Competition in public transport in Great Britain

Abstract

Britain offers a case in which much greater experience of competition in the public transport sector can be seen than in other European countries. Examples are drawn from this experience, showing that outcomes differ between the long-distance and local markets, price competition functioning much more effectively in the former. In many respects, the competitive bidding process may be seen as more important and extensive than direct ‘on the road’ inter-operator competition within the same mode over the same routes. Experiences from competitive tendering and franchising are reviewed. Contradictions between competition policy and wider transport policies remain to be resolved.