Vilnius's Public Transport Privatization Criticized as Short-Sighted

The ongoing process of transferring public transport routes in Vilnius to private operators is a matter of significant concern, raising questions about the long-term implications for our city's strategic infrastructure. While the stated goal is to increase route availability and potentially lower costs, the approach taken by the Vilnius municipality appears short-sighted and risks undermining the very essence of public service.

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The process began in 2017 when 17 percent of newly created routes went to private carriers after tenders were announced. This year, the move is going further – with plans to select, through tenders, who will provide services for up to 49 percent of routes.

We have already seen the initial phase of this privatization, where 17% of new routes were handed over to private companies. Now, the plan is to extend this to nearly half of all routes. However, the process is already mired in difficulties, with disgruntled transport companies appealing the tender results to the courts. This legal wrangling could drag on for years, creating uncertainty and potentially delaying the promised improvements.

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The loss of route and process control is just one of many arguments why handing over the provision of public services to private companies will do more harm than good.

The core of the issue lies in viewing public transport as just another service to be optimized for the lowest bid. This perspective fails to recognize public transport as a vital strategic asset that underpins a city's functionality. It ensures mobility for hundreds of thousands of residents, supports a functioning labor market, and guarantees access to essential services like schools and healthcare. In times of crisis, it even plays a role in civil defense and evacuation.

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Public transport is not a simple service whose efficiency can be measured by the lowest price in public procurement or short-term impact on the city budget. It is the daily means of movement for hundreds of thousands of city dwellers, and even more so, a strategic city service and infrastructure.

Major European cities like Berlin, Paris, and Vienna understand this strategic importance and maintain strong control over their public transport systems. Even Riga, after initially privatizing its services, found it necessary to regain control due to challenges in managing costs and accessibility. Vilnius's current path, which prioritizes relinquishing control rather than investing in and managing its own public transport, seems to be moving in the opposite direction of established best practices. This approach may offer immediate relief but could lead to significant long-term costs and a diminished capacity for the city to manage this essential service effectively.

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Why is the Vilnius authorities choosing the opposite path and, instead of investing in a strategic area and keeping its control in their hands, are they going in the opposite direction – transferring service provision to private companies?