1. Public Private Partnerships for Improved Bus Service
Cliff Henke
NABI USA Sales and Marketing
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2. Topics of Discussion Public Private Partnerships Defined
Experience of US Bus Industry
Models in Rail, Other Countries
Prospects (Obstacles, Recomendations)
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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
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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
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5. USA Privatization
CAGR : 12%
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6. Forecast for 2002 (all modes): more than $3.8 billion
Regular route contracting in 30 of top 40 metro areas
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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
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8. Examples Elsewhere
Major privatization initiatives in Europe, Asia and Australia-New Zealand
Driven by budget pressures
Not only outsource contracts….
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9. Examples In UK Mostly unfettered privatization since 1985
Operations, capital covered by farebox
Outsource contracts mainly in London
“Quality partnerships” and “quality contracts”
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10. Quality Partnerships in UK
Examples all over country
Partnerships: agreements between operator and city/region
Contracts: Like franchises based on service levels; new
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11. Bradford Guided Bus Project
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)
Photos courtesy FirstGroup
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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.)
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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
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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
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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.
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16. Why incremental approach is best
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
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17. L.A. example: expand in stages
L.A. started with 2 lines in mixed traffic, then…
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18. Incremental approach Now expanding to 23 additional lines
Includes grade separated lines
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19. Thank you For more information www.nabiusa.com www.optare.com
NABI USA, Inc: Tel: (818) Sales Department Fax: (818)
11/21/2018