Considerable experience in designing, implementing, managing and renewing contracts for the delivery of public transport service by private providers has been accumulated in a small number of jurisdictions which were among the earliest adopters of this model in the 1980s and 1990s. This includes London, England with its comprehensive bus tendering and contracting reforms started in 1985 and Melbourne, Australia with its franchising system for train and tram services commencing in 1999. Both cities have evolved and refined these reforms from lessons learned. This paper reviews the experiences in implementing and refining public transport concessions using two relatively successful implementations of public transport concessions for rail and trams in Melbourne and buses in London. It is based on a review of the published
literature and interviews with key personnel in both cities. The paper highlights key lessons learned through these experiences and the responses adopted in terms of the design and management of public transport concessions. The paper identifies broadly applicable good practices in the design of concessions for the delivery of public transport services based on these experiences.
Following this introduction, the next section of the paper outlines a framework describing the ranges of models whereby private sector involvement can be provided. This is followed by a description of the events involving rail franchising in Melbourne, Australia. Bus tendering experience in London is then described. An assessment of lessons learned from both Melbourne and London is then outlined. The paper concludes with a summary of key findings and a synthesis of good practices for contracting/franchising.