The effect of financial constraints on the optimal design of public transport services

Recent experience with the design of bus services in Santiago, Chile, seems to confirm Jansson's (1980) assertion regarding observed planned bus frequency and size being too low and too large, respectively. We offer an explanation based upon the relation between cost coverage, pricing and optimal design variables. We recall that average social cost decreases with patronage, which generates an optimal monetary fare below the average operators' cost, inducing an optimal subsidy. Then we compare optimal frequency and bus size—those that minimize total social costs—with those that minimize operators' costs only. We show that an active constraint on operators' expenses is equivalent to diminish the value of users' time in the optimal design problem. Inserting this property back in the optimal pricing scheme, we conclude that a self-financial constraint, if active, always provokes an inferior solution, a smaller frequency and, under some circumstances, larger than optimal buses.

Drivers of customer satisfaction with public transport services

This paper aims to improve the understanding of the drivers of customer satisfaction with public transport (PT). The methodology provides a relevant contribution to the previous studies since it highlights the complex interaction between the level and composition of satisfaction, negative social safety experiences (NSSEs), urban settings, and the PT mode used.Overall, PT users see the service attributes on-time performance, travel speed, and service frequency as the most important, followed by personnel/driver behaviour and vehicle tidiness. A generic policy aimed at achieving these attributes may yield favourable results with respect to satisfaction.Further, we demonstrate the influence of differences in customer characteristics on satisfaction. A policy aimed at increasing the service frequency and putting new vehicles into operation will probably lead specifically to more satisfied older people (>65), passengers travelling by regional train, and people living in dense urban areas.These findings may be of help to PTAs intending to exert an influence on the actions of PT operators, for instance by using them as a measuring rod in incentive contracts.     

The impact of “free” public transport: The case of Brussels

Public transport subsidies play an important role in the present Belgian mobility policy. The introduction of “free” bus transport in Hasselt in 1997 was an important event. Later, the Flemish government in cooperation with the regional public transport company elaborated the so-called “third-payer system” for target groups. The price of public transport is not paid by the user or the provider, but partly or completely by a “third party”. In how far these measures contribute to a more sustainable mobility system has caused much debate.In the academic year 2003–2004, a “free public transport” initiative was introduced for the students of Flemish colleges and universities in Brussels. These students had the opportunity to obtain a refunded annual season ticket on Brussels public transport. Brussels was selected for the case study, because in the same city there is a group of students that benefits from the measure, and another group (students from French speaking universities and colleges) that does not. In order to examine the effects of this measure, we conducted a survey among the students to examine their present travel behaviour (number of trips, motives, modal choice …) and the changes with the travel behaviour of the previous year. In addition we compare the current travel behaviour between the students benefiting from the measure, and those who do not.     

Modelling the provision of transport with planned or market‐determined public transport services

Implications of the difference between planned and market‐determined public transport services for the modelling of the transport system and its use are examined. In the former case, the task for government seeking to optimise performance of the transport system has a standard bi‐level form, but in the latter case, the lower‐level problem in the bi‐level formulation is to determine mutually consistent solutions to a pair of optimisation problems. The relevance of the mutually consistent solution in this context is contrasted with its sometimes misleading role in the context of optimisation of urban traffic signal control.     

Traveler expectations and willingness-to-pay for Web-enabled public transport information services

Web-enabled public transport (PT) information systems that combine information on different PT modes, different PT companies and different geographical regions, can be built to improve the accessibility of public transportation. As the potential list of information aspects that can be included in such systems is long, it is interesting to examine the relative importance of different information aspects. This study reports the relative importance travelers attach to a range of information aspects. In addition, the willingness to pay for this information was examined by conducting a stated choice experiment, in which price was traded off against groupings of information aspects. The results of the study indicate that even though public transport travel information is highly price sensitive, travelers are willing to pay for it if the information systems provide additional functionality such as real-time information and, to a lesser extent, additional trip planning options.     

