Conventional and innovative financing strategies for local public transport: insights from the italian context

Resumen

The local public transport (LPT) sector has historically been dependent on public financial resources. However, the recent economic crises have resulted in a further consolidation of this trend, largely due to the implementation of austerity policies by governments worldwide. This has resulted in a notable decline in the quality and frequency of service provision. In the context of economic scarcity, which ultimately compromises the quality of transport services, the introduction of alternative sources of finance is of paramount importance. Consequently, the involvement of private actors in the LPT sector presents a valuable opportunity to enhance the efficiency and attractiveness of the service, thereby increasing its usage among citizens.

To the best of our knowledge, the existing literature has never addressed this topic. This pioneering paper aims to make a contribution to the existing literature by analysing the different forms of public-private engagement in the Italian LPT market, examining the ongoing initiatives and presenting a groundbreaking case study. To achieve this, a threefold methodology was employed. Firstly, the international literature on private sponsorship contracts in sectors other than transport was analysed. Secondly, the main search engines were used to examine the official websites and financial statements of the public transport companies. Thirdly, an interview was conducted with the communications manager of the Italian national transport association (ASSTRA). The findings of this investigation indicate that the only solutions thus far adopted are the renaming of stations and stops, the decoration of vehicles, and Corporate Mobility Management (CMM). The conclusions were alternative forms of financing for public transport are urgently needed if the service is to be efficient and appreciated by users. Furthermore, three solutions emerged that demonstrate the potential of public-private integration in the public transport sector.