Norwegian experiences with tendered buss services
AbstractCompetitive tendering of local public transport services has been allowed in Norway since 1994. By 2005, 28 percent of all route production in Norway was procured on the basis of tendered contracts, covering around 40 percent of all passengers. The majority of the tendered contracts were gross cost contracts, whereas historically, most Norwegian contracts have been net cost contracts. This article analyses the effect of competitive tendering on operating cost and subsidies paid. It is found that competitive tendering reduces costs by 10 percent and that most of the cost reduction has been used to reduce subsidies for public transport by local authorities. The effects of competitive tendering in Norway are smaller compared to other countries. This can be attributed to the fact that the industry had improved efficiency over a long period before competitive tendering was introduced.
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Bibliographic InfoArticle provided by ISTIEE, Institute for the Study of Transport within the European Economic Integration in its journal European Transport / Trasporti Europei.
Volume (Year): (2006)
Issue (Month): 33 ()
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Competitive tendering; Public transport; Contract; Procurement;
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- Longva, Frode & Osland, Oddgeir, 2010. "Regulating the regulator: The impact of professional procuring bodies on local public transport policy and its effectiveness," Research in Transportation Economics, Elsevier, vol. 29(1), pages 118-123.
- Odeck, James, 2008. "The effect of mergers on efficiency and productivity of public transport services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 696-708, May.
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