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Business & Money

New law gives transport operators the green light

Published: 2 Jan 12 11:52 CET | Print version
Online: http://www.thelocal.se/38288/20120102/

The government is to allow private transport companies to provide public bus services, in a bid to improve services and prompt people to use public transport.

“We see opportunities to complement other public transport and we are planning a number of pilot projects in 2012,” confirms Ingvar Ryggesjö, Information Officer at Swebus in daily newspaper Metro.

The new law on public transport came into effect on January 1st but ever since the initiative was launched, not just Swebus, but many companies have shown an interest and have enrolled for the government’s pilot project.

Authorities believe co-operation between public and private organisations will be beneficial to all areas of Sweden, although the pilot project for 2012 is primarily focused on the Öresund region.

“Many commute across the channel and they don’t have a great deal of choice in terms of transport operators,” said Ryggesjö.

It is a matter of finding public transport connections where it would be profitable to run such business.

However, the time it takes to travel still remains an issue and in some areas it is faster to travel from A to B by car.

“In the Stockholm region we are interested to see the impact on the cross-link connections, such as the Täby-Kista line. It takes fifteen minutes to go by car but nearly an hour to travel by public transport,” says Rolf Kolmodin, Communications Officer at public transport operator Nobina to Metro.

The Local/js (news@thelocal.se)

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13:12 January 2, 2012 by Abe L
They hit the biggest problem right there with public transportation:

"It is a matter of finding public transport connections where it would be profitable to run such business."

Sweden is to large of a country to make public transportation feasible for everyone. Yet they keep using it as an argument and excuse not to build additional roads and tarmac. The only way to get more people into public transportation is to build it even when it's not profitable, make it better and run more often. I'm personally a big fan of the unmanned metro system in Copenhagen which could run 24/7 every couple of minutes as it doesn't require staff and thus could make a valid alternative. Sweden for example has no night-time public transportation.

This initiative will unlikely make more people use public transportation but at best lower prices due to competition.
14:04 January 2, 2012 by SimonDMontfort
Sweden could do worse than look at the UK experience of public (bus) transport deregulation which dates back to 1986.

Outside the capital, London, usage of bus transport declined by around 25-30% in the 20 years following deregulation. A document from the UK Transport Research Foundation concluded that there had been a tendency for deregulated bus services to attempt too much service - with fares that were too high, but quality of service was low.

Government (in the UK) has offered fixed term franchises (certainly in the case of some train services) to companies - which can be revoked if quality of service is rubbish. But private companies' concern is 'the bottom line' ie profit. Why should we invest in new equipment (etc), they say, if our operating licence can be revoked?

The Copenhagen unmanned metro system sounds a good idea: alternatively one could wait until the Social Democrats return to power, bump up everybody's tax bill, and pay for a super-duper nationwide public transport system. Lol!!
14:23 January 2, 2012 by isenhand
let the nightmare begin ...
14:49 January 2, 2012 by star10
The "public-private partnership" mantra will end up with the private lobbyists destroying competetiveness of the public sector. This policy will bring the private bus companies not only to the streets, but also to the lobby corridors where they will fight to undermine the public transport so that they will come out as the winners. "Public-private partnerships" usually end up with "CEOs-politicians friendships" where the companies suck out tax-payers money.
14:54 January 2, 2012 by Opinionfool
Don't do it! The worse thing that happened to Britain's public transport system was making it private. Rural services stopped. Only the most popular services continue. Services only run on a day with a Z in their name and then at times that are inconvenient to the customers. One such I know of has two services in each direction each day, the return leaving minutes after the inbound has arrived!!!!! Don't do it Sweden.
15:19 January 2, 2012 by Åskar
Unfortunately Sweden is one of the most thatcherised countries there are, even to the point of introducing new privatisation ideas long after they have been deemed worthless and abolished in Britain.
16:03 January 2, 2012 by DAVID T
I tried to get a bus from Stockholm to Hamburg - Only 1 company does busses outside of sweden that's swedbus so they can set their own fairs
16:15 January 2, 2012 by J Jack
@ David. Wrong! Eurolines.
09:29 January 3, 2012 by gabeltoon
Best advice is don't do it SWEDEN. Here in SCOTLAND there is a company called "STAGECOACH " they have to be the worst bus company ever.In my area called ANGUS they only provide the old and worn out rolling stock which is of no use, the fares are way to high and there service is crap.
10:39 January 3, 2012 by Åskar
Stagecoach operates/has operated in Sweden too. When they first started business here a Scottish friend of mine commented that the owner "is a scumbag and a scoundrel".
11:06 January 3, 2012 by Opinionfool
@gabeltoon

If it's Stagecoach that gets the contract in Sweden then god help em. There won't a be publically owned single bus company with some commercial competitors there will be a privately owned single bus company with no public competitors.

Pity the workers too. Stagecoach in Britain is one of the worst companies for industrial relations. They pay their British drivers only for time on-the-road; if there's a gap in the timetabled service the driver won't be paid for it although that gap isn't their fault.

Stagecoach's owner bought a huge Scottish castle on the profits she made from ruining the public bus service in Britain. What she didn't spend on the castle she donated to Thatcher and the Conservative Party, which might have something to do with there being no Scots Conversative members of parliament at the moment.

I'll repeat what I said a few comments ago; don't do it Sweden.
12:40 January 3, 2012 by engagebrain
In the UK business ethics were abandoned - by the winners.

they ran many free/cheap buses to put small companies out of business and when they had gone the number of buses fell and the fares changed. Unconstrained private monopolies - passengers just money fodder.

A poor high cost service is the opposite of green - passengers become car drivers.
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