IDEAS home Printed from https://ideas.repec.org/a/eee/retrec/v22y2008i1p20-25.html
   My bibliography  Save this article

Risk and reward in public transport contracting

Author

Listed:
  • Stanley, John
  • van de Velde, Didier

Abstract

This paper synthesizes evidence from the workshop on risk and reward in public transport contracting. It broadens the usual risk/reward framework to encompass strategic/tactical level issues, identifying high level community goals as the ultimate risk/reward pay-off. The evolution of tactical level public transport planning is reviewed, noting considerable change in functional roles between purchaser and provider in some jurisdictions. No single "best" approach is evident but an emerging interest in relational contracting founded on trust is apparent. Risk allocation between purchaser and provider is considered, a key debate concerning the extent to which providers should be exposed to revenue risk.

Suggested Citation

  • Stanley, John & van de Velde, Didier, 2008. "Risk and reward in public transport contracting," Research in Transportation Economics, Elsevier, vol. 22(1), pages 20-25, January.
    • Handle: RePEc:eee:retrec:v:22:y:2008:i:1:p:20-25
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0739-8859(08)00007-3
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David A. Hensher & Anne Yvrande‐Billon & Rosário Macário & John Preston & Peter White & Bill Tyson & D. M. Van de Velde & Bert van Wee & Joaquim José Guilherme de Aragão & Enilson Medeiros dos Santos , 2007. "Delivering Value for Money to Government through Efficient and Effective Public Transit Service Continuity: Some Thoughts," Transport Reviews, Taylor & Francis Journals, vol. 27(4), pages 411-448, July.
    2. Stanley, John & Hensher, David A., 2008. "Delivering trusting partnerships for route bus services: A Melbourne case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(10), pages 1295-1301, December.
    3. van de Velde, D. M., 1999. "Organisational forms and entrepreneurship in public transport: classifying organisational forms," Transport Policy, Elsevier, vol. 6(3), pages 147-157, July.
    4. Vickerman, Roger, 2008. "Provision of public transport under conflicting regulatory regimes," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1176-1182, November.
    5. Hensher, David A. & Stanley, John, 2003. "Performance-based quality contracts in bus service provision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(6), pages 519-538, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthias Aistleitner & Christian Grimm & Jakob Kapeller, 2018. "Auftragsvergabe, Leistungsqualitaet und Kostenintensitaet im Schienenpersonenverkehr. Eine internationale Perspektive," ICAE Working Papers 86, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    2. Wallis, Ian & Bray, David & Webster, Heather, 2010. "To competitively tender or to negotiate - Weighing up the choices in a mature market," Research in Transportation Economics, Elsevier, vol. 29(1), pages 89-98.
    3. Wretstrand, Anders & Holmberg, Bengt & Berntman, Monica, 2014. "Safety as a key performance indicator: Creating a safety culture for enhanced passenger safety, comfort, and accessibility," Research in Transportation Economics, Elsevier, vol. 48(C), pages 109-115.
    4. Tiznado, Ignacio & Galilea, Patricia & Delgado, Felipe & Niehaus, Markus, 2014. "Incentive schemes for bus drivers: The case of the public transit system in Santiago, Chile," Research in Transportation Economics, Elsevier, vol. 48(C), pages 77-83.
    5. Bray, David & Mulley, Corinne, 2013. "Workshop 4: Designing contracts/concessions: What has worked and what has not and why?," Research in Transportation Economics, Elsevier, vol. 39(1), pages 226-231.
    6. John Stanley, 2011. "Public Transport Liberalization: Achievements and Future Directions," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 16, Edward Elgar Publishing.
    7. Stanley, John & Longva, Frode, 2010. "Workshop report - A successful contractual setting," Research in Transportation Economics, Elsevier, vol. 29(1), pages 80-88.
