The question asked by the Helsinki public transport authority (HSL)

The main objective of the study was to assist HSL in deciding on the most suitable procurement strategy for urban rail services in the Helsinki context. HSL had pre-identified main alternative scenarios but recognised challenges and risks involved in moving away from the current organisation. HSL requested the following:

• Evaluate and compare scenarios to provide HSL with a better analytical basis on which to make a strategic decision regarding future procurement.
• Estimate the overall cost and performance of the various scenarios, identifying positive and negative factors affecting the contract price, and including an estimation of the market outlook in the event of tendering.
• Study relevant urban rail contracting cases that are useful for benchmarking purposes and provide an overview of cost differences where possible while acknowledging that some aspects may require a more qualitative approach.

Our approach

Our approach to answer these questions was:

• Part 1 – Detailed analysis of the municipal trams and metro operator KL Oy to help identify potential issues and the potential impact of a reform of the current model
• Part 2 – Benchmarking of six selected international relevant cases (quantitively when feasible and qualitatively to put developments and experiences of the various case in context)
• Part 3 – Market of operators and requirements for successful tendering, including interviews identifying key aspects of attractivity for the HSL market
• Part 4 – Analysis of pros and cons of competitive tendering versus in-house provision, to provide a clearer view on the potential impact of alternatives
• Part 5 – Comparative evaluation of scenarios (including scenario development, and impact, probabilities and risks assessment, prospective calendar and general recommendations)

This project was conducted under the leadership of inno-V, in collaboration with Trans-Missions and KCW.