It was recently released the study of the Working Group on High Value Added Infrastructures (GTIEVA), created by the Government to “prioritize” large investments in the transport sector.
Before making considerations about the output of this study, it is worth mentioning the resumption of a process of prior assessment of large projects from a national perspective.
It is a fact that the set of projects considered refers only to large transport infrastructure. But, taking into account the high amount of investment encompassing 30 projects, from an initial set of 89 (with a value of more than 5 billion euros), the political and financial delicacy that is present in the options reinforces the interest in the analysis of the choice process.
This analysis highlights the strategic perspective of assuming Portugal as an international intermodal platform, which is important for the future development of the country.
It is also worth mentioning the clear option for maritime-port logistics and for the rail transport, namely of goods. Of course, we are still at the proposal stage and it will be interesting to observe the ability of this option to assert itself, given the inevitable pressure of interests linked to the automobile and road infrastructure sectors.
The multi-criteria evaluation that was used favored the microeconomic dimension, taking into account the concern to ensure realistic financing by the private sector and community funds.
It should, however, be noted that, in this assessment, there is a lack of a macroeconomic dimension, including the effects on the development of the territory. At a time when economic growth and the preservation of social and territorial cohesion must be priorities, the assessment must be complemented by a cost-benefit analysis that assesses the contribution of projects to GDP and employment, including the most qualified.
Although this type of project seems to be far from territorial continuity, this is not necessarily true, as we are facing an important change in the conditions for the territory's competitiveness. In this sense, this dimension must also be properly evaluated.
In the specific case of the Algarve, the focus of these projects on the development of the territory's qualification and the well-being of people is of particular interest, if one wants to bet on the diversification and structural strengthening of the regional economy.
The option for maritime transport is important for the export of goods and for an important segment of tourism (cruises).
On the other hand, the improvement of rail transport could allow the Algarve to have an integrated public transport system (which includes train, bus, own vehicle, including bicycle).
The reference to the Loulé cargo terminal is also an asset to include the region in the transport of goods with connection to the rest of Europe and to the national deep-water ports, such as Sines and Setúbal.
From here the issue is politics. Will policy makers in the Algarve, including municipalities through the Intermunicipal Community, be available to take up this option?
The development of the next chapters on this subject, including the community funding model, will be a relevant test to assess the quality (and strength) of the Algarve's political decision.
Author Adriano Pimpão
Member of the National Board of the Order of Economists
Member of the Economic and Social Council
Full Professor Emeritus at the University of Algarve
Nota1: The Working Group for High Added Value Infrastructures (GT IEVA), responsible for the list of priority infrastructures, will be em Faro, on the 28th, Friday, at 10:00 am, for a public session presentation and debate of this plan.
NOTE2: Article published under the established protocol between the Sul Informação and the Algarve Regional Delegation of Order of Economists.
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