Joint impact of competition,ownership form and economic regulation on airport performance and pricing

The combined impact of ownership form, economic regulation and competition on airport performance is analyzed using data envelopment analysis to measure cost efficiency in the first stage and regression analysis to measure the impact of the environment in the second stage. The empirical results of an analysis of European and Australian airports over a 10 year timeframe reveal that under relatively non-competitive conditions, public airports operate less cost efficiently than fully private airports. Irrespective of ownership form, regulation is necessary to emulate competitive forces thus pushing airport management towards cost efficiency and reasonable pricing policies. Under potential regional or hub competition, economic regulation inhibits airports of any ownership form from operating and pricing efficiently. Although public and fully private airports operate equally efficiently in a competitive setting, private airports still set higher aeronautical charges. Furthermore, mixed ownership forms with a majority public holding are neither cost efficient nor low price, irrespective of the level of competition.     

A new offline optimization approach for designing a fuel cell hybrid bus

In this study a hydrogen powered fuel cell hybrid bus is optimized in terms of the powertrain components and in terms of the energy management strategy. Firstly the vehicle is optimized aiming to minimize the cost of its powertrain components, in an official driving cycle. The optimization variables in powertrain component design are different models and sizes of fuel cells, of electric motors and controllers, and batteries. After the component design, an energy management strategy (EMS) optimization is performed in the official driving cycle and in two real measured driving cycles, aiming to minimize the fuel consumption. The EMS optimization is based on the control of the battery’s state-of-charge. The real driving cycles are representative of bus driving in urban routes within Lisbon and Oporto Portuguese cities. A real-coded genetic algorithm is developed to perform the optimization, and linked with the vehicle simulation software ADVISOR. The trade-off between cost increase and fuel consumption reduction is discussed in the lifetime of the designed bus and compared to a conventional diesel bus. Although the cost of the optimized hybrid powertrain (62,230 €) achieves 9 times the cost of a conventional diesel bus, the improved efficiency of such powertrain achieved 36% and 34% of lower energy consumption for the real driving cycles, OportoDC and LisbonDC, which can originate savings of around 0.43 €/km and 0.37 €/km respectively. The optimization methodology presented in this work, aside being an offline method, demonstrated great improvements in performance and energy consumption in real driving cycles, and can be a great advantage in the design of a hybrid vehicle.     

The impact of competition on container port (in)efficiency

There are many studies on container port efficiency and that seek to understand what factors, such as technical and scale efficiency, private versus public terminal management or macro-economic factors, play on the efficiency score of a given port. There are fewer studies that focus on the role played by the inter-port competitive environment. This role remains difficult to assess. In fact, on the one hand, a port subject to high inter-port competition may record higher efficiency scores due to the pressure from the competitive environment. On the other hand, a port subject to high competition may be forced to over-invest and could therefore records a lower efficiency score. This article investigates this issue and examines how the degree of competition measured at different levels (local, regional and global level) impacts the efficiency score of a given container port. To do so, we implement a truncated regression with a parametric bootstrapping model. The model applied to information gathered for 200 container ports in 2007 and 2010 leads to the following conclusions: port efficiency decreases with competition intensity when measured in a range of 400–800 km (regional level); and the effect from competition is not significant when competition is measured at a local (less than 300 km) or at a global (more than 800 km) level. Estimates also show a tendency for ports who invested from 2007 to 2010 to experience a general decrease in efficiency scores, an element which could be explained by the time lag between the investment and the subsequent potential increase in container throughput.     

Experiences with Competitive Tendering of Bus Services in Germany

Abstract

After a long transition period with only a few isolated procedures for competitive tendering, the market for German public transport bus services has seen numerous such tenders in recent years. The results are complex. From the public transport authorities’ point of view, the main effects are a decrease in subsidy payments, with relatively low expenses relating to the tendering process (allocation, contract management). The overall level of competition is high, with five to seven bidders on average, although this has been declining in recent years. Entry barriers have been identified at significant levels for several parameters, especially with respect to the volume tendered and the revenue risk to be borne by the operator out of net‐cost contracts. Demonstrably small‐ and medium‐sized transport operators have been able to increase their market share in the starting phase of introducing tendering, with diminishing success rates in recent years. Due to the increased quality requirements in competitive tendering, the quality of public transport available has improved considerably, and environmental standards have been better implemented and sustained. As far as employees are concerned, a trend towards wages below the wage rate of private operators cannot be observed. However, their level is well below the level of public incumbent operators.     

