Contracting for public transportation service

There is increasing interest in contracting to private industry for the provision of public transportation. The trend has accelerated since the mid 1970's spreading from local to regional transit authorities as the need for cost savings arise. Promising major savings without major service reductions, the merits of the strategy are now being evaluated at various levels. This paper focusses on the extent and magnitude of service contracting, the reasons why some agencies adopt the strategy, the nature and capability of the contractors and the actual performance of the arrangements.     

Effects of contracting on cost efficiency in US fixed-route bus transit service

Contracted service comprises a significant proportion of total operating expenses in the provision of fixed-route bus transit service in the US. Despite its importance, the literature on the economic effects of transit service contracting has been limited to only a few studies since the mid-1990s, and is inconclusive due to problems with the nature and methodology of the past studies.This paper examines how the cost efficiency of providing fixed-route bus transit service varies by the degree of contracting. I make several improvements to previous studies and conduct a regression analysis that: (1) addresses the endogeneity problem between the contracting decision and cost efficiency, (2) differentiates between agencies that contract out only a portion of service from those that contract out all service, (3) takes into account the moderating effects of several factors on the effect of contracting on cost efficiency, and (4) uses a relatively larger set of cross-sectional time-series data constructed from the National Transit Database from 1992 to 2000.The analysis results show that the combined effects of contracting lower operating costs by $4.09 and $2.89 per vehicle hour for partial and full-contracting agencies, respectively, in the average case. These average cost savings translate into 7.8% and 5.5%, using the average operating cost per vehicle hour of $53.06. However, this improvement is not universal, because the effects of contracting on cost efficiency vary by factors such as peak-to-base ratio, agency size, the wage gap between bus operators in the public and private sectors, and agency type.     

An actuary method for the estimation and comparison of urban bus transit cost of services

This paper presents a new cost allocation method developed for estimating the fully-allocated costs of the excess peak hour bus transit service provided by two public transit systems. The estimates were produced for the explicit purpose of carrying out a realistic comparison of these costs and the costs of the potential provision of the same service by private operators. The method utilizes the same service data for the analysis. The pragmatic estimation of the fully allocated costs of service by the public and private sectors enables a more accurate estimation of potential cost savings. Sensitivity analysis was also performed using the same costing procedure to determine the range of cost savings that are feasible in a competitive contract arrangement of private sector providers. The new method separates costs of the direct provision of service from other indirect costs and thus facilitates the identification of each cost item and its significance in comparative cost estimates.     

Ridership estimation procedure for a transit corridor with new bus rapid transit service

Ridership estimation is a critical step in the planning of a new transit route or change in service. Very often, when a new transit route is introduced, the existing routes will be modified, vehicle capacities changed, or service headways adjusted. This has made ridership forecasts for the new, existing, and modified routes challenging. This paper proposes and demonstrates a procedure that forecasts the ridership of all transit routes along a corridor when a new bus rapid transit (BRT) service is introduced and existing regular bus services are adjusted. The procedure uses demographic data along the corridor, a recent origin–destination survey data, and new and existing transit service features as inputs. It consists of two stages of transit assignment. In the first stage, a transit assignment is performed with the existing transit demand on the proposed BRT and existing bus routes, so that adjustments to the existing bus services can be identified. This transit assignment is performed iteratively until there is no adjustment in transit services. In the second stage, the transit assignment is carried out with the new BRT and adjusted regular bus services, but incorporates a potential growth in ridership because of the new BRT service. The final outputs of the procedure are ridership for all routes and route segments, boarding and alighting volumes at all stops, and a stop‐by‐stop trip matrix. The proposed ridership estimation procedure is applicable to a new BRT route with and without competing regular bus routes and with BRT vehicles traveling in dedicated lanes or in mixed traffic. The application of the proposed procedure is demonstrated via a case study along the Alameda Corridor in El Paso, Texas. Copyright © 2015 John Wiley & Sons, Ltd.     

Unlimited Access

Universities and public transit agencies have together invented an arrangement – called Unlimited Access – that provides fare-free transit service for over 825,000 people. The university typically pays the transit agency an annual lump sum based on expected student ridership, and students simply show their university identification to board the bus. This paper reports the results of a survey of Unlimited Access programs at 35 universities. University officials report that Unlimited Access reduces parking demand, increases students' access to the campus, helps to recruit and retain students, and reduces the cost of attending college. Transit agencies report that Unlimited Access increases ridership, fills empty seats, improves transit service, and reduces the operating cost per rider. Increases in student transit ridership ranged from 71 percent to 200 percent during the first year of Unlimited Access, and growth in subsequent years ranged from 2 percent to 10 percent per year. The universities' average cost for Unlimited Access is $30 per student per year.     

