CEMR-Seminar

1
CEMR-Seminar The Organization and Financing of
Local Public Transport in the EU, Brussels, 17th
November 2005

• Questions to be addressed
• How is local public transport organized?
• Who is responsible for the organization of public
  transport at the different territorial levels?
• What kind of relation ties the operators to the
  public authorities Direct award or tendering?
• How is local public transport financed?
• How is European legislation applied?
• Consequences of the new Draft regulation?

2
CEMR-Seminar The Organization and Financing of
Local Public Transport in the EU, Brussels, 17th
November 2005

• Responsibilty for the organization of local
  public transport is split according to the mode
  of transport Bus, tram and underground services
  are organized by the municipalities, rail
  services by the regions.
• In some regions however, the region is
  responsible for regional rail and regional bus
  services, whereas the municipality is responsible
  for local rail and local bus services.
• In most conurbations rail services are organized
  by groupings of municipal or even regional
  authorities, sometimes this also goes for bus
  services

3
CEMR-Seminar The Organization and Financing of
Local Public Transport in the EU, Brussels, 17th
November 2005

• According to German Public Transportation law
  direct award is possible if the transport service
  does not need public funding.
• However The definition of self-economical
  traffic includes funding of the owner of a public
  operator.
• As a result, hardly any local traffic services
  have been tendered yet (this goes at least for
  the big cities with their own enterprises).

4
CEMR-Seminar The Organization and Financing of
Local Public Transport in the EU, Brussels, 17th
November 2005

• If, however, a traffic service if officially
  financed by public funds, it has to be fincanced
  according to Regulation 1191 (public service
  contract) and, due to German law, tendered out on
  the base of the Public Procurement Directives.
• Whether the contracts are awarded for the whole
  network or a single line or groups of lines has
  to be decided by the competent authority.
• The larger the network, the more interfaces
  between different modes and operators exist,
  which makes direct award of the whole network
  less feasible and reasonable.

5
CEMR-Seminar The Organization and Financing of
Local Public Transport in the EU, Brussels, 17th
November 2005

• Public transport is mostly supported by public
  funds, be it directly on the base of Regulation
  1191 or indirectly by the owner of a public
  enterprise.
• In cities, public transport often belongs to
  local public utilities groups and is thus
  cross-subsidized by the earnings of the Energy
  section (in fiscal regards almost 1,4 billion
  Euro per year).

6
CEMR-Seminar The Organization and Financing of
Local Public Transport in the EU, Brussels, 17th
November 2005

• If the new Draft regulation would become reality,
  the differenziation between self-economical
  traffic and public service contracts would be
  rendered obsolet, since there is no public
  traffic which does not either rely on public
  funding or is based on exclusive rights for the
  operator.