Capitalization of BRT network expansions effects into prices of non-expansion areas

A before and after hedonic model is used to determine the property value impacts on properties already served by the transit system caused by extensions to Bogotá’s bus rapid transit system. Asking prices of residential properties belonging to an intervention area (N = 1407 before, 1570 after) or a control area (N = 267 before, 732 after) and offered for sale between 2001 and 2006 are used to determine capitalization of the enhanced regional access provided by the extension. Properties offered during the year the extension was inaugurated and in subsequent years have asking prices that are between 13% and 14% higher than prices for properties in the control area, after adjusting for structural, neighborhood and regional accessibility characteristics of each property. Furthermore, the appreciation is similar for properties within 500 m and properties between 500 m and 1 km of the BRT.     

Does competitive tendering improve customer satisfaction with public transport? A case study for the Netherlands

During 10 years experience with competitive tendering of regional and local public transport in the Netherlands, national average trip satisfaction of passengers increased from 6.84 to 7.25 (+0.41). This is a remarkable improvement, but a closer look at the data reveals that also in regions without competitive tendering the improvement in satisfaction was substantial. The difference in the improvement for regions with and without tendering is only +0.06. Tendering led in the majority of concession areas to an improvement of average trip satisfaction, but in some 40% of the cases a deterioration was observed. A change of operator in general has a negative impact on satisfaction. We also find that the effect on satisfaction of early tendering is larger than of later tendering. This may well be the consequence of a shift in emphasis of authorities and operators from quality improvement to efficiency improvements. The model building and analysis is based on the comparison per year-pair of regions tendered versus regions non-tendered (in that specific year-pair). So we compare the effects on satisfaction of tendered regions relative to non-tendered regions.An analysis concerning the weighted satisfaction judgments of 15 underlying service attributes revealed that ‘service frequency, on-time performance, travel speed, and vehicle tidiness’ contribute the most to the effect on satisfaction in the tendered regions. We found that new vehicles impact highly on satisfaction with travel speed and vehicle tidiness. The emphasis in the tenders with increasing service frequency, led to an increase in satisfaction but, may have a deteriorating effect on (the satisfaction with) on-time performance.     

Wireless charging in California: Range,recharge, and vehicle electrification

This research evaluated the potential for wireless dynamic charging (charging while moving) to address range and recharge issues of modern electric vehicles by considering travel to regional destinations in California. A 200-mile electric vehicle with a real range of 160 miles plus 40 miles reserve was assumed to be used by consumers in concert with static and dynamic charging as a strict substitute for gasoline vehicle travel. Different combinations of wireless charging power (20–120 kW) and vehicle range (100–300 miles) were evaluated. One of the results highlighted in the research indicated that travel between popular destinations could be accomplished with a 200-mile EV and a 40 kW dynamic wireless charging system at a cost of about $2.5 billion. System cost for a 200-mile EV could be reduced to less than $1 billion if wireless vehicle charging power levels were increased to 100 kW or greater. For vehicles consuming 138 kWh of dynamic energy per year on a 40 kW dynamic system, the capital cost of $2.5 billion plus yearly energy costs could be recouped over a 20-year period at an average cost to each vehicle owner of $512 per year at a volume of 300,000 vehicles or $168 per year at a volume of 1,000,000 vehicles. Cost comparisons of dynamic charging, increased battery capacity, and gasoline refueling were presented. Dynamic charging, coupled with strategic wayside static charging, was shown to be more cost effective to the consumer over a 10-year period than gasoline refueling at $2.50 or $4.00 per gallon. Notably, even at very low battery prices of $100 per kWh, the research showed that dynamic charging can be a more cost effective approach to extending range than increasing battery capacity.     

