lect03 - UK Experience with Bus Restructuring Outline 1. 2....

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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 3 1 UK Experience with Bus Restructuring Outline 1. Background 2. Bus Deregulation outside London 3. London strategy 4. Results to date 5. Edinburgh Case Study
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 3 2 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 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 3 3 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 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 3 4 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 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 3 5 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 1.259J/11.542J/ESD.227J, Fall 2006 Lecture 3 6 Public Transport Authority Reorganization As a transitional strategy, public transport authorities
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lect03 - UK Experience with Bus Restructuring Outline 1. 2....

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