Negotiations between the Amsterdam public transport company GVB and the Amsterdam Transport Region have taken a new turn.
The GVB has been given a 'recovery chance' to improve its bid for the concession for public transport in Amsterdam. This was reported by the Amsterdam Transport Region, which acts on behalf of the municipality of Amsterdam and surrounding municipalities. It concerns the exclusive right to provide public transport in and around the city between 2025 and 2036.
According to Het Parool negotiations between the Amsterdam transport company GVB and the Amsterdam Transport Region have become more difficult. The Transport Region has asked GVB to reinstate its previous bid for the Amsterdam 2025 concession, which was submitted last summer. GVB's bid was deemed insufficient, and now the ball is back in the transport company's court.
negotiations
Although agreements had already been made in 2017 to award the concession to GVB by private treaty, that promise was called into question in September 2024. The original GVB bid, submitted last summer, was deemed insufficient. The Transport Region states that the bid did not meet the market conformity requirements. This requirement is important because GVB, as the only candidate, will have access to a multi-million contract without competition.
In order not to jeopardize the service, the Transport Region has decided to extend the current concession by a maximum of two years. The extension will expire as soon as the new GVB bid is approved and the concession comes into effect, possibly from April 2025.
Melanie van der Horst, Amsterdam's alderman for traffic and chair of the Transport Region's executive board, emphasizes that intensive and constructive consultations have taken place recently. "Our intention is to reach an agreement. There is still a lot of work to be done, but we are confident that we will be able to receive a good offer early next year."
The uncertainty surrounding the retention of the concession caused unrest at GVB. Both the FNV trade union and the Works Council voiced strong criticism. FNV spoke of “injustice” and warned of possible consequences for employees if GVB were to lose the concession. The chairman of the Works Council accused the Transport Region of waging a power struggle. “The Transport Region wants more driving, while GVB is struggling with the same staff shortages as other sectors. The concession granter needs to show more realism,” he stated.
The situation also caused a stir in Amsterdam politics. Several parties expressed concerns that a commercial company could take over the concession if the GVB does not meet the requirements. Experts warn that this could lead to a split of public transport in the region. In such a scenario, different companies would be responsible for, for example, the metros, buses, trams and ferries.
market conformity
The core of the criticism of the Transport Region lies with the market conformity of the GVB. This means that the transport company must perform at reasonable costs and deliver sufficient quality. At the same time, the Transport Region acknowledges the challenges that the GVB is facing, such as staff shortages and financial pressure due to rising costs.
GVB has until early 2025 to adjust its bid. If the bid is approved, the company will retain the right to provide public transport in Amsterdam. It is the first time that negotiations on an extension of the concession have been so difficult.
The coming months will be crucial for GVB. If the Transport Region accepts the improved offer, the company can continue to focus on improving the timetable and responding to the growing demand for transport in the Amsterdam region for the next ten years. Van der Horst emphasizes that both parties are doing everything they can to find a solution, so that travelers and staff do not suffer as a result of the negotiations.
