The net incidence of transit subsidies: a case study

The purpose of this paper is to investigate the net incidence of government subsidies to a transit system (i.e., the net impact of who pays and who benefits from transit subsidies). Rather than considering the U.S. transit subsidy program in the aggregate, the net incidence of subsidies to a particular transit system — Tidewater Regional Transit (TRT) — is analyzed. The paper concludes that the net incidence of the TRT subsidy program is progressive. Furthermore, the paper provides a methodology that can be used for investigating the net incidence of government subsidies to other transit systems.     

Analysis of light rail rider travel behavior: Impacts of individual,built environment,and crime characteristics on transit access

This paper analyzes factors that influence the mode choice for trips between home and light rail stations, an often neglected part of a person’s trip making behavior. This is important for transit planning, demand modeling, and transit oriented development. Using transit survey data describing St. Louis MetroLink riders in the United States, this study found that some of the factors associated with increased shares of walking relative to other modes were full-time student status, higher income transit riders, and trips made during the evening. It was also found that crime at stations had an impact. In particular, crime made female transit riders more likely to be picked-up/dropped-off at the station. Females are more likely to be picked-up or dropped-off at night. Bus availability and convenience showed that transit riders that have a direct bus connection to a light rail station were more likely to use the bus. Private vehicle availability was strongly associated with increased probability of drive and park, when connecting to light rail.     

A procedure for estimating transit subsidization requirements for developing countries

The paper presents a procedure that has been developed for estimating subsidization requirements for urban transit services in developing countries. The procedure is based on a subsidization policy of reducing transport expenditure burden on the average commuter, by maintaining his transport expenditure-income ratio at a reasonable level. It is designed for both regulated and deregulated transport markets. It requires, as input, historical data (previous year) on fare, productivity, and load factor for the transport service or mode concerned, the transport expenditure-income ratio distribution of the commuters, and the current level of commuter personal transport allowance. It is based on the premise that transport expenditure-income ratio is inversely related to income. The subsidization formula developed in the paper yields a level of subsidy that is commensurate with the level of control a government is able to exercise over transit operations.     

Metro commuters’ satisfaction in multi-type access and egress transferring groups

This paper considers both the access and egress stages as an entire process to analyze the satisfaction levels of commuters with metro commuter journeys. Based on a survey in Nanjing, China, seven intermodal travel groups are employed as targets for this analysis. The groups include Walk–Metro–Walk, Walk–Metro–Bus, Bike–Metro–Walk, Bike–Metro–Bus, Bus–Metro–Walk, Bus–Metro–Bus and Car–Metro–Walk, which are named according to the modes of transportation that are employed for access and egress trips. Binary logit models are developed for each group to identify the main factors of satisfaction level. The results show that access and egress stages serve important but different roles in the seven groups. Facility service qualities in two stages are the primary factors that affect overall satisfaction. The groups with same access or egress modes have significantly different core factors. Access by bike and bike–metro–transit users are concerned with bike parking safety, whereas bike–metro–walk users value parking spaces near metro stations. With two transfers between bus and metro, transit–metro–transit users indicate that the weak point in the access stage is the crowded spaces on buses. However, transit–metro–walk users value bus on-time performance, which is also valued by groups with metro–bus egress transfers. For egress by walking, commuters that use motorized modes for access are concerned with the egress walking environment, whereas users of non-motorized access modes are more concerned with egress walking spaces. The findings of this study are helpful for policy developments than can improve public satisfaction with commutes by urban metro.     

Flat versus differentiated transit pricing: What's a fair fare?

Virtually every U.S. bus system today charges its customers flat fares. Recent trends, however, suggest that passengers are traveling farther and proportionally more during peak hours, factors which have contributed toward transit's cost spiral. As deficits continue to soar and available funding tightens, current pricing rationales must be seriously questioned. This paper assesses the efficiency and equity impacts of three California transit agencies' fare structures. Short-distance, off-peak patrons are found to heavily cross-subsidize long-haul commuters. Fares differentiated by distance and time-of-day, in contrast, could improve the transit industry's fiscal posture while eliminating differences in payment rates. Barriers to their implementation remain formidable, however, both in terms of current fare collection capabilities and political acceptability.     

