TRANSIT PRIVATIZATION IN DENVER: EXPERIENCE IN THE SECOND YEAR

The performance of the Denver Regional Transportation District (RTD) and its contractors during the second year of privatization, July 1, 1990, through June 30, 1991, is described. Cost, profitability, safety, quality of service, and contractor compliance experience is updated from previously published results from the first year. In addition, new findings are discussed regarding the source of savings, maintenance inspections, and bus operator wages and turnover. On the basis of actual cost history, a short-term incremental analysis demonstrated a savings of $2.5 million, or 12.5%. On a long-term fully allocated basis, the savings were estimated at 25.8% without depreciation and 31.0% with depreciation. The contractors' profitability was approximately 2.4%, measured as revenues over expenses. In terms of bodily injury and property damage accidents, on-time performance, maintenance reliability, and complaints and commendations, there was no consistent difference between the performance of RTD and that of the contractors. More than half of the savings in actual operating costs was due to the lower wages and fringe benefits paid by the contractors. Whereas the contractors experienced higher bus operator turnover as a result, there was no indication that safety and quality of service were affected. The contractors' rate of operator terminations for cause and resignation was similar to that of RTD. The contractors' lean maintenance staffing may be the cause of observed instances of maintenance deficiencies.

• Record URL:
  http://onlinepubs.trb.org/Onlinepubs/trr/1993/1402/1402-003.pdf
• Record URL:
  https://scholar.google.com/scholar_lookup?title=TRANSIT+PRIVATIZATION+IN+DENVER%3A+EXPERIENCE+IN+THE+SECOND+YEAR&author=R.+Peskin&author=S.+Mundle&author=P.+Varma&publication_year=1993
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/03611981
• Supplemental Notes:
  • This paper appears in Transportation Research Record No. 1402, Public Transit: Current Research in Planning, Marketing, Operations, and Technology. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved
• Authors:
  • Peskin, Robert L
  • Mundle, Subhash R
  • Varma, P K
• Publication Date: 1993

Language

• English

Media Info

• Features: Figures; References;
• Pagination: p. 17-24
• Monograph Title: Public transit: current research in planning, marketing, operations, and technology
• Serial:
  • Transportation Research Record
  • Issue Number: 1402
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Bus drivers; Compliance; Contractors; Costs; Inspection; Performance evaluations; Privatization; Profitability; Quality of service; Safety; Savings; Turnover; Wages
• Geographic Terms: Denver (Colorado)
• Old TRIS Terms: Regional transportation district
• Subject Areas: Finance; Highways; Public Transportation; Safety and Human Factors;

Filing Info

• Accession Number: 00641359
• Record Type: Publication
• Files: TRIS, TRB
• Created Date: Jan 5 1994 12:00AM