Productive efficiency and ownership of urban bus services

The established ownership mix of urban bus operations in Australia provides a unique opportunity to investigate the productivity differences between public and private bus service supply. Using duality theory in economics which links economic indices of factor productivity to the cost structure of a firm, we develop empirical measures of total and partial productivity of inputs, and adjust the differences for the effects of ownership status and operating environment. The evidence supports the notion that private supply of public passenger transport in general has performed more efficiently in the past than public supply, although the differences in productivity need not continue in the future.     

Technical efficiency measurement and explanation of French urban transit companies

The performance of a sample of French urban transit companies is evaluated using a broad selection of nonparametric reference technologies for two specifications of the production process. In particular, the variable returns to scale Data Envelopment Analysis (DEA) models with either strong or weak disposability in both inputs and outputs, and the Free Disposal Hull (FDH) are applied. An extensive comparison of the resulting radial output efficiency measures yields the following major methodological conclusions. First, the location of the efficiency distributions differs substantially depending on the methodology and especially on the output specification considered. The latter differences vanish if the impact of outliers is eliminated. Second, convexity has a stronger influence on the efficient-inefficient dichotomy than allowing for congestion by means of a weakly disposable DEA model. For policy purposes, these efficiency distributions are explained using a Tobit model. The findings corroborate results reported elsewhere: the relevance of ownership, the use of risk-sharing incentives in contracting, the harmful impact of subsidies, etc. Furthermore, the network structure seems to account for some differences in performance. Finally, a novelty in the urban transit context is the indirect monitoring effect of the French earmarked transportation tax.     

Organisation form,scale effects and efficiency in the British bus industry

The British bus industry is examined in light of fundamental reform in ownership and regulation. The industry is divided between privately and publicly owned companies, with the private sector further split between publicly listed owned subsidiaries and private limited companies. The change in ownership structure since privatization is analysed, and Data Envelopment Analysis used to estimate the extent of returns to scale and technical efficiency, as defined by one output and three inputs. Technical efficiency is further divided into managerial and organisational components, and comparisons made of median efficiency levels using a Mann Whitney statistical test.Increasing returns to scale are found for smaller companies, but the size of such returns varies with the company type. A minimum efficiency scale is identified, with constant returns above this point. A high degree of technical inefficiency is found to be present in the industry, which may initially suggest a lack of competition and reflect the oligopolistic structure that has emerged since privatisation. Privately owned companies are identified as more technically efficient, however this is due to significantly less organisational constraints, and considerable managerial inefficiency exists in this group. It is finally concluded that the high level of inefficiency may not reflect ownership, but rather industry characteristics, and rather than a lack of competition may be indicative of wasteful competition. It is suggested therefore there may be a need to make the market contestable rather than openly competitive.     

Yardsticks on the road: Regulatory contracts and cost efficiency in the Norwegian bus industry

In this paper a cost frontier model is estimated for an eleven-year panel of Norwegian bus companies (1136 company-year observations) using the methodology proposed by Battese and Coelli (1995). The main objective of the paper is to investigate to what extent different type of regulatory contracts affect company performance. The panel model proposed by Battese and Coelli (1995) allow for year/company specific efficiency measures to be estimated. Thus, unobservable network or other time invariant characteristic of the operating environment can be controlled for by analyzing the dynamics of measured productivity across time for firms regulated under different types of contracts, rather than relying solely on variations across companies during one time period. Therefore, the paper offers methodological and data advantages over previous work on this subject. The main and robust result of the paper is that the adoption of a more high-powered scheme based on a yardstick type of regulation significantly reduces operating costs. The results contained in this paper thus confirms theoretical predictions regarding the incentive properties of high powered incentive schemes and in particular the dynamic benefits of yardstick competition.     

Efficiency measurement of bus routes and exogenous operating environment effects on efficiency

This study develops an independent efficiency measurement model framework of bus routes, so as to treat preferably the heterogeneous outputs in a data envelopment analysis (DEA)-based efficiency measurement. It then introduces four new exogenous operating environment factors at the microscopic level of bus routes, and applies the three-stage DEA approach to incorporate operating environment effects and statistical noise into the efficiency measurement framework. The main purpose is to measure impartially the managerial efficiency of bus routes, purged of operating environment effects and statistical noise, and additionally to investigate the operating environment effects on efficiency. An empirical analysis, based on 39 routes operated in Jiangyin City, China, is presented. The principal finding is that the adoption of the independent efficiency measurement model framework is reasonable and has many virtues. Moreover, the proposed approach could substantially provide decision support both for regulators and for producers of bus services. In addition, the operating environment does indeed significantly affect operating efficiency and quality efficiency, especially the latter.     

