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Article
Optimal contracting and incentives for public transport in Sydney: what has been learned from the Sydney Metro experience?
World Transit Research
  • Rhonda Daniels
  • Cameron Gordon
  • Corinne Mulley
  • Nick Stevens
Document Type
Conference Paper
Publication Date
9-1-2011
Keywords
  • Sydney Metro Authority,
  • NSW Government,
  • contracts
Abstract

The New South Wales (NSW) government created the Sydney Metro Authority to design, build and operate a completely separate underground Metro rail system to supplement the existing public transport network in Sydney. By the time the NSW government abruptly cancelled the entire Metro project in early 2010, the Authority had conceived and designed a contract that was proceeding to procurement. This paper examines the nature of the proposed Sydney Metro contract in relation to its performance framework and compares this to the frameworks in current contracts for bus, rail and ferry public transport in NSW. Against this background, the paper examines the extent to which the Sydney Metro approach has had an impact on subsequent public transport contracts in the context of the literature on optimal contracting and optimal incentives. The paper concludes that little has been implemented, although the other mode contracts now enable more performance measurement and incentivisation. In particular, the decision to award contracts to existing (and mostly public sector) operators appears to have acted as a brake on developing these performance elements.

Citation Information
Daniels, R., Gordon, C., Mulley, C., & Stevens, N. (2011). Optimal contracting and incentives for public transport in Sydney: what has been learned from the Sydney Metro experience? Conference paper delivered at the 34th Australasian Transport Research Forum (ATRF) Proceedings held on 28 - 30 September 2011 in Adelaide, Australia.