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Florianópolis Ferries

Final project - World Bank Group PPP Course
by

Jasmine Reis

on 26 June 2015

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Transcript of Florianópolis Ferries

Florianópolis Ferries
PPP Project
Final Project by Jasmine Reis
June, 2015
Florianópolis is an island located in southern Brazil.
According to IBGE, its region, including the nearby cities, is experiencing accelerated population growth (23,24% by decade) that is higher than the national average (12,33% by decade).
However, its territorial occupation is happening disorderly, where the population agglomerates in specific micro-regions.
Due to the high cost of living in the central and commercial area, the inhabitants tend to live in outlying neighborhoods, overloading the existing transport infrastructure.
The fact that it is an island doesn't help at all...
The reasons?
-Its rugged topography (common fact in islands) doesn't easily permit infrastructure implementation;
-Its obvious geographical limitations (we don't have extra space to grow).
-Almost half of its territory is defined as "area of permanent preservation" by decree, which means that any construction attempt in these areas will take you to jail;
oh, really?
Yes! And there's one more thing...
There's only one bridge to leave the island and, also, only one to enter.

It is the capital of the Santa Catarina state;
It has nearly 422.000 inhabitants;
It has 436km² of territory.
So, all those tiny little very nice people we talked about earlier...
Every
single
day
So this leads us to this problem:
Florianópolis has the second worst urban mobility index of the world.
Now that we know the problem...
Let's talk about the solution
They have to handle with the bridge traffic congestion...
WHAT?
Urban Crossing by Ferry
WHY?
- We're talking about an island here, so, we have plenty of water around us;
- Is cleaner than individual means of transportation like cars or motorcycles;
- Is faster (during rush hours) and cheaper for the users ;
- Again, we don't have any extra space to develop our infrastructure system, so we can develop it above the water;
- It will help to relieve the urban traffic, which is awful nowadays.
- Is an alternative mean of transportation, which doesn't compete for space with the other means.
HOW?
- The plan is to transport passengers, cars and motorcycles across the bay.
- With 5 stations and 6 routes strategically located (3 at the island and 2 at the continent), the intention is to relieve the urban traffic and improve the urban mobility of the city.
- A map? Yes, we do have a map!
The routes were especially defined concerning the critical traffic points in the city, which are mostly located at the central and the bridges nearby areas.
Here they are:
A) 1 - 4;
B) 1 - 5;
C) 1 - 3;
D) 2 - 4;
E) 2 - 5;
F) 2 - 3.
Today, according to a recent demand analysis made by a private company, the total transportation demand is about 270.000 passengers/day (regarding buses, cars and motorcycles).
SO, WHAT ABOUT THE FERRY DEMAND IF IT WAS IMPLANTED?
The same study expects a total demand of 60.790 passengers/day in 2025. If we go further, it says that the demand in 2045 will reach 115.000 passengers/day.
Some of which are being relocated from the others means of transportation. Meaning that some of the today's regular users of cars, buses or motorcycles would prefer using the ferries, reducing substantially (but not solving) the traffic congestion problem.
And...Is it affordable?
The payment mechanism proposed is to combine charging a user fee, promoting ancillary revenue and receiving government subsidies.
The private company study shows that the project wouldn't be affordable only by charging a user fee because, though this revenue combined with the ancillary revenue is enough to operate the system, it isn't enough to remunerate the initial investments.
So...with a little help from the public party...
Yes, it is affordable!
But, why the private sector should be interested?
- Beyond the profit, the private sector would benefit with new demand for goods and service from reducing the infrastructure gap;
- It would also allow the private sector to be recognized, providing a better public image;
- The private party has the possibility of sharing the risks with the public party.
oh! The risk allocation!
Public Party
Private Party
Site
Design, Construction and Commissioning
Operation
Demand
Regulatory and Political
Legal
Default
Economic and Financial
Force Majeure
So...
That's it?
We have to remember that:
Setting the right framework, promoting stakeholder engagement, ensuring economic viability and value for money, among other things, are important to consolidate a successful PPP!
Thank you!
https://www.linkedin.com/in/jasminereis
Do you have any doubts?
Sources:
http://pt.slideshare.net/governosc/mobilidade-urbana-grande-florianpolis
http://www.scpar.sc.gov.br/pmi/index.php
http://pt.slideshare.net/governosc/pmi-mobilidade-urbana-grande-florianpolis
Full transcript