Privatization" Seen As Key
Approach
This article is part of an ongoing series of reports by U.S.
transit professionals who have participated in leadership development missions to Europe,
Asia, Canada, and South America through the International Transit Studies Program. The
program was established in 1994 by the Transit Cooperative Research Program--a cooperative
undertaking of the Federal Transit Administration, the Transit Development Corporation,
and the Transportation Research Board--to provide an international dimension to the
development of transit managers and to expand the network of contacts available for advice
and problem solving. Tom Kujawa, managing director of the Milwaukee Country Transit
System, was selected to lead the ninth study mission under the TCRP last month, the first
to take a close look at transit revitalization "Down Under." The full text of
the Study Mission Report, available next year from the Eno Transportation Foundation, will
also appear on the APTA website, http://www.apta.com,
for reading and downloading.
By Thomas P. Kujawa
Managing Director
Milwaukee County Transit System
Milwaukee, Wis.
Coming from Hawaii to Maine, from Florida to Washington State, and many points in
between, 14 transit professionals set out last month from Los Angeles on an 18-day,
18,000-mile journey, visiting five cities as part of the ninth international studies
mission to New Zealand and Australia. Visits to transport systems in Auckland and
Wellington in New Zealand, and Melbourne, Brisbane, and Sydney in Australia, provided an
opportunity to examine the policy and technology initiatives used to encourage better
utilization of public transport in these two countries.
Both Australia and New Zealand, not unlike the United States, have experienced rapid
growth in automobile ownership, urban sprawl, and decreased use of public transport. Major
cities in these countries can no longer sustain this growth and have committed policies
and resources to revitalizing their public transportation systems.
Australia and New Zealand approached their problems and concerns in slightly different
ways. However, both were greatly influenced by the same concern--a strong and growing
public employee base that has proved somewhat difficult to control. They are very
concerned with the future of public transport, its affordability, and the direction it
will take.
The catchword in their approach is "privatization," but that still leaves key
questions, such as what role the government should play, what controls would be
established, and what type of coordination is to be provided between the various modes.
To understand the evolution of public transport in Australia and New Zealand, one must
understand some of the historical, cultural, and governmental context in which this took
place.
For many years, New Zealand enjoyed great prosperity in exporting agricultural products
to England. As England moved to the European Common Market, the economy in New Zealand
began to suffer. The government borrowed money and lived with the hope that things would
get better. During that same time, taxation grew rapidly, and so did the influence of the
public employee unions controlling the transportation systems.
Because New Zealand's closest neighbor is Australia, 1,200 miles away, experimentation
is quite possible. So, as a radical departure from the status quo and a way to gain much
needed revenue, the entire transportation network was sold by the government and the
employees were forced to renegotiate for their jobs or find employment elsewhere.
This process was started in the mid-1980s with everything being sold, including rolling
stock, buildings, etc. Control was maintained by the regional government, which let
contracts and established service standards. The government also instituted a system of
subsidies to ensure that some service was maintained in suburban and rural areas.
Over the years, contractors have come and gone, and the more stable and efficient
providers have survived. Ridership has grown, but at some cost.
On a positive note, the operators and the government share a passion for on-time
performance, meeting the various transportation needs of their constituencies, and
delivering service at the lowest possible cost. On the negative side, there has been no
public input or involvement, as well as a lack of coordination between the various transit
modes. The government is aware of this and believes that, as better operators begin to
dominate the "tenders" or contracts, this will work itself out, as it will be to
their mutual benefit and profit.
Currently, it is not uncommon for two distinct companies to run overlapping service in
an area, or for one company to provide service in the morning and the other in the
afternoon. Clearly, the passenger is not always the major concern.
We also found that marketing of service varies greatly and, at times, can be confusing.
Australians enjoy leisure time, shorter working hours and, because of very costly city
living, their space outside the city. Consequently, longer commutes are commonplace. Gas
is expensive, the climate is pedestrian-friendly, and the rail routes all feed quickly and
conveniently into the central business district.
In Sydney alone, state rail serves 900,000 commuters a day from as far away as 60
miles. A total of 2,400 trains operate each day, served by 301 stations. The past years
have seen a great deal of change, and some turmoil. The commuter rail system in Sydney has
had 15 general managers in 20 years.
Today, the system seems to be very focused and very passenger conscious. The stated
mission is to increase patronage, increase the network, and decrease the cost to the
government, which seems to be happening. It was quite apparent that the system was
employee-heavy in both management and labor. In the last year, the system reduced staff
from 9,400 to 6,500 with very generous buy-out or severance packages.
Melbourne is a fascinating cosmopolitan city with a charm of its own, ranking as one of
the world's most interesting cities. The train and trolley system dominates the central
business district and is used extensively, with buses serving as feeders.
Currently, Melbourne has 45 separate contract operators, and the state of Victoria has
1,800. It is interesting to note that in 1993, Victoria had as many as 30,000 public
employees providing these services, while today there are slightly over 8,000. Victoria
has saved approximately $245 million over the last six years.
In Brisbane, the capital of Queensland, the city government owns and operates the bus
system, and rail is controlled by the state government. Commuter rail is well used, and on
an average day approximately 750 trains serve the central business district, with
passengers coming from up to 60 miles away. Queensland Transport, also a government
agency, acts as the coordinating unit for the various modes and all private contractors
serving the areas outside the district. In Melbourne (Victoria), in contrast, the state
government is more involved.
It was obvious to all in our group that Australia had more structure and control of its
form of privatization, while New Zealand represented more of a free market,
competition-based system.
In comparing the U.S. to the two national systems examined, it is my opinion that the
U.S. is much more passenger-driven, concerned with amenities, convenience, and the free
flow of information. Marketing and passenger information are more important and more
available.
In the U.S., we also have been able to address in a different way the various labor
concerns we had over the years. Fortunately, for the most part, we have enjoyed an
amicable relationship with our unions, and have peacefully worked out our differences and
concerns to forge a working partnership that has been responsive to passenger needs.
As hectic and intense as the mission was, the things we saw and the questions we asked
provided a wealth of information. The 14 of us, no matter what our area of practice,
developed lasting friendships. Upon our return, we were very aware that the trip vastly
enriched us as professionals, and would certainly rank as the transportation experience of
a lifetime.
Return To International Focus
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