Changwon City is set to revise its public-private partnership for city buses five years after its implementation.
The city has outlined three main innovation directions: financial stability, citizen satisfaction, and coexistence. However, the need for reform stems from the growing financial burden each year. Since the introduction of the partnership, the city's financial support has increased by 28.4 billion won, with a significant portion of this increase attributed to driver wages.
On August 25, the city announced its plan for 'Changwon Public-Private Partnership 2.0.' The goal is to maintain the operational achievements of the partnership introduced in September 2021 while reducing financial burdens and improving service systems.
A city official explained that while the reform aims to enhance financial health and service quality, there is a stronger emphasis on cost reduction.
The city has set an annual savings target of 10 billion won, which is not expected to be achieved in the short term. This figure is a long-term estimate based on the cumulative effects of various projects, including a planned reduction of about 5 billion won through route adjustments for low-revenue lines. The remaining savings will come from operational efficiencies, such as expanding bus advertising and selling carbon credits. The full impact of these savings is expected to be realized by 2028.
Of the six initiatives being pursued, four will begin in 2028. The direct management of electric charging facilities will start in 2026, while the expansion of bus advertising and cashless buses will be implemented in 2027. However, the more significant cost-saving measures, including the restructuring of low-revenue routes, fuel efficiency systems, and carbon credit sales, are scheduled for the latter part of the term. Consequently, the verification of the savings target will also be delayed.
At the heart of the financial savings is the restructuring of low-revenue routes. The city plans to convert about 50 of the 135 city bus routes, which accounts for over 7%, into community buses and demand-responsive transport (DRT) services. This will necessitate adjustments to some routes. While DRT fares will remain the same as existing city buses, community bus fares will be 100 won higher, potentially adding extra costs for users in those areas.
During the transition, the mobility rights of vulnerable groups, such as the elderly, students, and night workers, must also be considered.
A city official stated, "We will analyze passenger data by route and time using bus card data, and routes with high late-night usage will be excluded from the conversion. We will also prepare alternative transport options based on user demand to replace existing city buses."
Changwon City has reported achievements in route adjustments, eco-friendly bus transitions, and safety since the introduction of the public-private partnership.
Route adjustments increased from 11 annually before implementation to 29, a 164% rise. Traffic accidents decreased from 879 in 2019 to 700 in 2025, a reduction of 20.4%. The number of electric and hydrogen buses increased to 346, achieving a 70% adoption rate, which the city claims has saved 9 billion won in fuel costs.
Citizen satisfaction rose from 67% to 70.6%, while satisfaction with safe driving increased from 66.6% to 75.6%. However, it remains unclear how the reduction in traffic accidents compares to trends in city buses nationwide during the same period.
While service reforms have been announced, citizens will not immediately notice changes. No adjustments will take effect on the scheduled implementation date of September 1. A city official noted, "Although the implementation is set for September 1, there will be no immediate changes. We will go through a preparation period and apply changes gradually."
The cashless bus initiative, which is expected to be a noticeable change, will undergo pilot testing next year and will not be fully implemented until 2027. The introduction of a mid-schedule system to improve punctuality, along with driver evaluations based on driving records (DTG) and artificial intelligence (AI), will also be phased in.
The city aims to move away from a reactive approach to labor disputes and establish a framework for regular discussions among labor, management, and government on ongoing issues.
This shift comes after three strikes and one compliance operation over the past six years, which caused repeated inconveniences for citizens. Labor and management have agreed on a wage standard that will apply the civil servant wage increase rate for the next two years and reached a joint declaration of no disputes on August 19.
Jeon Jin-an, chairman of the Changwon City Bus Association, stated, "Labor and management have come together under the shared understanding that we are responsible for the citizens' transportation needs and have agreed to maintain a no-dispute relationship. The transportation industry will also actively participate in improving management efficiency and service quality to provide better transportation services."
Kang Ki-yun, mayor of Changwon, emphasized, "Since the public-private partnership is funded by taxpayers, there must be accountability for both finances and services. Labor, management, and government must implement improvement tasks without delay based on trust to enhance financial efficiency and provide safer and more convenient city bus services to citizens."
* This article has been translated by AI.
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