On the buses: the benefits of private sector involvement in the delivery of bus services

There is strong evidence from Australia and internationally that the private sector can deliver bus services more cost effectively than government operators. Around the world unit costs savings on transition from public to private operations have ranged from 20 per cent to as high as 55 per cent. Typical areas of greater efficiency include improved staff productivity, greater labour flexibility, better asset utilisation, more efficient procurement and leaner head office structures. To retain these benefits and ensure bus contracts offer value for money, it is important that contracts are retendered on a regular basis (at least once every six to eight years) and that the retendering process ensures effective contestability. In terms of innovation and service delivery, the private sector tends to have greater incentive to innovate and exceed performance benchmarks than government-owned operators, due to the risk of losing their contracts as well as continuous monitoring of performance against clear criteria.

Language

  • English

Media Info

  • Pagination: 31p

Subject/Index Terms

Filing Info

  • Accession Number: 01593984
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ATRI
  • Created Date: Mar 21 2016 11:47AM