Fact Finding Mission on Competitive Sourcing to New Zealand

The objective of this project s to learn how competitive bidding is handled internationally, and to distribute these lessons learned to the U.S. transit industry, providing them additional options for financing transit systems. New Zealand is a world leader in the area of competitive bidding of public transportation services. In 1989, faced with declining transit ridership, poor service, and escalating costs, the country embarked on a policy of privatization. The policy has led to better service in newer and more efficient vehicles and at a reasonable cost. Led by FTA Administrator, FTA sponsored a workshop on competitive bidding of public transportation services in Wellington, New Zealand on May 30, 2002. The mission coincided with an American Public Transportation Association (APTA) study mission to that country and Australia that focused on innovative transit practices in New Zealand, including privatization and the introduction of hybrid electric vehicles.