What are the effects of competitive tenderings on bus services?
Evaluation of the results of competitive tenderng in Germany during the past ten years
published in: Der Nahverkehr 7-8/2007
During the past ten years, numerous competitive tenderings on bus services have been awarded by the Rhein-Main-Verkehrsverbund (RMV), the Münchner Verkehrs- und Tarifverbund (MVV) and by the Hamburger Verkehrsverbund (HVV. From the public transport authorities’ point of view the main effects are the decrease of franchise payments and the price level stability. Expenses related to the tendering process (allocation, contract management) are relatively small. Due to the increased quality requirements in competitive tenderings, the quality of the public transport offer improved considerably and environmental standards were better implemented and sustained. Demonstrably small and medium- sized transport operators were able to increase their market share.