Competitive Tendering for Urban Bus Services—Cost Impacts: International Experience and Issues

The “competition for the market” regulatory approach to the provision of urban public services has become increasingly widespread internationally over the last 10-20 years, particularly as a means of reducing costs of services previously supplied by monopoly public operators. Under this approach, competitive tendering (CT) is commonly used as a method by which the exclusive rights to provide a service are awarded. The CT process is intended to ensure that the services are provided at competitive (market determined) prices. CT has been increasingly adopted in sectors other than public transport, as a means of procuring public services previously provided directly by governments. This paper reviews the international experience with the adoption of CT for the procurement of urban bus services in developed countries and the impacts on the cost of service provision in both the short term (when CT replaces previous monopoly provision) and subsequently (when services are rendered). The paper concludes by outlining some of the strength and weaknesses of CT as an ongoing tool, compared with alternative “competition for the market” procurement methods.

Language

  • English

Media Info

  • Media Type: Print
  • Edition: First Edition
  • Features: Appendices; Figures; References; Tables;
  • Pagination: pp 453-488
  • Monograph Title: Competition and Ownership in Land Transport Passenger Transport

Subject/Index Terms

Filing Info

  • Accession Number: 01051395
  • Record Type: Publication
  • ISBN: 9780080450957
  • Files: TRIS
  • Created Date: Jun 11 2007 9:43AM