INVOLVING PRIVATE ROUTE ASSOCIATIONS IN PUBLIC TRANSIT

Pressures on public transportation subsidy budgets at all levels of government in the U.S. have stimulated new interest in more competitive service provision as a means of reducing subsidy costs and improving service quality. In general, however, regulatory restrictions and subsidies to public agencies greatly limit opportunities for private companies to offer fixed-route services. To date, efforts to increase competition in fixed-route transit have been focused on contracting out for private management of publicly-owned transit agencies, or for "turnkey" operation of certain transit routes by private companies with their own vehicles and drivers. The private companies receiving these contract awards generally have been national management firms or large bus operators. Smaller local companies with just a few vehicles have found it difficult to compete for these awards because of the stringent conditions required by the subsidizing agencies. This paper recommends that opportunities be created in U.S. cities for private operator route associations, which would permit several smaller companies to participate in the provision of subsidized or unsubsidized public transportation along a major route or routes. This concept is common in developing countries, where numerous independent owner-operators and small companies form voluntary associations to guide the provision of profitable, high quality public transport in major cities. Inhibited in U.S. cities by long-standing regulatory barriers and institutional restrictions, such private associations offer considerable potential to help alleviate the high deficits and low productivity currently troubling major transit systems. Private route associations represent a promising, untapped option for policy-makers challenged with maintaining high quality public transportation services with limited transit subsidy dollars.

• Corporate Authors:

  Urban Institute

  2100 M Street, NW
  Washington, DC  United States  20037

  Urban Mass Transportation Administration

  Office of Budget and Policy, 400 7th Street, SW
  Washington, DC  United States  20590
• Authors:
  • Kirby, R F
• Publication Date: 1986-7

Media Info

• Features: References; Tables;
• Pagination: 26 p.

Subject/Index Terms

• TRT Terms: Bus transportation; Competition; Fixed routes; Private enterprise; Small business; Subsidies
• Uncontrolled Terms: Turnkey systems
• Old TRIS Terms: Route associations
• Subject Areas: Motor Carriers; Planning and Forecasting; Public Transportation;

Filing Info

• Accession Number: 00471489
• Record Type: Publication
• Report/Paper Numbers: Research Pap 3504-2
• Files: TRIS, USDOT
• Created Date: Jul 31 1987 12:00AM