Private Rail Contractors Facing Fines for Service Failures

Many different organizations need to work together to make public transit work well, and cities provide financial incentives to make sure these organizations provide the best service possible, reports Daniel C. Vock for Governing. "But it hasn't been working in Boston and Denver lately, where the private companies running both regions' commuter rail lines have faced hefty fines for structural problems," Vock writes.

In Denver the city has been forced to hire additional personal because of technical issues. "The problem is with the crossing gates -- they stay down too long. Flaggers have been hired at crossings to make sure impatient drivers and pedestrians obey the gates and don't go around them," Vock reports. The city has looked to pass these costs back to its supplier.

Boston has also faced issues with Keolis, the company under contract to run rail transit there. "The biggest controversy has been about the fines the company hasn't paid. The Boston Globe recently reported that MBTA waived $839,000 in fees incurred for widespread problems on Keolis’ commuter rail service during the winter of 2015," Vock says. These fines were waved because of the extreme weather the city faced during that winter, but other fines continue to mount for the company.