Airport system planning—a U.K. study

There is growing public pressure, from environmentalist groups and others, for the imposition of lorry bans in urban areas. In the U.K. such bans have so far only been imposed as through‐route bans by small towns, such as Windsor, where the overall impact on operators and on road freight costs is limited. The Greater London Council's response to the pressure for lorry bans has been to set up a Committee of Inquiry to examine the impact of an access ban on the heaviest lorries in the London area. The proposed ban would apply to an area enclosed by the M25 orbital motorway within which vehicles above a specified gross tonnage would not be allowed to operate. A number of metropolitan authorities elsewhere in the U.K. are thought to be considering similar restrictions on lorries.

In this paper, the impact of area lorry bans on goods vehicle operating costs is discussed. It is suggested that practices based on “direct distribution” techniques may prove less costly than the operating alternatives that have been evaluated in the past which include public transhipment depots and the exclusive use of small vehicles.     

Sharing costs in Swedish road ownership associations

Usually transport systems, and roads in particular, are viewed as public goods. However, this is not always the case. In Sweden a large part of the road system is privately owned. Most of these privately owned roads are rural roads used by farmers and summer cottage owners, or used for forest transport. These roads are mainly provided by ownership associations.An important difference between public roads and these privately owned roads is that all investments- and maintenance decisions are made by the users themselves, who also have to pay the costs, whereas the usual case is that the owners/providers of a road-system are different agents than the users. Here the question is not how to charge the roads but how to split the costs of the roads among the users in an efficient and “fair” way.The motivation of this paper is the practical problem of how such an ownership association can divide the costs for the road network among the members in an efficient and “fair” way. The problem is treated from a game theoretical point of view, making use of the Shapley value. This means that the problem is associated with a game - a mathematical representation of the conflict situation. The Shapley value is a very important solution concept for cooperative games, like the game in this case. For games corresponding to this specific type of problems, it is shown that the Shapley value has excellent properties, such as beeing an element of the core, and beeing very easy to compute.     

Parking as a loss leader at shopping malls

This paper investigates the pricing of malls in an environment where shoppers choose between a car and public transportation in getting to a suburban mall. The mall implicitly engages in mixed bundling; it sells goods bundled with parking to shoppers who come by car, and only goods to shoppers who come by public transportation. There are external costs of discomfort in public transportation due to crowdedness. Thus, shoppers using public transportation deter each other. The mall internalizes these external costs, much like a policy maker. To do so, it raises the sales price of the good and sets a parking fee less than parking’s marginal cost. Hence, parking is always a loss leader. Surprisingly, this pricing scheme is not necessarily distortionary.     

小件快运中的最短运输时间问题

小件快运经过多年的发展,已经成为公路客运一个新的经济增长点,越来越多的公路客运企业和汽车客运站加入到经营小件快运的行列,小件快运也逐渐由单个企业的独立运营发展到多个企业联合的网络化运营。对中转运输中多条运输线路进行分析,得到最短运输时间线路,从而提高运输效率。     

To kill a real option – Incomplete contracts,real options and PPP

This paper is concerned with the implications of public–private partnership agreements for the execution of expansion options in road infrastructure. More specifically, it analyzes the expansion of an existing two-lane road in Sweden, and examines the real options created by an intermediate type of road with three lanes. Interpreting the results from real option analysis in the light of incomplete contract theory, this paper finds that external congestion costs might necessitate public ownership to ensure a social optimal outcome in public–private partnerships.     

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.     

A systematic analysis of multimodal transport systems with road space distribution and responsive bus service

