Required Capabilities for Contracting out Tactical Level Decisions of Bus Transport to Private Operators

Document Type : Original Article

Authors

Abstract

Promoting people to use bus transport services leads to decrease using private cars and therefore decrease heavy traffic jam and air pollution. Promoting people to use the services needs to provide better services with lower cost. To achieve the goal, private operators must find innovative ways to provide the services. Providing the innovative services is not possible, unless the operators have freedom to make decision about tactical level decision (determining ticket rate and type, routes, vehicle type and timetables) besides operational level decisions. In other words, they design and operate the services themselves. Operator freedom leads to emerge challenges like lack of route integration that create the problems and decrease popularity of bus services. In this paper, the challenges are collected by using published case study reports of various cities and conducting semi structural interviews with bus transport experts. The root causes of them are found by more investigations in the literature and interviews. The results of the paper show that transferring the tactical level decisions to private operators successfully, transport authority as well as private operators should have some capabilities like, ability to control and monitoring and integrated information system. These capabilities are defined by using published case study reports and conducting interviews. Transaction between operators and transport authorities should be also simple and have an ability to codify into standards and codes simply. The definition of capabilities helps transport authorities to evaluate the required capability of the private operators and themselves to prevent the challenges before starting to transfer tactical level decisions to private operators.
 
 
 

Keywords


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-van de Velde, D.M., Beck, A., Van Elburg, J. C., Terschüren, K. H.  (2008), “Contracting in urban public transport”, European Commission, Brussel.
 
-Williamson, O. E., (1975), “Markets and hierarchies: Analysis and antitrust implications”, New York: Free Press.
Estache, A., Gómez-Lobo, A., (2005), “Limits to competition in urban bus services in developing countries”, Transport Reviews: A Transnational Transdisciplinary Journal, Vol. 25, No. 2.
 
-Farneti, F., Padovani, E., Young, D. W., (2010), “Governanace of outsourcing and contractual relationships”, In: Osborne, S., P., The New Public Governace? Routledge, New York, pp. 255-270.
 
-Gereffi, G., Humphrey, J., Sturgeon, T., (2005), “The governance of global value chains”, Review of International Political Economy, Vol. 12, No. 1, pp. 78-104.
 
-Inno-V, KCW, RebelGroup, NEA, TØI, SDG and TIS (2008), “Contracting in urban public transport”, European Commission – DG TREN, Brussels.
 
-IAOP (International Association of Outsourcing Professionals) (2010), “Outsourcing Professional Body of Knowledge”, Van Haren Publishing.
 
-Meligrana, J. F., (1999), “Toward Regional Transportation Governance: A case study of Greater Vancouver”, Transportation 26,
pp.359-380.
 
-Nakajima, T., (2007), “Privatization of Transit in Yokohama: Social and Financial Impacts”, MSc. Massachusetts Institute of Technology (MIT).
 
-O'Conner, R., (1991), “Going Private”, Mass Transit, Vol. XVIII.
 
-Sørensen, C.H., Gudmundsson, H., (2010), “The impact of governance modes on sustainable transport: the case of bus transport in Greater Manchester”, World Review of Intermodal Transportation Research, Vol. 3, No. ½, pp. 8-25.
 
-Stanford, L., (1992), “Competitive Tendering and Bus Services in Adelaide”, Government of South Australia.
-Tamaru, D., (2009), “Assessment of the public transportation policy in Adelaide, SA: especially the competitive tendering of bus services”, Japanese Institutional Repositories Online.
 
-van de Velde, D. M., Lutje Schipholt, L., Veeneman, W., (2005), “The Evolution of tactical Tendering in The Netherlands”, 9th Conference on Competition and Ownership in Land Passenger Transport, Lisbon (Portugal), 4-9 September 2005.
 
-van de Velde, D. M., Wallis, I., (2013), “Regulated deregulation of local bus services—an appraisal of international developments”, Research in Transportation Economics 39 (1), pp.21-33.
-Van de Velde, D.M. (1999), “Organisational forms and entrepreneurship in public transport: part 1: classifying organisational forms”, Transport Policy, Vol. 6, pp. 147–157.
 
-van de Velde, D.M., Beck, A., Van Elburg, J. C., Terschüren, K. H.  (2008), “Contracting in urban public transport”, European Commission, Brussel.
 
-Williamson, O. E., (1975), “Markets and hierarchies: Analysis and antitrust implications”, New York: Free Press.