Efficient contracting and incentive agreements between regulators and bus operators: The influence of risk preferences of contracting agents on contract choice

Contracts that govern transactions between regulators and operators are an important feature of service delivery in public transport. This paper reviews the literature on efficient contracting in general and its application to public transport contracts and found little empirical evidence on the influence of risk preferences of contracting agents on contract choice, a fundamental premise of classical contracting theory. Departing from the existing literature, this paper develops a choice experiment to study public transport operators’ preferences for different contractual forms. People involved in the public transport industry across Australia are invited to do the survey but the respondents are mainly bus operators in New South Wales. The respondents are offered two hypothetical contracts with different risk profiles and incentives and asked to indicate their preferences as well as their acceptance to provide the services under the contract they prefer. A non-linear scaled multinomial logit model is estimated to establish the role of risk allocation on contract preference of bus operators and the optimal amount of risks and incentives, conditioned on the operators’ attitude towards risk. The results help authorities design performance-based contracts to obtain their objectives while maintaining the operators’ level of satisfaction.     

Carbon emission from urban passenger transportation in Beijing

Urban passenger transport significantly contributes to global greenhouse gas emissions, especially in developing countries owing to the rapid motorization, thus making it an important target for carbon reduction. This article established a method to estimate and analyze carbon emission from urban passenger transport including cars, rail transit, taxis and buses. The scope of research was defined based on car registration area, transport types and modes, the stages of rail transit energy consumption. The data availability and gathering were fully illustrated. A city level emission model for the aforementioned four modes of passenger transport was formulated, and parameters including emission factor of electricity and fuel efficiency were tailored according to local situations such as energy structure and field survey. The results reveal that the emission from Beijing’s urban passenger transport in 2012 stood at 15 million tonnes of CO₂, of which 75.5% was from cars, whereas car trip sharing constitutes only 42.5% of the total residential trips. Bus travel, yielding 28.6 g CO₂, is the most efficient mode of transport under the current situations in terms of per passenger kilometer (PKM) emission, whereas car or taxi trips emit more than 5 times that of bus trips. Although a decrease trend appears, Beijing still has potential for further carbon reduction in passenger transport field in contrast to other cities in developed countries. Development of rail transit and further limitation on cars could assist in reducing 4.39 million tonnes CO₂ emission.     

Thermodynamic,environmental and economic effects of diesel and biodiesel fuels on exhaust emissions and nano-particles of a diesel engine

In this study, diesel (JIS#2) and various biodiesel fuels (BDF20, BDF50, BDF100) are used to operate the diesel engine at 100 Nm, 200 Nm and full load; while the engine speed is 1800 rpm. The system is experimentally studied, and the energy, exergy, sustainability, thermoeconomic and exergoeconomic analyses are performed to the system. The Engine Exhaust Particle Sizer is used to measure the size distribution of engine exhaust particle emissions. Also, the data of the exhaust emissions, soot, particle numbers, fuel consumptions, etc. are measured. It is found that (i) most of the exhaust emissions (except NO_x) are directly proportional to the engine load, (ii) maximum CO₂ and NO_x emissions rates are generally determined for the BDF100 biodiesel fuel; while the minimum ones are calculated for the JIS#2 diesel fuel. On the other hand, the maximum CO and HC emissions rates are generally computed for the JIS#2 diesel fuel; while the minimum ones are found for the BDF100 biodiesel fuel, (iii) fuel consumptions from maximum to minimum are BDF100 > BDF50 > BDF20 > JIS#2 at all of the engine loads, (iv) particle concentration of the JIS#2 diesel fuel is higher than the biodiesel fuels, (v) soot concentrations of the JIS#2, BDF20 and BDF50 fuels are directly proportional to the engine load; while the BDF100 is inversely proportional, (vi) system has better energy and exergy efficiency when the engine is operated with the biodiesel fuels (vii) sustainability of the fuels are BDF100 > BDF50 > BDF20 > JIS#2, (viii) thermoeconomic and exergoeconomic parameters rates from maximum to minimum are JIS#2 > BDF20 > BDF50 > BDF100.     