A smart design of transport systems involves efficient use and allocation of the limited urban road capacity in the multimodal environment. This paper intends to understand the system-wide effect of dividing the road space to the private and public transport modes and how the public transport service provider responds to the space changes. To this end, the bimodal dynamic user equilibrium is formulated for separated road space. The Macroscopic Fundamental Diagram (MFD) model is employed to depict the dynamics of the automobile traffic for its state-dependent feature, its inclusion of hypercongestion, and its advantage of capturing network topology. The delay of a bus trip depends on the running speed which is in turn affected by bus lane capacity and ridership. Within the proposed bimodal framework, the steady-state equilibrium traffic characteristics and the optimal bus fare and service frequency are analytically derived. The counter-intuitive properties of traffic condition, modal split, and behavior of bus operator in the hypercongestion are identified. To understand the interaction between the transport authority (for system benefit maximization) and the bus operator (for its own benefit maximization), we examine how the bus operator responds to space changes and how the system benefit is influenced with the road space allocation. With responsive bus service, the condition, under which expanding bus lane capacity is beneficial to the system as a whole, has been analytically established. Then the model is applied to the dynamic framework where the space allocation changes with varying demand and demand-responsive bus service. We compare the optimal bus services under different economic objectives, evaluate the system performance of the bimodal network, and explore the dynamic space allocation strategy for the sake of social welfare maximization.     

Economies of scale in the road haulage system: Some evidence from the Nigerian economy

Economies of scale are said to exist if the long run average costs decline as output scales increase. The traditional view on economies of scale in the road haulage industry is that costs are constant irrespective of output scales. This view is supported by a number of studies in various countries. However, some recent studies in a number of countries also suggest that scale economies exist in the road haulage industry. This paper reports the results of an empirical investigation in the Nigerian economy. Our analyses indicate that only very weak or no significant overall scale economies exist in the Nigerian trucking industry. The study also throws some light on the minimum optimum scale, and the economies of vehicle size.     

Evaluating the public investment mix in US freight transportation infrastructure

This research empirically evaluates the public sector investment in the US freight transportation infrastructure. In particular, the infrastructures to support the two most comparable modes of freight transportation – highway and intermodal rail – are examined as alternatives for public fund allocation. Indicators for public sector transportation infrastructure investment mix are established based on financial analysis of both private and social costs and benefits, as well as the propensity of freight shippers to utilize such infrastructures. The research results in recommendations for the aggregate allocation of public funds in the US based on these indicators. We find that approximately a quarter of truck freight could be handled at a 25% lower cost if rail infrastructure to support it existed. Because an additional 80% reduction in social costs could be achieved through this modal conversion, the public sector is a critical participant in creating a more efficient transportation infrastructure.     

Commercialising the management and maintenance of trunk roads in the United Kingdom

Public funding of new infrastructure from money raised through taxes or borrowing has been questioned globally in recent years. One alternative solution has been to finance major capital projects through Build, Operate & Transfer (BOT) schemes. In the United Kingdom, the Private Finance Initiative (PFI) has become established as the procurement method of choice for many projects and services in central and local government. It is a natural development of other changes in government administration which have been introduced over the past few years. Projects delivered in this way enable government to become a buyer of services on behalf of the public rather than a direct provider of those services to the public, taking advantage of private sector management skills and resources in their delivery. The PFI has demonstrated its ability to deliver value for money solutions in projects across a range of capital-intensive public services, but the greatest success in delivering projects has been in the transport sector. This paper outlines how the British Government's Highways Agency has restructured and commercialised the management and maintenance of the strategic road network for which it is responsible, and how it has been at the forefront of developing successful privately financed projects. The paper explains the Agency's particular version of BOT – Design, Build, Finance and Operate (DBFO) projects. These projects are delivering new and improved road construction and maintenance, providing better services to users of the country's strategic road network and achieving significant value for money savings for taxpayers.     

Pricing road use: politico-economic and fairness considerations

Road pricing measures are rarely adopted in practice. In this review, we ask why citizens are not more supportive of road pricing. We identify two difficulties. First, the general public is often unwilling to embrace the price system as an allocation mechanism for scarce resources. Second, for politico-economic reasons, any latent support for road pricing schemes rarely translates into actual policy-making. Based on our analysis, we outline components of a road pricing policy that might receive greater electoral support.     

Role of transport in rural development in Africa

Rural Africa is starved of transport services. The transport routes run towards the export enclaves and the coast.