Estimating bus run times for new limited-stop service using archived AVL and APC data

In recent years, several transit agencies have been trying to be more competitive with the automobile to attract choice riders. Transit agencies can only be competitive if they can provide services that are reliable, have a short access and egress time, and have run times that are comparable to automobiles. Several transit agencies try to be competitive through offering faster service, such as limited-stop (express) bus service. This study uses AVL and APC data, in addition to a disaggregate data obtained from a travel behavior survey, to select stops and estimate run times for a new limited-stop service that will run parallel to a heavily used bus route (67 Saint-Michel) in Montréal, Canada. Three different scenarios are developed based on theory and practice to select stops to be incorporated in the new limited service. The time savings for each scenario are then evaluated as a range and a fourth scenario is developed. A limited-stop service is recommended based on selecting stops serving both directions of the route, major activity points and stop spacing. This study shows that implementing a limited-stop service would yield substantial time savings for both, the new limited service and the existing regular service running in parallel.     

Flexible feeder transit route design to enhance service accessibility in urban area

To improve the accessibility of transit system in urban areas, this paper presents a flexible feeder transit routing model that can serve irregular‐shaped networks. By integrating the cost efficiency of fixed‐route transit system and the flexibility of demand responsive transit system, the proposed model is capable of letting operating feeder busses temporarily deviate from their current route so as to serve the reported demand locations. With an objective of minimizing total bus travel time, a new operational mode is then proposed to allow busses to serve passengers on both street sides. In addition, when multiple feeder busses are operating in the target service area, the proposed model can provide an optimal plan to locate the nearest one to response to the demands. A three‐stage solution algorithm is also developed to yield meta‐optimal solutions to the problem in a reasonable amount of time by transforming the problem into a traveling salesman problem. Numerical studies have demonstrated the effectiveness of the proposed model as well as the heuristic solution approach. Copyright © 2015 John Wiley & Sons, Ltd.     

Analyzing urban bus service reliability at the stop, route, and network levels

Improving the reliability of bus service has the potential to increase the attractiveness of public transit to current and prospective riders. An understanding of service reliability is necessary to develop strategies that help transit agencies provide better services. However, few studies have been conducted analyzing bus reliability in the metropolis of China. This paper presents an in-depth analysis of service reliability based on bus operational characteristics in Beijing. Three performance parameters, punctuality index based on routes (PIR), deviation index based on stops (DIS), and evenness index based on stops (EIS), are proposed for the evaluation of bus service reliability. Reliability involves routes, stops, punctuality, deviation, and evenness. The relationship among the three parameters is discussed using a numerical example. Subsequently, through a sampling survey of bus lines in Beijing, service reliability at the stop, route, and network levels are estimated. The effects of route length, headway, the distance from the stop to the origin terminal, and the use of exclusive bus lanes are also analyzed. The results indicate low service reliability for buses in Beijing and a high correlation between service reliability and route length, headway, distance from the stop to the origin terminal, and the provision of exclusive bus lanes.     

A methodology for choosing between fixed‐route and flex‐route policies for transit services

Flex‐route transit brings together the low cost operability of fixed‐route transit with the flexibility of demand responsive transit, and in recent years, it has become the most popular type of flexible transit service. In this paper, a methodology is proposed to help planners make better decisions regarding the choice between a conventional fixed‐route and a flex‐route policy for a specific transit system with a varying passenger demand. A service quality function is developed to measure the performance of transit systems, and analytical modeling and simulations are used to reproduce transit operation under the two policies. To be closer to reality, two criteria are proposed depending on the processing of rejected requests in the assessment of the service quality function for flex‐route services. In various scenarios, critical demand densities, which represent the switching points between the two competing policies, are derived in a real‐world transit service according to the two criteria. Copyright © 2014 John Wiley & Sons, Ltd.     

