Building a robust funding ecosystem.
Transportation funding rarely included externalities.
Rapid advancement in transportation technologies over the last two centuries has been mirrored by multiple funding strategies. Many rail and transit systems were privately built and operated, and others were publically built and operated. What hasn't been available is an understanding of the externalities and how to financially account for the provision of Travel Services in a metropolis.
It is now clear that commercial, residential, public and institutional properties within easy access to valuable transportation networks are in relatively greater demand, which tends to be reflected in their significantly higher lease, sale, and symbolic values. While so-called Transit-Oriented Development (TOD) initiatives focused on reducing automobile usage, this emerging data has been underappreciated.
Historically funding for city transportation systems has had to rely upon the very blunt instruments available to governments, such as property taxes and special developer charges. Similar approaches have been used in static commercial arrangements. All of these depend upon broad assumptions about what part of the property value increment should be reasonably attributed to the availability of quality transportation.
infiniteTransit Flyway implements Xalgorithms Foundation's Open Market Development Model to bring value management precision to transportation finance. This revenue model is designed to be large enough in scale to liberate transportation finance from dependence upon government subsidies, public debt, taxes, and exclusivity charters.
This technology uses existing professional sources of property market data to assess the increment of value reasonably attributed to quality travel services. This business model enabled by smart contracting uses dynamic pricing to create radically new opportunities in infrastructure financing.
In 2019 the UK Department of Transport launched a similar initiative to invite 'market-led proposals' for UK's railways. The guidance document refers to 'property development models where the delivery body develops and enhances the land around a transport scheme and the profits are used to pay for that scheme' (such as the Euston 'over station' development arrangements). It also mentions 'direct contributions where benefiting businesses contribute directly to the cost of transport infrastructure' (such as where the Canary Wharf Group contributes to the Crossrail project).
Houston's infiniteTransit Flyway use of an Open Market Development Model makes it possible to implement a sustainable metropolis-wide, transportation upgrade. This model is designed for resilience to the economic disruption facing traditional sources of capital finance and operating revenue.