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.     

Additive models for network data envelopment analysis in the presence of shared resources

This paper studies the problem of evaluating the relative efficiency of a set of specialized and interdependent decision-making subunits that make up a large decision-making unit (DMU). The paper develops a data envelopment analysis (DEA) approach for measuring the efficiency of decision processes which can be divided into two stages. In these processes the first stage uses its own inputs to generate outputs which a part of these outputs become the inputs to the second stage. Moreover, DMUs use shared input sources in both operation stages. This paper provides a set of additive models which measure the performance of two-stage network DEA processes with shared inputs. Numerical examples show the applicability of the approach.     

An application of the directional distance function with the number of accidents as an undesirable output to measure the technical efficiency of state road transport in India

By using the directional distance function (DDF) of data envelopment analysis (DEA), this study measures the technical efficiency of 37 Indian state road transport undertakings (SRTUs) for the year 2012–13. We employ the DDF as a tool for analyzing a joint production function with both desirable and undesirable outputs (i.e., the number of accidents). A comparison between the results with and without accidents shows that several SRTUs have experienced significant changes in their efficiency scores as well as in their rankings after accounting for the undesirable output. This indicates the importance of including the number of accidents – a safety standard – as representative of the undesirable output in computing the efficiency scores of SRTUs. The results of the Tobit model indicate that SRTUs with greater vehicle productivity are more efficient under both conventional DEA and DDF approaches. We also employed zero-truncated negative binomial model to assess the factors influencing the number of road accident experienced by the Indian SRTUs and found that the accident count was significantly influenced by fleet utilization and vehicle productivity.     

Introducing change to transportation and energy systems: the case of alcohol fuels

This paper describes the application of optimization techniques to the problems of garage location and bus routing. The technique employed involves the decomposition of a garage location and bus routing model into two submodels. Solutions for the garage location and bus routing submodels are combined iteratively to find an optimal solution for the overall optimization model. Significant cost savings realizable for the Transit Authority of River City (Louisville, Kentucky) were calculated by implementing the results.     

On incentives and optimal effort to improve bus transit performance

ABSTRACT

This paper studies incentive-based subsidy to transit systems to improve performance. It derives a formula for optimal effort that equalizes marginal cost and marginal benefit and derives some principles from it among which is that the larger the value of a transit system’s performance criterion the larger the effort it will exert to improve it. Next, using a constrained cost minimization approach it derives a nonlinear cost function that includes optimal effort and estimates it using an unbalanced panel data of single mode U.S. bus transit systems. The results show that optimal effort is the equivalent of seven full-time employees (15,243 labor hours) per year and in real terms it results in 0.6% cost saving (US$198,331) and US$836,796 in incentive subsidy per observation. The implications of these findings are examined.     

A slacks-based network DEA efficiency analysis of European airlines

Conventional data envelopment analysis (DEA) models consider a system as a single-process ‘black box’. There are, however, DEA approaches that consider a system as composed of distinct processes or stages, each one with its own inputs and outputs and with intermediate flows among the stages. In this paper, a network DEA approach to airline efficiency assessment is presented. One conclusion of the study is that the network DEA approach has more discriminative power than the single-process DEA approach and that the computed targets, efficiency scores and rankings are more valid. This is because network DEA allows for a more fine-grained analysis that leads to a more realistic estimation of the overall system production possibility set than the one assumed by conventional DEA. In other words, compared with network DEA the conventional, single-process DEA represents an aggregated analysis that merges all system processes with their inputs and outputs and ignores their internal flows. The main drawbacks are the need for more detailed data (i.e. at the process level) and the greater complexity of the resulting models, especially if there are inputs or outputs that are shared among the processes.     

Simultaneous control of traffic lights and bus departure for priority operation

This article presents a bus priority method for traffic light control based on two modes of operation: immediate and controlled departure. The immediate departure mode is a standard procedure in which the intersection controller grants priority upon request of the bus. Controlled departure acts to avoid a second stop of the bus at the end of the queue formed during red by holding the bus at the bus stop, while still granting priority to the bus lane. Selection of one of the two modes is based on intersection cost that includes bus delay and the impact on the overall traffic near the intersection. The method is applied in a constant cycle scenario where green recall and green extension can only be granted within certain limits. Numerical examples illustrate the application of the approach.     