Secrets of success: assessing the large increases in transit ridership achieved by Houston and San Diego transit providers

This paper summarizes and updates the findings from an earlier study by the same authors of transit systems in Houston (all bus) and San Diego (bus and light rail). Both systems achieved unusually large increases in transit ridership during a period in which most transit systems in other metropolitan areas were experiencing large losses. Based on ridership models estimated using cross section and time series data, the paper quantifies the relative contributions of policy variables and factors beyond the control of transit operators on ridership growth. It is found that large ridership increases in both areas are caused principally by large service increases and fare reductions, as well as metropolitan employment and population growth. In addition, the paper provides careful estimates of total and operating costs per passenger boarding and per passenger mile for Houston's bus operator and San Diego's bus and light rail operators. These estimates suggest that the bus systems are more cost-effective than the light rail system on the basis of total costs. Finally, the paper carries out a series of policy simulations to analyze the effects of transit funding levels and metropolitan development patterns on transit ridership and farebox recovery ratio.     

Evolution of public transit modes in a commuter corridor

This paper explores how the selection of public transit modes can be optimized over a planning horizon. This conceptual analysis sacrifices geographic detail in order to better highlight the relations among important factors. First, a set of static models is proposed to identify which type of service, e.g., bus only, rail only, or bus and rail, is the most cost-effective in terms of the average trip cost for given demand. After analyzing essential factors in a long-term planning process, e.g., economies of scale in rail extension and future cost discounting, a dynamic model incorporating such considerations is formulated to optimize the decision over a planning horizon. While analytical solutions can be obtained for some decision variables, the final model is solved with a graphical method by exploring the tradeoffs between the initial and recurring costs. Major findings from this study include: (a) there exists a minimum economic length for a rail line, which can be determined numerically; (b) economies of scale favor large extensions and excess supplied capacity; (c) the rail-only service is largely dominated by the feeder-trunk service, even in the long run.     

Short-term impact analysis of fuel price policy change on travel demand in Malaysian cities

Abstract

Malaysia is one of the few countries in the world that provides a fuel subsidy to consumers. Due to the recent economic crisis, the Malaysian Government decided to revise its fuel subsidization policy from a fixed price subsidy to a floating price subsidy dependent on global oil demand. Recognizing that the change in fuel subsidization policy can have an impact on travel behavior, this article investigates the short-term impact of the policy change on private and public transportation in the Klang Valley region of Malaysia. Spectral analyses are performed to investigate if the policy change has an impact on private vehicle travel demand, measured in terms of road traffic, and short-term travel demand elasticity with respect to fuel price is estimated. To measure the impact on the public transportation system, the demand cross-elasticity values of rail transit and buses are also estimated. It was found that traffic flow reduces with an increase in fuel price, although elasticity and cross-elasticity values obtained are low. The article finds that there is a potential mode shift from private vehicles to rail transit with increasing fuel price. It is demonstrated that reducing fuel price subsidy can be an effective travel demand management strategy to alleviate congestion.     

Toward criteria in the development of urban transportation systems

Improved criteria are necessary to aid in determining awards of federal funds for metropolitan transit projects. Commuting is the main use for public transit. Thus a primary objective of an urban transit system should be to provide a flexible and balanced set of options to the workers in the metropolitan area for their journey to work. This paper discusses various facets of an appropriate balance among the three modes: rapid rail, bus, and automobile. Three cities are selected for further analysis: Baltimore, Kansas City, and Phoenix. These cities represent different stages in economic-transportation development, and also present different spatial patterns of residence and employment. The applicability of rapid rail transit to each city is examined in view of central city worker concentration and recent trends.     

The impact of transit station areas on the travel behaviors of workers in Denver,Colorado

Transit development is one planning strategy that seeks to partially overcome limitations of low-density single use car oriented development styles. While many studies focus on how residential proximity to transit influences the travel behaviors of individuals, the effect of workplace proximity to transit is less understood. This paper asks, does working near a light rail transit station influence the travel behaviors of workers differently than workers living near a station? We begin by examining workers’ commute mode based on their residential and workplace proximity to transit station areas. Next, we analyze the ways in which personal travel behaviors differ between those who drive to work and those who do not. The data came from a 2009 travel behavior survey in the Denver, Colorado metropolitan area, which contains 8000 households, 16,000 individuals, and nearly 80,000 trips. We measure sustainable travel behaviors as reduced mileage, reduced number of trips, and increased use of non-car transportation. The results of this study indicate that living near a transit station area by itself does not increase the likelihood of using non-car modes for work commutes. But if the destination (work) is near a transit station area, persons are less likely to drive a car to work. People who both live and work in a transit station area are less likely to use a car and more likely to take non-car modes for both work and non-work (personal) trips. Especially for persons who work near a transit station area, the measures of personal trips and distances show a higher level of mobility for non-car commuters than car commuters – that is, more trips and more distant trips. The use of non-car modes for personal trips is most likely to occur by non-car commuters, regardless of their transit station area relationship.     

