A future for public transport?

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Series Details 27.07.06
Publication Date 27/07/2006
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The provision of public transport in the EU is on course for upheaval over the coming years with reforms aimed at dragging the sector into the 21st century. It could prove a painful experience for local authorities, operators and vehicle manufacturers.

The relationships between local authorities and public service operators have hitherto been cosy and largely undisturbed. Increasingly they will be subject to greater scrutiny from EU authorities, according to proposed reforms to outdated regulations governing the sector.

The proposals, scheduled for a second reading in the European Parliament by the end of the year, will replace a law dating back to 1969. Local authorities could be obliged, as of next year, to issue far more complex public service contracts containing a detailed outline of tasks entrusted to operators as well as total funding for projects.

The days of obscure local authority practices in selecting service providers are threatened - new projects will have to be announced a year before they begin, there will also be restrictions on the length of contracts and new rules on levels of compensation to be awarded on low-profit public service lines.

"[Transport Commissioner Jacques] Barrot has always said this would improve the quality of urban transport services for people," says Stefaan de Rynck, a spokesman for the European Commission. "Urban decision-makers will clearly have the right to define their public transport model and whether they are willing to pay compensation, as long as contracts are awarded in a transparent way."

But some people argue that the proposals do not go far enough. Following amendments made to the Commission proposals by EU member states in March, rail transport will not be subject to compulsory tendering. This stance is supported by Socialist MEPs, who consider rail transport as a 'service of general interest' to be shielded from competition.

Opponents of excessive liberalisation of the sector maintain that shielding rail from internal market rules will allow more room for experiments with free public transport for the elderly, the unemployed or students. Regional and local transport authorities will be more likely, they say, to invest in improvements to networks.

Brigitte Ollier, director of the European branch of the International Association of Public Transport, expresses some exasperation with the revised draft. "We have chosen different rules for different modes [of transport]," she says. There is no apparent reason for it to be like this." The fact that operators protected by public service contracts will be forbidden from operating in any other local authority is small compensation.

The reluctance of member states to loosen their grip on public transport networks is nothing new, however. The same fear of reform can be found in their reaction to the third railway package (see page 20), due a second reading in Parliament after the summer break. One of the main aims of the package is to promote more competition in passenger services by allowing operators to stop on international lines anywhere in the EU. The move will naturally have an impact on highly protected national lines.

All of this uncomfortable reform comes at a time when there is growing public concern about environmental problems. Congestion and pollution are a fact of life in all EU cities these days. As a result, the jargonistic term 'inter-modality', or the linking up of different modes of transport, has become something of a buzzword among EU transport policymakers (see page 18). Faster and more efficient connections between buses, trams, trains and even bicycles will, it is hoped, encourage EU citizens to abandon the car and, subsequently, lessen their impact on the environment.

Clean and efficient buses will contribute to this trend. Flexible enough to cover all areas, according to consumer demand, green buses (see page 19) will become a regular fixture on our roads. An impressive array of clean technologies could soon be coming onto the market, from hydrogen fuel cells to biogas (the latter is being pioneered not only for buses, but also, in Sweden, for trains). Renewing current fleets could take years, but the sheer number of local initiatives taking place all over the EU (see www.civitas-initiative.org) indicates that the future of EU public transport is green.

The provision of public transport in the EU is on course for upheaval over the coming years with reforms aimed at dragging the sector into the 21st century. It could prove a painful experience for local authorities, operators and vehicle manufacturers.

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