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For The Transit Fans: Industry Perspectives: Public VS Private Options


Stalliongrad

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Public Transit is a need for millions of citizens everyday, and because it provides an essential service the day to day execution of that service must be as consistent as possible. However sometimes corporate greed and profits and overshadow customer service and safety.

 


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West Vancouver Transit New Flyer Xcelsior XDE 40

 

 

 


Overview: The day to day operation of any transit service is an expensive undertaking, and this is where the issue begins. Most transit services are funded with taxpayer money, the transit workers are government employees and the vehicles used are owned by the government as well. This is called the Public Option. Most major cities operate their transit networks this way because it means they have full control of the system and decisions are made directly by the government. However some governments do not have enough money to effectively run their transit agencies (or wish to spend money on other things) and hire a private contractor. These are private companies which specialize in operating public transportation networks for an annual fee. This is the Private Option. The Workers are not government employees, The taxpayer money is given to the private company to operate the system, and sometimes the vehicles are not owned by the government.

 

Both have pros and cons but it is widely accepted that the public option is better for the workers who run the system and the riders who depend on it every day.

 

 

 

Private Operators:

 

 

 


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Founded: 1999 (after acquisition of Laidlaw)


Main Office: Cincinnati, Ohio


Corporate Offices: Aberdeen, Scotland


Industry: Fixed Route, Paratransit, School Bus, Shuttle Bus Operations, Vehicle Management Services

 


First Transit is the American Subsidiary of British Multinational transportation conglomerate First Group. First Group acquired several American private transportation firms and merged them into one of the largest private operators in the United States. First Transit handles public transportation services while its twin company First Student operates private school bus operations for school districts.

 


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Founded: 2011


Main Office: Paris, France


Services: Fixed Route, Paratransit

 


Formerly called Veolia Transportation, Transdev is a French transportation company operating transit networks all over the world. It sees most of its business in the Francophone countries. Transdev's U.S. operations have grown to service over 10 major U.S. cities and many smaller municipalities.

 


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Founded: 1975


Main Office: Dallas, Texas


Services: Fixed Route, Paratransit

 


MV Transportation is the largest private transit operator in the United States. It operates over 190 contracts in 28 states, Canada and Saudi Arabia.

 

 

 

Benefits of Private Option: Because the day to day operations of the transit system are run by the private contractor, it is often the cheaper option to choose for local governments. Private Contractors are paid by the Government with Taxpayer money to operate the service but the fares collected always go back to the Government. The Government doesn't have to worry about planning routes, setting fares or maintenance of vehicles because this is all handled by the contractor. The Government often appoints a liaison to oversee the contractor to ensure standards are adhered to.

 


Consequences of Private Option: When public transit services are privatized, the contractor has an incentive to keep as much of the money given to them by the government. The Contractor will often keep money meant to operate the service, and this leads to problems. Contractors will refuse to spend money on Bus maintenance leading to unsafe buses. Paying lower wages creates higher turnover rates. Not paying bus drivers enough money leads to less talented drivers behind the wheel, thus that transit system will have a far higher accident rate. Because the workers of the transit system are not government employees, they are often paid less and do not receive benefits. Transit workers are are sometimes denied their legal right to unionize because the contractor will threaten to fire them.

 


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Montgomery County (Maryland) Transit Ride On Gillig Low Floor

 


In Montgomery County, Maryland the County Government hired First Transit as a contractor to operate its Ride On Bus service. Montgomery County, Maryland is one of two counties in the state which border Washington DC and many of the commuters rely on public transport to get to their jobs in the government. First Transit began to slack in service and buses did not arrive on time, driver and mechanic wages were cut and the company asked for more money to operate the service. The county eventually restored the public option and service has improved so much they have expanded and added more buses and routes because ridership is so high.

 

Look into your local transit agency and see if your network is public or privately operated.

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This is an option I do wish the MTA or the NYC DOT would consider revisiting for the buses due to the strain on their budget, rising costs, and declining service levels on lesser-used routes. The NYC DOT used to have a public-private partnership regime in place but was taken over by the MTA in the mid-2000s due to poor oversight and poor service being rendered by locally-based private companies. I believe it should be re-implemented to fill service gaps, such as restoring off-hour service to cut routes or enabling faster implementation of necessary new routes with less of the hassle of red tape, but should be subject to strict oversight to ensure that the quality of service is not compromised.

 

The only contract New York City Transit currently has is on the X23 and X24 (southern Staten Island to Midtown Manhattan) with Perth Amboy-based Academy, the largest charter bus company in the NY region which also has contracts with the Port Authority (airport shuttles), NJ Transit (Hudson/Bergen County routes and commuter buses), and the New York University shuttle system. It was inherited from the former Port Richmond, Staten Island-based Atlantic Express that fell apart due to bankruptcy.

 

The county of Nassau used to have a contract with the MTA, but when the MTA failed to provide adequate service, they went to Transdev, which operates the former Long Island Bus as the NICE Bus now. NJ Transit has a great system in place, with a mix between direct and contracted operations depending on the location and system.

 

The character and nature of the government involved is also a big factor in quality of service as well. The bus operation in the DC area has been an object of envy to me - where NYC-area residents rely on huge, integrated, and often inefficient statewide agencies, the DC area seems to rely on a mix between region-wide (Metro) and local transit systems, often redundant but with different sources of funding, which seems to be a great way to maximize the efficiency of publicly-owned transportation systems. The unified fare structure under SmarTrip is also worth looking up to. PATH, NICE, Bee-Line, and the MTA railroads accept MetroCards, but good luck trying it on NJ Transit.

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Here in DC all of the jurisdictions surrounding DC all run either public or privately operated bus networks. Prince George's County The Bus is contracted to Transdev. Montgomery County Publically operates Ride On. Fairfax County contracts the Fairfax Connector to MV Transportation and the DC city councils Circulator bus service is contracted to First Transit. Which is the worst because I work there now. (Almost done with the application process at WMATA so changing jobs soon)

 

WMATA operates the regional subway and the large bus network for the area and is public operated. Funded by the Federal Government, Maryland and Virginia. The only part of WMATA that is private is the MetroAccess paratransit services which all three companies help operate.

 

The big debate we are having in DC now is the decision on to allow TNC companies like Uber and Lyft the authority to take over paratransit operations which would be a catastrophic failure. Trying to squeeze wheelchair bound passengers in to a Toyota Prius instead of a large van with a ramp and air conditioning is bad idea and the Unions are fighting it vigorously.

 

In NYC I think the larger entity should be supplemented by smaller companies. I almost worked for Academy they are one of the better ones to work for they pay well here in DC. They have a few contracts with the MTA Maryland Transit Administration. I think there should be a bus czar in NYC to optimize service. Routes with low ridership on the WMATA network are evaluated and if it doesn't improve they are eliminated after notifying the public.

 

The heavy integration in NYC I assume would mean doing that sort of thing would be even more imperative.

 

WMATAs subway network is so old now we have been having terrible accidents one after another. The railcars are from 1976 and the tracks desperately need repair. It's so bad the federal government shut WMATA down. While repairs are being made huge sections of track are replaced with bus service.

 

No one is taking responsibility but with all new management WMATA it's getting better.

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