Electric vehicle parking in European and American context: Economic,energy and environmental analysis

The transportation sector faces increasing challenges related to energy consumption and local and global emissions profiles. Thus, alternative vehicle technologies and energy pathways are being considered in order to overturn this trend and electric mobility is considered one adequate possibility towards a more sustainable transportation sector.In this sense, this research work consisted on the development of a methodology to assess the economic feasibility of deploying EV charging stations (Park-EV) by quantifying the tradeoff between economic and energy/environmental impacts for EV parking spaces deployment. This methodology was applied to 4 different cities (Lisbon, Madrid, Minneapolis and Manhattan), by evaluating the influence of parking premium, infrastructure cost and occupancy rates on the investment Net Present Value (NPV). The main findings are that the maximization of the premium and the minimization of the equipment cost lead to higher NPV results. The NPV break-even for the cities considered is more “easily” reached for higher parking prices, namely in the case of Manhattan with the higher parking price profile. In terms of evaluating occupancy rates of the EV parking spaces, shifting from a low usage (LU) to a high usage (HU) scenario represented a reduction in the premium to obtain a NPV = 0 of approximately 14% for a 2500 € equipment cost, and, in the case of a zero equipment cost (e.g. financed by the city), a NPV = 0 was obtained with approximately a 2% reduction in the parking premium. Moreover, due to the use of electric mobility instead of the average conventional technologies, Well-to-Wheel (WTW) gains for Lisbon, Madrid, Minneapolis and Manhattan were estimated in 58%, 53%, 52% and 75% for energy consumption and 66%, 75%, 62% and 86% for CO₂ emissions, respectively.This research confirms that the success of deploying an EV charging stations infrastructure will be highly dependent on the price the user will have to pay, on the cost of the infrastructure deployed and on the adhesion of the EV users to this kind of infrastructure. These variables are not independent and, consequently, the coordination of public policies and private interest must be promoted in order to reach an optimal solution that does not result in prohibitive costs for the users.     

Commuters’ exposure to PM2.5 and CO2 in metro carriages of Shanghai metro system

Air quality inside transportation carriages has become a public concern. A comprehensive measurement campaign was conducted to examine the commuters’ exposure to PM_2.5 (d_p ⩽ 2.5 μm) and CO₂ in Shanghai metro system under different conditions. The PM_2.5 and CO₂ concentrations inside all the measured metro lines were observed at 84 ± 42 μg/m³ and 1253.1 ± 449.1 ppm, respectively. The factors that determine the in-carriage PM_2.5 and CO₂ concentrations were quantitatively investigated. The metro in-carriage PM_2.5 concentrations were significantly affected by the ventilation systems, out-carriage PM_2.5 concentrations and the passenger numbers. The largest in-carriage PM_2.5 and CO₂ concentrations were observed at 132 μg/m³ and 1855.0 ppm inside the carriages equipped with the oldest ventilation systems. The average PM_2.5 and CO₂ concentrations increased by 24.14% and 9.93% as the metro was driven from underground to overground. The average in-carriage PM_2.5 concentrations increased by 17.19% and CO₂ concentration decreased by 16.97% as the metro was driven from urban to the suburban area. It was found that PM_2.5 concentration is proportional to the on-board passenger number at a ratio of 0.4 μg/m³·passenger. A mass-balance model was developed to estimate the in-carriage PM_2.5 concentration under different driving conditions.     

The value of service reliability

This paper studies the impact of service frequency and reliability on the choice of departure time and the travel cost of transit users. When the user has (α, β, γ) scheduling preferences, we show that the optimal head start decreases with service reliability, as expected. It does not necessarily decrease with service frequency, however. We derive the value of service headway (VoSH) and the value of service reliability (VoSR), which measure the marginal effect on the expected travel cost of a change in the mean and in the standard deviation of headways, respectively. The VoSH and the VoSR complete the value of time and the value of reliability for the economic appraisal of public transit projects by capturing the specific link between headways, waiting times, and congestion. An empirical illustration is provided, which considers two mass transit lines located in the Paris area.     

