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International Business – Baltic Business Development- Tallinn 2013

Tallinn 2013

Edited By Gunnar Prause, Urve Venesaar and Wolfgang Kersten

This volume is a collection of the research papers presented at the colloquium Baltic Business Development, which took place in the environment of the 3rd international conference Economies of Central and Eastern Europe (ECEE) in Tallinn in 2012. The colloquium was organised by Tallinn School of Economics and Business Administration of Tallinn University of Technology in cooperation with Hamburg University of Technology and the Baltic-German University Liaison Office in Riga. The colloquium offered a great platform for promoting cooperation and for disseminating knowledge and experience on the development of international business in the Baltic Sea Region in the frame of the Baltic Sea Strategy and the Agenda EU2020.

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Financing Logistics Facilities by Applying Public Private Partnership Models:Solutions for the North-East European Area. Joachim R. Daduna

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25 Financing Logistics Facilities by Applying Public Private Partnership Models: Solutions for the North-East European Area Joachim R. Daduna1 Abstract Logistics facilities are of increasing importance for the design and development of efficient logistic structures, because they constitute an essential element to control the flow of goods especially in multi-modal processes. As these facilities should not only be viewed under eco- nomic aspects but also under regional planning and structural aspects, it is appropriate to in- clude public institutions in this context. Financial participation enables these to engage active- ly in the planning and design process of such investment decisions with the objective of real- izing public interests. In the following basics of private financing models will be discussed at first. Subsequently existing and potential applications of Public Private Partnership (PPP) concepts will be presented. On this basis possible approaches are developed and critically discussed with a view to the developments in the North-East European area. JEL classification codes: R14, H44 Keywords: Logistics facilities, freight villages, city logistics, public private partnership 1. Introduction The availability of a sufficiently large traffic infrastructure is essential for func- tioning market structures and sustainable economic growth. Already Launhardt (1885) realized that (…) the improvement of means of transport (…) is danger- ous for expensive goods as the most effective of all protective duties, the protec- tion of bad roads, is getting lost. Rammler (2003) refers to (…) transport infra- structures (…) which in a way are the skeletal and neural system of the modern industrial growth society. For...

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