Dublin bus market opens to competition

THE Government is to open up the Dublin bus market to competition in coming months by tendering out routes to private operators.

The number of buses in Greater Dublin is to increase by 1,800 under the Transport 21 initiative. The Government will allocate €30 million to Dublin Bus immediately to buy 100 additional buses for delivery over 2006 and 20007.

A further 100 buses from the private sector will provide services on new routes. The Government is also spending €50m for 160 buses for Bus Éireann outside of Dublin during 2007.

The new Dublin Transport Authority (DTA) will enforce regulation of the busmarket and allocate public subsidies for bus services in the Greater Dublin area.

It will also be responsible for monitoring the quality and cost of service by all operators and ensuring value for money on all routes. Mr Cullen said: “The 100 buses procured from the private sector will form part of an initiative to facilitate the entry of new, private operators by awarding franchises to operate routes accounting for 15% (approx 200 buses) exclusively to such operators by way of competitive tendering. Following this period, all new routes will be subject to a competitive tendering process open to all operators.

“The precise arrangements will be approved by Government on the basis of proposals from the Dublin Transport Authority.

“This approach will encourage new investment and innovation in the Dublin bus passenger market.”

Mr Cullen said the new arrangements will result in improved bus services for commuters with better value for money for passengers and taxpayers. The DTA will have responsibility for traffic management strategy, integrated ticketing, fares and information systems.

In coming months, Mr Cullen said he planned to replace the Road Transport Act, 1932, with a modern regulatory and licensing regime to create a level playing field for private operators in the bus market.