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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Per Skallefell, Carl Grufman and Jacob Nyberg
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DOI:10.17265/2328-2142/2026.04.005
1. Partner, Supply Chain & Operations, EY (Ernst & Young), Stockholm 114 47, Sweden 2. Ex Senior Manager, Supply Chain & Operations, EY (Ernst & Young), Stockholm 114 47, Sweden 3. Manager, Supply Chain & Operations, EY (Ernst & Young), Stockholm 114 47, Sweden
The purpose of this study is to deepen the understanding of the economic impact of transitioning from outsourced to insourced public bus transportation operations within a Swedish context. The research scrutinized an uncommon occurrence in Sweden where a regional PTA (public transport authority) transitioned their public bus services to an in-house operation after previously contracting them out to a private provider, a move that goes against the growing trend of competitive tendering in bus transportation services. Data were collected through document analysis and interviews with industry experts and managers from public and private bus operators. The study concludes that public transportation costs would have been lower if the services had been procured through a competitive tendering process, with estimated potential savings in the range of 3.5% to 6.4%. Additionally, the study finds that the purchaser’s specifications and demands contributed to increased costs for public transportation by enforcing strict age requirements for buses and specifying bus sizes for each departure.
Public transport, bus transport, outsourcing, insourcing, sourcing, competitive tendering, procurement, contract.
Per Skallefell, Carl Grufman and Jacob Nyberg. (2026).The Economic Consequences of Insourcing Public Transportation, a Case Study from Region Örebro in Sweden , Journal of Traffic and Transportation Engineering 14 (2026) 198-206
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