The subway system in Kyoto (Karasuma line) is operated by the local government. I visited during the busiest time of the year (Gion matsuri), and the trains were not overcrowded, were frequent and arrived on the dot. The subway system is nicely air conditioned which was pleasant as I visited during a heatwave.

I'm mostly in favor of privatization, but this is an example where the local government provide an exceptional service which is in no way inferior to the privately operated ones.