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Once a declining industry, popularity of the curbside intercity bus services has been spurred by competitive prices; convenient online ticketing; the rise in “transit lifestyles;” and access to free, onboard Wi-Fi technology that caters to a younger demographic. The curbside intercity bus industry now represents the fastest growing mode of intercity travel in the United States—outpacing air and rail transportation. The Chaddick Institute for Metropolitan Development at DePaul University reports that intercity bus service grew by 7.5 percent between December 2011 and December 2012—the highest rate of growth in four years. Both so-called “Chinatown” buses and corporate intercity bus carriers have contributed to industry growth in the Northeast Corridor and nationwide. BoltBus and Megabus alone experienced a 32 percent growth in departures between 2010 and 2011. Yet rogue bus companies that put passengers at risk by operating unethically and unlawfully have marred the industry. The July 2012 adoption of the two-year transportation reauthorization bill, Moving Ahead for Progress in the 21st Century (particularly the Commercial Motor Vehicle Safety Act of 2012), establishes a strategic framework to improve the regulatory environment, provide a program of continuous improvement, and authorize greater rulemaking and enforcement authority of the Federal Motor Carrier Safety Administration (FMCSA). In addition, state and local governments are addressing impacts of industry growth by initiating innovative approaches to manage curbside operations. To meet growing demand for service, these approaches include permitting systems, idling laws, regulating curbside conditions, leasing or privatizing curb rights, and consolidating and/or centralizing bus operations in intermodal facilities. This report highlights the issues stemming from deregulation of the industry, its unprecedented growth, and the fragmented regulatory environment. The University of Delaware University Transportation Center (UD-UTC)—that, as a Tier II center, focuses on resiliency of transportation corridors—supported this research project from the Institute for Public Administration (IPA). IPA’s research team conducted a literature review and field assessment of curbside operations, which involved photographing curbside conditions, surveying passengers, and riding various intercity buses between New York City and Washington, D.C. in 2011 and 2012. IPA also conducted a case study on a Chinatown bus that was based in Wilmington, Del., which was cited as an “imminent hazard” and shut down by the United States Department of Transportation (USDOT) during the course of this research. Finally, IPA hosted the June 13, 2012 Curbside Intercity Bus Transportation Policy Forum to facilitate discussion on transportation policies related to the industry.
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