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Gladys@SydneyTrains.info

By Jonathan J. Ariel - posted Friday, 18 May 2012


·   late trains

·    no trains

·    crowded trains

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·    crowded platforms

·    signal, track, overhead wiring and points problems

·   vandalism and anti social behaviour

Every one ofthese factors is vital when considering a new governance model. Critically, any potential change in governance must consider the change in area to be serviced, the (changed) passenger mix and coordination across multiple operators.

Does the government plan to house all non-metropolitan railway operations under one or many rooves? Will NSW Trainsbe a related entity to a bevy of smaller, region-centric franchises, owned an operated by municipal authorities and/or the state government? Will local businesses, say miners, own part of the network?

Contrary to the mythmakers in both the big end of town and the megaphones in the Labor Party, ownership of the system per se is not the key issue in determining performance. Fundamentally, the issues of most concern should be NSW Trains’ regional planning, fare policy, marketing, and coordination of operations across multiple operators, efficiencies, regulation, customer service and transparency in taxpayer subsidy paid.

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The transit authorities examined by Booz (see earlier table) are typical of transit authorities in most American states. They are public utilities, some use the private sector to provide services, they are customer focused, careful with their spending, engage with their staff and are manned by workers whose pride in their vocation is infectious. The last point is not in the Booz report but was witnessed by the author recently in Massachusetts.

Many critics of Rail Corp and for that matter the bus operator, NSW State Transit, would no doubt nod in unison, cooing that yes, a newly minted mission by the organization, modified behaviour of unionists and improved white collar/blue collar relations are all important steps to improved commuter services. But the truedriver for change is one further step: selling the organization(s) into private hands.

Well, big business and their PR lobbyists would argue that. It’s in their DNA.

But privatisation is no magic bullet. While the management or ownership of say NSW Trains is important, so too is the character of the privatized entity and even more so is the regulation under which it operates in determining how customer focused the business is.

Offloading public businesses onto the private sector without careful planning is often to the public’s detriment. Consider Prime Minister Howard’s sale of KingsfordSmith Airport to Macquarie Bank. From a passenger’s perspective all travelers see are higher fees in passenger charges, eye popping car parking fees, airport levied taxi surcharges, the eradication of the cheap and efficient public bus that years ago snaked from inner Sydney to Mascot and outrageous prices for food and beverages, no doubt a function of the stratospheric rents charged by Mac Bank. And all passengers hear is frustration from airlines regarding Mac Airports sky high landing fees.

When it came to airports we in NSW aped the British. Let’s not repeat that disaster with mass transit. How about it Minister?

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About the Author

Jonathan J. Ariel is an economist and financial analyst. He holds a MBA from the Australian Graduate School of Management. He can be contacted at jonathan@chinamail.com.

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