Privatization * USA - Strapped Cities Outsource Transit Lines
Some cash-starved U.S. cities are planning to outsource the operations of their mass transit systems to private companies so that such systems can be run more efficiently
New York,NY,USA -The Wall Street Journal, by Christopher Conkey -13 July 2009: ... The New Orleans Regional Transit Authority (Norta) has entered into a deal to pay France's Veolia Environnement about $56.3 million annually and potentially $600 million over the next 10 years to finance, manage, and run the city's bus and streetcar lines, which Norta Chairman, Cesar Burgos, says could save the authority as much as 30 percent... Savannah, Ga., officials are engaged in negotiations with Veolia for a similar arrangement, while Alternate Concepts is operating Valley Metro of Phoenix, Ariz.'s new 20-mile light-rail line. Transit agencies across the United States are experiencing a decline in their traditional revenue channels, while interest in bus and rail service is expanding. Outsourcing is not appropriate for all transit agencies. Rick Jager, with the Metropolitan Transportation Authority of Los Angeles says his agency contracts out service on 21 of its 200 bus lines at savings of about $45 per hour of operation, but labor agreements with its unionized workforce proscribe any further outsourcing plans... (Photo from swta.org: Valley Metro 2009 bus large wrap event)Labels: Privatization Services
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