Transit capital "pooling" could free-up cash?

Later this month Canadian mayors hope to announce a new “national transit strategy” to repair the nation's aging transit systems and reduce environmental damage (the Star Feb 10-07). Most likely there will be a call for new government funding to help keep transit systems across the country rolling. However, if new funding does arrive it may not be enough. Therefore, transit authorities will continue to look for creative ways to increase funding and ridership, while reducing costs.

On the cost saving idea that may have merit is capital "pooling" to pay for big ticket items such as subway cars, LRT’s, buses, etc (much as the car companies do). For example, a combined three city order for buses would benefit from the economies of scale that a smaller, one city order would not. Small cities would also benefit by dove-tailing their bus orders with their big city brethren and accruing savings that normally would be denied them. Parts purchasing would also be cheaper as the common parts pool would be that much larger, while many warehousing and distribution costs would be shared.

Certainly, the challenges implementing such a scheme would be truly huge from selecting common rolling stock or components to conflicting city needs; never mind how the various transit suppliers could be given a fair opportunity to participate in the plan. What is important here is not the specifics of the idea, rather the concept of transit authorities looking beyond their own transit borders to partner and leverage the power of economy of scale be it capital, funding or otherwise).

A national transit strategy and innovative revenue generation tactics may keep transit systems in good repair. Looking outside for creative partnering synergies and opportunities may just be a way free up additional cash to improve transit for cities big and small?