Public-private partnerships for improving the regional mass transit system: a case study of the Toledo Area Regional Transit Authority

Fed up with the increased gasoline costs and stifling traffic congestion, a growing number of metropolitan city dwellers consider utilising the mass transit system. Reflecting this sentiment, a ridership of the mass transit system across the USA has been on the rise for the past several years. A growing demand of the mass transit system, however, necessitates the expansion of service offerings, the improvement of basic infrastructure, and the additional hiring of mass transit workers including drivers and maintenance crews. Such a need requires the allocation of larger financial resources to the mass transit system in times of budget cuts and government downsizing. Thus, the public transit authority is faced with the dilemma of increasing financing options without increasing the burden of the local government and tax payers. To better cope with such dilemma, this paper proposes the public‐private partnership (PPP) which can create synergistic benefits to both government authorities and private sectors. These benefits include: enhanced public utility and quality of life, regional economic development, improved worker productivity, risk sharing, and increased supply chain velocity. This paper also develops practical guidelines for a successful PPP based on the case study of the Toledo Area Regional Transit Authority (TARTA).