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public-private partnership (PPP). The PPP model, To avoid conflicts of interest, the technical mon- which is being used because more conventional itoring center is run independently from the operat- financing mechanisms are not available, allows the ing companies. Among other things, controllers can private sector to provide the majority of the infra- graphically compare scheduled service with actual structure, with coordinated support from EPTC. service delivery. When issues are identified, the radio controller diagnoses the problem, determines a solu- tion, and places a call to the operating company's ORGANIZATIONAL STRUCTURE own, similar monitoring center. The operating com- Guayaquil, Ecuador pany will then communicate instructions to its indi- vidual bus operators. Metrovia services are regulated, controlled, and Radio controllers may also request that the city supervised by an organization formed expressly for change the timing of traffic signals, but they must that purpose: the Municipal Foundation of Urban convince the city that the changes are justified. When Transportation for the City of Guayaquil. The Foun- a metro line is delayed due to an accident or other dation has a small staff (16 employees), including a general manager of administration; directors of oper- failure, radio controllers work with bus companies ations, systems, infrastructure, and public relations; a to add more buses on BRT lines that operate paral- lawyer; and an accountant. Transportation operations, lel to the closed line. Most issues with bus operators fare collection and management, control and super- are resolved within 20 min of when the phone call is vision, security, and cleaning are all outsourced placed. Metrovia is governed by an eight-member board Contracts with operators outline the service lev- of directors, which consists of a chairman appointed els and spans of operation to be provided on each by the mayor and one delegate representing each line. If the operators fail to achieve those levels of of the following: Civic Board of Guayaquil; traffic service, they are fined. A contractor receiving 20 or authorities of Guayas; chambers of commerce and more of these fines is automatically terminated. It is industry and construction organizations of Guayaquil; estimated that at one time as many as 300 contract universities of Guayaquil; private banking association; violations occurred in a single day. Contract modi- urban transportation federation; and city council. fications and the monitoring facility have made it The Foundation's income comes almost entirely much easier to enforce the provision outlined in the from property leases and fees from advertisements contract, and contractors can now be terminated on placed in the terminals and at bus stops. Passenger the third fine. revenue is distributed among the two bus consor- Technical coordinators on the Transantiago staff tiums; each consortium receives the fares collected are responsible for system planning. The contracts on its routes, less the 9.3% that is paid to Metrovia coordinators are responsible for negotiating and for fare collection services. administering contracts with the operators; and they are tasked with continuously making improvements to bus operator contracts. Resources coordinators Santiago, Chile handle the administration of internal resources (finan- Transantiago is an authority in Santiago that was cial and human resources, as well as technology established by the Minister of Transportation and resources). Telecommunications and ratified by the president of The contracts coordinator positions were added the republic in 2006. The government invests in the within the past year. The original negotiations with infrastructure and provides oversight and coordina- the bus operators were carried out by technical peo- tion of the various components of the transit system. ple who had a background in public transport but no The day-to-day operation of the system is contracted experience in contract negotiation and management. to private companies. As a result, they unknowingly negotiated bad con- Transantiago oversees operations through a tracts. The contract coordinators have since, how- technical coordinator in charge of bus routes, bus ever, been able to modify the bus operator contracts stops, user information, technology, and service qua- to add incentives for good service and penalties for lity. This includes oversight of the technical moni- substandard service. Transantiago has made it a goal toring center, which has work stations for 14 radio to add more incentives as contracts come up for controllers. renewal or amendments are made. 5
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As a result of the problems related to implemen- Two represented workers--the driver and the tation of the new bus network, the government is person who watches the doors--are assigned to each temporarily subsidizing operation of the system. train. Metrovias tried to eliminate the door guard in 1996, but the government sided with the union, not wanting to see an increase in unemployment. Even Buenos Aires, Argentina though Metrovias is responsible for managing the Prior to 1994, the metro system in Buenos Aires company, the government dictates the salaries for the was operated by the local government, and service unionized workforce. If unions have an issue, they was poor. To improve service, a bid request was go on strike, and while on strike, workers continue issued in 1992 for the operation of the light rail, sub- to receive their full pay. Strikes are becoming more way, and commuter rail services. Metrovias was common as a result of these practices. awarded the contract and has been responsible for In 2002, the value of the peso dropped dramati- operating the Buenos Aires subway (Subte), light cally (from the equivalent of US$1 to US$0.25). rail, and Urquiza railway since January 1994. The With 75% of trips attributable to commuting to work contract was issued by the federal government, and school, the government did not want to raise which also provides the funding, but the local gov- fares and thus decided to begin subsidizing opera- ernment of Buenos Aires retains ownership of the tions in 2004. Today, 40% of operating costs are assets. Metrovias's contract includes responsibility funded through the farebox, with the remainder sub- for operating the system, maintaining the assets, and sidized by the government. Since 1994, ridership has executing a capital investment plan for three new almost doubled; the subsidy is independent of the subway lines (currently unfunded). The first 4 years number of passengers. of the contract saw a huge improvement in perfor- Bus service in Buenos Aires is provided by pri- mance levels. vate operators controlled and regulated by the gov- Eligible employees at the government agency ernment through a permit/franchise process. The running the Subte were encouraged to take retirement government-regulated system, which was imple- before the concession contract was let to Metrovias. mented in 2002, has resulted in larger, more pro- A healthy economic situation in the country in 1993 fessional companies providing the bulk of the led many to decide to retire, but this meant that service with newer buses, many of which are low- many long-time workers, with an extensive know- floor buses. Service is still competitive, particularly ledge base, were thus not available for Metrovias in corridors with no subway service. Fares are not to hire. To provide a means for transferring those integrated with the subway or the commuter rail. retirees' knowledge to its staff, Metrovias hired five Buses often compete for passengers in the same of the retirees as consultants for a 6-month period so corridors as the subway and rail; when the subway that they could share their skills and knowledge service improved, more people chose to travel by (especially with the employees responsible for main- subway and rail (i.e., the improvements led to an taining the 100-year-old wooden subway cars still increase in demand). operating on Line A). Today, the size of the office By law, all stations must be accessible to people staff at Metrovias is half of what it was when the with disabilities. The age of the system infrastructure, system was run by the local government. Many of however, makes modifications very costly and slow. the government employees who were not hired by Only five stations have been modified in the 5 years Metrovias still, however, work for the government since the law was passed. There is no dedicated fund- agency, building extensions to the subway system. ing for future modifications. The number of employees represented by unions was also reduced, as Metrovias introduced the 8-hour Porto Alegre, Brazil workday (up from 6 hours under the government-run system). In more than 15 years of operation, how- In a move to decentralize the city's urban trans- ever, the number of employees has doubled, par- port system, EPTC was created to regulate and tially because in 2003 labor representatives won supervise activities related to transportation in Porto government support for a return to the 6-hour work- Alegre. EPTC staff regulate all above-ground move- day; work hours were cut by 25%, but pay levels ments relating to roadways, public transportation, remained the same. and traffic signals. EPTC's mission is to enhance 6