The cost of convenience; Air pollution and noise on freeway and arterial light rail station platforms in Los Angeles

Light rail transit (LRT) systems constitute one of the most sustainable public transportation modes and transit agencies have increasingly constructed LRT lines along the median of roadways to reduce land acquisition costs and traffic conflicts. Despite these conveniences, few studies have examined the air pollution and noise exposures for passengers on LRT station platforms within freeway or arterial medians. In response, we monitored particle number count (PNC) concentrations and noise levels on 17 station platforms in the Los Angeles metro system in summer 2012 and assessed differences between freeway and arterial platforms. We visited each station on average 7 times for approximately 19 min with two teams carrying a full set of instruments. As expected, impacts were higher on green line platforms in the center of a grade-separated freeway compared to blue line platforms in the center of an arterial due to being in close proximity to greater traffic volumes. Overall, freeway-arterial platform differences were 35,100 versus 20,000 particles/cm³ for PNC and 83 versus 62 dBA for noise. This average noise intensity on green line platforms was four times that on blue line stations. We also found that PNC concentrations were significantly higher at open air monitoring platform positions compared to standing under a shade canopy (about 2000 particles/cm³ higher), but that noise levels were significantly lower at open air positions compared to under canopy positions (about 3.2 dBA lower). Results identify important factors for transport planners to consider when locating and designing in-roadway LRT platforms.     

Maximizing net benefits for conventional and flexible bus services

Transit ridership is usually sensitive to fares, travel times, waiting times, and access times, among other factors. Therefore, the elasticities of demand with respect to such factors should be considered in modeling bus transit services and must be considered when maximizing net benefits (i.e. “system welfare” = consumer surplus + producer surplus) rather just minimizing costs. In this paper welfare is maximized with elastic demand relations for both conventional (fixed route) and flexible-route services in systems with multiple dissimilar regions and periods. As maximum welfare formulations are usually too complex for exact solutions, they have only been used in a few studies focused on conventional transit services. This limitation is overcome here for both conventional and flexible transit services by using a Real Coded Genetic Algorithm to solve such mixed integer nonlinear welfare maximization problems with constraints on capacities and subsidies. The optimized variables include service type, zone sizes, headways and fares. We also determine the maximum welfare threshold between optimized conventional and flexible services) and explore the effects of subsidies. The proposed planning models should be useful in selecting the service type and optimizing other service characteristics based on local geographic characteristics and financial constraints.     

Fueling for contingencies: The hidden cost of unpredictability in the air transportation system

The aviation community is increasing its attention on the concept of predictability when conducting aviation service quality assessments. Reduced fuel consumption and the related cost is one of the various benefits that could be achieved through improved flight predictability. A lack of predictability may cause airline dispatchers to load more fuel onto aircraft before they depart; the flights would then in turn consume extra fuel just to carry excess fuel loaded. In this study, we employ a large dataset with flight-level fuel loading and consumption information from a major US airline. With these data, we estimate the relationship between the amount of loaded fuel and flight predictability performance using a statistical model. The impact of loaded fuel is translated into fuel consumption and, ultimately, fuel cost and environmental impact for US domestic operations. We find that a one-minute increase in the standard deviation of airborne time leads to a 0.88 min increase in loaded contingency fuel and 1.66 min in loaded contingency and alternate fuel. If there were no unpredictability in the aviation system, captured in our model by eliminating standard deviation in flight time, the reduction in the loaded fuel would between 6.12 and 11.28 min per flight. Given a range of fuel prices, this ultimately would translate into cost savings for US domestic airlines on the order of $120–$452 million per year.     

Inferring patterns in the multi-week activity sequences of public transport users

The public transport networks of dense cities such as London serve passengers with widely different travel patterns. In line with the diverse lives of urban dwellers, activities and journeys are combined within days and across days in diverse sequences. From personalized customer information, to improved travel demand models, understanding this type of heterogeneity among transit users is relevant to a number of applications core to public transport agencies’ function. In this study, passenger heterogeneity is investigated based on a longitudinal representation of each user’s multi-week activity sequence derived from smart card data. We propose a methodology leveraging this representation to identify clusters of users with similar activity sequence structure. The methodology is applied to a large sample (n = 33,026) from London’s public transport network, in which each passenger is represented by a continuous 4-week activity sequence. The application reveals 11 clusters, each characterized by a distinct sequence structure. Socio-demographic information available for a small sample of users (n = 1973) is combined to smart card transactions to analyze associations between the identified patterns and demographic attributes including passenger age, occupation, household composition and income, and vehicle ownership. The analysis reveals that significant connections exist between the demographic attributes of users and activity patterns identified exclusively from fare transactions.     

