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

ABAF Examines Motorcoach Insurance Crisis
Motorcoachby Alex RomanAugust 11, 2026

ABAF Study Reveals Growing Insurance Crisis for Motorcoach Operators

Preliminary findings show 98% of operators faced premium increases over the past five years, while shrinking insurer participation is putting added pressure on businesses and customers.

Read More →
PSTA employees clocking in.
Managementby Alex RomanAugust 10, 2026

PSTA Modernizes Workforce Management with Digital Bidding System

The award-winning Workforce Transit Modernization project replaced paper bidding with a transparent digital platform, cutting administrative effort while improving access for operators.

Read More →
APTA Comes to Chicago
Managementby Alex RomanAugust 10, 2026

Chicago to Host Public Transportation's Biggest Gathering at APTA TRANSform & EXPO 2026

North America’s largest public transportation gathering returns to Chicago, connecting transit decision-makers with the technologies, ideas, and partnerships driving the industry forward.

Read More →
Ad Loading...
An LA Metro bus and railcar.
New Mobilityby Alex RomanAugust 7, 2026

New Tricks for Old Bureaucracies: Joshua Schank on Making Transit Innovation Stick

Former LA Metro Chief Innovation Officer Joshua Schank discusses why good ideas aren't enough, how transit agencies can overcome resistance to change, and why today's challenges demand more innovation.

Read More →
A Community Transit Swift Green Line bus
Busby Staff and News ReportsAugust 7, 2026

Washington's Community Transit Sets Six-Year Roadmap for Growth, Expansion

Approved TDP targets more bus service, new mobility options, Swift BRT expansion, and a potential Everett Transit annexation.

Read More →
An pink and white OKC streetcar moves down a street.
Managementby Alex RomanAugust 7, 2026

OKC Streetcar Makes Zero-Fare Service Permanent

Ridership increased an average of 71% compared with the same period a year earlier during the fare-free pilot.

Read More →
Ad Loading...
Managementby Alex RomanAugust 6, 2026

DART Customer Satisfaction Reaches Six-Year High

Overall satisfaction rose to 74.9%, while the agency’s Net Promoter Score reached a record 33.7.

Read More →
A red, white, and blue graphic with an image of a rail line in NYC and text reading "Surface Transportation Bill Moves Forward."
Managementby Elora HaynesAugust 6, 2026

House Surface Transportation Bill Advances as Transit Funding Debate Intensifies

A bipartisan transportation package moving through Congress could redefine how the U.S. funds highways, transit, and motorcoach travel, while igniting new fights over electrification, regulation, and federal priorities.

Read More →
ManagementAugust 5, 2026

How Data, Strategy, and Community Engagement Are Reshaping Transit

In this edition of METROspectives, strada360 CEO Steve Lassey discusses how transit agencies can better align planning with operations, leverage data to improve decision-making, and build public trust as they prepare for the future of mobility.

Read More →
Ad Loading...
An Amtrak Acela train at New York Penn Station
Railby Alex RomanAugust 3, 2026

Amtrak Board Advances Plan to Restructure Organization, Seeks Public Input

The proposal, developed by Amtrak management and approved by the board for further consideration, is intended to modernize the organization's structure while improving accountability, operational efficiency, and customer service.

Read More →