
A reconstruction could be brewing for Miami-Dade Transit. Commissioner Javier D. Souto wrote an open letter last week discussing the issues that have arisen with the People’s Transportation Plan. Somehow the Miami Herald has ignored it in their series so far, but the South Florida Business Journal covered the letter. Souto begins by discussing the importance of mass transit in the day of $4/gallon gasoline and the continued difficulty with getting people out of their cars into an inconvenient transit alternative. After going on about the problems we have, he proposes a radical idea: privatize transit.
Souto starts the paragraph by saying, “if the desire is to make a profitable transit system…” This is where I imagine his whole paragraph must be sarcasm. Then I remember that there are still those who are convinced that transit should be funding itself, and those people would desire to make a profit from a transit system. So, Souto (or anyone else), if that is your desire, quench it. Transportation is not profitable. Period. Government subsidizes every aspect of it, from roads to railroads to bus systems to Metrorail. It’s a subject worthy of an entire post, so let’s just make it clear that profit should not be the goal of any transit system. Not unless we have a major paradigm shift to also make a profit with roads…
Regardless of motive, privatizing transit is not unheard of. The original streetcars in the US were all privately owned and operated. Unfortunately, that made it easier for them to fold as the automobile became the preferred mode of transportation in this country. The same thing happened with intercity passenger rail, and only a subsidized Amtrak is left standing. Those systems failed because their goal was to make a profit.
Today we have brought mass transit under government subsidy, and we have developed Public-Private Partnerships (PPP) that maintain governmental control and regulation. The I-595 project is a good example, as a private company will design, build, finance, operate, and maintain the improvements, while FDOT maintains control over things like standards and tolls. FDOT will not be turning a profit from the system, either. The toll FDOT collects will not be sufficient to pay off the concessionaire company for building it, so they will be using other budgeted funds to pay for it. Profit is the motivator for the private company, of course, but not for the government agency. Transit could work the same way. A private company could design, build, and finance Metrorail improvements, while operating and maintaining the existing and future system. The county would still have to control things like fares and basic standards.
That brings us to the biggest problem. Someone responsible would still have to manage a PPP. Until the county takes some major steps in the right direction, we would not have the confidence for them to direct a PPP any better than they have the current state of affairs. Could a PPP have any success in Miami-Dade Transit? Perhaps. Privatization might boost the confidence that transit can be managed properly (or it might not), but alone it is not sufficient to solve the woes of the People’s Transportation Plan. And it most definitely will not solve any financial woes. No profit will come to the government from such a privatization. Do you hear that, all you profit-minded capitalists?
Photo by Flickr user ImageMD.






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