Towards a simplified performance-linked value for money model as a reference point for bus contract payments

The burgeoning commitment to contracting the delivery of bus services through competitive tendering or negotiated performance-based contracts has been accompanied by as many contract payments schemes as there are contracts. We are now well placed to design a simplified performance-linked payment (SPLP) model that can be used as a reference point to ensure value for money, given the accumulation of experiences throughout the world which have revealed substantive common elements in contracts. Whether the payment to the operator is framed as a payment per passenger or as a payment per service kilometre, the SPLP identifies efficient subsidy outcomes that are linked to a proxy indicator of net social benefit per dollar of subsidy. We illustrate how the SPLP model can be applied to obtain the gross (subsidy) cost per passenger (or per passenger km) from measures of gross cost efficiency and network effectiveness. This model can then be used as part of a benchmarking activity to identify reference value of money prospects in respect of passengers per $ subsidy outlay by adjusting for influences not under the control of the service provider. A single framework to identify contract payments to operators, and to assess (i.e., benchmark) operator performance on critical KPIs, is provided by internalising critical key performance indicators (KPIs) in the design of the SPLP. The proposed SPLP model is sufficiently general to be independent of the procurement method (competitive tendered or negotiated, for example) and of the treatment of revenue allocation (net or gross based contracts), with the additional advantage of being able to assess value for money for government.     

Complementing distance based charges with discounted registration fees in the reform of road user charges: the impact for motorists and government revenue

The call for a congestion charge is getting louder and more frequent in many countries as major metropolitan areas experience increasing levels of road congestion. This is often accompanied by a recognition that governments need to find new sources of revenue to maintain existing road networks and to invest in new transport infrastructure. Although reform of road pricing is almost certain to occur at some time in the future in a number of countries, a key challenge is in selling the idea to the community of road users as well as a whole raft of interest groups that influence the views of society and politicians. Simply announcing a need for a congestion charge (often misleadingly called a tax) does little to progress the reform agenda. What is required is a carefully structured demonstration of what might be done to progressively introduce adjustments in road user charges that are seen as reducing the costs to motorists while ensuring no loss of revenue to government. In this paper we show, in the context of Sydney (Australia), that this can be achieved by the reform of registration fees in the presence of a distance-based charging regime that can deliver financial gains to motorists, with prospects of revenue growth to the State Treasury.     

Assessing the employment agglomeration and social accessibility impacts of high speed rail in Eastern Australia

There is growing interest in establishing additional evidence, under the umbrella of the wider economy impacts of transport infrastructure projects, to support transport projects in general and public transport projects in particular that struggle to obtain benefit–cost ratios sufficient to gain the support of financial agencies. This paper focuses on one element of wider economy impacts, often referred to as effective economic (employment) density or employment agglomeration impacts, and another, less usually identified, social accessibility impact (SAI) which we refer to as effective social density, which in broad terms provide, correspondingly, evidence of the potential gains in work-related output (often referred to as productivity gains) and potential gains in non-work-related outputs. Both are associated with gains in individual and household benefit attributable to improved accessibility to services linked with populations and particular locations. The SAIs may capture some of the induced benefits in those jurisdictions where these are included routinely in benefit–cost analysis, and the methodology here is most appropriate to those settings where an existing calibrated demand curve may not be available. Using the proposed high speed rail (HSR) project between Sydney and Melbourne as the empirical setting, we identify economic agglomeration and social accessibility benefits for work and non-work related activity respectively. We find the former to be relatively small compared to the significant gains associated with non-work related travel activity, suggesting the greatest benefits associated with HSR, especially for those residents outside of the major metropolitan areas, will be non-work related travel activity.     

The impact of the application of new technology on public transport service provision and the passenger experience: A focus on implementation in Australia

The emergence of Intelligent Transport Systems (ITS) has been recognised with many initiatives during the last 20 years. In Europe, the “ITS Action Plan” identifies a number of applications as key elements contributing to the efficient co-ordination of the overall transport chain. The context and experience surrounding the recent widespread development of technological tools and ICT platforms to support the emergence of ITS are notable for the way in which they permeate the transport and logistics chain. But a key question remains: to what extent is the public transport sector able to exploit the wider benefits of ITS?     

Workshop report - Social inclusion

The topic of social inclusion is now maturing in the Thredbo conference series, being viewed as an important consideration in many aspects of land transport, the benefits extending beyond the socially excluded targeted population. The social inclusion workshop included presentations on new empirical evidence on the value of providing those at risk of social exclusion with mobility options, and how this links to improvements in personal wellbeing, often through mediating influences such as social capital. Work was presented on the role of transport services specifically targeted to those at risk of exclusion, particularly taxi services and school bus services, as well as how to modify fare structures to maximise inclusion in an efficient, mature transport system. The value of Universal Design principles to groups both at risk of being excluded as well as the current travelling public, was shown. The workshop affirmed the importance of including these wider benefits of inclusion in cost-benefit evaluations of transport. The issue of how best to move knowledge into strategic and operational policy, and the transferability of both knowledge and policy between different countries and settings, was discussed. This paper concludes with suggestions arising from the workshop in relation to policy and research, as well as recommendations for Thredbo 12.     

