lect04fs

lect04fs - Summary of Experiences in the Introduction of...

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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 1 Lecture 4, F.P. Salvucci Summary of Experiences in the Introduction of Contracting with the Private Sector and Competition in the Production of Public Transportation Services
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 2 Lecture 4, F.P. Salvucci IM B T A II Restructuring of commuter rail and urban rapid transit services in Buenos Aires, Argentina, to introduce contracting with the private sector in the delivery of service, 1992-2000 III Development of "Tren Urbano", a "new start" urban rail transit service in San Juan, Puerto Rico through a hybrid design-build-operate-maintain/design-build competitive procurement, 1993-2000 IV Lessons learned overall Outline
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 3 Lecture 4, F.P. Salvucci A) Introduction of multi-year contracts in the delivery of commuter rail services, 1975-2000 B) Introduction of competition in the delivery of train- and station- cleaning services, 1980-2000 C) Introduction of competition in the delivery of suburban commuter bus services, 1983-2000 D) Introduction of competition in the delivery of paratransit services for the elderly and disabled customers, 1984-2000 E) Contracting for commuter boat services from Hingham to Boston F) Contracting for installation and maintenance of new signaling system for the orange line, 1986-1996. IM B T A
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 4 Lecture 4, F.P. Salvucci I-A MBTA Commuter Rail 1) 1975 context a) Long-term worsening of service on private monopoly commuter rail services, operating on one-year subsidy contracts b) strong policy desire to improve service c) strong union environment 2) Approach a) Purchase of track and vehicles by public authority b) Residual right-to-operate cargo service remained with private railroad c) Major public investment in track and new vehicles d) Contract to operate and maintain rail service back to original private entity with power to re-bid after five years, at option of public authority e) cost to operate and maintain basis of contract, fare collection by public authority f) Fare policy and schedule set by public authority
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 5 Lecture 4, F.P. Salvucci I-A MBTA Commuter Rail (cont'd) 3) Results - initial a) Positive: improved service, ridership, stability of cost, multi-year management b) Crisis with Conrail proposed cost increase, resolution by changing contractor to B&M, showed value of competition in avoiding extortionate costs. 4) Results: Longer term a) 1988-89 change in B&M management philosophy, labor disputes, degradation of service. b) Re-bid with poor market response c) Amtrack contract: better than new B&M but less good than original. d) 1999 re-bid vehicle maintenance attempt failed because of labor, political opposition e) Operating contract future uncertain
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Nigel H.M. Wilson 1.259J/11.542J/ESD.227J, Fall 2006 6 Lecture 4, F.P. Salvucci I-A MBTA Commuter Rail (cont'd) 5) Lessons learned a) Inherent benefits of long-term contract.
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lect04fs - Summary of Experiences in the Introduction of...

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