Full Version - Issue 7 | November 2011 - LTA Academy

Different Approaches to Public
Transport Provision
David A. HENSHER and Gabriel WONG
Abstract
Public transport is an essential service, and ensuring its effective and efficient provision
is a priority of many governments. Different cities have adopted different approaches to
public transport provision, each with its merits and shortcomings. This article provides
a brief overview of the main approaches – government operation, competition in
the market, government regulation of fares and services, competitive tendering, and
negotiated performance-based contracts – with some real-world examples. There
is no one-size-fits-all model, and cities have to decide the appropriate approaches
for themselves based on their contexts and priorities. Singapore adopts an approach
where the government regulates public transport fares and services provided by private
operators. This has worked reasonably well, with some room for improvement.
Introduction
Travelling is part and parcel of modern urban
living – people travel for work, education,
recreation and many other reasons. For
those who do not own motor vehicles,
public transport could be their main means
of travel. Because of its economic and social
importance, public transport is considered
an essential service in most cities, much like
electricity, water and telecommunications.
Hence ensuring effective and efficient
provision of public transport services is a
priority of most governments.
Different cities have adopted different
approaches to public transport provision, each
with their own pros and cons. The history of
public transport in many cities shows how
views on the appropriate method of provision
have evolved over time. This article aims to
provide a brief survey of different approaches
of public transport provision and Singapore’s
approach. A global perspective is provided
in the many papers from the International
Conference Series on Competition and
Ownership of Land Passenger Transport
(the “Thredbo Series” http://www.thredboconference-series.org/papers/).
Historical Trends in Public
Transport Provision
There was a wave of nationalisation in the 1940s
to 1970s followed by privatisation from the late
1970s in many countries. At the core of the
nationalisation and privatisation waves were
those industries providing essential services,
such as public transport, telecommunications,
electricity and gas.
In the first half of the 20th century, urban public
transport services in the UK and the US were
mainly provided by private enterprises.
JOURNEYS | November 2011
Different Approaches to Public Transport Provision
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