Development of Intercity Bus Strategic Plan and Program

Interstate passenger bus deregulation in 1982 resulted in lower prices along some routes, but also led to the abandonment of unprofitable routes and a general loss in bus service.  The loss was particularly hard felt in rural areas.  The Intermodal Surface Transportation Efficiency Act (ISTEA) addressed the decline of intercity bus service by requiring states to devote 15% of their federal rural public transportation funding to intercity bus programs, unless the state’s governor certifies that intercity bus needs are being met.

Principal Investigator(s):

Anthony M. Pagano


Anthony M. Pagano
Paul Metaxatos
Eric Holeman
Victor Mora
Alicia Morreale
Kate Stanis




The objective of the research is to assess if intercity bus needs are being met in the State of Illinois, and if not to develop a strategy for utilization of federal money to enhance Illinois rural population’s intercity bus service.


The project involves review of FTA requirements and existing IDOT intercity bus policy, a survey of other states, common carrier scheduled service identification, a survey of intercity bus companies, intercity bus and other scheduled carrier supply analysis, intercity bus demand analysis using a gravity model formulation, a needs analysis by comparing the results of the supply and demand analysis, and the identification of intercity bus service options and enhancements.

Expected Results or Products:

The study will determine whether intercity bus needs are being met in the State of Illinois. Alternative intercity bus programs will be developed. A detailed discussion will present the strengths and weaknesses of all the alternative programmatic strategies.


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Paul Metaxatos
Urban Transportation Center
University of Illinois at Chicago
412 South Peoria Street, Suite 340
Chicago, IL 60607
Voice: (312) 996-4713
Fax: (312) 413-0006


Illinois Department of Transportation (METSI)
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