Urban Transport and the Purchaser/Provider Split

Over the past two decades, various countries have established policies to shift the production of transit services into a competitive environment.
Published on May 1, 2001

Executive Summary

Over the past two decades, various countries have established policies to shift the production of transit services into a competitive environment. Known technically as the purchaser-provider split model, it preserves public funding for the service but creates incentives for efficiency and innovation by requiring both in-house and private operators to bid for the right to operate services. Public transport systems are tendered to multiple operators, who provide service according to public specifications. The resulting regional transit system is seamless, with full fare interconnectivity. Marketing is handled by the tendering agency, which ensures that all services are operated, from the perspective of customers, as part of a single, unified system. Without exception, the result has been cost savings, which vary country to country based upon labour market conditions.

Full Text of Policy Series No. 8 – (PDF, 14 pgs, 118 Kb)

Featured News

MORE NEWS

The 15-Minute City: An Extraordinarily Bad Idea

The 15-Minute City: An Extraordinarily Bad Idea

The latest urban planning fad to sweep across Canada is the 15-minute city, which proposes to redesign cities so that all urban residents live within an easy, 15-minute walk of schools, retailers, restaurants, entertainment, and other essentials of modern life. This...

Black on Canada’s Proud Black History

Black on Canada’s Proud Black History

Did you learn any Black history in Black History Month? February came and went in Canada with few high-profile offerings, except a nod to a pioneering black athlete there and a slogan or commercial there. Black organizations sued the Canadian Human Rights Commission...