Efficiency and Tendering of Services in Italian Local Public Transport



Efficiency and Tendering of Services in Italian Local Public Transport

Authors

F Cirianni, G Leonardi, MECMAT, University of Reggio Calabria; D Ianno', ATAM Plc, Azienda trasporti area dello Stretto, IT

Description

The aim of this paper is to examine the changes induced in the Local Public Transport sector by new legislation for tendering of services in application of EU inspired regulation

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 system 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 with 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 28 companies which provide public transport services; in 1996 there were 94.

One of the conditions for the reduction 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 joint into consortiums. On the planning side, a redesign of the service has been implemented. This has led to a policy for the companies, which could be summarized 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 regulation in 1997, the system was fully subsidized , 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 fulfil a revenue target, which is of least 35% on total opera-tive cost, and difference between cost and revenue being at the date covered by pub-lic funding.

Our results indicate that, although subsidies have not increased, and in some cases they have been strongly 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 evolution of services in Italy, with the application of EU inspired regulation, led to the fall of inefficient competitors and the suppression of redundant services, therefore to a complete redefinition of Transport Companies, in their administrative, financial and operative status.

The aim of the paper is to present the implementation in the Italian LPT system of the new legislation, considering the different roles of transport authority, communities and operator. An assessment of tendering of services in application of EU inspired regulation, from the pre-bid specifications, announcement, and the awarding of the services. The paper presents a model developed to monitor the system on the in-crease/decrease of legislation specified parameters, such as number of users, the number and length of trips, destinations and level of service.

Publisher

Association for European Transport