Developing Urban Rail Using Public-Private Partnership: A Case Study of the Gold Coast Light Rail Project

Abstract

Urban rail development plays an important role in fostering a region’s social and economic development. PPPs as innovative procurement methodologies have been used for urban rail projects around the globe. Among the various PPP models, design-build-finance-operate (DBFO) is a commonly used model for urban rail projects. However, it remains unclear whether this model is suitable for urban rail development. This research aims to examine the application of DBFO model in the urban rail sector, analyze their suitability for urban rail transit projects, and recommend strategies for improved use of DBFO models. The Gold Coast Light Rail was selected as the case study. Document analysis was used as the main data collection method. This research shows that the use of PPP delivers good social and economic impacts. The use of the DBFO model exhibited both benefits and limitations. The research suggests that to better use the DBFO model, equitable risk allocation, flexible contract design, and extensive community engagement and public consultation are required. The results from this research will provide useful reference for the public sector on the selection of procurement model for urban rail projects. The research also offers practical guidance on how to plan and structure a PPP project in urban rail development.