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How public-private transportation partnerships create innovative solutions, boost the economy

March 25, 2025 at 09:01 AM EDT

ⓘ This article is third-party content and does not represent the views of this site. We make no guarantees regarding its accuracy or completeness.

(BPT) - To keep the economy moving, people need to keep moving. Public transit helps economies grow by providing access to businesses where people purchase goods, boosting home values and creating jobs. By getting people to work or school, shopping, entertainment and more, public transportation provides a critical lifeline, supporting self-sufficiency so people can contribute to a strong, healthy community. According to the American Public Transportation Association, 77 cents of every dollar invested in public transportation goes to the private sector.

Investment in transit also means investing in goods and services needed to run systems and keep roads clear - which benefits everyone. When transportation is cut to lower costs, ridership decreases, so those who need it most may experience less reliable service, creating a downward spiral.

The solution: Public-private partnerships

Contracting with the private sector helps public funds go further. Private contractors help maximize budgets, using their expertise to improve service and innovate through efficiencies and best practices. Using the resources of private-sector partners, public transportation systems can keep service levels high within existing budgets.

"As communities across North America face evolving transportation needs, public-private partnerships help build resilient transit systems," said Laura Hendricks, board chair of the North American Transit Alliance (NATA), an alliance of private-sector companies operating transit systems throughout the U.S. and Canada. "Private contracting offers a strategic approach to maximizing budgets and service, modernizing public transportation for everyone's benefit."

Partnerships solve problems

For example, in Nassau County, New York, one private transportation company helps ensure smooth operations, FTA compliance, customer service and more for its local transit system. This partnership has resulted in streamlined service and innovations including a contactless fare payment system, new passenger mobile applications and microtransit service - saving over $350 million.

According to studies from the Eno Center for Transportation and International Association of Public Transport, private contracting demonstrates many benefits:

Cost efficiency - Private contractors bring extensive experience in managing operational costs through economies of scale, streamlined processes and innovative practices.
Quality - Private operators are held to rigorous performance standards through structured contracts, ensuring high-quality service.
Expertise - The private sector's knowledge spans operations, maintenance, safety and workforce development to help public transit agencies address complex challenges.
Flexibility - Private contracting provides flexibility to scale services up or down for changing demand.
Economic development - Private transit operators contribute to local economies by creating jobs to benefit the community.

Learn more about these innovative partnerships at NATransitAlliance.org.

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