The political, social and developmental rural transport benefits are discussed. Rural transport will help (i) integrate the country and ease its governance; (ii) widen markets; (iii) induce increased agricultural output, through new technologies, reduced transport costs, etc. The transport cost savings should be passed on to rural firms and producers. The paper warns against their accruing only to middlemen — agricultural parastatals inclusive, thereby stifling the benefits to production. This could happen under some forms of pan‐territorial pricing. Negative aspects of road development, e.g. the substitution of local goods by imports, increased migration and noise, are noted.

The place and role of project appraisal in rural road planning is acknowledged. The broad‐based development packages approach associated with Integrated Rural Development Projects has, despite its attractions, some pitfalls. It favours well established villages and ignores distribution benefits within villages.

Project appraisal can be used to justify socially uneconomic transport developments. However, rural road investment projects with immediate negative returns are unlikely to be funded. Given clear priorities, short of elaborate cost/benefit analysis, obvious road investments choices can be made by the local community. Greater public accountability of transport planners and peoples’ participation in determining rural transport needs and priorities is emphasized. Increased rural road maintenance especially through self‐help schemes and increased use of traditional modes of transport, e.g. walking, animal and water transport, is recommended.     

Electronic toll collection

Electronic toll collection (ETC) offers the opportunity for toll facility operators to supply a substantially greater amount of traffic capacity than any other currently available form of toll collection. The current interest in ETC derives from the proposals in a number of countries to introduce urban tollways, using the net toll receipts to recover the cost of the capital investment plus an acceptable profit margin for those taking the financial risk. This paper outlines the main economic, technical, and administrative features of ETC in the context of toll charges that are determined by the rules of capital cost recovery. Electronic road pricing (ERP) as a mechanism for implementing full road user charging (in line with economic principles of efficient use of road space) is not the topic of this paper, given the predominantly financial basis of setting tolls for private roads. The underlying rationale for toolroads in the political climate of most nations is not suggestive of any plan to revise the pricing regime in line with ERP upon reversion of the infrastructure to the public sector when the capital costs are repaid. It is assumed that the tollroads will revert to free roads in line with the existing road system, and that road users will continue to contribute towards the costs of maintaining the road system by the traditional pricing mechanisms (i.e. fuel taxes, vehicle registration, fees, etc.).     

Transport infrastructure costs in low-carbon pathways

The rate and manner in which transport infrastructure (e.g. roads, railway tracks, airports) is deployed, will play an important role in determining energy demand, greenhouse gas emissions and the economic impact of the transport sector. This paper describes an exercise where the costs of infrastructure deployment for the transport sector have been incorporated into the IMACLIM-R Global E3 IAM. In addition to adding these costs, the modelling of the criteria for the deployment of infrastructure for roads has also been improved. It is found that this model recalibration results in a more accurate baseline as compared to historically observed data (2001–2013) for investments in energy demand, road infrastructure, and passenger kilometers travelled. Regarding macroeconomic effects, it is found that the imposition of a carbon emission trajectory to 2100 cause GDP to decrease relative to the newly calibrated baseline – this is a standard IAM result. However, when the deployment of infrastructure for roads and air travel is further constrained, the GDP loss is less than with a fixed carbon emission trajectory only. This is because early restriction of infrastructure for roads and air travel allows an expansion of public transport infrastructure which is adequate to meet low-carbon transport service demand whereas when less public transport infrastructure is available, more costly mitigation investments must be made in other parts of the economy. This suggests that restricting infrastructure deployment as a complementary policy to carbon pricing, lowers the cost of mitigation.     

Systematic budget allocation for transportation construction projects: a case in Taiwan

It has always been a daunting task for any government to allocate the budgets for public infrastructure effectively so as to maximize the benefits of the limited resources. The most important contribution this paper makes is to conduct an empirical study of the budget allocations of the six region-based road system construction plans in northern Taiwan using the transportation budget allocation model devised in this paper. After reviewing the results, the experts consulted while preparing this paper believe that these results are both objective and able to meet the actual requirements. The competent authority also believes that they are better than those obtained using their original approach. In particular, the construction of this model takes into consideration the highest-level supervisors. To a certain degree, it caters for the practices in budget allocation so that the managers are able to assume the authority corresponding to their responsibility concerning management efficiency and final outcomes.     