Efficiency of urban public transit: A meta analysis

The aim of this paper is twofold. First, to provide a statistical overview of the literature on public transit efficiency performance. Second, to statistically explain the variation in efficiency findings reported in the literature. To this end, first some key concepts of efficiency analysis will be introduced, while next the different frontier methodologies that are used in the literature will be discussed. The empirical part of this paper consists of a statistical summary of the literature as well as meta-regression analyses for different samples of the literature in order to identify key determinants of technical efficiency (TE) of public transit operators. For a broad sample of observations, we found significant and consistent effects of the type of database, region and output measurement method. For the sample of non-parametric studies we found that the type of frontier assumptions also have an impact on the efficiency ratio. Further results show that there is no statistical difference in TE ratios between parametric and non-parametric studies. Finally, we found a positive univariate relationship between the number of inputs in the estimated specification and the efficiency ratio.     

Land rents and transport improvements: Some urban parables

Define a transportation improvement's impact zone as the area within which resident households and business firms regularly utilize the improvement. Three simple parables suggest that the increases in impact-zone land rents that usually accompany improvements do not accurately reflect its benefits. Seemingly modest variations in the demand and supply relationships that characterize impact-zone residents can have major effects on the relationship between benefits received and the land-rent changes that are measured. Generally speaking, increases in impact-zone land rents substantially understate benefits unless these benefits are small either absolutely (because the improvement is modest) or relatively (because the impact zone is part of a homogeneous area of much larger size).     

The advantages of a high density,mixed land use,linear urban development

This paper describes the land use and transport characteristics of a strip of urban development located along the northern shore of Hong Kong Island. The strip of land, with an area of 22.5 sq. km, is 17 km long and has an average width of 1.3 km. It has a population of approximately one million and provides over 700,000 jobs. Despite its small size, it accommodates the CBD, residential districts, shopping complexes as well as most of the civic/institutional facilities that a city needs. Its urban form is linear not by design but by default – the topography of the area has constrained the development from spreading sideways. Surprisingly however, apart from economy in land utilization, it is considered to possess three other good qualities: high accessibility enjoyed by residents; few roads and commercially viable public transport. Its travel characteristics are analyzed, using results of a home interview survey conducted by the Government in 1992. In addition, various statistics published by the Government and public transport authorities are also used in the analysis.     

Estimation of a route choice model for urban public transport using smart card data

This paper describes a logit model of route choice for urban public transport and explains how the archived data from a smart card-based fare payment system can be used for the choice set generation and model estimation. It demonstrates the feasibility and simplicity of applying a trip-chaining method to infer passenger journeys from smart card transactions data. Not only origins and destinations of passenger journeys can be inferred but also the interchanges between the segments of a linked journey can be recognised. The attributes of the corresponding routes, such as in-vehicle travel time, transfer walking time and to get from alighting stop to trip destination, the need to change, and the time headway of the first transportation line, can be determined by the combination of smart card data with other data sources, such as a street map and timetable. The smart card data represent a large volume of revealed preference data that allows travellers' behaviour to be modelled with higher accuracy than by using traditional survey data. A multinomial route choice model is proposed and estimated by the maximum likelihood method, using urban public transport in ?ilina, the Slovak Republic, as a case study     

Learning from Los Angeles: transport,urban form,and air quality

Los Angeles is well known around the world as an automobile-oriented low density community, yet recent transportation policies have emphasized greater capital investment in rail transportation than in highways, and recent policies have attempted to discourage automobile usage through transportation demand management. While these policies have accomplished small shifts toward public transport and somewhat lower dependence upon singly occupied automobilies for work commuting, the financial costs of these policy changes has been very large in relation to their benefits. Proper pricing of transportation alternatives, more creative use of new and emerging transportation technologies, and the provision of many more opportunities for simpler private sector transport services, would all appear to be more promising as cost-effective approaches to coping with congestion in Los Angeles than the current regional transportation policies.     

The planning of urban bus routes and frequencies: A survey

Urban bus services still play an important role in the movement of people in Britain, although since the 1950's bus patronage has been declining and costs of operation have been increasing. Most of the urban bus networks in Britain (and to a very large extent the Western World) have developed or evolved over the years and it is sometimes said that, despite the changing conditions of bus transport, few of these bus networks in Britain have undergone major re-organisation. A survey was carried out to ascertain this view and to establish the approaches used by British urban bus operators.Five approaches to the planning of urban bus routes and frequencies have been identified: (1) manual; (2) Market Analysis Project; (3) systems analysis; (4) systems analysis with interactive graphics; and (5) mathematical. Previous research in, and application of, the different approaches are described and examined.Between 1970 and 1980, 82.4% of those British urban operators who responded to the survey carried out some kind of major bus study. The survey results run counter to the view that there has been little recent change in urban bus networks in Britain, but the alleged conservatism of the bus industry appears when the approaches used for re-planning bus services are examined - 71.4% of the operators used a manual approach and only a meagre 28.6% made use of simple assignment techniques to predict the potential passenger impacts of the alternative networks appraised.     

