01553123

Component

This paper presents a critical analysis of two key features of Colombia’s new public transport system: tariff policy and incentive structures in bus concession contracts. It primarily focuses on the continuum of reforms in Bogotá, —targeted high capacity BRT corridors followed by the ongoing citywide transformation of public transport— since other Colombian cities are modeling their reform process by looking at this experience. In terms of tariff polices set at “cost recovery” levels, the experience notes the importance of openly competing and stripping down to the operating essentials each element of the tariff, so as not to have the users pay for societal benefits. In terms of incentive structures, the experience calls for different demand risk profiles and penalty and reward system for operators, given the type of reform. Furthermore, the paper argues that contractual terms become critical in the initial stages of the reform and should not be unreasonably long, so that subsequent phases can incorporate the lessons learnt.

This paper was sponsored by TRB committee AP050 Bus Transit Systems. Alternate title: Bus Concession Contracts and Tariff Policy: Lessons from Bogotá and Colombia Experience.

01550057

15-2951

English

13p

2015

Transportation Research Board 94th Annual Meeting

Digital/other

References; Tables

Bus rapid transit; Contract administration; Cost recovery; Incentives; Policy analysis; Tariffs

Bogota (Colombia); Columbia

Finance; Policy; Public Transportation; I10: Economics and Administration

Transportation Research Board Annual Meeting 2015 Paper #15-2951

PRP, TRIS, TRB, ATRI

Dec 30 2014 12:59PM