Understanding the impacts of a combination of service improvement strategies on bus running time and passenger’s perception

Transit agencies implement many strategies in order to provide an attractive transportation service. This article aims to evaluate the impacts of implementing a combination of strategies, designed to improve the bus transit service, on running time and passenger satisfaction. These strategies include using smart card fare collection, introducing limited-stop bus service, implementing reserved bus lanes, using articulated buses, and implementing transit signal priority (TSP). This study uses stop-level data collected from the Société de transport de Montréal (STM)’s automatic vehicle location (AVL) and automatic passenger count (APC) systems, in Montréal, Canada. The combination of these strategies has lead to a 10.5% decline in running time along the limited stop service compared to the regular service. The regular route running time has increased by 1% on average compared to the initial time period. The study also shows that riders are generally satisfied with the service improvements. They tend to overestimate the savings associated with the implementation of this combination of strategies by 3.5-6.0 min and by 2.5-4.1 min for both the regular route and the limited stop service, respectively. This study helps transit planners and policy makers to better understand the effects of implementing a combination of strategies to improve running time and passenger’s perception of these changes in service.     

A structured flexible transit system for low demand areas

Public transit structure is traditionally designed to contain fixed bus routes and predetermined bus stations. This paper presents an alternative flexible-route transit system, in which each bus is allowed to travel across a predetermined area to serve passengers, while these bus service areas collectively form a hybrid “grand” structure that resembles hub-and-spoke and grid networks. We analyze the agency and user cost components of this proposed system in idealized square cities and seek the optimum network layout, service area of each bus, and bus headway, to minimize the total system cost. We compare the performance of the proposed transit system with those of comparable systems (e.g., fixed-route transit network and taxi service), and show how each system is advantageous under certain passenger demand levels. It is found out that under low-to-moderate demand levels, the proposed flexible-route system tends to have the lowest system cost.     

Importance of user perception in evaluating level of service for bus transit for a developing country like India: a review

Assessment of service quality in bus transit planning has received due attention in recent years from the viewpoint of optimal service allocation. The concept of level of service (LOS) has emerged as an effective tool to measure quality of services. Service-quality assessment provides operators with knowledge on users' satisfaction with existing services and their expected LOSs. The importance of user perception towards assessment of LOS has been acknowledged by researchers. While LOS standards for public transportation have been established by the Transportation Research Board in the USA, researchers have questioned the applicability of these standards in the context of different geographic regions. Since the service delivery environment differs between developed and developing nations, the user perception of service quality varies between these economic regions. Substantial research has been carried out in the context of both developed and developing nations, to identify the bus transit service parameters that affect users' perceived service quality; however, little research exists that establishes LOS thresholds for bus transit, based on user perception. This paper reviews the concept of LOS, describes the importance of user perception in assessment of service quality and identifies the need to establish LOS thresholds for bus transit from user perception for developing countries.     

A GIS‐based method to identify cost‐effective routes for rural deviated fixed route transit

Deviated fixed route transit (DFRT) service connecting rural and urban areas is a growing transportation mode in the USA. Little research has been done to develop frameworks for route design. A methodology to explore the most cost‐effective DFRT route is presented in this paper. The inputs include potential DFRT demand distribution and a road network. A heuristic is used to build possible routes by starting at urban cores and extending in all network directions in certain length increments. All the DFRT routes falling in the length range desired by the users are selected. The cost effectiveness of those routes, defined by operating cost per passenger trip, is compared. The most cost‐effective route is selected and presented in a GIS map. A case study illustrates the methodology in several Tennessee metropolitan regions. The most cost‐effective route length is case specific; some routes (e.g. those out of our Nashville case) are most cost effective when short, while others (e.g. those out of Memphis) are most cost effective when long. Government agencies could use the method to identify routes with the lowest operating cost per passenger given a route length or an operating cost budget. Copyright © 2016 John Wiley & Sons, Ltd.     

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.     

Integrated transit services for minimum cost operation considering heterogeneous demand

Abstract

In large metropolitan areas, public transit is a major mode choice of commuters for their daily travel, which has an important role in relieving congestion on transportation corridors. The purpose of this study is to develop a model which optimizes service patterns (SPs) and frequencies that yield minimum cost transit operation. Considering a general transit route with given stops and origin-destination demand, the proposed model consists of an objective total cost function and a set of constraints to ensure frequency conservation and sufficient capacity subject to operable fleet size. A numerical example is provided to demonstrate the effectiveness of the developed model, in which the demand and facility data of a rail transit route were given. Results show that the proposed model can be applied to optimize integrated SPs and headways that significantly reduce the total cost, while the resulting performance indicators are generated.     

