Performance evaluation shows minor differences between municipal public transport companies in the three largest Dutch cities

The three municipal public transport companies in the three major cities of Netherlands (GVB in Amsterdam, RET in Rotterdam, and HTM in The Hague) differ little in their performances in 2022 in terms of cost effectiveness and quality, among other parameters. This has been revealed by an evaluation of the performances of the public transport companies, carried out by the Netherlands Authority for Consumers and Markets (ACM).

For a proper performance evaluation, ACM looked at the parameters of cost effectiveness and efficiency of GVB, RET, and HTM. In addition, ACM also assessed their performances on sustainability and the quality of services. In that context, ACM, together with the municipal public transport companies, identified indicators in order to be able to compare the public transport companies properly, despite their different organizational structures, different service concepts, and the differences in the shares of the various modes (bus, tram, and metro).

What did ACM find?

The comparison has revealed that RET has the lowest cost per timetable-kilometer: 11.75 euros. HTM has a comparable cost per timetable-kilometer: 11.83 euros, although HTM receives more subsidies. GVB has the highest cost per timetable-kilometer: 14.36 euros. However, it receives the least subsidies among the three public transport companies. Compared with HTM, the other two companies (RET and GVB) are able to benefit from the higher load factors on the metro systems that they operate.

With regard to on-time performance, all three municipal public transport companies score highly. The bus operations of GVB and RET score approximately 90 percent. HTM’s bus operations scores around 85 percent. The tram operations for all three public transport companies score approximately 91 percent. Due to staff and rolling-stock shortages, all three public transport companies have decided to focus on executing their schedules as planned rather than running as many services as possible.

For determining the performances, ACM also looks at perceived quality, where aspects such as comfort, convenience, and safety are assessed among riders. Customer satisfaction is similar among all three companies. HTM scores the highest on all aspects, and has the fewest complaints and calamities. In general, it can be concluded that customer satisfaction is high for all three companies.

Starting in 2025, the three companies must also report more extensively on their impact (environmental or otherwise) as mandated by new European directives. This has already been included in this evaluation. HTM has the lowest CO2 emissions of the three companies, due to its use of buses running on natural gas, among other reasons. GVB is second in terms of CO2 emissions, and operates the most emission-free buses among the three companies. With regard to the total reduction in CO2 emissions, RET faces the biggest challenge.

Why does ACM perform this comparison?

The three largest municipal transport companies operate on the basis of concessions that have been directly awarded (concessions are permits granted by the municipalities for the operation of public transportation in their respective cities). They do not need to compete with other companies for these concessions. In the Dutch Passenger Transport Act 2000, it has been laid down that ACM carries out a comparative performance evaluation in order to stimulate municipal public-transport companies to improve the quality of their services.