Abstract

In the early 1990s, Rostov-on-Don and many other Russian cities lost their traditional sources of financial support during the period of national economic reform. This resulted in problems with their public transportation systems. The private sectors in cities including Rostov-on-Don began filling in municipal transportation service gaps, often with very small fleets of small vehicles. Rostov-on-Don, however, in contrast to other cities, took early steps toward administrative reform for disciplined private sector capacity mobilization. Rostov-on-Don was able to restructure its route network to meet new demand patterns while increasing its total public transportation fleet through a combination of better public transportation integration in the city's perspective planning and competitive tendering of rights for public transportation market entry. Competitive tendering arrangements, at the same time, ensured that both public and private operators were adequately compensated for unremunerative service provision and social services were maintained.

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