Chicago has leased the Chicago Skyway to a private toll road company. Could the same privatizaion framework be used for the Chicago Transit Authority, asks Wendell Cox.
"The private sector now is used by major public transit systems around the world. London now competitively contracts virtually all of its bus service -- a system with four times the number of buses run by the CTA. Costs there have been reduced 50 percent, after adjustment for inflation. The London transit authority continues to establish fares, routes, and service standards. The same red double-decked buses take passengers throughout the city -- but service is better, on-time performance is better, and service levels have been increased more than 30 percent.
I estimate competitive contracting could save nearly $1 billion over 10 years, and more than $3 billion over the next 25 years. These long-range savings are very substantial. The Skyway lease gain of $1.8 billion for 99 years could be achieved at CTA in less than 25 years."
Thanks to transport-policy listserv
FULL STORY: Answer to CTA's woes lies in private sector
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