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Final shortlist for Overground concession announced
Boltar wrote:
Why should they run it themselves? Doing so would be unlikely to bring many benefits. The concession approach is similar to the running of the Apart from the fact that they wouldn't require having to make a profit out of the service , unlike any company that does run it. Unless they have all been struck by the christmas spirit and will do it all for no comeback. The whole point about tendering is that demonstrably, in real life, the efficiency savings delivered by private contractors compared to state-owned organisations are greater than the margins that the contractors command. This is why bins are emptied by Veola and prisoners escorted by Serco. It's also why government organisations generally buy biros from Bic and computers from Dell rather than having a special government biro and PC factory. PPP is a different story, with a skewd allocation of risk and an inefficient capital structure, but this isn't relevant to the London Rail operational contract (interestingly, from what I've read about the deal it seems that TfL is buying the new rolling stock directly from Bombardier rather than it being owned by a ROSCO. This is definitely a Good Thing.) -- John Band john at johnband dot org www.johnband.org |
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