Transaction Costs in Transport Public–Private Partnerships: Comparing Procurement Procedures

Abstract

In recent years, concern has grown over good practices in the procurement process in public–private partnerships (PPPs). The consensus view is that PPPs are prone to higher transaction costs than traditional public provision. In this paper, we contrast the hypothesis that transaction costs in transport PPPs depend, to a large extent, on the procurement mechanism used in each case, comparing the Negotiated and the Open procedures. Given that PPPs may offer considerable benefits and significant savings over the entire life cycle of the project, it is essential for PPPs to minimize those costs that undermine efficiency gains and that deter private involvement. The quantitative analysis undertaken in this paper highlights that there is room for important savings in the tendering of PPP transport infrastructure projects, using an Open procedure.     

Suburbanization of jobs and the journey to work: A submarket analysis of commuting in the San Francisco bay area

Inrecent years, a debate has brewed over whether the decentralization of employment has been beneficial from a regional standpoint. In this article, we focus on one aspect of the debate: how the relocation of office workers from a downtown to a suburban location affects commuting patterns and mode choice. From a survey of 320 former downtown San Francisco workers who now work in the suburbs, we found that the average distance traveled remained essentially unchanged and that the average commuting speed increased. The most dramatic change, however, was the switch from public transit to drive-alone commuting. In the aggregate, we estimate that the change in job location was associated with nearly a threefold increase in vehicle miles traveled to work. While from a personal standpoint, employees seemed better off since they got to work faster and more comfortably, from a larger social and environmental perspective, the costs could be significant. More detailed analyses of commuter submarkets revealed that the transportation impacts vary considerably depending on whether the original residence was in the suburbs or central city and whether relocated workers had moved their residences in recent years. In general, those who remained in San Francisco and became reverse commuters were worst off whereas those who moved their residences out of the city were much better off in terms of job access. The article concludes that road pricing would be the best way to force motorists to internalize the external costs of increased drive-alone commuting. Second-best options would be to introduce development impact fees or employer-based trip reduction regulations.     

Integrated analysis of GHGs and public health damage mitigation for developing urban road transportation strategies

This study attempts to present an urban road transportation strategy focusing on the mitigation of both GHGs emission and public health damage, taking Xiamen City as a case study. We developed a Public Health and GHGs Emission model to estimate the impacts of direct energy-consumption-related GHGs emissions and public health damage in Xiamen’s road transportation strategies from 2008 to 2025, considering the environmental benefits and economic costs. Two scenarios were designed to describe future transportation strategies for Xiamen City, and mitigation potentials for both GHGs emission and public health costs were estimated from 2008 to 2025 under a series of options. The results show that enacting controls on private vehicles would be most effective to GHGs mitigation, while enacting controls on government and rental vehicles would contribute the most to NO₂ and PM2.5 reductions. Compared with the Business as Usual scenario, the Integrated scenario would achieve about a 68% energy consumption reduction and save 0.23 billion yuan (95% CI: 0.16, 0.32) in health costs in 2025. It is clear that integrated and advisable strategies need to mitigate the adverse impacts of urban road vehicles on GHGs emissions and public health and economic costs, particularly in regions of rapid urbanization.     

Safety outcomes of internationalization of domestic road haulage: a review of the literature

Abstract

The European Union (EU) promotes gradual lifting of restrictions on foreign hauliers involved in domestic road transport of goods (cabotage), and a major deregulation was scheduled in 2014. Due to complaints from several member states facing competition from new EU-countries with lower labour costs, this process was postponed until 2015. An important aspect related to such a deregulatory reform includes potential consequences for transport safety and accident risk factors. The main aims of the current paper are therefore to examine the potential transport safety outcomes of increasing internationalization of domestic road haulage, and to examine potential accident risk factors of foreign hauliers. This is done by reviewing the research literature. This paper shows that the heavy goods vehicle (HGV) accident risk varies with a factor of up to 10 in European countries, and that the accident risk of foreign HGVs is approximately two times higher than that of domestic HGVs in the studied European countries. The paper points to several risk factors and concludes that better data on accident risk and risk factors must be gathered in order to enable European authorities to correctly analyse and respond to this important traffic safety challenge.