Private public partnerships for logistic infrastructure in Colombia

Abstract

Infrastructure investment constitutes a very important instrument of economic policy. It is regarded as a main accelerator of the economy ever since the economic depression of 1929, because it can drive many sectors of the economy and at high rates. Thus, governments continuously work on enhancing infrastructure in order to create comparative advantages, reduce costs of products and attract foreign investment. Usually, companies and governments operate as isolated agents of society, the former focusing on growing their business, and the latter working on regulation, managing the country and fostering development, among other responsibilities. However, governments are not always efficient or effective in their general performance, and regarding infrastructure the problem is worse. Therefore, governments have promoted infrastructure development or administration via Public-Private Partnerships (PPPs)