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  • Dear Readers!

    2018 has been an extraordinary year for our group. There have been some great business opportunities around – in the area of recycling as well as in the global market for mobility, both in the private and public transport sector. We have been able to make the most of these opportunities by taking steps to acquire DSD (Duales System Deutschland GmbH) – as has the RETHMANN Group, which is intending to purchase shares in Transdev, a leading global operator of mobility solutions based in France. Both transactions must still be approved by the rele-vant authorities.

    As an operator and global integrator of mobility solutions, Transdev – “the mobility company” – provides eleven million passenger trips every day, connecting people and places with its efficient and environmentally friendly transport services. Transdev advises and collaborates with public authorities and private sector firms providing sustainable, safe and innovative transport solutions.

    82,000 employees serve the company’s customers and passengers in 20 countries. In 2017, it generated a turnover of 6.6 billion euros. Transdev’s operations, however, not only include trains, trams and buses. People using the ferries in Sydney to get across Sydney Harbour are also Transdev’s customers. And the company’s portfolio also has cable car networks and auto-mated minibuses. With Transdev being so important for our family-run company, it makes absolute sense for the mobility group to become the RETHMANN Group’s fourth main field of business alongside REMONDIS, Rhenus and SARIA.

    This past year has been one of the driest since records began in Germany. This has, on the one hand, led to the water levels of our rivers being much lower than normal – quite possibly the lowest levels ever – causing huge problems for inland shipping companies and their customers. On the other, it has once again turned the spotlight on the subjects of climate change and resource conservation. The Vatican is also worried about “our Common Home”. Pope Francis made it clear just how worried he is when he wrote his “Laudato si’” encyclical. REMONDIS joined a number of other family business owners to attend the first Roman Forum, which was held in the Holy City and organised by the BDE [Federal Association of the German Waste Management Industry]. During the event, the participants had a moving meeting with the Holy Father who was impressed by the initiatives of these privately run businesses to promote sustainability.

    Talking about sustainability: Meyer Werft, a shipbuilding business in Papenburg, is also focusing on sustainable production activities – and on building environmentally friendly ships having recently launched its first gas-fuelled cruise ship. This traditional company is also being supported by REMONDIS. Heading for new shores together, so to speak.

    May we take this opportunity to thank you for your great support and collaboration over the last twelve months and wish you a Merry Christmas and a happy, healthy and successful New Year.

    Ihr Ludger Rethmann

Examples of the public & private sectors working together successfully

Prof. Michael Schäfer is well known for his belief that the public sector should provide the services its local inhabitants need – especially essential public services. He and Ludger Rethmann have now got together to write a book on the subject of public private partnerships (PPPs). Among other things, this project aims to show how public and private sector companies can, in the majority of cases, collaborate successfully. According to Prof. Schäfer, who specialises in public sector economics, PPPs are by no means a long list of flops and failures. In the following interview, he describes how the public and private sectors can work together.

Interview

Have you changed your opinion about whether the private sector should provide public services or not?

Prof. Schäfer: Having the private sector help provide public services is a must. Joint venture businesses owned by both public and private sector companies play a major role here. I would always argue that the local authorities should have a majority share in any joint venture, i.e. at least 51%. This has always been my opinion ever since I began thinking about this issue. The principle behind this train of thought is that whoever is responsible for the services – and this is always the local authorities – should also have a say in how the services are provided.

What role will the private sector play then in providing public services over the long term?

Prof. Schäfer: The list of public sector services that need to be provided is dynamic. The new services being added to the list, such as supplying broadband, requires specialist levels of know-how. Such requirements can be found across the board – from energy, to waste management, to water. If public sector companies wish to retain their trademark of being close to their local inhabitants – and this will become ever more important as digitisation increases – then they will have to considerably step up their collaboration work. Among each other, just as with the private sector. For the most part, the private sector has very high levels of specialist know-how which is essential to be able to provide high quality public services. Public sector companies – especially the smaller ones – generally don’t have full access to such expertise. For example, I simply cannot picture the public sector being able to create a perfect circular economy without having public private partnerships.

What do you hope this collaborative book will achieve over the long term?

Prof. Schäfer: Public sector companies exist in a world shaped and characterised by private ownership. Which is why having the public and private sectors working together is an objective requirement. This, in turn, means everyone has to take off their ideological blinkers. If the different parties’ interests can be balanced out to create mutual advantages and if transparency is maintained at all levels and at all times, then cooperation work between the two sectors can be beneficial for both sides – and last for a very long period of time. This needs to be discussed pragmatically and objectively. We wish to promote such a culture.

  • Prof. Michael Schäfer

    Professor Michael Schäfer was born in Weimar in 1952 and taught Public Sector Economics at the Eberswalde University for Sustainable Development until 2018. He set up the first and only MSc course in Public Sector Economics in Germany. He is also the publisher of the magazine, UNTERNEHMERIN KOMMUNE [Entrepreneurship in local authorities], and wrote the first ever standard reference book in Germany for public sector economics.

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