Cost Efficiency In Swedish Bus Contracts

Download

In Sweden, the 21 county-wise organized Public Transport Authorities (PTA)are in charge the local public transport provision. Since the 1990’s, the PTAshave used, almost exclusively, competitive tendering to arrange the traffic.When implemented, the competitive tendering process decreased costs, whilethe opposite effect was observed when the number of tendering rounds in-creased (Alexandersson and Pyddoke, 2010). National statistics now suggeststhat supply has increased with 30 percent during the last decade, while thetotal costs have increased with over 50 percent. Further, the process of de-signing contracts for traffic areas varies across PTAs, meaning that there arelittle consensus in how and when to use different contracting factors. For ex-ample, while some PTAs use incentives payment based on patronage, othersuse fixed price contracts. Another example of the heterogeneous manage-ment is that some PTAs choose to provide some, or in one case all, of theirtraffic using their own operators (that is, no competitive tendering round isissued). Due to the issues discussed above, there is a need for better under-standing in what drives cost inefficiencies. Accordingly, the purpose of thispaper is to estimate the cost inefficiency in bus contracts tendered by thePTAs, and determine how contract design factors affect the same.

LATEST NEWS


2018-06-13

International Conference on Electric Road Systems starts today

Electric Road Systems (ERS) is a relatively new concept with many initiatives on the way. To learn from each other and stimulate new collaborations the Swedish Research and Innovation Platform for Electric Roads arranged the first international conference...


2018-05-18

Same survey of road users’ attitudes in 50 countries

At the Road Safety on Five Continents Conference, RS5C, one entire session presented a large survey of road users' attitudes in 38 countries. Results show large differences between countries in many areas, both regarding behavior and attitudes. A new survey...


2018-05-17

Good results with alcohol interlock program according to Swedish study

An alcohol interlock program makes it possible for drink driving offenders to continue their everyday lives. In a Swedish study most of the participants were satisfied with the program and experienced improved health. They also reported drinking alcohol more...


2018-05-16

Traffic safety in the spotlight

Today the Conference Road Safety on Five Continents (RS5C) opened in Jeju Island, South Korea. More than 220 participators have come from all over the world to present findings and learn about traffic safety. Dr. Young Tae Kim, Secretary-General of the...


2018-04-17

VTI will develop simulators for ambulance staff

VTI has initiated a pilot study for paramedics with the Centre for Teaching & Research in Disaster Medicine and Traumatology and Linköping University. The aim is to give ambulance staff the opportunity to practice critical medical tasks in a moving vehicle in...


2018-04-12

Unique electrified road opens in Sweden

The world’s first electrified road recharging the batteries of cars and trucks while driving opened in Sweden. The Swedish Minister for Infrastructure, Tomas Eneroth, was at the formal inauguration of the electrified road on April 11, 2018. VTI is one of 22...