Franchising of Melbourne’s rail services: assessment after six years

Abstract

This article reviews the recent experience of franchising metropolitan public transport services in Melbourne, Australia, to assess the extent to which the declared objectives of the franchising have been achieved. The failure of the initial franchise process is argued to be attributable, in significant part, to shortcomings in the Government’s understanding of what was achievable from a public-private initiative of this nature, given the Melbourne context. Developments associated with the re-franchising process are summarised, the emphasis shifting towards a strong partnership relationship between purchaser and provider, with a more realistic risk allocation between the two.