    8. Camén, Carolina & Tsaxiri, Panagiota & Aldenius, Malin & Lidestam, Helene, 2020. "Flexibility in contract design - is that possible?," Research in Transportation Economics, Elsevier, vol. 83(C).
    9. Wong, Yale Z. & Hensher, David A., 2018. "The Thredbo story: A journey of competition and ownership in land passenger transport," Research in Transportation Economics, Elsevier, vol. 69(C), pages 9-22.
    10. Canıtez, Fatih & Çelebi, Dilay & Deveci, Muhammet & Kuvvetli, Yusuf, 2019. "Selecting an optimal contractual payment model for Istanbul's public bus operators using non-linear mathematical programming," Research in Transportation Economics, Elsevier, vol. 76(C).
    11. Pyddoke, Roger & Lindgren, Hanna, 2018. "Outcomes from new contracts with “strong” incentives for increasing ridership in bus transport in Stockholm," Research in Transportation Economics, Elsevier, vol. 69(C), pages 197-206.
    12. Hrelja, Robert & Rye, Tom & Mullen, Caroline, 2018. "Partnerships between operators and public transport authorities. Working practices in relational contracting and collaborative partnerships," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 327-338.
    13. Pyddoke, Roger, 2020. "Penalties as incentives for punctuality and regularity in tendered Swedish public transport," Research in Transportation Economics, Elsevier, vol. 83(C).
    14. Odeck, James & Høyem, Harald, 2021. "The impact of competitive tendering on operational costs and market concentration in public transport: The Norwegian car ferry services," Research in Transportation Economics, Elsevier, vol. 90(C).
    15. Epstein, Bryan & Givoni, Moshe, 2016. "Analyzing the gap between the QOS demanded by PT users and QOS supplied by service operators," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 622-637.
    16. Filippini, M. & Koller, M. & Masiero, G., 2015. "Competitive tendering versus performance-based negotiation in Swiss public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 158-168.
    17. Rolim, Fernando & Brasileiro, Anísio & Santos, Enilson, 2010. "Competition in Brazilian bus and coach services - The results of recent competitive tendering processes," Research in Transportation Economics, Elsevier, vol. 29(1), pages 45-51.
    18. Pyddoke, Roger & Thoresson, Karin, 2023. "Has collaboration contributed to goal achievement in Swedish public transport?," Research in Transportation Economics, Elsevier, vol. 99(C).
    19. Walters, Jackie, 2018. "Potential cost implications of contracting risks – the views of bus operators in South Africa," Research in Transportation Economics, Elsevier, vol. 69(C), pages 235-244.
    20. Andrés Gómez-Lobo & Julio Briones, 2014. "Incentives in Bus Concession Contracts: A Review of Several Experiences in Latin America," Transport Reviews, Taylor & Francis Journals, vol. 34(2), pages 246-265, March.
    21. Rye, Tom & Hrelja, Robert & Monios, Jason & McTigue, Clare, 2021. "Partnership or franchising to improve bus services in two major English urban regions? An institutional analysis," Transport Policy, Elsevier, vol. 114(C), pages 59-67.
    22. Walters, Jackie, 2020. "Understanding bidder behaviour: The case of the Mamelodi contract," Research in Transportation Economics, Elsevier, vol. 83(C).
    23. Merkert, Rico & Hensher, David A., 2013. "Regulation, trust and contractual incentives around transport contracts – Is there anything bus operators can learn from public air service contracts?," Research in Transportation Economics, Elsevier, vol. 39(1), pages 67-78.
    24. Hensher, David A., 2010. "Incompleteness and clarity in bus contracts: Identifying the nature of the ex ante and ex post perceptual divide," Research in Transportation Economics, Elsevier, vol. 29(1), pages 106-117.
    25. Veeneman, Wijnand, 2010. "Changing public transport governance in Dutch metropoles: To tender or not to tender," Research in Transportation Economics, Elsevier, vol. 29(1), pages 195-203.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stanley, John K., 2010. "Goal achievement with trusting partnerships at the tactical level," Research in Transportation Economics, Elsevier, vol. 29(1), pages 99-105.