An analysis of public bus transit performance in Indian cities

Maintaining and enhancing public transit service in Indian cities is important, to meet rapidly growing mass mobility needs, and curb personal motor vehicle activity and its impacts at low cost. Indian cities rely predominantly on buses for public transport, and are likely to continue to do so for years. However, the public bus transit service is inadequate, and unaffordable for the urban poor. The paper explores the factors that contribute to and affect efforts to improve this situation, based on an analysis of the financial and operational performance of the public bus transit service in the four metropolitan centres and four secondary cities during the 1990s. Overall, there were persistent losses, owing to increasing input costs and declining productivity. The losses occurred despite rapidly increasing fares, and ridership declined. The situation, and the ability to address it, is worse in the secondary cities than the metropolitan centres. We suggest a disaggregated approach based on the needs and motivations of different groups in relation to public transit, along with improved operating conditions and policies to internalize costs of personal motor vehicle use, to address the challenge of providing financially viable and affordable public bus transit service.     

Modeling and optimizing urban bus transit considering headway variation for cost and service reliability analysis

Due to the stochastic nature of traffic conditions and demand fluctuations, it is a challenging task for operators to maintain reliable services, and passengers often suffer from longer travel times. A failure to consider this issue while planning bus services may lead to undesirable results, such as higher costs and a deterioration in level of service. Considering headway variation at route stops, this paper develops a mathematical model to optimize bus stops and dispatching headways that minimize total cost, consisting of both user and operator costs. A Genetic Algorithm is applied to search for a cost-effective solution in a real-world case study of a bus transit system, which improves service reliability in terms of a reduced coefficient of variation of headway.     

The impact of real-time information on bus ridership in New York City

In the past few years, numerous mobile applications have made it possible for public transit passengers to find routes and/or learn about the expected arrival time of their transit vehicles. Though these services are widely used, their impact on overall transit ridership remains unclear. The objective of this research is to assess the effect of real-time information provided via web-enabled and mobile devices on public transit ridership. An empirical evaluation is conducted for New York City, which is the setting of a natural experiment in which a real-time bus tracking system was gradually launched on a borough-by-borough basis beginning in 2011. Panel regression techniques are used to evaluate bus ridership over a three year period, while controlling for changes in transit service, fares, local socioeconomic conditions, weather, and other factors. A fixed effects model of average weekday unlinked bus trips per month reveals an increase of approximately 118 trips per route per weekday (median increase of 1.7% of weekday route-level ridership) attributable to providing real-time information. Further refinement of the fixed effects model suggests that this ridership increase may only be occurring on larger routes; specifically, the largest quartile of routes defined by revenue miles of service realized approximately 340 additional trips per route per weekday (median increase of 2.3% per route). Although the increase in weekday route-level ridership may appear modest, on aggregate these increases exert a substantial positive effect on farebox revenue. The implications of this research are critical to decision-makers at the country’s transit operators who face pressure to increase ridership under limited budgets, particularly as they seek to prioritize investments in infrastructure, service offerings, and new technologies.     

Integrating bus services with mixed fleets

Conventional bus service (with fixed routes and schedules) has lower average cost than flexible bus service (with demand-responsive routes) at high demand densities. At low demand densities flexible bus service has lower average costs and provides convenient door-to-door service. Bus size and operation type are related since larger buses have lower average cost per passenger at higher demand densities. The operation type and other decisions are jointly optimized here for a bus transit system connecting a major terminal to local regions. Conventional and flexible bus sizes, conventional bus route spacings, areas of service zones for flexible buses, headways, and fleet sizes are jointly optimized in multi-dimensional nonlinear mixed integer optimization problems. To solve them, we propose a hybrid approach, which combines analytic optimization with a Genetic Algorithm. Numerical analysis confirms that the proposed method provides near-optimal solutions and shows how the proposed Mixed Fleet Variable Type Bus Operation (MFV) can reduce total cost compared to alternative operations such as Single Fleet Conventional Bus (SFC), Single Fleet Flexible Bus (SFF), Mixed Fleet Conventional Bus (MFC) and Mixed Fleet Flexible Bus (MFF). With consistent system-wide bus sizes, capital costs are reduced by sharing fleets over times and over regions. The sensitivity of results to several important parameters is also explored.