Risk and reward in public transportation contracting

The workshop discusses and documents a number of countries’ experiences regarding risk and reward in the delivery of public transport and determines the way in which competitive pressures actually work (or not) to deliver efficient and effective services. Papers are grouped into three main themes, i.e., public versus private management; negotiated versus competitively tendered contracts; and measures to improve performance. This chapter begins with a brief overview of each of the eight papers. This is followed by a section that out the discussions that emanated from the papers. Finally, the main policy and research recommendations are presented.     

Overview of public transport policy developments in South Africa

In South Africa, a restructuring of the public transport system is currently under way. In the bus industry the tender for contract system is being implemented, the commuter rail sector is being recapitalised and the minibus taxi industry recapitalization programme is in its early stages. Progress with policy implementation across the modes of transport, modal split trends and issues that hamper the full development of the public transport industry are discussed in this paper. Medium to long term policy and strategy initiatives that will further inform the development of the industry are also highlighted in this chapter.     

Utilization of passenger transport subsidy in Kolkata: A case study of Calcutta State Transport Corporation

The present study tries to see whether the subsidy given to CSTC, which is the oldest and the largest state transport corporation operating in and around Kolkata, is really being used to cover the losses they make over the years or to merely cover-up an inefficient performance. The state owned buses are required to serve, not only non-profitable routes in off-peak hours, but also to give social security or employment to a large section of society. The burden of carrying a huge staff structure and serving at an administered and less than competitive price for welfare reasons, makes CSTC liable to an operating loss. Therefore, it makes a case for subsidy. However, the regular commuters experience regarding the condition of and the services provided by these raises a question about the justification of subsidy. In the study it is seen that the subsidy given is not based on any of the components on which it should, economically.     

Hybrid urban transport systems in developing countries: Portents and prospects

Some South African cities have initiated public transport transformation projects which, in most cases, ultimately envisage the in toto replacement of paratransit operations with formalised BRT systems. There are two likely outcomes: (1) complex negotiations with existing operators and budget constraints will result in the in toto transformation occurring over an extended period of time; or (2) in toto transformation will simply not occur. In either case, cities will depend, for decades, on a ‘hybrid’ public transport system that combines both formal and paratransit operators. This paper presents a case for policy recognition of hybrid systems, and explores how such systems might best be managed. The following categories of hybrid public transport systems are explored through case studies: (1) transformative processes in which paratransit operators are to form or assimilate into companies to operate new services, but this incorporation has proved difficult to complete and the operational and regulatory frameworks remain unchanged; and (2) transformative processes that, from the outset, anticipated a hybrid system and designed the outcome accordingly. A third category of hybrid transport systems, defined as transformative processes that have been amended following a realisation that in toto transformation is unattainable, is also introduced and discussed. The paper concludes by tentatively drawing lessons for appropriate public transport regulation, particularly with respect to Cape Town's transformation project. It is argued that a review of the current national regulatory framework is required to enable possible project modifications that acknowledge system hybridity. It is suggested that regulatory frameworks that accommodate the likely hybrid nature of public transport system outcomes have greater prospects of success than frameworks that do not. Furthermore, it is argued that contextually appropriate and successful public transport transformation projects do not necessarily require the in toto substitution of incumbent paratransit operators, and that they can be integrated with, and complement, formal services.     

Engaging the paratransit sector in Cape Town on public transport reform: Progress,process and risks

The South African government in 2006 initiated an urban public transport reform programme reliant on the introduction of new bus rapid transit (BRT) systems. Affected paratransit operators can opt to be incorporated in these systems by forming new operating companies, but must withdraw their existing services from proposed routes. Cape Town's first phase of BRT operations came online in 2011, and operator engagement has focussed on this phase. The attitudes within this city's paratransit sector in relation to future phases, and to the broader reform policy, remain largely untested. In view of this sector's past resistance to government-led proposals, and the current phase avoiding areas with the highest concentrations of operators, the current engagement process's outcomes may not be adequate indicators of future prospects.     

Engaging paratransit on public transport reform initiatives in South Africa: A critique of policy and an investigation of appropriate engagement approaches

A number of South African cities are planning integrated public transport networks that rely on the introduction of Bus Rapid Transit (BRT), in line with similar trends to expand or upgrade public transport services in emerging and industrialised urban transport markets around the globe. In addition, BRT in South Africa is being used as a mechanism to drive reform in the dominant yet highly fragmented paratransit sector, inspired by similar processes particularly in Latin American cities such as Bogotá, Mexico City, and Santiago de Chile. Thousands of paratransit operators would have to formalise their businesses, or merge into new or existing operator entities in order to participate in the new systems. There is, however, an absence of accessible business plans and regulatory regime proposals around which paratransit can be engaged to convince it to alter its current modus operandi. A large number of national, regional and local paratransit groupings have furthermore indicated their resistance to the planned networks on the grounds of insufficient consultation, an unclear future role in the system and employee redundancies. Should this deadlock not be resolved, it seems unlikely that the planned networks will be realised in the proposed timeframes, if indeed at all. This paper investigates the South African passenger transport policy framework that has contributed to the current deadlock, and explores appropriate approaches to engaging paratransit operators on a system of contracting, competition and ownership that recognises the sector’s aspirations and fragmented nature, yet contributes towards improved passenger transport services. It is the authors’ view that paratransit reform is a highly context-specific process, even at the sub-city level, and that this could prevent transferring paratransit regulatory and integration approaches across countries, and even cities in the same country, without adaptation to local conditions.     

The impact of the application of new technology on public transport service provision and the passenger experience: A focus on implementation in Australia

The emergence of Intelligent Transport Systems (ITS) has been recognised with many initiatives during the last 20 years. In Europe, the “ITS Action Plan” identifies a number of applications as key elements contributing to the efficient co-ordination of the overall transport chain. The context and experience surrounding the recent widespread development of technological tools and ICT platforms to support the emergence of ITS are notable for the way in which they permeate the transport and logistics chain. But a key question remains: to what extent is the public transport sector able to exploit the wider benefits of ITS?