Title: RETURNING TRANSIT TO PRIVATE OWNERSHIP: FEASIBILITY AND IMPACTS. FINAL REPORT
Abstract: This report explores the feasibility of returning transit to private ownership. Investigating transit's past transition from private to public ownership, it was found that social and political factors were the primary reason for the transition, with economics playing a secondary role. Six privatization scenarios were analyzed qualitatively ranging from a transit utility to complete regulatory freedom. The most feasible scenario proved to be service contracting whereby the public sector purchases and monitors the service that private operators provide. The private operators will be able to reduce costs, but fares will have to increase if operating subsidies are eliminated. It is suggested that user-side subsidies are provided to produce an equitable fare structure. Under these conditions, current operating subsidies could be reduced by about a half. The reaction of other modes to deregulation is discussed to draw inferences about transit's reaction to deregulation. Indirect economic impacts and political/institutional factors are also considered.
Publication Year: 1987
Publication Date: 1987-04-01
Language: en
Type: article
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