Preliminary investigation of PM1, PM2.5, PM10 and its metal elemental composition in tunnels at a subway station in Shanghai,China

In this study, real-time monitoring campaigns were conducted in two tunnels (Line A and Line B) at a subway station in Shanghai, including temperature, relative humidity, PM₁, PM_2.5 and PM₁₀, in order to understand the climate and PM characteristics in the transportation microenvironment. In addition, collected floor dust particles in the tunnel were analyzed by ICP for their metal elemental composition. Strong correlations occurred between all PM levels and meteorological parameters in the tunnel of Line A (with platform screen doors), in comparison with the weak correlations between such parameters in the tunnel of Line B (without platform screen doors). PM_2.5 and PM₁₀ between peak hours and off-peak hours for both lines presented significant differences (p < 0.05), respectively. Nevertheless, PM₁ showed a different pattern, with p > 0.05 for Line A and p < 0.05 for Line B, respectively. In addition, statistical results concluded that PM had an evident weekly variation for both lines. Friday was the highest day of all particulate matters in monitoring periods for both lines. Ratios of PM₁/PM₁₀ and PM_2.5/PM₁₀ were high when trains were out of service and low when trains were in service. Relative abundance of metal elements detected from floor dust particles proved that floor dust particles in tunnels might be a major source of airborne PM in the subway microenvironments, with Fe as the most abundant metal element, followed by Ca, Al, Mg, Mn, Zn, Cu, Cr, Ni, Pb and Hg.     

Performance-based quality contracts in bus service provision

Institutional reform of the bus sector is a topical discussion item in a number of countries at present. A specific focus is on ensuring a value for money (VM) regime to identify the benefits to society associated with each dollar of subsidy support from government. This paper promotes the position that a performance-based contracting (PBC) regime offers the best prospects of achieving a system-wide VM outcome. It proposes a reward system for bus operators that combines payment for delivering a minimum level of service (MSL), that meets government community service obligations, plus an incentive regime that rewards operators for patronage increases (above MSL patronage levels). The patronage incentive is based on expected user and external benefits deriving from service improvements and patronage increases. Cost benchmarking at relevant best practice levels is proposed as essential to ensure remuneration is based on efficient cost levels. The paper argues that a PBC approach is consistent with maximising social surplus from public transport provision across a geographic area, for any given budget constraint and regulatory imposed minimum service levels. The main alternative, competitive tendering (CT), is argued to be less attractive than PBCs in terms of securing the maximum social surplus to the community, given the total amount of subsidy support available, although CT is an appropriate non-compliance condition. This paper is a companion to Hensher and Houghton [Hensher, D.A., Houghton, E., Performance-based contracts for the bus sector: delivering social and commercial value for money, Trans. Res. B, in press] that details the economic framework and an application of PBCs.     

Paying for harbor maintenance in the US: Options for moving past the Harbor Maintenance Tax

The Harbor Maintenance Tax is a fundamentally flawed maintenance funding mechanism for the critical US port system. Three alternatives were analyzed. User fee rates were estimated for either a national or regional tonnage based fee. Our results indicate that maintenance cost recovering regional fees could vary widely from about 10 cents per tonne to nearly 80 cents per tonne. A national rate would be about 30 cents per tonne. The large regional differences and affects on bulk shippers are likely to make implementing and maintaining cost recovering tonnage based fees infeasible. Two other mechanisms are considered. One possibility is to abolish the HMT without a replacement mechanism. The obvious strength of this approach is its simplicity, the weaknesses is that it is not budget neutral. Another possibility is to increase the federal diesel tax rate. One strength of the approach is the reasonable rate increase required to recover port maintenance costs (estimated between 0.278 and 0.315 cents per liter). An additional strength is that relatively inefficient fuel users will either make the largest share of the additional payments or the freight will shift modes to one that is more efficient. One weakness is that the rate has been unchanged since 1997, this points to the political difficulty involved in passing such a rate increase.