Abstract: Transit agencies and motor coach operators can team up to provide peak hour service and generate revenue for the private operator and save as much as 30 to 40% for the transit agency. The Connecticut Department of Transportation (DOT) has contracted with private bus companies for years for daily commuter service. It likes being able to have access to the newest coaches for peak-hour commuting rides in three cities. They would be marginal operations for the DOT because of the small time window. The DOT also charters the buses in down times. Overall, one-third of the Connecticut transit system is privately run. Massachusetts Bay Transportation Authority has also outsourced commuter runs. One type of contract gives the motor coach company incremental costs over its own costs and the second gives the operator the total cost. Both limit returns on investment to 8%. Most large operations have too many barriers in their labor contracts to permit outsourcing.
Publication Year: 2003
Publication Date: 2003-04-01
Language: en
Type: article
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