I’ve seen some talk around the Internet regarding privatizing OC Transpo, with the thinking being that it would be better able to handle the current dispute. That may very well be so, but overall, privatizing transit in Ottawa would likely be a disastrous move.
For starters, any private company has one basic, overarching goal: to turn a profit. And OC Transpo is anything but profitable. One of the current goals of the City is to recover 50% of OC Tranpo’s operating costs from the farebox. Naturally, that means that the other 50% must come from two sources; advertising and the City budget. I don’t know exactly how much revenue comes from advertising, but I can promise you that it isn’t enough to make up the difference.
So if you’re a company that’s purchased OC Transpo, what do you see? Massive losses, and the need to cut expenses and raise profits. So how do you do that? Well first, you’d probably raise fares, because $3 per ride is practically letting people on for free. Next, you’d probably want to maximize your profit per bus (consquently cutting expenses, as well), so you’d probably cut back on trip frequencies so that buses are full more of the time. It’s at this point that you’d also begin to eliminate non-profitable routes, so say goodbye to local buses during non-peak hours and buses running with any kind of reliable frequency during the evening. You’d probably cap it all off by liquidating your assets, selling off dozens of now-uneeded buses in the fleet.
In short, we’d end up with higher fares and reduced service, overall. Take a look at almost any example of privatized bus transit in the UK, and you’ll see a similar patterm emerge. Intraurban bus transit simply is not a good business proposition, as buses have a high overhead operating cost and a very slim profit margin. Private bus transit simply will not work in Ottawa, and a solution needs to be found within the confines of the system, instead.
EDIT: I just wanted to add in a quick link to Transit Ottawa’s look at media coverage of the strike. As a journalist, it’s pretty interesting to see how the coverage has changed and evolved over the short period that the strike has lasted so far, as well as the contrast between the Sun’s somewhat sensationalist coverage and the Citizen’s more measured coverage.
*shakes head*
Tags: news and comment, oc transpo 2008 strike, Ottawa politics, suburban vs. urban, transit
I try to be an advocate for this city as much as possible, but it’s difficult, sometimes.
City revises bus rider incentives (after canceling them altogether, at one point)
Council meeting spirals out of control
As far as the bus incentives are concered, their decision is basically the worst of both worlds. Discounted bus fars won’t be anywhere near as effective at luring people back onto buses, but at the same time the transit budget will still be way out of balance. On top of that, I’m that transit riders are probably going to end up confused by all the changes and back and forth.
On a positive note, at least the Lower Duck Island bridge proposal seems to have been quashed, and hopefully for good. Of course, the fact that they’ve left it open to reconsideration means that it will probably be put back on the table and then dropped again at least two or three more times.
In short, it’s a wonder that this Council gets anything done sometimes. Reading the Citizen’s coverage of the meeting makes it sound as if it routinely dissolved into petty squabling and sniping across the room. And you know what, guys? That isn’t the way to run a city. City Council should be all about working together, and finding solutions that work for everyone (or at least as many people as possible). It’s time for City Councilors to start taking a holistic view, and working out what’s best for the city as a whole, not just for the constituents of their ward. I realize that it’s a political balancing act, but something obviously needs to be done, as I think it’s fairly self-evident that the confidence most Ottawans have in their city’s government is starting to slip.