The transport and mobility market organisation varies from one country or region to another, usually as a result of inherited institutional, political or cultural décisions. Legislations are passed by governments or institutional bodies in charge of transport, and then applied to the entire transport market, or to specific modes or niches in this sector.
Following the term of their political mandates, institutional bodies can decide whether to amend or modify the legislation in place in terms of transport and to which level they wish to intervene in the market: they will decide of the level of regulation or deregulation of the market. These choices will determine the functioning of the transport market, and set the rules, notably in terms of competition.
Market regimes are therefore set: governments have defined whether they would like, for instance, to see a completely deregulated market where a minimum control over new entrants would be operated by Authorities (deregulation), or if a number of rules will determine the access process and competition rules within the market(regulation).
A wide panel of options are offered to regulators between a complete market regulation or deregulation. However, since the 80’s, opening markets to competition remains a developing trend worldwide, though it implies an increased involvement from regulators for tendering out and monitoring the outsourced services. This efficient and cost-reducing process is notably used successfully for rolling stock procurement and transport operations (which includes tendering, bidding and contracting steps).
Interested in knowing more about market organisation or public transport procurement techniques? Ubiquity’s experts will be delighted to explain to you more in details those concepts.