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Public Private Partnerships for Improved Bus Service

Explore the benefits and challenges of public-private partnerships in the US bus industry, with a focus on models in rail and other countries. Gain insights into the growth of privatization and discover recommendations for improving transit service.

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Public Private Partnerships for Improved Bus Service

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  1. Public Private Partnerships for Improved Bus Service Cliff Henke NABI USA Sales and Marketing

  2. Topics of Discussion • Public Private Partnerships Defined • Experience of US Bus Industry • Models in Rail, Other Countries • Prospects (Obstacles, Recomendations)

  3. What is a “public-private partnership”? • Any agreement involving the public sector (government entity or compact) and the private sector (company, organization or consortium) that improves transit service. • Examples: • Service contract • “Quality partnership” • Turnkey contracts • Coordinated Service MOU • Shared facility agreement • Franchise/Concession

  4. Experience in USA • Primarily service contracting since 1960s • Other techniques used less often in U.S • Recently turnkey contracts in rail • Privatization is growing

  5. USA Privatization CAGR 1980-2000: 12%

  6. Forecast for 2002 (all modes): more than $3.8 billion $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Regular route contracting in 30 of top 40 metro areas

  7. USA Privatization • Now more than 12% of total US transit operations • Began and catalyzed by demand-response • Spread to regular-route bus, commuter rail in 1980s and 90s • 35% of Denver RTD is contracted

  8. Examples Elsewhere • Major privatization initiatives in Europe, Asia and Australia-New Zealand • Driven by budget pressures • Not only outsource contracts….

  9. Examples In UK • Mostly unfettered privatization since 1985 • Operations, capital covered by farebox • Outsource contracts mainly in London • “Quality partnerships” and “quality contracts”

  10. Quality Partnerships in UK • Examples all over country • Partnerships: agreements between operator and city/region • Contracts: Like franchises based on service levels; new

  11. 3rd Guided Bus City in UK 3.7 km length exclusive busway (2.3 km guided) $17.6 million project cost $1.5 million by private operator, plus new buses Opened January 2002 Future: real-time passenger info (using GPS) Bradford Guided Bus Project Photos courtesy FirstGroup

  12. Rail Examples • Rule, not exception in rest of world • Examples in all types of rail (even metro) • Usually consortia • Various types of turnkey contracts (DB, DBOM, DBOM&F, BOT, BTO, BLT, etc. etc.)

  13. Light Rail In Croydon • 18 mile system in London inner suburbs • $300 million over 30 year period—total • Only $200m in gov’t funds • Consortium for concept and tender specs • Bigger DBOM&F consortium

  14. One Man’s Vision… • US can adopt turnkey model for BRT: • Design/build construction for infrastructure • Operations by private sector • Even some project finance available • Turnkey projects in: • Baltimore • New Jersey (2) • San Juan • San Francisco BART

  15. Prospects for USA Bus Service • Legal barriers to design-build, contracting (13(c)?) • Union pressures • Attitudinal and institutional barriers? • Plenty of innovative private finance instruments available Author’s message: if it can be done in unionized, socialist France and Sweden, it can be done in U.S.

  16. Vehicles need not be expensive or complicated to be attractive Most investment should be ‘offboard’ at least initially: Signal priority Passenger information Attractive amenities Strong branding Why incremental approach is best

  17. L.A. example: expand in stages • L.A. started with 2 lines in mixed traffic, then…

  18. Incremental approach • Now expanding to 23 additional lines • Includes grade separated lines

  19. Thank you For more informationwww.nabiusa.com www.optare.com NABI USA, Inc: Tel: (818) 610 0970Sales Department Fax: (818) 610 0335

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