Public Transport Operating Model

Cabinet approved the introduction of a new framework for the provision of urban bus and ferry services, including changes to the current legislation. The new framework, better known as the Public Transport Operating Model, will contribute to the government’s goal of growing patronage with less reliance on public subsidy.

The Public Transport Operating Model has now been developed.

In October 2011 Cabinet approved the introduction of the Public Transport Operating Model. Central government, regional councils and operators are now moving to implement it.

The change came about as a result of a review of the Public Transport Management Act 2008, where concerns have been raised regarding the effect that the Public Transport Management Act 2008 has on incentives for operators to invest in their public transport assets and take an innovative approach to service development.

As a result, the Public Transport Operating Model is the new framework for building a long-term public-private partnership between regional councils and public transport operators. This will be achieved through collaborative planning, joint investment and risk and reward sharing.

This work came about in response to the government’s goal for public transport to grow patronage with less reliance on subsidy.

The Public Transport Operating Model has been developed with two overarching objectives:

• to grow the commerciality of public transport services and create incentives for services to become fully commercial
• to grow confidence that services are priced efficiently and there is access to public transport markets for competitors

The model takes a wider view than legislation alone. It is a planning, procurement and business development framework. A key feature of the new model is an emphasis on regional councils and operators working in partnership to deliver urban bus and ferry services in regions. It recognises that both parties have a stake in, and are reliant on each other, for delivering affordable urban bus and ferry services that people want to use.

The Ministry of Transport, along with the NZ Transport Agency (NZTA), Auckland Transport, Greater Wellington Regional Council, Environment Canterbury and the Bus and Coach Association have developed the Public Transport Operating Model, in consultation with bus and ferry representatives.

Read more about the Land Transport Management Amendment Bill 2012, which will establish the Public Transport Operating Model in legislation.

Provide feedback to the NZ Transport Agency about proposed changes to its Procurement Manual and operational policies to support regional implementation of the model.