Assessing the social costs of urban transport infrastructure options in low and middle income countries

ABSTRACT

This paper develops cost models for urban transport infrastructure options in situations where motorcycles and various forms of taxis are important modes of transport. The total social costs (TSCs) of conventional bus, Bus Rapid Transit (BRT), Monorail, Metro (Elevated Rail), car, motorcycle, Taxi and Uber are calculated for an urban corridor covering operator, user and external costs. Based on the parameters for a 7?km corridor in Hanoi, Vietnam, the results show the lowest average social cost (ASC) transport modes for different ranges of demand. Motorcycle might be the best option at low demand levels while conventional bus has advantages with low-medium demand. At medium demand levels, bus-based technologies and Monorail are competitive options while Metro, with a higher person capacity, is the best alternative at the highest demand levels. Compared to other modes, the ASCs of car and Taxi/Uber are greater because of high capital cost (related to vehicles) per passenger and low occupancy. Transport planners and decision makers in low and middle income countries (LMICs) can draw on the findings of this study. However, various limitations are identified and additional research is suggested.     

Towards marginal cost pricing: A comparison of alternative pricing systems

European urban areas are marred by the problems of congestion and environmental degradation due to the prevailing levels of car use. Strong arguments have thus been put forward in support of a policy based on marginal cost pricing (European Commission 1996). Such policy measures – which would force private consumers to pay for a public service that was previously provided "for free" – are, however, notoriously unpopular with the general public and hence also with their elected representatives – the politicians. There is thus an obvious tension between economic theory, which suggests that marginal cost pricing is the welfare maximising solution to urban transport problems, and practical experience, which suggests that such pricing measures are unwanted by the affected population and hence hard to implement through democratic processes. The AFFORD Project for the European Commission has aimed to investigate this paradox and its possible solutions, through a combination of economic analysis, predictive modelling, attitudinal surveys, and an assessment of fiscal and financial measures within a number of case study cities in Europe. In this paper the methodology and results obtained for the Edinburgh case study are reported in detail. The study analyses alternative road pricing instruments and compares their performance against the theoretical first best situation. It discusses the effect of coverage, location, charging mechanism and interaction with other instruments. The paper shows that limited coverage in one mode may lead to a deviation from the user pays principle in other modes, that location is as important as charge levels and that assumptions about the use of revenues are critical in determining the effect on equity and acceptability. Finally the results show that a relatively simple smart card system can come close to providing the economic first best solution, but that this result should be viewed in the context of the model assumptions.     

Review of Road Hauliers' Measures for Increasing Transport Efficiency and Sustainability in Urban Freight Distribution

This paper analyses a set of measures for transport efficiency improvements from the perspective of the road haulier, particularly regarding improvements suitable for urban distribution and their effects. The first part of the paper addresses literature within the area of transport efficiency. The second part reviews potential transport efficiency improvements with respect to environmental impact and the number of actors involved in the decision. The third part presents results from interviews with the CEOs of two road hauliers regarding their opinions of the transport efficiency measures. Finally, the conclusions about transport efficiency measures are summarized in a matrix, taking into account whether these measures can be considered as costs or benefits for the actors involved. The results show ambiguous and often intricate relations with regard to costs and benefits for the actors in the system. They also explain part of the inertia to change within the freight industry. However, an increasing number of transport operators are now offering more sustainable transport solutions and this service might gain them a competitive advantage in the future.     

The role of volume-delay functions in forecasting and evaluating congestion charging schemes: the Stockholm case

This paper uses observations from before and during the Stockkholm congestion charging trial in order to validate and improve a transportation model for Stockholm. The model overestimates the impact of the charges on traffic volumes while at the same time it substantially underestimates the impact on travel times. These forecast errors lead to considerable underestimation of economic benefits which are dominated by travel time savings. The source of error lies in the static assignment that is used in the model. Making the volume-delay functions (VDFs) steeper only marginally improves the quality of forecast but strongly impacts the result of benefit calculations. We therefore conclude that the dynamic assignment is crucial for an informed decision on introducing measures aimed at relieving congestion. However, in the absence of such a calibrated dynamic model for a city, we recommend that at least a sensitivity analysis with respect to the slope of VDFs is performed.     

