WALL, N.J. — Student Transportation of America Ltd. (STA), one of North America’s fastest growing school transportation providers, today reported that it is has seen an increase in the number of school districts interested in “converting” from public to private school bus fleets. The North America school transportation market is a $15 billion industry and approximately two-thirds of school districts currently own and operate their own fleets.
“Budget constraints are forcing local municipalities, school districts and state officials to decide between cutting programs, laying off teachers or purchasing new school vehicles and funding in- house transportation departments,” said Denis J Gallagher, STA Chairman and CEO. “We’re pleased to see the more these government operations learn about contracted transportation services, and the true cost of their own operations, in time and money, the more they see the economic and operating advantages that we can bring to their already depleted municipal budgets. We have proven we can implement improvements and efficiencies in operations and provide the necessary capital for fleet purchases that are important issues facing today’s financially strapped municipalities and school districts.”
“These difficult economic times represent significant growth opportunities for our business. In the current recessionary environment, we are experiencing an increase in the availability of labor, fuel prices are down substantially, and interest rates in our debt facility are at very low rates to use for our growth plan. We have grown at a rate of over 20 percent in each of the last eight years and have recently submitted several new bid and conversion proposals for local school administrators to consider,” Gallagher said.
Recently school districts in over twelve US states reportedly are going down the privatization road or investigating the conversion of their school transportation systems. Gallagher said STA has completed several successful conversions in recent years that have the full support of the existing drivers, mechanics, and administration and have built an excellent relationship with the community.
“This is no time to cut teacher salaries and educational or extra-curricular programs. Instead, taxpayers should challenge state and local governments to concentrate on what business they are in; hopefully that’s education. When we provide the capital, operate their system more efficiently, and employ their existing drivers while saving taxpayers money, I guess that answers why there is an increase in activity,” Gallagher said.
