METRO Magazine Logo
MenuMENU
SearchSEARCH

Pub Perspective: Growth in contracting gives agencies more tools in the toolbox

As public transportation budgets and political support have grown in the U.S. and elsewhere, so too has the interest in using private operators. Whether out of local political climate or a desire to have more flexible options for delivering services, outsourcing presents both challenges and opportunities.

by James Blue
July 10, 2017
Pub Perspective: Growth in contracting gives agencies more tools in the toolbox

Transdev

2 min to read


Transdev

As public transportation budgets and political support have grown in the U.S. and elsewhere, so too has the interest in using private operators. Whether out of local political climate or a desire to have more flexible options for delivering services, outsourcing presents both challenges and opportunities. In short, each circumstance is different.

Factors affecting growth
A variety of factors have contributed to the growth in outsourcing to a private operator. Not least of these is expediency, but the growth differed slightly by industry sector. In U.S. commuter rail, for example, the best way to get new service up and running was to contract to Amtrak or several private rail firms. In paratransit service, new regulatory demands in the wake of the 1990 Americans with Disabilities Act drove a need to control cost of compliance, and the best way for many agencies to do that was to turn to specialty operators. Particularly in the U.S. Sunbelt, such as in Las Vegas and Phoenix, where there was little existing transit service but a rapidly growing need, agencies turned to contractors. Others, such as Denver and San Diego, sought a mix of privately provided and directly operated service.

Ad Loading...

More recently, the growing interest in alternative project delivery for new capital investments has increased demand for contracting. Examples include Denver’s Eagle P3 commuter rail service, but the state of Maryland is now also seeking to use a similar model for its Purple Line light rail project. Most ambitious of all is the California High-Speed Rail program’s plan to use international consortia not only to design, but also to operate and partially finance the network. Internationally, service delivery through contracted or franchised arrangements with private firms is the rule, not the exception.

Not exactly a new idea
Of course, in many ways this is a “back to the future” return. This century’s twist, however, is how best to manage public sector control and the issues in the public interest. Key issues include risk sharing, incentives, and performance monitoring. Each situation is different.

In the U.S., we are in the early days of this new era. So far we seem to be doing this incrementally, and it is probably wise. We can learn much, however — both what to do and what to avoid — by looking to international examples in Britain, Australia, and perhaps most appropriate of all, Canada. The latter will be a good laboratory as we learn more about what the Trump Administration would like to do with private sector involvement in infrastructure investments.

Subscribe to Our Newsletter

More New Mobility

A rider validating a tap payment on a Masabi validator.
Technologyby Staff and News ReportsJuly 17, 2026

Biz Briefs: Masabi Teams with St. Louis Metro and More

In METRO's latest installment, we take a look at recent news from Transdev, Hitachi, and more partnerships making headlines across the transportation sector.

Read More →
A Freebee microtransit van in Miami with text reading "Microtransit as Part of the Network."
New Mobilityby Elora HaynesJuly 10, 2026

Microtransit's Next Test: Becoming Part of the Network

Freebee shows how electric microtransit is moving beyond pilots to fill network gaps, connect riders to transit, and prove lasting value.

Read More →
Blue and white graphic with a professional portrait of Nathaniel P. Ford Sr.

Ford to Leave JTA After More Than 10 Years as CEO

He plans to continue his work advancing innovative mobility solutions to improve the quality of life in communities across the nation. He did not announce specific plans.

Read More →
Ad Loading...
JTA Celebrates One Year of NAVI Service, Demonstrating the Future of Autonomous Public Transportation
New Mobilityby StaffJune 30, 2026

Florida's JTA Marks One Year NAVI Anniversary

During its first year of operation, NAVI has transported over 15,200 passengers and traveled more than 61,000 miles in autonomous mode without a safety incident caused by the autonomous driving system.

Read More →
Passengers in crowded SEPTA station
Managementby StaffJune 29, 2026

SEPTA Board Approves FY2027 Budget Amid Funding Challenges

The spending plan represents an increase of just 1.9% over the current year and includes investments in new buses, additional full-length fare gates, and other customer enhancements.

Read More →
Endera electric buses for California’s Mendocino Transit Authority
Technologyby StaffJune 25, 2026

Biz Briefs: Endera Delivers to California, Safety Vision Teams with San Antonio's VIA, and More

From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.

Read More →
Ad Loading...
New MobilityJune 19, 2026

Modernizing Mobility with CharterUP CEO Armir Harris

From digital transformation to evolving customer demands, CharterUP's Armir Harris offers his perspective on the transportation industry's next chapter.

Read More →
A Nova LFSe+ electric bus for STM
Technologyby Staff and News ReportsJune 18, 2026

Biz Briefs: Montréal Debuts Nova Electric Buses and More

In this edition of Biz Briefs, we spotlight the latest developments shaping the future of mobility.

Read More →
A Merchants Fleet driver putting gas in a vehicle with text reading "6 Transit Management Lessons For Colleges and Universities."
New MobilityJune 15, 2026

6 Transit Management Lessons for Colleges and Universities Facing Seasonal Demand Swings

College transportation demand swings wildly throughout the year. Fleet strategies are starting to catch up.

Read More →
Ad Loading...
Driving Change Through Technology
Technologyby Alex RomanJune 12, 2026

METROspectives: CharterUP CEO Armir Harris on Modernizing Mobility

From digital transformation to evolving customer demands, CharterUP's CEO Armir Harris offers his perspective on the transportation industry's next chapter.

Read More →