Managing with declining resources

Urban public transport has had broad political appeal and escalating financial support since the late 1960s. The preference has been for public ownership and operation of services with only limited private sector involvement in the provision of services in a highly regulated environment. The financial standing of public transport coupled with the likelihood of a sustained period of fiscal restraint, perhaps even a decline in available resources, has created an imperative for change. This paper argues that broad‐based acknowledgment of the financial realities, clear definition of quantifiable objectives and increased authority and control for public transport management is required if public transport agencies are to meet the challenge. A new balance between service, ridership and revenue is required. Managing with declining resources will require a financial planning approach, separation of policy and planning from operations, removal of restrictions on user choice and operator competition and increased involvement of the private sector. Substantial changes in internal organization, procedures and structures and a cost‐effectiveness orientation will be necessary.