Article at a glance:

European public transport at a crossroads

Efforts by the European Union to open public transport to private competition are about to change the playing field for Europe's public bus, tram, and commuter rail operators. Unfortunately, few local or regional transit authorities are doing much to prepare for the new competition.

The take-away

Incumbents will need to improve their operations to compete with private companies—or to command a better price if the time comes to sell. The restructuring will be difficult and painful, but adopting best practices could bring the incumbents' costs into line with those of the private operators.