津城公交"变身"之始

随着2008年奥运会的临近,走过百年历程的天津公交,迫切感受到提升公交质量的必要。作为奥运协办城市,该市提升公交车档次的计划已经纳入议事日程,快速公交1路的开通就是一个重要标志,而中通客车无疑是首轮竞标的最大赢家。     

Assessing the financial and social costs of public transport in differing operating environments and with endogenous demand

This paper uses a previously developed spreadsheet cost model which simulates public transport modes operated on a 12-km route to analyse the total costs of different passenger demand levels. The previous cost model was a very powerful tool to estimate the social and operator costs for different public transport technologies. However, as the model is strategic, some basic assumptions were made which are relaxed in this paper. First, the speed-flow equation in the original spreadsheet model assumes that speed decreases according to the ratio of the current frequency and the lane capacity which is based on the safety headway without taking into account passenger boardings. However, this may vary in different operating environments. Therefore, the speed-flow equation is improved by moving from a linear equation to a piecewise equation that considers the features of different operating environments. Second, the model assumes that supply is sufficient to meet demand. However, when the level of demand is high for the lower-capacity public transport technologies, passengers may find the incoming vehicle full and therefore, they have to wait more than one service interval. This paper applies queuing theory to investigate the probability of having to wait longer than the expected service headways which will affect the average passenger waiting time. The extra waiting time for each passenger is calculated and applied in the spreadsheet cost model. Third, the original model assumed that demand was externally fixed (exogenous). To evaluate the differences after applying these equations, endogenous demand rather than exogenous demand will be investigated by using the elasticities for passenger waiting time and journey time.     

Analysis of the efficiency of local government services delivery. An application to urban public transport

In recent years in the European Union (EU), we have witnessed an externalization process of the provision of local government services, in order to separate the political responsibility and the direct delivery of the service. The reasons that justify this process are focused on the belief that the private sector is more efficient in carrying out economic activities, the pressure to reduce the public deficit and the public debt, the search for management systems that bypass public administration procedures, and the increase of control on local governments in auditing and accountability issues.The objective of this paper is to compare the efficiency of public and private sectors in the provision of urban transportation services. This paper shows the results of an empirical study commissioned by the Regional Audit Office of Catalonia (Spain), in order to evaluate the efficiency with which urban transportation services are delivered in the most important cities of this region. This efficiency study has been carried out using the Data Envelopment Analysis (DEA) model, multiple linear regression and logit and cluster analysis. The results allow us to conclude that, in the cities studied, exogenous factors are not relevant and the private management of urban transport service is not more efficient than public management.     

The organization of public transport in Denmark

The sharp contrast between the public transportation needs of Greater Copenhagen and provincial Denmark has led to significant differences in policy and organizational structure for public transport in the two regions. Outside Copenhagen the period 1965–1975 saw a rapid decline in rural public transport supply and a rise in special services (school buses, etc.). A 1978 law requiring county councils to prepare comprehensive regional transport plans reversed this trend. Most counties now have economically responsible transport corporations which contract with public and private operators for service. School routes have been opened, train and bus schedules have been coordinated and zonal fare systems have been introduced. In Greater Copenhagen urban sprawl has promoted a gradual public take-over of most transport services in the region, culminating in an almost all-pervasive “public works” type of transport corporation under regional authority in the late 1970s.     

The demand for public transport. part II. supply and demand factors of public transport

Abstract

This two‐part article, concerned with the way public transport ridership is affected by the various relevant factors, is based on the Executive Summary of The Demand for Public Transport (Webster and Bly 1980), the report of the TRRL‐sponsored International Collaborative Study on Factors Affecting Public Transport Patronage. Part I of the article, which was concerned with the social and economic conditions in which public transport operates, showed the importance of the background factors such as income, car ownership and land use on public transport usage: it also indicated how the longer‐term impacts of the more direct demand factors (fares, service levels) often show themselves in changes in car ownership levels, activity patterns (i.e. where people live, work, shop, socialize, etc) and land‐use development.

Part II reviews the current state of knowledge on the effects of changes in fare levels and quality of service and of the introduction of various traffic and transport measures (traffic restraint, bus priority, etc): it outlines current methodology on costing public transport services and draws the supply and demand sides together in a consideration of particular strategies which are at the disposal of the operator, the planner and the policy maker.     

