Risk and reward in public transport contracting

Stanley, John; Velde, Didier van de

doi:10.1016/j.retrec.2008.05.006

Cited by 41 publications

(17 citation statements)

References 5 publications

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“…Negotiated contracts or yardstick competition as proposed by Shleifer (1985) can approximate competitive tendering outcomes if they are benchmarked to best practice context-speci…c costs (Stanley and van de Velde, 2008;YvrandeBillon, 2006). Performance-based negotiation can also avoid some drawbacks of competitive tendering, such as asymmetric information, high transaction costs, lack of trust, and hold-up problems between the incumbent and the public authority.…”

Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 99%

Competitive tendering versus performance-based negotiation in Swiss public transport

Filippini

Koller

Masiero

2015

Transportation Research Part A: Policy and Practice

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The purpose of this study is to assess di¤erences in the levels of cost e¢ ciency of bus lines operated under competitively tendered contracts and performance-based negotiated contracts. Following the revision of the Swiss railways act in 1996, regional public authorities were given the choice between two di¤erent contractual regimes to procure public passenger transport services. We directly compare the impact of competitive tendering and performance-based negotiation by applying a stochastic frontier analysis to the complete dataset of bus lines (n=630) operated by the main Swiss company (Swiss Post) at the same time (in 2009) throughout the country. The overall results show that the di¤erences in the levels of cost e¢ ciency between the two contractual regimes are not signi…cant. Our …ndings are in line with recent evidence of cost convergence between competitive tendering and performance-based negotiation, and suggest that the practice of using both contractual regimes is challenging for the operators in terms of competitive pressure. The threat of competitive tendering may have a disciplining e¤ect on negotiation since it prevents bus companies from bargaining inadequate rents and inducing asymmetric information advantages.

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Section: Competitive Tendering Versus Performance-based Negotiation Imentioning

confidence: 99%

Competitive tendering versus performance-based negotiation in Swiss public transport

Filippini

Koller

Masiero

2015

Transportation Research Part A: Policy and Practice

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“…The potential disconnection between regional public transport and local land use planning is one such "hotspot" where previous research has suggested that regional and local authorities create integrated planning through dialog that produces agreements with no statutory status (e.g., Hrelja et al, 2017). This research on governance in public transport can be viewed as a subset of a broader body of transport research (e.g., Stead, 2016) that shares a similar analytical interest in what can be achieved through so-called "informal" or "soft" forms of governance (in such different empirical areas as port governance, e.g., Ng, Monios, & Zhang, 2018, and partnerships for delivering better bus services, e.g., Stanley & van de Velde, 2008) that inform and coordinate the actions of discrete organizations. There is a clear relationship between this research and the theory of collaboration tested in the present paper.…”

Section: What Practical Recommendations On How Tomentioning

confidence: 99%

How to create functioning collaboration in theory and in practice – practical experiences of collaboration when planning public transport systems

Pettersson

Hrelja

2018

International Journal of Sustainable Transportation

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The creation of an efficient public transport system increasingly requires collaboration between independent organizations. Institutional reforms in Europe have created governance situations where collaboration between organizations is a critical issue, and examples include the integration of transport and land-use planning and the planning of large public transport projects. The organizational context of public transport, with several formal, discrete organizations that need to collaborate, raises questions about how functioning collaborations can be accomplished. This paper examines how to create functioning collaboration between organizations in the public transport sector. We depart from a theory of collaboration as a stepwise trust-building process, and we present results from a comparative case study of collaboration in two Swedish public transport projects. The results show some of the prerequisites that must be in place in order for the collaboration to work, but also the boundaries of what collaborative approaches can bring about. Conditions such as honest, open, and inclusive dialog between stakeholders and resources in the form of finance, knowledge, mandate, and leadership are important. While there is no guarantee that this will lead to differences in interests being resolved, the results indicate that it improves the chances of finding compromises that all of the involved stakeholders can accept, especially if favorable conditions for collaboration are established at an early stage of the planning process. Building on these findings, we suggest some practical recommendations for improving collaboration in future public transport projects. These practical recommendations are aimed at improving the handling of unavoidable conflicts in collaboration in a constructive way.

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“…Such questions have already been raised in previous research on contracting in public transport which has discussed advantages and disadvantages of various forms of contracting, from formalised, tightly specified contracts to more flexible 'relationship'-based contracts between organisations as a way to maximise goal achievement (Hensher 2010, Merkert & Hensher 2013, Chung & Hensher 2015, Stanley & van de Velde 2008. The latter research calls for 'trusting partnerships' (Dementiev 2016, Hensher & Stanley 2010, Stanley 2010, Stanley & Hensher 2008, Walters 2010 or more 'relational contracting forms' between public transport authorities and operators:…”

Section: Market Reforms and New Forms Of Partnershipmentioning

confidence: 99%

“…In part this is because it is recognised that there are risks that one side is persuaded to accept decisions which favour the other and which others would hold unfair and perhaps at odds with the goals of the contract (see e.g. Gilson et al 2010, Grafton & Mundy 2017, Stanley & van de Velde 2008. The risk of this becomes more acute if there is a power imbalance between the partners (Van Slyke 2009).…”

Section: On Relational Contracting and Collaborative Partnership Workingmentioning

confidence: 99%

“…One of the themes in this field of research is related to various partnership approaches, as one way of facilitating a functioning collaboration between formally independent private and public organisations, regardless of the legal setting in which public transport operates (see e.g. Stanley & van de Velde 2008, Hensher & Stanley 2010. Examples of issues that are supposed to be managed through partnerships include, for example, service quality and reliability, increasing patronage, customer satisfaction and so on.…”

Section: Introductionmentioning

confidence: 99%

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Partnerships between operators and public transport authorities. Working practices in relational contracting and collaborative partnerships

Hrelja

Rye

Mullen

2018

Transportation Research Part A: Policy and Practice

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Recent research on public transport has seen increasing focus on issues like coordination, collaboration and steering in complex governance settings. One of the themes in this field of research is related to partnership approaches, as one way of stimulating functioning collaboration between formally independent private and public organisations. The aim of this paper is to explore the role and function of partnerships as a way of supporting wellfunctioning public transport networks and services in fragmented institutional settings. The empirical focus is on partnerships between operators and public (transport) authorities in two different legal settings: England and Sweden. The analysis is based on interviews with operators and public transport authorities in two metropolitan regions in each country where innovative partnership working has been developed to deal with various types of barriers to delivering better public transport. The results show the key qualities of these partnerships that are required for them to function. Although the regulatory contexts are very different, the partnership qualities are very similar in both cases.

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Risk and reward in public transport contracting

Cited by 41 publications

References 5 publications

Competitive tendering versus performance-based negotiation in Swiss public transport

Competitive tendering versus performance-based negotiation in Swiss public transport

How to create functioning collaboration in theory and in practice – practical experiences of collaboration when planning public transport systems

Partnerships between operators and public transport authorities. Working practices in relational contracting and collaborative partnerships

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