lect20 - PUBLIC TRANSPORT ORGANIZATIONAL MODELS: ROLES FOR...

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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 1 PUBLIC TRANSPORT ORGANIZATIONAL MODELS: ROLES FOR THE PUBLIC and PRIVATE SECTORS Outline Organizational Models UK Bus Experience US Transit Industry Rail Examples Prospects for the future
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 2 Organizational Models Unregulated/Deregulated Regulated Competition Threatened Competition Private Monopoly Public Monopoly Contracting Out
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 3 Six Organizational Models MODELS Unregulated Regulated Competition Threatened Competition Private Monopoly Public Monopoly Contracting Out Regulation Minimum Yes Yes* Yes Yes Yes* Financing PR PR PR PR PU PR Planning PR PU PU Ownership PR PR PR PR PU PR (or PU) Operation PR PR PR PR PU PR Maintenance PR PR PR PR PU PR * The model is regulated in the form of contracts. PU: Public Sector; PR: Private Sector F U N C T I O N S
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 4 UK Experience with Bus Restructuring Background Bus Deregulation outside London London strategy Results to date
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 5 Background Prior to mid-1980s, UK local bus industry broadly comparable to US transit industry: public ownership at local level heavily subsidized slowly declining ridership little innovation in technology, service, or management little responsiveness to public needs or concerns Buses played a larger role than in US because of lower car ownership levels and higher operating costs
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 6 Bus Deregulation Outside London (1986) Basic premises behind bus deregulation: deregulation would produce a competitive market competition would substantially reduce costs a competitive market would improve resource allocation there would be no significant negative side effects
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 7 Basic Elements of UK Bus Deregulation Bus markets were divided between commercial and non-commercial, with the following definitions and rules for each: Commercial Defined as any service that an operator is prepared to offer with the only government support being: -- concessionary fares reimbursement -- fuel taxes rebate
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 8 Basic Elements of UK Bus Deregulation Commercial (cont’d) Services are registered including the route and timetable, and changes become effective after 6 weeks notice Fares can be changed with no prior notice Unrestricted entry and exit from the market Known as "Competition In the Market” Non-Commercial •S ervices which are not registered as commercial, but needed for social reasons as identified by local authorities Awarded to a private sector operator after a competitive bidding process for a period of (typically) three years
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Nigel H.M. Wilson 1.201, Lecture 20 Fall 2006 9 Public Transport Authority Reorganization
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lect20 - PUBLIC TRANSPORT ORGANIZATIONAL MODELS: ROLES FOR...

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