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Contracting regimes for bus services: What have we learnt after 20 years?

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  • Hensher, David A.
  • Stanley, John

Abstract

This paper reviews a number of themes that have played a crucial role in the debate on alternative contracting regimes for the provision of urban bus services. We have selected four crucial issues to reflect on: (i) contractual regimes (in particular competitive tendering as compared to negotiated performance-based contracts, as means to award the rights to provide service); (ii) contract completeness (focussing on ex ante and ex post elements); (iii) building trust through partnership; and (iv) tactical or system level planning for bus services. Experience in these areas suggests that competitive tendering has frequently not lived up to expectations and that negotiation is likely in many circumstances to deliver better value for money.

Suggested Citation

  • Hensher, David A. & Stanley, John, 2010. "Contracting regimes for bus services: What have we learnt after 20 years?," Research in Transportation Economics, Elsevier, vol. 29(1), pages 140-144.
  • Handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:140-144
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    References listed on IDEAS

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    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. 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.
    3. David A. Hensher & Ian P. Wallis, 2005. "Competitive Tendering as a Contracting Mechanism for Subsidising Transport: The Bus Experience," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 295-322, September.
    4. 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.
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    Citations

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    Cited by:

    1. Ida, Yoram & Talit, Gal, 2015. "Regulation of public bus services: The Israeli experience," Transport Policy, Elsevier, vol. 42(C), pages 156-165.
    2. Andrea ZATTI, 2012. "New Organizational Models In European Local Public Transport: From Myth To Reality," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 83(4), pages 533-559, December.
    3. Bouf, Dominique & Faivre d’Arcier, Bruno, 2015. "The looming crisis in French public transit," Transport Policy, Elsevier, vol. 42(C), pages 34-41.
    4. Mokonyama, Mathetha & Venter, Christoffel, 2013. "Incorporation of customer satisfaction in public transport contracts – A preliminary analysis," Research in Transportation Economics, Elsevier, vol. 39(1), pages 58-66.
    5. 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.
    6. 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.
    7. 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.
    8. Andrea ZATTI, 2011. "Organizational models in European local public transport: is the new paradigm really dominant," Departmental Working Papers 2011-29, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Huanming WANG & Mildred E. WARNER & Yuanhong TIAN & Dajian ZHU, 2014. "Public Owner With Business Delivery Mode In China: Case Study Of The Shanghai Public Bus System," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(1), pages 147-164, March.
    10. Mathisen, Terje Andreas, 2016. "Competitive tendering and cross-shareholding in public passenger transport," Transport Policy, Elsevier, vol. 48(C), pages 45-48.
    11. Hensher, David A. & Ho, Chinh & Mulley, Corinne, 2016. "Disruption costs in bus contract transitions," Research in Transportation Economics, Elsevier, vol. 59(C), pages 75-85.
    12. Pedro, Marisa J.G. & Macário, Rosário, 2016. "A review of general practice in contracting public transport services and transfer to BRT systems," Research in Transportation Economics, Elsevier, vol. 59(C), pages 94-106.
    13. Schaaffkamp, Christoph, 2014. "How can customer focus be strengthened in competitive tendering?," Research in Transportation Economics, Elsevier, vol. 48(C), pages 305-314.
    14. Wegelin, Philipp & von Arx, Widar, 2016. "The impact of alternative governance forms of regional public rail transport on transaction costs. Case evidence from Germany and Switzerland," Research in Transportation Economics, Elsevier, vol. 59(C), pages 133-142.
    15. 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.

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