Evolution of Public Transport Companies in the Wake of Regulation Changes and Down of Family Run Companies: an Italian Case



Evolution of Public Transport Companies in the Wake of Regulation Changes and Down of Family Run Companies: an Italian Case

Authors

Francis Cirianni, Mediterranea University, Reggio Calabria, IT; Domenico Ianno?ATAM spa, IT

Description

The aim of this paper is to examine the changes induced in the Local Public Transport sector by the introduction of the new legislation following EU regulations in Italy.

Abstract

Like in many countries, Italian transport authorities are constantly looking for ways to improve the efficiency in transport services. Some important changes in the incentive systems have been made during the last two decades, with increased attention towards achieving cost efficiency. The aim of this paper is to examine the changes induced in the Local Public Transport sector by the introduction of the new legislation following EU regulations
This paper is based on the results of a recent research conducted on the evolution of services in the last decade after the introduction of new LPT regulation. In the region of Calabria at the date there are 26 companies which provide public transport services; in 1996 there were 94.
One of the conditions for the riduction of the number of operating companies was the qualification restrictions for the service assignment of at least 600.000 Km/year. Since then smaller companies have been absorbed or have consorziated.On the planning of the service side, a reprogrammation of the service has been implemented. This has led to a policy for the companies, which could be summerised as ?who doesn?t adapt dies?.
During these years and important change in management and transport approach has taken place, basically oriented to improve the level of service in all its aspects (quality, performance, etc.), and to modernize the system.
Until the introduction of new regulamentation in 1997, the system was fully subsidied , since then the Service plan for minimum services has been introduced, where as Public service contracts are to be awarded through a competitive tendering. Service programs are required to fulfill a revenue target, which is of least 35% on total operative cost, and difference between cost and revenue being at the date covered by public funding.
Our results indicate that, although subsidies have not increased, and for some services have strongly been reduced, there have been significant improvements in the quality of services such as increased capacity, and increased frequencies in those services where competitive tendering has been introduced.
The research used the data from three major Local Public Transport Companies in Italy which produce each over 4.000.000 Km/year. The companies which operate in different sectrors, urban, extra urban and some LPT combined raod and rail services, cover areas which go from high density centres, to urban sprawl and to scattered villages.
The evolution of services, with the absorption of minor competitors and redundant services, following the EU regulation, let to a complete redefinition of the Transport Companies, in their administrative, financial and operative status.
The recorded experiences are analyzed in 4 steps.
1. Adaptation of itineraries and timetables. Deriving from the transport policy of the transport authority and communities, new frameworks were set up.
2. Implementation of a new approach to the system, considering the different roles of transport authority, communities and operator.
3. Tendering of the system following the European legislation. The tendering of the system started with the announcement, followed by the prebid specification, which lead to the awarding of the services.
4. Monitoring the system. The development of the system has to be monitored by specified elements, such as the amount of users, the amount of rides, the length of the rides, important destinations, etc.
In the paper the distinguished steps will be discussed and the case study will be presented.

Publisher

Association for European Transport