Abstract German public transport services by bus are characterized by a regulatory framework that distinguishes between commercial and non-commercial services. Contrary to the apparent views of legislators, this paper shows that costs and revenues are not the only parameters determining whether or not operators are able to provide services in a commercially viable way. Apart from the local characteristics of the specific service, we show that the classification of services as commercial versus non-commercial is determined in large part by the public transport authorities that set minimum quality standards to be provided by operators. Our analysis shows that the authorities awarding the contracts in some cases affect market organization significantly depending on how they make use of this power. Furthermore, market organization differs substantially with respect to the awarding structure and the contractual relationships, thus creating a challenge for operators and authorities in an embryonic market.
Highlights ► We analyze the regulatory framework for German public transport services by bus. ► This framework distinguishes between commercial and non-commercial services. ► We show that the classification of services is determined by the authorities. ► Market organization differs substantially with respect to the awarding structure. ► This creates a challenge for operators and authorities in an embryonic market.
The distinction between commercial and non-commercial bus services in Germany: Given by nature?
Transport Policy ; 19 , 1 ; 26-35
2011-01-01
10 pages
Article (Journal)
Electronic Resource
English
§ , paragraph , BGBl , bundesgesetzblatt , CCL , competition for commercial lines or services (see glossary for further explanations) , EntflechtG , Gesetz zur Entflechtung von Gemeinschaftsaufgaben und Finanzhilfen, or Entflechtungsgesetz (Demerger Act) , EU , European Union , EC , European Community , GVFG , Gemeindeverkehrsfinanzierungsgesetz (Local Authority Traffic Financing Act, see glossary for further explanations) , LA , licensing authority (see glossary for further explanations) , o , operator , PBefG , Personenbeförderungsgesetz (Passenger Transport Act, see glossary for further explanations) , PT , public transport , PTA , public transport authority (see glossary for further explanations) , PTP , (local) public transport plan (see glossary for further explanations) , RegG , Regionalisierungsgesetz (German Law on the Regionalization of Public Transport, see glossary for further explanations) , VOL/A , Verdingungsordnung für Leistungen, Teil A (Official German Contracting Terms for Award of Service Performance Contracts, Part A) , Public transport , Bus , Tendering , Regulation , Commercial service , Market organization
The distinction between commercial and non-commercial bus services in Germany: Given by nature?
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