MIT1_258JS10_lec04_prep

MIT1_258JS10_lec04_prep - PUBLIC TRANSPORT ORGANIZATIONAL...

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PUBLIC TRANSPORT ORGANIZATIONAL MODELS: ROLES FOR THE PUBLIC and PRIVATE SECTORS Outline • Organizational Models • UK Bus Industry Experience • US Transit Industry • Prospects for the future ublic/Private Roles in Rail Systems Public/Private Roles in Rail Systems
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Transit vs Other Modes Key differences between urban public transport and examples of fairly recent US deregulation: US transit has been operated by public sector for past 30- 40 years US transit has been operated at a deficit for past 30-40 years 1.201, Lecture 19 Fall 2009 2
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US vs Europe US has been the leader in deregulation outside transit UK, and now Europe, the leader in restructuring transit organizations 1.201, Lecture 19 Fall 2009 3
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Organizational Models Unregulated/Deregulated Regulated Competition Threatened Competition Private Monopoly ublic Monopoly Public Monopoly Contracting Out 1.201, Lecture 19 Fall 2009 4
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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 F U N Planning PR PU & PR PU & PR PR & PU PU PU Ownership PR PR PR PR PU PR (or PU) C T Operation PR PR PR PR PU PR Maintenance PR PR PR PR PU PR I O N S * The model is regulated in the form of contracts U: Public Sector; PR: Private Sector PU: Public Sector; PR: Private Sector . 1.201, Lecture 19 Fall 2009 5
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UK Experience with Bus Industry Restructuring Background Bus Deregulation outside London London strategy gy Results to date 1.201, Lecture 19 Fall 2009 6
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Background • Prior to mid-1980s, UK local bus industry broadly comparable to US transit industry: •p u blic ownership at local level • heavily subsidized slowly declining ridership • little innovation in technology, service, or management ttle responsiveness to public needs or concerns little responsiveness to public needs or concerns • Buses played a larger role than in US because of lower car ownership levels and higher car operating costs 1.201, Lecture 19 Fall 2009 7
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Bus Deregulation Outside London (1986) Basic premises behind bus deregulation: • deregulation would produce a competitive market • competition would substantially reduce costs •a c o m petitive market would improve resource allocation • there would be no significant negative side effects 1.201, Lecture 19 Fall 2009 8
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Basic Elements of UK Bus Deregulation us markets were divided between commercial and non Bus markets were divided between commercial and non- commercial, with the following definitions and rules for each: ommercial Commercial Defined as any service that an operator is prepared to offer with the only government support being • concessionary fares reimbursement • fuel tax rebate ervices are registered including the route and timetable Services are registered including the route and timetable, and 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” 1.201, Lecture 19 Fall 2009 9
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This note was uploaded on 12/06/2011 for the course ESD 11.380j taught by Professor Fredsalvucci during the Fall '02 term at MIT.

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MIT1_258JS10_lec04_prep - PUBLIC TRANSPORT ORGANIZATIONAL...

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