Bus Contracting Regime for Regular Route Services: Commercial Bus Contracts
Under the Passenger Transport Act 1990, regular passenger bus services are provided under a service contract between the Ministry of Transport and an accredited bus operator. A regular passenger service (often called simply a regular route service) is a public passenger operated according to regular routes and timetables. Service contracts may be issued for a specified region or for a designated route or series of routes. The Act allows for two types of service contract: commercial and non-commercial.
Commercial Bus Contracts
Under a commercial service contract, the operator derives revenue from the collection of passenger's fares. The service contract must not exceed eight years and must grant the operator the exclusive right to provide regular route bus services in the contract region or along the contracted route/s. The commercial contract incorporates:
- routes, fare schedules and timetables;
- minimum service levels;
- an information management system to facilitate service performance monitoring;
- a complaints register; and
- record and statistics keeping requirement
