Risk and reward in public transport contracting

This paper synthesizes evidence from the workshop on risk and reward in public transport contracting. It broadens the usual risk/reward framework to encompass strategic/tactical level issues, identifying high level community goals as the ultimate risk/reward pay-off. The evolution of tactical level public transport planning is reviewed, noting considerable change in functional roles between purchaser and provider in some jurisdictions. No single “best” approach is evident but an emerging interest in relational contracting founded on trust is apparent. Risk allocation between purchaser and provider is considered, a key debate concerning the extent to which providers should be exposed to revenue risk.     

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.