Optimum Capacity for Intermodal Container Terminals

Abstract

Achievement of a desirable level of customer service at intermodal terminals mainly depends on the efficient loading and unloading of trains without delays. The efficiency of the transfer between the modes in the terminal area can have a significant effect on these delays. In this article, an analytically based simulation model is developed to investigate delays of trains for different service configurations. Simulation outputs are used to find an optimum balance of the cost of train delays and variation from the desired level of service. Data from the Acacia Ridge Terminal in Brisbane, Australia are used to validate and test the model.     

A Descriptive Framework for the Development and Operation of Liner Shipping Networks

Abstract

Successful mass transit solutions are rare in poor cities. When they appear they are lauded across the globe and too often copied uncritically. The latest exemplar of such best practice is the ‘Transmilenio’ rapid bus system in Bogotá. The article describes its main characteristics and applauds the improvements that it has already brought to urban transport in Bogotá. Naturally, the system is not without its flaws and these need to be drawn to the attention of those who might copy the Bogotá example. This is particularly important at the present time when the jewel of Bogotá has come under surprisingly strong local criticism over its cost, its ownership structure, its decreasing effectiveness and, fundamentally, because it has failed to solve the transport chaos of Bogotá. There is a real danger that ‘Transmilenio’ will stagnate as its popularity declines and as demands for a metro increase. Given the strengths of the system that would be something of a disaster and, most certainly, not in the interests of the poor.     

Trip generation and distribution: the inconsistency problem and a possible remedy

There are many shortcomings commonly associated with the conventional urban transportation modeling process. This paper focuses on one of the more important problems — the inconsistency between trip generation and distribution components — and suggests a possible way of alleviating it. The suggested approach involves sorting out the independent effects on tripmaking of origin, destination and travel cost characteristics, and introducing accessibility measures explicitly into the modeling process. The resulting modeling framework can be used to obtain consistent estimates of trip generation and distribution quantities which are responsive to changes in the transportation and spatial systems.     

Including local air pollution in airport efficiency assessment: A hyperbolic-stochastic approach

We examine data from Italian airports covering 2005–2008 to include local environmental effects in airport efficiency assessment. We consider both desirable outputs such as aircraft, passengers, and freight movements and some undesirable outputs of airport operations associated with local air pollution. We estimate both a classical distance function with no undesirable output, and a hyperbolic distance function. By comparing the estimated efficiency scores with these two frontiers we show that airport efficiency increases when local air pollution is included in the analysis. Moreover, we show a fleet-mix effect because airports with similar aircraft movements exhibit large variations in the amount of pollution per flight. Last, we find that there is complementarity between desirable and undesirable output: a 1% decrease in pollution has an opportunity cost of a 0.67% reduction in both passenger and freight traffic.     

Performance assessment of transport services with the ERM-NDEA model: evidence from a domestic airline in Taiwan

Abstract

This paper estimates comprehensive operational performance measures for transport services. A network efficiency approach is used to analyze the production efficiency, service efficiency, and operational efficiency in a unified framework to reflect the transportation service characteristics of airline operations. We show how a modified version of the network data envelopment analysis model can be utilized for evaluating the performance of air route operations. This study considers 15 air routes operated by a domestic airline in Taiwan to highlight the value of the approach. The results of the analysis show the inputs and consumed outputs leading to production inefficiency and service inefficiency respectively as well as the magnitudes of excesses and shortfalls.     

Examining the Political and Practical Reality of Bus-based Real Time Passenger Information

Abstract

Enhancing the bus experience through improved information provision is a key element of UK Government transport policy. Real time passenger information (RTPI) is perceived to reassure waiting passengers, to benefit the bus operator through increased revenue and the local authority, by promoting social inclusion and achieving a modal shift. RTPI also provides an important tool for operators by allowing them to monitor services and refine their schedules.

The aim of this paper is to understand the reasons for implementing RTPI in the bus sector, and to determine the key issues impacting on the likely success of such a policy. A case study approach investigates the experiences of two provincial towns in the UK. The paper suggests that, whilst it is unclear whether RTPI has resulted in an increase in bus patronage, it is considered to be most effective when combined as part of a package of measures. It is intended that the findings from the two case studies will reveal lessons of relevance to authorities contemplating the introduction of RTPI.     