Calibrating a transit assignment model using smart card data in a large-scale multi-modal transit network

This paper describes a practical automated procedure to calibrate and validate a transit assignment model. An optimization method based on particle swarm algorithm is adopted to minimize a defined error term. This error term which is based on the percentage of root mean square error and the mean absolute percent error encompasses deviation of model outputs from observations considering both segment level as well as the mode level and can be applied to a large scale network. This study is based on the frequency-based assignment model using the concept of optimal strategy while any transit assignment model can be used in the proposed methodological framework. Lastly, the model is validated using another weekday data. The proposed methodology uses automatic fare collection (AFC) data to estimate the origin–destination matrix. This study combines data from three sources: the general transit feed specification, AFC, and a strategic transport model from a large-scale multimodal public transport network. The South-East Queensland (SEQ) network in Australia is used as a case study. The AFC system in SEQ has voluminous and high quality data on passenger boardings and alightings across bus, rail and ferry modes. The results indicate that the proposed procedure can successfully develop a multi-modal transit assignment model at a large scale. Higher dispersions are seen for the bus mode, in contrast to rail and ferry modes. Furthermore, a comparison is made between the strategies used by passengers and the generated strategies by the model between each origin and destination to get more insights about the detailed behaviour of the model. Overall, the analysis indicates that the AFC data is a valuable and rich source in calibrating and validating a transit assignment model.

     

A disaggregate study of urban rail transit feeder transfer penalties including weather effects

Transfers between urban rail transit (URT) and its feeder modes represent a considerable barrier to its ridership and the network-wide usage of public transit. The aim of this research is to quantify the time-independent transfer penalty between URT system and feeder modes and to explore its variability by different factors. Based on Melbourne URT origin and destination survey data, this study focused on URT access and egress journeys and estimated URT feeder transfer penalties by formulating feeder mode choice models. With three-hourly weather data and demographical data introduced, this paper conducted disaggregate analyses to investigate the variability of URT feeder transfer penalty across weather conditions, trip types and individual characteristics. According to the model estimation results, the values of transfer penalty vary according to the direction of transfer and the preference ordering for different transfer combinations is URT-tram, URT-bus, tram-URT, bus-URT and auto-URT. It found that local weather elements in terms of air temperature and precipitation are significant factors resulting in the variability of the transfer perception by URT travellers. Transfer penalties for access journeys increase with the rise of air temperature. The non-linear effects of precipitation on URT feeder transfer penalties were observed. In addition, commuters perceive smaller transfer penalties than other travellers for all of the transfer combinations except for bus-URT transfers. Travelers from remote areas perceive smaller transfer penalties for access trips. Travellers’ loyalty to public transit restrains transfer penalties. The male travellers perceive higher transfer penalties than the female. The elderly travellers impose low transfer penalties to access journeys but high transfer penalties for egress journeys. Finally, the paper explored policy implications and details areas for future research.     

The authors in this issue

This paper analyses the impacts on a particular region of a recent policy change regarding public transit subsidy in New Zealand, under which the contributions of local authorities are increased from 0 to 50% of net direct expenditures. The options open to the community are examined and their effects on regional income, future development and social equitability are analysed. It also illustrates the cost effectiveness of a natural monopoly under increased accountability.     

A test of inter-modal performance measures for transit investment decisions

Choices among alternative transit capital investments are often complex and politically controversial. There is renewed interest in the use of performance indicators to assist in making rational and defensible choices for the investment of public funds. To improve the evaluation of rail and bus performance and provide more useful information for transit investment decision-makers, it is important to use performance indicators that fairly and efficiently compare different transit modes. This paper proposes a set of inter-modal performance indicators in which service input, service output, and service consumption are measured by total cost, revenue capacity miles/hours, and unlinked passenger trips/miles respectively based on economic principles and evaluation objectives. The proposed improvements involve the inclusion of capital as well as operating costs in such comparisons, and the recognition of the widely varying capacities of transit vehicles for seated and standing passengers. Two California cases, the Los Angeles – Long Beach Corridor and the Market/Judah Corridor in San Francisco, are used for testing their usefulness in the evaluation of the efficiency and effectiveness of rail and bus services. The results show substantial differences between performance indicators in current use and those proposed in this study. The enhanced inter-modal performance indicators are more appropriate for comparing the efficiency and effectiveness of different modes or a combination of transit modes at the corridor and system levels where most major investment decisions are made. This revised version was published online in June 2006 with corrections to the Cover Date.     

The effects of federal transit subsidy policy on investment decisions: The case of San Francisco's Geary Corridor

In the United States, federal funding for public transit often accounts for a large proportion of a local agency's budget, especially for capital investments. For this reason, local governments can be expected to plan a portfolio of projects that maximize federal contributions. This study examines the financial effects of federal transit subsidy policy on local transit investment decisions. Data from a System Planning Study for the Geary Corridor in San Francisco are used as an illustration. It is found that federal transit subsidy policy provides financial incentives for local decision-makers to select capital-intensive investment options that may not be efficient or effective. While federal financial incentives are not the only factor influencing local investment decisions, some reform of the current subsidy policy may be necessary to reduce the incentive for ineffective use of public resources.     