The effects of public transport subsidies on demand and supply

The results of statistical analysis of cross-sectional and longitudinal public transport operating statistics from 16 countries aimed at identifying the relationships between subsidy, on the one hand, and fares, service, passengers, unit costs and output per employee on the other, are reported. This study updates earlier work carried out in 1979 for the European Conference of Ministers of Transport, and uses a greatly expanded data set covering 117 individual cities in 11 countries, and aggregate national data from 16 countries, over the period 1965–1982. The statistical correlations identified between year-on-year changes in subsidy and changes in a wide range of operating indicators show that the subsidy has reduced fares and increased the amount of service operated, and each extra 1% of cost covered by subsidy probably attracts a 0.2 to 0.4% increase in passengers. However, the study also finds highly significant relationships between increases in subsidy, on the one hand, and increases in unit costs and wages and reductions in output per employee, on the other. It seems that as much as one half of subsidy has been consumed by higher costs and time-lagged regressions suggest that, in part, the increases in unit cost tend to follow subsidy rather than precede it, giving some cause for concern that the uses of subsidy are not being controlled as tightly as they might.     

The impact of metro services on housing prices: a case study from Beijing

Assessment of the impact of metro systems on housing prices is important for financing transport infrastructure via value capture. This paper provides evidence for this relationship, focusing particularly on the effects of metro services, and uses the large city of Beijing, China, as a case study. A spatial error model was applied to 2835 samples of online property sales data obtained in January 2016. Three transport service indicators associated with metro transfers and waiting times were explored: (1) metro headway, (2) access to different metro lines and (3) accessibility to employment opportunities. The results show that areas with more employment opportunities via public transit have higher housing prices than other areas. Shorter metro headways are positively related to housing prices near stations. Housing prices for neighborhoods having access to more than one metro line within 800 m-buffer area are higher than those without access to metro lines, controlling for number of accessible jobs within 30 min. This study sheds light on the importance of metro services on housing prices. It has implications for further research and for the planning policies of metro-dependent cities.

     

Direction dependent prices in public transport: A good idea? The back haul pricing problem for a monopolistic public transport firm

Markets for transport are often characterised by unequal demand in both directions: every morning during peak hours the trains are crowded while moving towards the direction of large cities, whereas they may be almost empty in the other direction. In this paper we discuss the implications of these imbalances for price setting of transport firms. From the viewpoint of economic theory, two regimes can be distinguished: one where – owing to price discrimination – the flows are equal, and one where unequal flows are the result. Special attention is paid to the case where the transport firm does not apply price discrimination, as is the case with most railway firms in Europe. We find that in the case of substantial joint costs, the introduction of price discrimination not only leads to an increase of profits, but also to positive effects on consumer surplus. This result differs from the standard result in the literature on industrial economics. The standard result purports that with linear demand functions price discrimination has a negative impact on the welfare of the average consumer and that this negative impact dominates the positive effect on profits of the producer.     

Effects of subsidies on urban public transport

Because of a general trend of increasing costs of public transport operations and higher subsidies (in some cases accompanied by falling patronage) the European Conference of Ministers of Transport (ECMT) initiated a study of subsidisation and sought the help of the Transport and Road Research Laboratory. The study, in which eighteen countries took part, was concerned with the aims of subsidy, the sources and conditions attached to subsidy, trends in subsidies and the effect of subsidies on patronage, fares, service levels, costs and productivity.The qualitative information concerning the aims of subsidy was analysed in relation to the likelihood of achieving such aims, taking into account current experience of attempts to switch car drivers to public transport. The quantitative information on trends referred to public transport stage services covering where possible the entire country and relating to the period 1965–77; these data were supplemented by data from 59 cities in different parts of the world collected in the course of a TRRL-sponsored study of travel demand factors. The relationship between patronage and service levels, and between subsidies and various operating factors, including costs and productivity, were studied using regression analysis and the general conclusion reached was that although the major part of the subsidy paid was reflected by reduced fares and improved service levels there may well have been some leakage into higher unit costs and manning levels.     

