The new law allows provincial governments to create local public transportation companies.
The Netherlands passed legislation allowing provincial governments to establish their own public transport companies on November 4. The new law, sponsored by MPs Habtamu de Hoop and Olger van Dijk, passed through the Dutch parliament, despite opposition from the outgoing government.
It allows counties to operate public transport, including local rail services on lines not included in the Main Line Network (HRN) concession currently granted to Dutch Railways (NS) by the Dutch Ministry of Infrastructure.
The new legislation is an exception to the basic rule in the Netherlands that public transport concessions are only awarded after an open tender. A county government that chooses to create its own public transportation operator can award services directly to that operator. However, the concession granted by the regional public transport authority is still required.
The new law is designed to allow provincial governments to step in and manage services in cases where tenders do not result in any bidders. It is unclear which regional governments, if any, will establish local operators in the way the new legislation allows.
