The following podcast is well worth listening to. It outlines how the government of Chile has destroyed a thriving privately operated public transport sector.
In short Chile went from having an average commute time of 40minutes to having an average commute time of 1 hr and 40 minutes because the government took over the bus industry in 2007. Not only did they take over the industry but they changed drivers incentives. Now the buses are half empty, people can’t get on them, they take longer to get anywhere, congestion has increased as people have shifted to cars and taxis and where the industry once made a modest profit it now loses masses of money. Tragic.