Towards a general microeconomic model for the operation of public transport

After Vickrey's view, Mohring constructed a microeconomic model to determine the optimal frequency of buses serving a corridor with fixed demand. The main result was that frequency should be proportional to the square root of demand. The role of users' costs was shown to be crucial. This approach has evolved over the past decades, improving our understanding of public transport operations. This paper describes and analyses the evolution of microeconomic models for the analysis of public transport services with parametric demand, leading towards a more comprehensive one. An in-depth review of all the contributions in the academic literature is presented, emphasizing both the treatment of variables and the form of the results mostly in terms of frequency and fleet size. A series of partial new elements is also identified. An extension of Jansson's model for a single period is developed analytically, including the effect of vehicle size on operating costs and the influence of crowding on the value of time. Numerical simulations are used for comparison and analysis. A general model is then proposed where bus operations are optimized accounting for a number of simultaneous relations. Finally, the different models are discussed and compared.     

Local environmental impact assessment as decision support for the introduction of electromobility in urban public transport systems

The urban transport sector offers a noteworthy potential for the reduction of national greenhouse gas emissions as well as local pollutant emissions such as nitrogen oxides and particulate matter if electric drive systems are increasingly used. Owing to the fact that electric busses are still in the development phase, higher investment costs have evolved for public transport providers. Hence, decision making about where to introduce electric bus lines is mainly characterized by economic as well as technological considerations. The integration of local or regional ecological aspects is often neglected. An interdisciplinary approach was applied to the bus network of an urban public transport provider. By combining spatial-analytical techniques and statistical methods, the local environmental relief potential of electric busses has been evaluated. The results show that due to their specific line characteristics and the frequency of service, two bus lines out of 28 are particularly suitable for the introduction of electromobility in Dresden, Germany. The presented scientific work contributes to the extension of environmental assessments and decision making tools by including the spatial dimension of environmental impacts. It increases the practical relevance, especially for management decisions of political and entrepreneurial stakeholders by providing a sensible decision basis for local or regional infrastructure projects.     

The Gini index of demand imbalances in public transport

Transportation - The paper studies a general bidirectional public transport line along which demand varies by line section. The length of line sections also varies, and therefore their contribution...     

The formulation of marketing strategy in urban public transport

This paper prescribes the parameters of marketing strategy formulation in the context of urban public transport and emphasises in particular the usefulness of the marketing mix and segmentation concepts. A marketing mix comprising the two primary dimensions of service attributes and promotion is advocated, the service attributes to include price, in-vehicle time, mesh density, frequency, reliability and comfort. Three primary trip purpose segments are identified viz. journey-to-work, shopping, and leisure/social trip segments, but these may be expanded into a twenty-four cell matrix once origin-destination and car access factors are included. The sensitivity of demand in these segments is examined mostly by reference to demonstration and experimental project data drawn from the United States and the United Kingdom. For the three primary trip purpose segments demand elasticity is shown to be greater for non-price than for price features; for both price and non-price service features elasticity is shown to be a function of journey purpose being least elastic for journey-to-work trips and most elastic for social/leisure trips. The role of promotion is examined and its importance to the successful marketing of public transport clearly demonstrated.This paper is a condensation of material appearing in The Management of Urban Public Transport: a marketing approach, by P. J. Hovell, W. H. Jones, and A. J. Moran, to be published by Saxon House and Lexington Books in 1975.     

Meta-analysis of public transport demand

The present study uses meta-regression in order to explain the wide variation in elasticity estimates obtained in previous demand studies, and provide summaries of several bus demand elasticities.One important finding as to the price elasticity is that the often cited rule of thumb of −0.3 holds good if quality of service represented by vehicle-kilometres is treated as an exogenous variable, but not when it is treated as endogenous.Based on the results it is recommended that demand models should include car ownership, price of petrol, own price, income and some measure of service among the explanatory variables and that the service variable should be treated as endogenous.In previous meta-studies in this field focus has been on own price elasticity only while this study also includes elasticities with respect to, level of service, income, price of petrol and car ownership. The short run for the US are found to be −0.59, 1.05, −0.62, 0.4 and −1.48 respectively.