Contracting for public transportation service

There is increasing interest in contracting to private industry for the provision of public transportation. The trend has accelerated since the mid 1970's spreading from local to regional transit authorities as the need for cost savings arise. Promising major savings without major service reductions, the merits of the strategy are now being evaluated at various levels. This paper focusses on the extent and magnitude of service contracting, the reasons why some agencies adopt the strategy, the nature and capability of the contractors and the actual performance of the arrangements.