Three perspectives on the role of competitive tendering in the integration of public transport

Abstract

Paper presented at the 22nd Annual Southern African Transport Conference 14 - 16 July 2003 "National issues affecting the movement of people and goods - strategic approaches", CSIR International Convention Centre, Pretoria, South Africa. ABSTRACT: The principal objective of this study is to review the role of competitive tendering in the integration of public transport services in industrialised and developing countries, specifically, South Africa, Chile and Britain. It proposes to analyse the regulatory structure and identify some of the implications that the tendering process has for facilitating seamless travel within major urban areas. One of the objectives of the competitive tendering process in London has been to preserve public transport integration, as the deregulation of public transport outside of London has led to a significant decrease in the number of inter-operator services. Similarly, many developing country cities, such as Santiago (Chile) and Cape Town, have introduced competitive tendering schemes where privatised markets have been established, arguing that it will give the public sector greater control over specific service features, such as systemwide integration. Whilst it is true that tendered routes can be structured to maximise the transfer of passengers at key points of intersection, this paper argues that there are key tradeoffs between integration and service innovation that must be accounted for in the development of these schemes. Authorities will want to facilitate informational and institutional integration, but avoid becoming too prescriptive. This study can provide important insights into the difficulties faced in promoting integration, and will identify some of the necessary conditions for widespread inter-operator coordination in a privatised environment. It will begin by reviewing integrated transport strategies in London, Santiago and Cape Town. Next, it will assess the impacts of competitive tendering on integration in the first two cities, and explore the objectives behind ongoing efforts to introduce a tendering scheme in Cape Town. Finally, this paper will discuss the prospects of seamless travel in these cities and will present recommendations for improving integration within the tendering process. This study can provide important insights into the difficulties faced in promoting integration, and will identify some of the necessary conditions for widespread inter-operator coordination in a privatised environment. It will begin by reviewing integrated transport strategies in London, Santiago and Cape Town. Next, it will assess the impacts of competitive tendering on integration in the first two cities, and explore the objectives behind ongoing efforts to introduce a tendering scheme in Cape Town. Finally, this paper will discuss the prospects of seamless travel in these cities and will present recommendations for improving integration within the tendering process.