Understanding neighbourhood design impact on travel behaviour: An application of structural equations model to a British metropolitan data

The objective of this study is to explore whether changes in neighbourhood characteristics bring about changes in travel choice. Residential self-selection is a concern in the connections between land-use and travel behaviour. The recent literature suggests that a longitudinal structural equations modelling (SEM) approach can be a powerful tool to assess the importance of neighbourhood characteristics on travel behaviour as opposed to the attitude-induced residential self-selection. However, the evidence to date is limited to particular geographical areas and evidence from one country might not be transferrable to another because of differences in land-use patterns and land-use policies. The paper is to address the gap by extending the evidence using British data. The case study is based on the metropolitan area of Tyne and Wear, North East of England, UK. A SEM is applied to 219 respondents who reported residential relocation. The results identify that neighbourhood characteristics do influence travel behaviour after controlling for self-selection. For instance, the more people are exposed to public transport access, the more likely they drive less. Neighbourhood characteristics also impact through their influence on car ownership. A social environment with vitality also reduces the amount of private car travel. These findings suggest that land-use policies at neighbourhood level can play an important role in reducing driving.     

Flexible transport services: A new market opportunity for public transport

The term Demand-Responsive Transport (DRT) has been increasingly applied in the last 10 years to a niche market that replaces or feeds (usually via small low floor buses or taxis) conventional transport where demand is low and often spread over a large area. More recently, the concept of DRT as a niche market has been broadened to include a wider range of flexible, demand-responsive transport services and is increasingly referred to as Flexible Transport Services (FTSs). The contention of this paper is that well-implemented FTS has the potential to revitalise bus-based public transport services which are traditionally based on fixed networks with variable geographical coverage and levels of service.     

Application of the Principles of ICZM for Restoring the Goro Lagoon

The Goro lagoon has been adversely affected by intense anthropogenic impacts, which have resulted in deterioration of the lagoon's environmental health. An intervention at the lagoon's secondary mouth was done in order to improve the water exchange between the lagoon and the sea and to reclaim the lagoon's floor. This intervention comprised reprofiling the submerged sandspit platform and the tidal channel and nourishing the barrier island. After completion of the intervention, clam production increased by 28% and the lagoon's ecological quality substantially improved. The project utilized some of the eight principles of integrated coastal zone management to reach the best compromise between the socioeconomic needs and preservation of the lagoon. The realization of the successful intervention was first secured in a memorandum of agreement that was drafted by negotiations between the Emilia-Romagna Region Council, the Province of Ferrara, Goro Municipality, and the local fishermen's association. Two committees managed the intervention and ensured that all stakeholders participated in the decisionmaking process. The collaboration between public and private sectors enabled the forging of a cost-effective intersectoral intervention with a long-term perspective, which fulfilled the specific ecological needs of the lagoon and guaranteed sustainable development for the lagoon's adjacent human communities.     

Tour-based mode choice of joint household travel patterns on weekend and weekday

Joint household travel, with or without joint participation in an activity, constitutes a fundamental aspect in modelling activity-based travel behaviour. This paper examines joint household travel arrangements and mode choices using a utility maximising approach. An individual tour-based mode choice model is formulated contingent on the choice of joint tour patterns where joint household activities and shared ride arrangements are recognised as part of the joint household decision-making that influences the travel modes of each household member. Two models, one for weekend and one for weekday, are estimated using empirical data from the Sydney Household Travel Survey. The results show that weekend travel is characterised by a high joint household activity participation rate while weekday travel is distinguished by more intra-household shared ride arrangements. The arrangements of joint household travel are highly associated with travel purpose, social and mobility constraints and household resources. On weekends, public transport is mainly used by captive users (i.e., no-car households and students) and its share is about half of that on weekdays. Also, the value of travel time savings (VOTs) are found to be higher on weekends than on weekdays, running entirely counter to the common belief that weekend VOTs are lower than weekday VOTs. This paper highlights the importance of studying joint household travel and using different transport management measures for alleviating traffic congestion on weekdays and weekends.     

How the longer term success of a social marketing program is influenced by socio-demographics and the built environment

Urban sprawl is pervasive in Australian cities arising from the low density development of dwellings with the consequence that private vehicle use dominates daily travel in Australia. This paper examines a community based social marketing program, TravelSmart, which targeted reducing vehicle kilometres travelled as part of a transport demand management strategy. This paper uses 3-year panel data collected by GPS tracking and a conventional survey methodology in northern Adelaide, South Australia, to examine whether TravelSmart had a sustained impact and whether this was impacted by socio-economic and built-environment factors. A latent growth model is employed and demonstrates TravelSmart led to a declining trend in private car driving over the 3 years at both individual and household levels with effects being sustained beyond 1 year and up to 2 years. There is some evidence of compensatory behaviour between household members. Socio-demographic factors are significant with males decreasing their driving times faster than females. Built environment impacts were also significant with different levels of walkability showing different trajectories in the reduction of car trips after the implementation of TravelSmart, suggesting social marketing interventions work better when supported by hard policies such as a supportive built environment.