By Kari Williamson

Water, transport and energy utilities and networks supply stable cash flows compared to market returns. For the past decade, energy and ports have been providing the best cash-based returns in Finland.

The study carried out by VTT Technical Research Centre of Finland, Aalto University and University of Oulu investigated the ownership and governance structure of Finnish infrastructure networks and utilities. A part of the research focused on investors' and owners' returns. The study covered water supply, roads, streets, ports, airports, railways and energy networks.

The best sectors were energy with its average annual cash-based return of 13% for the invested total capital and ports with about 10% average annual return.

Traditional public entities had the best cash-based returns to their owners. Municipal ports exceeded with about 4%-units the returns provided by municipal limited liability companies for the period of analysis. Difference of same magnitude was identified with waterworks.