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Melbourne's Public Transport Franchising: Lessons for PPPs
Author(s) -
Stanley John,
Hensher David A.
Publication year - 2004
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2004.tb00228.x
Subject(s) - metropolitan area , business , strategic planning , public transport , marketing , finance , transport engineering , engineering , medicine , pathology
This article reviews the recent experience of franchising Melbourne's metropolitan public transport services. The practicalities of designing and operating an effective public transport system require consideration of both strategic goals and tactical, or system‐wide, integrity. Operational decisions, which include decisions about whether competitive franchising is the best means to achieve the strategic goals, should come last. In Melbourne, the operational desire for competitive franchises apparently over‐rode consideration of the stated goals. Today, the franchised services have effectively failed and all services have been refranchised. An important lesson from the experience is that longer‐term systemic thinking is essential for determination of the most appropriate operational transport arrangements.