METRO Magazine Logo
MenuMENU
SearchSEARCH

Economic, political climate spell chance for more public-private collaboration

The combination of what appears to be a strong outlook for public transit and the need for motorcoach operators to diversify should spell a unique opportunity for both segments of the public transport industry to work together.

by Frank Di Giacomo, Publisher
March 1, 2001
3 min to read


The combination of what appears to be a strong outlook for public transit and the need for motorcoach operators to diversify should spell a unique opportunity for both segments of the public transport industry to work together. Yet, if the two fail to work together as some modest experiments have shown that they can, they might turn into bitter rivals, which will help neither side. Two very important documents contributing to that situation were issued within weeks of each other last winter. The first was a gloomy report sponsored by the United Motorcoach Association, one of two primary industry groups for that segment. It concluded that the recent downturn in traditional motorcoach travel markets would continue for the foreseeable future. Importantly, it suggested that operators diversify by trying to serve the growing commuter market. The second document was released shortly thereafter. It is the Bush Administration’s Fiscal Year 2002 budget proposal which, if adopted (and it looks very likely), will spell very good news for the public transit segment. It suggests that spending will rise in the year beginning Oct. 1, 2001, by nearly half a billion dollars, to $6.7 billion. That’s 7% above the current fiscal year’s already record levels. When you consider the fact that federal spending only accounts for about half of all such expenditures, that means public transit could be buying nearly $13 billion in capital goods and services next year. One of the challenges that the transit segment is facing is showing those record investments quickly “get on the street” in the form of upgraded service. Make no mistake: The public is demanding such service, in part because they are voting for politicians and referenda at all levels of government to achieve these spending levels. It’s also due to the fact that congestion, air quality and other lifestyle issues are appearing higher on voters’ radar screens than ever before. This is where both traditional transit and motorcoach companies can help each other. Motorcoach operators know a thing or two about high-quality, cost-effective service. They emphasize great customer service, safety and sound maintenance, or they don’t stay in business too long, because they are competing not only with many other coach operators but airlines, Amtrak and the private auto as well as their traditional markets. Transit, by the same token, needs to show quality service quickly and it can use motorcoach operators as weapons in its growing arsenal. That can come in the form of service contracts on express runs, just as many transit agencies currently outsource those routes. Or it could come in the form of granting franchises to operate along certain routes or in and out of certain transfer facilities. Although a tried-and-true method of privatization in other nations, it’s not used as much in the U.S., and some institutional and legal obstacles might have to be hurdled in order to take advantage of that strategy in America. Then there are other arrangements, such as brokering tour and charter services (often booking agencies will call transit systems even though it is not a traditional market) and joint marketing for airport-to-downtown service. The point is that there are enormous opportunities for the two communities to work together. This magazine has long argued for better working relationships between transit and the motorcoach segment. I deliberately use “segment” rather than “industry” to describe the two because they both should be considered part of the same industry—public transportation. This philosophy actually underpinned federal policy since the enactment of the Urban Mass Transportation Act nearly four decades ago. Lawmakers chose the term “mass transportation” in that bill to include private operators. It also underpinned another landmark piece of legislation—the one passed in 1991 that has the word “intermodal” in it. It’s time to make that word mean something.

Topics:Management
Subscribe to Our Newsletter

More Management

Cover photo for Transit Unplugged Episode 400
Managementby StaffMarch 6, 2026

Transit Unplugged Celebrates 400 Episodes

The special episode features an exclusive interview with Mark Miller, president of Constellation Software Inc. and executive chairman of the Volaris Group, who reflects on the podcast's early vision and the importance of creating a platform where transit leaders can share ideas and learn from one another.

Read More →
A recent generation New Flyer Electric Bus
Managementby StaffMarch 4, 2026

NFI Group Officially Opens New Flyer All-Canadian Build Facility in Winnipeg

The CAD facility enables NFI to complete full domestic production of heavy-duty transit vehicles, including zero-emission buses, in Winnipeg for the first time in 15 years.

Read More →
Photo of public transportation system with APTA logo.
Managementby StaffMarch 4, 2026

APTA: Surface Transportation Funding Delivers 5:1 Economic Return, Supports 41,400 Jobs per $1B

The findings provide clear evidence that sustained Federal investment in public transit and passenger rail delivers significant returns for workers, communities, taxpayers, and the U.S. economy, APTA officials said.

Read More →
Ad Loading...
A photo of rail tracks in Ottawa, Canada

Building a National Framework for Transit Safety and Consistency

On a recent episode of METROspectives, METRO Magazine’s Executive Editor Alex Roman sat down with Ana-Maria Tomlinson, Director of Strategic & Cross-Sector Programs at the CSA Group, to explore a bold initiative aimed at addressing those challenges: the development of a National Code for Transit and Passenger Rail Systems in Canada.

Read More →
Photo of World Cup soccer ball.
Managementby StaffMarch 3, 2026

FTA Invests $100M to Strengthen Transit for 2026 World Cup

The funding will ensure communities can expand transit options to meet increased demand for services around stadiums.

Read More →
ENC's John Obert
Managementby StaffMarch 3, 2026

ENC Names New VP of Transit Sales

John Obert previously served as regional sales manager for ENC since joining the company in June 2025.

Read More →
Ad Loading...
Disabled and senior passengers on a transit vehicle.
Managementby StaffMarch 3, 2026

New 2026 Plan Aims to Expand Transportation Access Across Virginia

Over the next four years during the Spanberger Administration, DRPT will use the plan to prioritize funding for human service transportation projects and programs that reduce barriers, expand access, and promote equitable mobility, said department officials.

Read More →
A blue and white graphic with text reading "Via Launches Mayors Council to Accelerate Transit Innovation."
Managementby StaffMarch 3, 2026

Via Launches Mayors Council to Accelerate Transit Innovation Nationwide

A new advisory group of current and former city leaders will collaborate on funding strategies, technology deployment, and best practices to modernize U.S. public transit systems.

Read More →
LIT Mentorship Program participants.
Managementby StaffMarch 2, 2026

Latinos In Transit Wraps Inaugural Navigate Mentorship Program,

The LIT Navigate Mentorship Program was launched as a structured, low-cost opportunity for active LIT members, focused on intentional growth, workforce development, mentorship, networking, and education.

Read More →
Ad Loading...
A WMATA bus at a transit center
Managementby StaffFebruary 27, 2026

WMATA Expands U-Pass Program

Approved as part of WMATA’s Strategic Transformation Plan, the expanded program introduces new pricing and participation options that make it easier for colleges and universities to join and for more students, such as part-time, community college, and graduate students, to benefit from accessible transportation.

Read More →