Introduction
Most governments want to retain influence over railway passenger services and fares. The Roles of Government argued that the best way to do this is by using a model in which governments use a contract to purchase the services and fare concessions they want, which this section will discuss in detail. First, it will introduce the public service obligation (PSO) concept, underlying the two primary contracts—PSO Contracts and Public Services Contracts (PSC). Second, the section will explore the possibility of introducing competitive bidding for such contracts and introduce examples, which are also described in the case studies.
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