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.     

Modular route bus design – A method of meeting transport operation and vehicle manufacturing requirements

This research examines the problem of route bus specification and vehicle manufacturability. In order for bus operators to provide transport services, a range of vehicle configurations must be available from bus manufacturers, generating variety which has a negative impact on the manufacturing process. Larger part inventories, uncontrolled labour tasks and more troublesome maintenance are known impacts of this variety. This research identifies the functional necessities in route bus interior design and reduces the problems in bus manufacture and operation caused by specification diversity by proposing a modularised system of bus design. In particular, it makes recommendations as to how bus configuration should be carried out, ensuring an optimum mix of operational and manufacturing needs:

• 1.Determine user needs before the bus specification process.
• 2.Designs to be developed by the manufacturer in response to user needs.
• 3.This design should be standardised where possible, as suggested by the user needs.
• 4.Where user needs dictate product variations, apply a mass customisation approach to accommodate these needs.

The recommendations are communicated in design proposals for a modular bus interior, demonstrated by four cases designed to meet the present status quo of bus interior design and predictions for the future of the field.     

Evaluating efficiency in the Norwegian bus industry using data envelopment analysis

This paper focuses on the performance of Norwegian bus companies subsidized by the government. The performance is evaluated from a productive efficiency point of view. The framework is that of a deterministic non-parametric Data Envelopment Analysis (DEA) approach to efficiency measurement. In this context several important issues are addressed: efficiency rankings, distribution and scale properties in the bus industry, potentials for efficiency improvements in the sector, the impact of ownership, area of operation and scope, and ways of improving efficiency in the sector. The findings show that the average bus company exhibits increasing return to scale in production of its services. The extent of such returns however vary, with size and is more prevalent among smaller companies. The average bus company is found to have a considerable input saving potential of about 28 percent. Neither economies of scope nor company ownership are found to have an influence on company performance. It is suggested that geographical factors need a closer attention in future research. The implications of DEA results are discussed and concluding remarks offered.     

A data envelopment analysis model for evaluating the performance of taxi operators: a case study in Harbin,China

ABSTRACT

This paper measures the performance of taxi operators using data envelopment analysis (DEA) and the improvement of performance based on benchmarks. This includes basic DEA models and a cross efficiency model. In the present work, a sample set of 20 taxi operators are considered, and an evaluation indicator framework is constructed, which mainly involves the identification of decision-making units (DMUs) and the determination of input-output variables. The combined results of multiple DEA models are used to evaluate the performance of taxi operators in a case study of Harbin. The results highlight the significance of the combined application of multiple DEA models, especially a cross-efficiency model that can obtain more objective efficiency values. Finally, the benchmarking method is used to capture the achievements of best-performing operators and provide valuable improvement recommendations for inefficient operators. Conclusions provide a suitable basis for the operation and management of the taxi market.     

Modeling Car Ownership in Turkey Using Fuzzy Regression

Abstract

This article develops a model which can be used to determine car ownership in Turkey. Because of the lack of disaggregated data, the model is based on aggregated data. As owning a car is mainly affected by economic, social and demographic factors, the car ownership model has a multi-variable form. In order to explain the effects of these factors on car ownership in Turkey, a fuzzy multiple-regression model is used. The major reason for applying fuzzy regression is to overcome the intercorrelation problem associated with the independent variables. In this study, the urbanization rate, average family size, gross national product per capita, average car cost, gasoline price and total length of roads are selected as independent variables. The results show that, by applying a multi-variable approach to possibilistic regression, the model provides not only a crisp output but also an output range for car ownership in Turkey between 1970 and 2000.     

A Critical Analysis of DEA Applications to Seaport Economic Efficiency Measurement

Abstract

The significant increase in the adoption of Data Envelopment Analysis (DEA) for seaport efficiency measurement renders a literature synthesis and critical analysis of the application of the technique relevant and worthwhile. This paper provides a thorough review and critical analysis of the major studies undertaken to date, and highlights some problems and limitations in the application of the technique in the seaport context particularly in the specification of parameters, the sampling domain and the type of DEA to be applied. The paper informs the decision process as to the merits and limitations of DEA approaches for seaport efficiency measurement and makes a contribution towards methodological improvement by considering variations not yet applied to the port sector.     

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.