Effects of new bus and rail rapid transit systems – an international review

Cities worldwide are implementing modern transit systems to improve mobility in the increasingly congested metropolitan areas. Despite much research on the effects of such systems, a comparison of effects across transit modes and countries has not been studied comprehensively. This paper fills this gap in the literature by reviewing and comparing the effects obtained by 86 transit systems around the world, including Bus Rapid Transit (BRT), Light Rail Transit (LRT), metro and heavy rail transit systems. The analysis is twofold by analysing (i) the direct operational effects related to travel time, ridership and modal shifts, and (ii) the indirect strategic effects in terms of effects on property values and urban development. The review confirms the existing literature suggesting that BRT can attract many passengers if travel time reductions are significantly high. This leads to attractive areas surrounding the transit line with increasing property values. Such effects are traditionally associated with attractive rail-based public transport systems. However, a statistical comparison of 41 systems did not show significant deviations between effects on property values resulting from BRT, LRT and metro systems, respectively. Hence, this paper indicates that large strategic effects can be obtained by implementing BRT systems at a much lower cost.     

The role of subsidy policies in modernizing the structure of the bus transit industry

Full reliance on conventional forms of bus transit for peak hour needs reduces industry productivity and creates major new subsidy requirements. Restructuring of transit is needed to enable paratransit integration and other innovations than can improve efficiency. This paper discusses the industry's long-term neglect of efficiency and describes subsidy policies that would promote necessary changes.     

The taxi's role in urban America: Today and tomorrow

Changes in the economic and demographic characteristics of US cities over the past two decades have modified but have not diminished the need for extensive public transportation service in these areas. The vast bulk of trips to work, to shop, and for most other purposes within large American cities are still made by residents of those cities, a significant portion of whom do not own or have access to an automobile. Expensive and far-ranging programs to enhance surburban commutation to the central city by means of rail rapid transit do little to meet the needs of those who still must rely upon local, extensive service within the city.One form of public transport — the taxicab — offers the quality and flexibility of service which even those of limited means find well worth the price. As a consequence, fleet taxicabs serve almost 40 percent more passengers than all US rapid transit systems and about 60 percent as many passengers as all bus transit systems. Removal of archaic and restrictive regulations governing the number and use of taxicabs in major US cities would promote more effective and widespread use of this, the only form of public transit that still operates — at a profit — without public subsidy.     

Use characteristics and demographics of rural transit riders: a case study in Tennessee

Intercity bus (ICB), deviated fixed route transit (DFRT) and demand responsive transit (DRT) are three major modes of rural public transportation. This paper focuses on the characteristics and motivations of DFRT and DRT riders, compared to non-riders, in Tennessee. A rural DFRT rider survey, a rural DRT rider survey and a rural (non-rider) resident survey were performed. It is found that DFRT and DRT riders have similar demographics to ICB riders. The most common trip purpose for DFRT and DRT passengers is medical care, which is different from ICB trips. Ninety percent of the riders have difficulty finding alternative transportation modes, suggesting they are captive riders, not choice riders. Regression results indicate that people choosing transit modes tend to have lower personal and household income, own fewer cars, to not be homeowners, and be of non-white race. Rural residents who receive more education are more likely to be open-minded to use rural transit.     

Developing metro-based accessibility: Three aspects of China’s Rail+Property practice

Populous Chinese cities have invested heavily in metro systems and planned proactively for transit-oriented development. Rail plus property (R+P) programs, where metro corporations engage in, and even orchestrate real estate development in or around rail station areas, have been recurrently reported among these cities. However, careful assessment of these programs is still rare in the existing literature. Built upon multiple R+P programs led by Shenzhen Metro Cooperation and/or Hong Kong Mass Transit Railway Cooperation, this article fathoms the rationale for R+P programs in Mainland China, the obstacles for oversea private investors’ participation and the balance between profit making and social goods supply. It finds that R+P programs serve as alternative funding sources for expensive metro projects. It decreases municipal governments’ cash flow contribution to those projects, which is mandated by the central government. In addition, local business environment for R+P projects has disadvantaged private sector participation, especially those private investors from overseas. Furthermore, public subsidy to local metro corporations is likely to persist as R+P programs have not been designed for economic value maximization; rather, they are in place because (1) they reduce the cash flow burden of the municipal government; (2) they are tasked by the municipal government to produce a considerable number of affordable public housing.