A procedure for identifying markets for transit privatization and a case study application are described. The procedure focuses on zone pairs with high travel demand and uses a set of explanatory variables to identify potential markets. Next, these markets are selectively merged to provide a set of viable sectors where transit privatization appears feasible. The procedure was applied on the detroit metropolitan area to demonstrate its applicability. Initially, over 50candidate markets for transit privatization for suburban travel were identified that were later narrowed down to 14. These 14 markets, when analyzed in detail, resulted in a total of five sectors where privatization appears feasible. A two-phase survey among local transportation providers was conducted to assess the interest and capability of private providers, and then to match providers with markets identified. The data requirements for the procedure include information on zonal network, land use, and congestion levels. Because most planning agencies are likely to have access to these data, transferability of the procedure to other metropolitan areas does not appear tobe a problem. This paper appears in transportation research record no. 1297, Public transit research: management and planning 1991.
Samenvatting