and inter-urban mobility winning investor confidence means that :

  • Transportation systems must be reasonably quick to implement.
  • Transportation systems must be versatile in their uses.
  • Transportation systems must be rapidly and sustainably profitables
  • Transportation systems must be "hardened" against the local environmental context.

TACV proposals stand within such constraints.

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