    2. John Stanley, 2011. "Public Transport Liberalization: Achievements and Future Directions," Chapters, in: Matthias Finger & Rolf W. Künneke (ed.), International Handbook of Network Industries, chapter 16, Edward Elgar Publishing.
    3. Nayan, Ashish & Wang, David Z.W., 2017. "Optimal bus transit route packaging in a privatized contracting regime," Transportation Research Part A: Policy and Practice, Elsevier, vol. 97(C), pages 146-157.
    4. Epstein, Bryan & Givoni, Moshe, 2016. "Analyzing the gap between the QOS demanded by PT users and QOS supplied by service operators," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 622-637.
    5. Stanley, John & Hensher, David A., 2008. "Delivering trusting partnerships for route bus services: A Melbourne case study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(10), pages 1295-1301, December.
    6. Veeneman, Wijnand, 2010. "Changing public transport governance in Dutch metropoles: To tender or not to tender," Research in Transportation Economics, Elsevier, vol. 29(1), pages 195-203.
    7. Hensher, David A., 2021. "The case for negotiated contracts under the transition to a green bus fleet," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 255-269.
    8. Hensher, David A. & Stanley, John, 2008. "Transacting under a performance-based contract: The role of negotiation and competitive tendering," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(9), pages 1143-1151, November.
    9. Emerson, David & Mulley, Corinne & Bliemer, Michiel C.J., 2016. "A theoretical analysis of business models for urban public transport systems, with comparative reference to a Community Franchise involving Individual Line Ownership," Research in Transportation Economics, Elsevier, vol. 59(C), pages 368-378.
    10. Sheng, Dian & Meng, Qiang, 2020. "Public bus service contracting: A critical review and future research opportunities," Research in Transportation Economics, Elsevier, vol. 83(C).
    11. Jonathan Nelson Malcolm Cowie, 2011. "Contestability in bus markets - evidence from the British deregulated market," Post-Print hal-00730232, HAL.
    12. Hrelja, Robert & Rye, Tom & Mullen, Caroline, 2018. "Partnerships between operators and public transport authorities. Working practices in relational contracting and collaborative partnerships," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 327-338.
    13. Canıtez, Fatih & Çelebi, Dilay & Deveci, Muhammet & Kuvvetli, Yusuf, 2019. "Selecting an optimal contractual payment model for Istanbul's public bus operators using non-linear mathematical programming," Research in Transportation Economics, Elsevier, vol. 76(C).
    14. Rojo, Marta & dell’Olio, Luigi & Gonzalo-Orden, Hernán & Ibeas, Ángel, 2015. "Inclusion of quality criteria in public bus service contracts in metropolitan areas," Transport Policy, Elsevier, vol. 42(C), pages 52-63.
    15. Hooper, Louise, 2008. "Paying for performance: Uncertainty, asymmetric information and the payment model," Research in Transportation Economics, Elsevier, vol. 22(1), pages 157-163, January.
    16. Vigren, Andreas & Pyddoke, Roger, 2020. "The impact on bus ridership of passenger incentive contracts in public transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 144-159.
    17. Daniel Albalate & Germà Bel & Joan Calzada, 2010. "Urban transport governance reform in Barcelona," IREA Working Papers 201009, University of Barcelona, Research Institute of Applied Economics, revised Jun 2010.
    18. Andrés Gómez-Lobo & Julio Briones, 2014. "Incentives in Bus Concession Contracts: A Review of Several Experiences in Latin America," Transport Reviews, Taylor & Francis Journals, vol. 34(2), pages 246-265, March.
    19. McTigue, Clare & Monios, Jason & Rye, Tom, 2020. "The principal-agent problem in contracting public transport provision to private operators: A case study of the UK Quality Contract Scheme," Utilities Policy, Elsevier, vol. 67(C).
    20. Sun, Yanshuo & Gong, Hengye & Guo, Qianwen & Schonfeld, Paul & Li, Zhongfei, 2020. "Regulating a public transit monopoly under asymmetric cost information," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 496-522.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:retrec:v:22:y:2008:i:1:p:20-25. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.