Empirical modelling of the relationship between bus and car speeds on signalised urban networks

Vehicle speed is an important attribute for analysing the utility of a transport mode. The speed relationship between multiple modes of transport is of interest to traffic planners and operators. This paper quantifies the relationship between bus speed and average car speed by integrating Bluetooth data and transit signal priority data from the urban network in Brisbane, Australia. The method proposed in this paper is the first of its kind to relate bus speed and average car speed by integrating multi-source traffic data in a corridor-based method. Three transferable regression models relating not-in-service bus, in-service bus during peak periods and in-service bus during off-peak periods with average car speed are proposed. The models are cross-validated and the interrelationships are significant.     

Journey to work and job search characteristics of the urban poor

Gender differences in work trip and job search patterns have received several analytical attention in recent years. A consistent finding in the literature is that women work closer to home than men because of their lower income, greater household responsibilities, and heavier reliance on public transit. While these findings pervade the literature, there has been little analysis into the extent to which they hold in the exclusive case of the urban poor. Can poor women afford to choose between jobs on the basis of journey to work considerations, any more than poor men? Using a survey data from Edmonton, this study examines the gender differences in commuting and job search patterns of the urban poor. The findings suggest that, even among the low income population, women have shorter work trips and greater preference for part-time jobs than men because of their child care and household responsibilities. More women than men did not have enough time for their job search activities; and fewer women than men were prepared to accept job offers in all parts of the study area due to their household responsibilities. The results suggest that while males' employment problems are tied primarily to the working of the labour market, through inadequate skills and lack of good-paying jobs, females' employment problems are more explicable in terms of their role as mothers and homemakers.     

Optimization of headways with stop‐skipping control: a case study of bus rapid transit system

Bus rapid transit system is designed to provide high‐quality and cost‐efficient passenger transportation services. In order to achieve this design objective, effective scheduling strategies are required. This research aims at improving the operation efficiency and service quality of a BRT system through integrated optimization of its service headways and stop‐skipping strategy. Based on cost analysis for both passengers and operation agencies, an optimization model is established. A genetic algorithms based algorithm and an application‐oriented solution method are developed. Beijing BRT Line 2 has been chosen as a case study, and the effectiveness of the optimal headways with stop‐skipping services under different demand levels has been analyzed. The results has shown that, at a certain demand level, the proposed operating strategy can be most advantageous for passengers with an accepted increase of operating costs, under which the optimum headway is between 3.5 and 5.5 min for stop‐skipping services during the morning peak hour depending on the demand with the provision of stop‐skipping services. The effectiveness of the optimal headways with stop‐skipping services is compared with those of existing headways and optimal headways without stop‐skipping services. The results show that operating strategies under the optimal headways with stop‐skipping services outperforms the other two operating strategies with respect to total costs and in‐vehicle time for passengers. Copyright © 2014 John Wiley & Sons, Ltd.     

The evolution of urban traffic control: changing policy and technology

Abstract

The history of urban traffic control (UTC) throughout the past century has been a continued race to keep pace with ever more complex policy objectives and consistently increasing vehicle demand. Many benefits can be observed from an efficient UTC system, such as reduced congestion, increased economic efficiency and improved road safety and air quality.

There have been significant advances in vehicle detection and communication technologies which have enabled a series of step changes in the capabilities of UTC systems, from early (fixed time) signal plans to modern integrated systems. A variety of UTC systems have been implemented throughout the world, each with individual strengths and weaknesses; this paper seeks to compare the leading commercial systems (and some less well known systems) to highlight the key characteristics and differences before assessing whether the current UTC systems are capable of meeting modern transport policy obligations and desires.

This paper then moves on to consider current and future transport policy and the technological landscape in which UTC will need to operate over the coming decades, where technological advancements are expected to move UTC from an era of limited data availability to an era of data abundance.     

The relationship between urban street networks and private motorized trips at the city level

There are factors that impact car usage in urban areas, such as density, diversity and design, but there have been few studies that examine the relationship between street network factors and car usage at the city level (macro level). This paper focuses on this relationship by introducing urban street network variables, such as blocks per area, nodes per block and length of roads and motorways, as independent variables and the percentage of daily trips by private motorized modes as the dependent variable. The street network in this study includes interconnecting lines and points that present streets, roads, motorways, intersections and blocks. The strength of the relationship in this study is found using multiple linear regression. The findings of this research indicate that an increase in car usage is correlated with an increasing number of blocks per area, number of nodes per block and length of motorways. In addition, because the urban street network is the result of macro-scale planning decisions, considering this relationship can lead to better planning decisions.